Transcript CRM in Marketing - High Point University

CRM in Marketing
CRM Initiatives
CRM Marketing Initiatives
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Cross-Selling
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Selling a product or service to a customer
as a result of another purchase
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Selling the right product to the right
customer
CRM Marketing Initiatives
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Cross-Selling (continued)
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Selling more products to a customer
increases revenue from that customer and
costs less than acquiring a new one
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Not every customer is a good candidate
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It is critical to understand the ways by which
customers evaluate how and whether to
respond to promotions
CRM Marketing Initiatives
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Up-Selling
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Motivating customers to trade up to more profitable
products
Customer Retention
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Analyzing customer attrition
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Understanding why customers have left
Understanding who
How do you keep them?
Churn prediction
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What is CHURN?
CRM Marketing Initiatives
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Behavior Prediction
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Using modeling and data mining techniques,
including
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Propensity to buy analysis
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Next sequential purchase
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What product is a customer likely to buy next
Product affinity analysis
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What product is a particular customer likely to buy next
Which products will be purchased with other products
Price elasticity modeling and dynamic pricing
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Determining the optimal price for a given product
CRM Marketing Initiatives
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Customer Profitability and Value
Modeling
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Can a customer be unprofitable but still
considered valuable?
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Customer Lifetime Value (LTV)
Potential value
 Competitive value (wallet share)
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CRM Marketing Initiatives
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Customer value measurement is dataintensive
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Value modeling is only as accurate as the
customer data is rich
CRM Marketing Initiatives
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Channel Optimization
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Means optimizing a company’s “inbound” channels
with its “outbound” means of customer interaction
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Knowing how to choose the best approach for each
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Understanding the channels through which specific
customers prefer to interact with the company
AND
How best to communicate with your customers
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CRM Marketing Initiatives
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Personalization
Customizing customer communication
based on knowledge preferences and
behaviors at the time of interaction
 Online messages tailored to a particular
customer or customer segment
 In the B2C model, personalizaiton is based
on the analysis of a customer’s clickstreams
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CRM Marketing Initiatives
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Personalization
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Clickstreams
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A customers navigation path through a company’s Web
site
A company can see not only what a customer purchased
by how the customer reached the site in the first place
How he traveled through the site after he got there
How much time he spend on each page
Which products might have stimulated purchases of other
products
CRM Marketing Initiatives
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What new tactics can analyzing
clickstreams trigger?
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Changes to Web images
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Custom promotions or discounts
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Customized Web pages according to the
visitor’s use of the site
CRM Marketing Initiatives
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Event-Based Marketing
Time-sensitive marketing or sales
communication reacting to a customerspecific event.
 Also called event-driven marketing
 Can apply to a segment of customers or to
individual customers
 This is what companies adopting CRM are
striving for
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CRM Marketing Initiatives
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Event-based marketing
Combine personalization techniques with
process design to ensure that the right
action targets the right customer at the right
time
 Ideal goal is to react to customers in near
real-time
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Eddie Bauer
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Read the Case Study
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P. 45-49 The CRM Handbook