Transcript 1.18 MB - Nelson Education

18
CRM Marketing
Canadian Adaptation prepared by
Don Hill, Langara College
Chapter 18
Copyright © 2009 by Nelson Education, Ltd. All rights reserved.
1
Learning Objectives
1. Define customer relationship management
2. Explain how to identify customer
relationships with the organization
3. Understand the interactions with the current
customer base
Chapter 18
Copyright © 2009 by Nelson Education, Ltd. All rights reserved.
2
Learning Objectives
4. Outline the process of capturing customer
data
5. Describe the use of technology to store and
integrate customer data
6. Describe how to identify the best customers
7. Explain the process of leveraging customer
information throughout the organization
Chapter 18
Copyright © 2009 by Nelson Education, Ltd. All rights reserved.
3
Learning Objective
1
Define customer
relationship management
On Line
www.intrawest.com
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4
CRM?
Customer Relationship
Management (CRM)
A company-wide business strategy
designed to optimize profitability,
revenue, and customer satisfaction by
focusing on highly defined and precise
customer groups.
1
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5
What is CRM?
Organizing Around
Segments
Tracking Interactions
Fostering Satisfaction
Linking Processes
Special Promotions
Targeting
Markets and Individuals
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6
CRM Versus Mass Marketing
1
Traditional
Mass
Marketing
“Shotgun” Approach
CRM
“Rifle” Approach
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7
The CRM Cycle
On Line
www.crmdownload.com
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8
Successful CRM
Key CRM Success Factors :
1. Customers take centre stage in any organization
2. Business must manage the customer relationship
across all contact points throughout the organization
1
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Learning Objective
2
2
Explain how to identify
customer relationships with
the organization
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10
Customer-centric
Customer-centric
Under this philosophy, the company
customizes its products and service
offering based on data generated through
interactions between the customer and
the company
2
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11
CRM Focus
Learning
Knowledge
Empowerment
Interaction
2
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12
CRM
2
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13
Learning Objective
3
3
Understand interactions
with the current customer
base
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14
Touch Point
Touch Point
All possible areas of a business
where customers communicate
with that business
3
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Customer Centric Approach
On Line
www.the-cma.org
3
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16
Points of Interaction
3
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Learning Objective
4
4
Outline the process of
capturing customer data.
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Transaction-based Interactions
Transaction-based Interactions
The exchange of information that
occurs between the customer and the
company at the point of the actual
transaction.
4
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19
Process of Capturing Company Data
4
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20
Concerns with CRM
Privacy issue;
Who owns the data collected?
On Line
www.tdcanadatrust.com
4
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21
Learning Objective
5
5
Describe the use of
technology to store and
integrate customer data
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22
Store and Integrate Customer Data
5
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23
Database Enhancement
Database Enhancement
Purchasing information on customers
or prospects to better describe their
needs or determine how responsive
they might be to marketing programs.
5
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Learning Objective
6
6
Describe how to identify
the best customers
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Data Mining
Data Mining
A data analysis procedure that
identifies significant patterns of
variables and characteristics that
pertain to particular customers or
customer groups.
6
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How to identify the Best Customers
Video Click!
6
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Customer Segmentation
Video Click!
BEST
6
AVERAGE
POOR
High profit
Avg. profit
Low profit
Spent > $500
Spent $400
Spent < $100
Multiple
purchases
Lifetime Value
= high
Two purchases
One purchase
Lifetime Value
= average
Lifetime Value
= low
Annual sales =
$2.4 M
Annual sales =
$1.1 M
Annual sales =
$800, 000
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Data Manipulation Techniques
Recency-Frequency-Monetary (RFM)
Lifetime value Analysis (LTV)
Predictive Modelling
7
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Learning Objective
7
7
Explain the process of leveraging
customer information throughout
the organization
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30
Leverage Customer Information
Data Mining
Identify most profitable
customers and prospects
Design tailored
marketing strategies
7
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On Line
www.whiskas.ca
31
Common CRM Applications
Video Click!
7
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Campaign Management
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.
7
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Privacy Concerns
Invasion of privacy
Issue of Trust
Reluctant to provide
Personal Information
Vulnerability of Data
Hard Drive theft
7
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On Line
www.kidsdadsmoms.com
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