Transcript Document

Customer Relationship Management
Chapter 20
Prepared by
Deborah Baker
Texas Christian University
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
1
Learning Objectives
1. Define customer relationship management.
2. Explain how to establish customer
relationships within the organization.
3. Explain how to establish and manage
interactions with the current customer
base.
4. Outline the process of acquiring and
capturing customer data.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
2
Learning Objectives (continued)
5. Describe the use of technology to store
and integrate customer data.
6. Describe how to analyze data for
profitable and unprofitable segments.
7. Explain the process of leveraging and
disseminating customer information
throughout the organization.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
3
1
Learning Objective
On Line
http://www.studentadvantage.com
Define customer
relationship
management.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
4
1
Customer Relationship Management
A company-wide business
strategy designed to
optimize profitability,
revenue, and customer
satisfaction by focusing on
highly defined and precise
customer groups.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
5
Accomplishing Customer
Relationship Management
1
Organize the company around
customer segments
Encourage and track customer interaction
with the company
Foster customer-satisfying behaviors
Link all processes of the company from its
customers through its suppliers
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
6
Customer Relationship
Management Cycle
1
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
7
1
On Line
http://www.ptcruiser.com
Key Assumptions in
Implementing CRM
 Customers take center
stage in any organization.
 Business must focus on the day-to-day
management of the customer
relationship across all points of
customer contact.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
8
2
Learning Objective
Explain how to
establish customer
relationships within
the organization.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
9
2
Customer-Centric Focus
The company customizes
its product and service
offering based on data
generated through
interactions between the
customer and the company.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
10
2
Establishing Customer Relationships
 Creates customized products and services
based on data generated through
interactions
 Builds its system on what satisfies and
retains valuable customers
 Establishes relationships with customers
similar to those of artisans of bygone
years
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
11
2
CRM and One-to-One Marketing
CRM
One-to-One Marketing

Company-wide
process that focuses
on learning, managing
customer knowledge,
and empowerment.
 Individualized marketing
method that utilizes
customer information to
build a long-term,
personalized, and
profitable relationship
with each customer.

Broad and Systemic
 Focused and
Individualized
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
12
Learning
in a CRM Environment
2
An informal process of
collecting customer data
through customer
comments and feedback on
product or service
performance.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
13
Knowledge Management
in a CRM Environment
2
The process by which
learned information from
customers is centralized
and shared in order to
enhance the relationship
between customers
and the organization.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
14
2
Knowledge Management
Experiential
Observations
Comments
Collected
Information
Includes:
Learned Lessons
Conclusions
Qualitative Facts
about the Customer
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
15
Empowerment
in a CRM Environment
2
Delegation of authority to
solve customers’ problems
quickly—usually by the
first person that the
customer notifies regarding
the problem.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
16
2
Interaction
The point at which a
customer and a company
representative exchange
information and develop
learning relationships.
The customer, not the
organization, defines the terms
of the interaction.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
17
3
Learning Objective
Explain how to
establish and
manage interactions
with the current
customer base.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
18
3
Customer-Centric Approach for
Managing Customer Interactions
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
19
3
Touch Points in a CRM System
All possible areas of a
business where customers
communicate with that
business.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
20
3
Touch Points in a CRM System
Customer registration
for a particular service
Completion of
warranty card
Communication with
customer service
External
Touch Points
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Customer discussions with
sales, delivery, and installers
21
3
Touch Points in a CRM System
Marketing Research,
for developing profiles
Production,
for analyzing problems
Accounting,
for establishing cost-control models
Internal
Touch Points
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Knowledge Center (call center)
22
3
Interactions for
Customer-Centric Organizations
Web-Based
Interactions
New and Unique
Interactions to
Obtain Customer
Data
Point-of-Sale
Interactions
Transaction-Based
Interactions
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
23
3
On Line
http://www.kroger.com
Interactions for
Customer-Centric Organizations
Web-Based
Interaction
Communications between
customers and organizations
using Web vehicles.
Point-of-Sale
Interactions
Communications between
customers and organizations that
occur at the point of sale,
normally in a store.
TransactionBased
Interactions
The exchange of information that
occurs between the company and
the company at the point of the
actual transaction.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
24
4
Learning Objective
Outline the process
of acquiring and
capturing customer
data.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
25
Guidelines for Data Use in a
CRM System
4
1. Customers take center
stage in the organization.
2. Customer information must be centralized.
3. Information is retained over the customer’s
life span.
4. Information must define the products and
services, the customer’s product
preferences, and contact methods for
interaction.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
26
Guidelines for Data Use in a
CRM System
4
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
27
4
Channels for Acquiring Data
A medium of
communication through
which the customer
interacts with a business at
an external touch point; the
traditional approach for
acquiring information
from customers.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
28
4
Channels for Acquiring Data
Store Visits
Conversations with Salespeople
Interactions via the Web
Traditional Phone Conversations
Wireless Communications
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
29
4
Transaction
On Line
http://www.geico.com
An interaction between a
company and a customer
involving an exchange of
information as well as an
exchange of products or
services.
Contact Information
Current Relationship
with Organization
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
30
4
Product and Service
Various Brands
Package Types
Time to Consume
Price Paid
Key Customer
Data
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Preferred Transaction Type
31
5
Learning Objective
Describe the use of
technology to store
and integrate
customer data.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
32
5
Data Warehouse
A central repository for data
from various functional areas
of the organization that are
stored and inventoried on a
centralized computer system
so that the information can be
shared across all functional
departments of the business.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
33
5
On Line
http://www.aa.com
Operational Components of
Data Warehouse
Information-Access
Component
Provides for classification of
customer data and broad
access to data
System-Management
Component
Defines and interprets data
in a longitudinal manner
Customer-Initiated
Component
Stores and categories data
initiated by the customer
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
34
6
Learning Objective
Describe how to
analyze data for
profitable and
unprofitable
segments.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
35
6
Data Mining
A data analysis procedure
that identifies significant
patterns of variables and
characteristics that pertain to
particular customers or
customer groups.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
36
6
Capabilities of Data Mining
 Automated prediction of trends and
behaviors
 Automated discovery of previously
unknown patterns
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
37
6
Modeling
The act of building a model in
a situation where the answer
is know and then applying the
model to another situation
where the answer is unknown.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
38
Critical Factors for Success
with Data Mining
6
A large, well-integrated data warehouse
A well-defined understanding of how the end
result of the activities will be used and
leveraged throughout the organization
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
39
7
Learning Objective
Explain the process
of leveraging and
disseminating
customer
information
throughout the
organization.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
40
7
On Line
http://www.americanexpress.com
Leveraging and Disseminating
Customer Information
Data mining leverages knowledge to
identify the most profitable customers
Marketing strategies are designed to
penetrate these segments
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
41
7
Campaign Management
Developing product or service
offerings customized for the
appropriate customer
segment and then pricing and
communicating these
offerings for the purpose of
enhancing customer
relationships.
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
42
7
Campaign Management
On Line
http://www.kidsdadsmoms.com
Developing customized
offerings for appropriate segment
Campaign
Management
Achieves
Personalization
by:
Pricing these offerings
attractively
Communicating offerings in a way
that enhances customer relationships
Chap. 20 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
43