Transcript Title of the course Title of the lecture on two lines if required

Electronic Commerce
Customer relationship management
John Wordsworth
Department of Computer Science
The University of Reading
[email protected].
Room 129, Ext 6544
April 2002
3CSG1
CRM 1
Lecture objectives
Understand what is meant by customer relationship
management in and e-business environment.
Review the four-level e-business maturity model.
Review the information sources and activities for each
level.
April 2002
3CSG1
CRM 2
What is CRM?
An integrated approach to marketing, sales, and service
which applies the understanding of customer preferences
and behaviours to deliver personalised products and
services, and to manage the lifetime value of customers.
CRM contributes to
enhanced market presence
increased customer and product profitability
improved customer satisfaction
April 2002
3CSG1
CRM 3
Business effectiveness
Marketing campaigns, advertising, promotions:
what promotions are attracting and converting
visitors?
Service problems and resolutions:
how is customer service affecting Web customer
loyalty?
Sales, orders, and products:
how is the structure of my site affecting sales?
Customers: individuals, households, businesses:
what segments are most likely to buy online?
April 2002
3CSG1
CRM 4
Who are the customers?
Demographics
Lifestyle
Purchase behaviour
intended (77%)
browsing (14%)
impulse (6%)
other (3%)
how many sites?
Product profile
April 2002
3CSG1
CRM 5
E-business maturity model
Stage 1: Broadcast
perform Web site activity analysis
Stage 2: Interact
perform customer analysis
Stage 3: Transact
perform customer sales analysis
Stage 4: Integrate
perform integrated customer analysis
April 2002
3CSG1
CRM 6
Web site activity analysis
Use the Web server logs to determine:
popular and unpopular pages
page stickiness
popular navigation routes
trends over time
Results:
streamline the Web site
identify the customers
understand the referrers
April 2002
3CSG1
CRM 7
Customer analysis
Use cookies and registration files to determine:
customer demographics
trends in customer behaviour (browse time)
navigation paths of individual customers
customer growth rate
Results:
streamline the Web site
identify propensity to buy
increase and personalise service
turn browsers into buyers
April 2002
3CSG1
CRM 8
Customer sales analysis
Use cookies, registration files, and order data to determine:
customers and the products they purchase
shopping basket analysis
average time spent browsing
trends in customer behaviour
Results:
better iMarketing and iAdvertising
understand propensity to buy
improve and personalise Web service
increase sales
April 2002
3CSG1
CRM 9
Integrated customer analysis
Use Web server logs, cookies, registration files,
demographic data, 3rd party tools to determine:
customers and the products they purchase across all channels
trends in customer behaviour over time
trends in customer behaviour across channels
customer service contact history
Results:
360-degree view of customer, including buying history
perform customer product and channel profitability analysis
improve and personalise Web site, service, and products
increase sales, services, profitability, and market share
April 2002
3CSG1
CRM 10
Key points
Customer relationship management is an integrated approach
to e-business aimed at managing the lifetime value of
customers.
The e-business maturity model has four stages: Broadcast,
Interact, Transact, and Integrate
At each stage more information sources are used to improve
on the results of the previous stage.
April 2002
3CSG1
CRM 11