Transcript Customer Retention Management

Slide 9.1
Chapter 9
Customer relationship
management
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.2
Learning outcomes
•
Outline different methods of reaching and
acquiring new customers via digital media
• Evaluate different buyer behaviour amongst
online customers
• Describe techniques for retaining customers
and cross- and up-selling using digital media
communications
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.3
Management issues
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Which digital media should we invest in to reach new
audiences?
What are the practical success factors for using digital
media need to make customer acquisition more
effective?
What technologies can be used to build and maintain
the online relationship?
How do we deliver superior service quality to build
and maintain relationships?
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.4
What is CRM?
An approach to build and sustain long-term
business with customers.
Customer life cycle: The stage each customer
will pass through in a long-term relationship
through acquisition, retention, and extension.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.5
CRM – Customer Life Cycle
Figure 9.1
The four classic marketing activities of customer relationship management
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.6
Marketing applications of CRM
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A CRM system supports the following marketing
applications:
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Sales force automation (SFA). Sales representatives are
supported in their account management through tools to
arrange and record customer visits.
Customer service management. Representatives in
contact centres respond to customer requests for
information by using an intranet to access databases
containing information on the customer, products and
previous queries.
Managing the sales process. This can be achieved
through e-commerce sites, or in a B2B context by
supporting sales representatives by recording the sales
process (SFA).
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.7
Marketing applications of CRM
(Continued)
• Campaign management. Managing ad, direct
mail, email and other campaigns.
• Analysis. Through technologies such as data
warehouses and approaches such as data
mining, which are explained further later in the
chapter, customers characteristics, their
purchase behaviour and campaigns can be
analysed in order to optimise the marketing mix.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.8
e-CRM – a definition
e-CRM is:
• Applying…
Internet and other digital technology…
(web, email, wireless, iTV, databases)
•
to…
acquire and retain customers
(through a multi-channel buying process
and customer lifecycle)
•
by…
improving customer knowledge, targeting,
service delivery and satisfaction.
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.9
Benefits of e-CRM
Some benefits include:
• Targeting more cost effectively
• Achieve mass customisation of the marketing
messages
• Increase depth, breadth, and nature of
relationship
• Enables learning relationship
• Lower cost
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.10
Permission Marketing
Figure 9.2
A summary of an effective process of online relationship-building
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.11
Conversion Marketing
Figure 9.3
Reach–Act–Convert–Engage model
Source: Smart Insights (2010) Introducing RACE = A practical framework to improve your digital marketing. Dave Chaffey, 15 July 2010. www.smartinsights.com/blog/digital-​
marketingChaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
​strategy/race-a-practical-​framework-to-improve-​your-​digital-​ marketing.
Slide 9.12
Online Buying Process
A summary of how the Internet can impact on the buying process for a
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 edition © Marketing Insights Limited 2015
new purchaser
Figure 9.4
th
Slide 9.13
Influences on Purchase
A model of the relationship between different aspects of trust and
consumer response based on the categories
Figure 9.5
Source: Bart et al. (2005).
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.14
Influences on Purchase – con’t
Percentage who consider the different information sources as important
when researching/considering a product or service
Figure 9.6
Chaffey,
Business and E-commerce
Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School
of Digital
Management)/Henley
Centre, 2004.
Slide 9.15
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Characteristics of interactive marketing
communications
From push to pull
From monologue to dialogue
From one-to-many to one-to-some and one-to-one
From one-to-many to many-to-many
From lean-back to lean-forward
Mediums
Increase in communications intermediaries
Integration
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Slide 9.16
Assessing marketing communications
effectiveness
Measures used for setting campaign objectives or assessing campaign
success increasing in sophistication from bottom to top
Figure 9.7
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Slide 9.17
Assessing marketing communications
effectiveness – con’t
Figure 9.8
An example of effectiveness
measures for an online ad campaign
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 edition © Marketing Insights Limited 2015
th
Slide 9.18
Online marketing communications:
1 - Search Engine Marketing (SEM)
How does Google work?
• Crawling
• Indexing
• Ranking or scoring
• Query request and results serving
Importance of keyphrase analysis…
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Slide 9.19
Figure 9.9
1 - Search Engine Marketing (SEM):
Search process
Stages in producing natural search engine listings
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Slide 9.20
1 - Search Engine Marketing (SEM):
Search Engine Results Pages (SERPs)
Search engine results page showing the two main methods for
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 edition © Marketing Insights Limited 2015
achieving visibility
Figure 9.10
th
Slide 9.21
Online marketing communications:
1 - Search Engine Marketing (SEM)
Search Engine Optimisation (SEO):
A structured approach used to increase the
position of a company or its products.
Factors affecting search engine rankings:
• Frequency of occurrence in body copy
• Number of inbound links (page rank)
• Title HTML tag
• Meta-tags
• Alternative graphic text
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Slide 9.22
Online marketing communications:
2 - Online PR
Online PR
Leverages the network effect of the Internet.
Activities considered to be online PR include:
• Communicating with media online
• Link-building
• Blogs, podcasting, and RSS
• Online communities and social networks
• Brand presentation on third-party sites
• Online viral marketing
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.23
Social Media and CRM strategy
Figure 9.12
Aspects of social CRM
Source: Altimeter (2010).
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.24
Online marketing communications:
2 - Online PR
Figure 9.13
Online PR categories and activities
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Slide 9.25
Online marketing communications:
3 - Online Partnerships
A - ) Link building
B - ) Affiliate marketing
The affiliate marketing model (note that the tracking software and fee
payment may be managed through an independent affiliate network manager)
Figure 9.14
C - ) Online Sponsorship
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Slide 9.26
Online marketing communications:
4 – Interactive advertising
Fundamental
• Ad serving
Objectives
• Delivering content
• Enabling transaction
• Shaping attitudes
• Soliciting response
• Encouraging retention
Targeting options
• On a particular type of site
• To target a registered user's profile
• At a particular time of day or week
• Online behavior
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.27
Online marketing communications:
5 – Email marketing
Outbound email marketing
Emails are sent to customers and prospects
from an organisation
Inbound email marketing
Managament of emails from customers by
an organisation
Measures for evaluating email marketing
• Delivery rate
• Open rate
• Clickthrough rate
Opt-in email options for customer acquisition
• Cold email campaign
• Co-branded email
• Third-party e-newsletter
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Slide 9.28
Customer Retention Management
Two goals of customer retention
• Repeat customers
• Repeat visits
Personalisation and Mass Customisation
• Personalisation
• Collaborative filtering
Techniques for managing customer activity and value
• Increase # of new users
• Increase # of active users
• Decreasing # of dormant users
• Decreasing # of inactive users
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Slide 9.29
Figure 9.17
Activity segmentation of a site requiring registration
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.30
Customer Retention Management – con’t
Lifetime-value modelling
Figure 9.18
Different representations of lifetime-value calculation
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Slide 9.31
Customer Retention Management – con’t
Lifetime-value modelling
Figure 9.19
An example of an LTV-based segmentation plan
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.32
Customer Retention Management
Improving online service quality
• Tangibles
• Reliability
• Responsiveness
• Assurance
• Emphathy
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.33
Advanced online segmentation and
targeting techniques
depend on resources available, technology
capabilities and opportunities afforded by the list:
• Identify customer life cycle groups
• Identify customer profile characteristics
• Identify behaviour in response and purchase
• Identify multichannel behaviour
• Tone and style preference
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.34
Advanced online segmentation and
targeting techniques
Identifying customer life cycle groups
Figure 9.21
Customer life cycle segmentation
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 9.35
Recency, Frequency, Monetary value
(RFM) analysis
Related concepts:
• Recency
• Frequency
• Monetary value
Figure 9.22
RFM analysis
• Latency
• Hurdle rate
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Slide 9.36
Components of CRM technologies
Figure 9.23
An overview of the components of CRM technologies
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015