11/26/2017 MKTG 403: Customer Relationship Management & Data Analytics Course Overview

The Evolution of Marketing 11/26/2017 The Evolution of Marketing ‘Good old days’ Customer Orientation Mom and Pop Mass market Product Orientation Product Organization Customer Centric Customer Orientation Customer Organization Large Segments Niche Segments Perspective Orientation Organization Market Orientation Market Organization Customer-centric marketing emphasizes understanding and satisfying the needs, wants and resources of individual consumers and customers

Product-Centric vs. Customer-Centric Marketing 11/26/2017 Product Focus Transactions Acquiring Customers Product Profitability Trial & Error Customer Focus “Relationships” Retaining Customers Customer Profitability Test, Measure & Refine

Historical Perspective 11/26/2017 Historical Perspective Information Technology and Analytical Power Customer Relationship Management Enterprise Resource Planning Business Process Redesign Increase Business Value Financial Management 1970’s 1980’s 1990’s 2000’s Source: Quaero

11/26/2017 What is CRM? “CRM is at the core of any customer-focused business strategy and includes the people, processes, and technology questions associated with marketing, sales, and service. In today's hyper-competitive world, organizations looking to implement successful CRM strategies need to focus on a common view of the customer using integrated information systems.” (Source: RealMarket.com )

(Repeat Business Over Time) 11/26/2017 Customers Are Key Acquire, Grow, Retain, Expand Acquire New Customer Growth & Expansion (Repeat Business Over Time) Leads & Prospecting (New Business) Get Customer To Do More Business Customer Buys Goods Or Services Retention (Repeat Business) Acquisition (Initial Business) Keep or Lose Customer Defection & Attrition (Lost Business) © 1998-2003, CRMSolutions

What are the Components of CRM? 11/26/2017 What are the Components of CRM? Goals and Objectives Strategic CRM Strategic CRM Analytical CRM Day-to-Day Implementation Operational CRM Analytical CRM Customer Intelligence

11/26/2017 Strategic CRM Strategic CRM is the process of: Selecting which individual customers we want to serve & which portfolio of customers we want to have Determining what type of relationship we want to develop with each of our customers Shaping the interactions between the company and these customers With the goal of optimizing the current and future value of our portfolio of customers for the company (customer lifetime value, share of the wallet) It involves attracting, retaining and developing our target customers

Analytical CRM What tools do we need to achieve our objectives? 11/26/2017 Analytical CRM What tools do we need to achieve our objectives? Customer Metrics Databases Analytical techniques

Operational CRM How do we plan for it at the operational level? 11/26/2017 Operational CRM How do we plan for it at the operational level? Organizational considerations Employees training and motivation

Marketing Mix (The 4 P’s) 11/26/2017 Pre-Requisite #1: MKTG 201 Situation Analysis Identifying Value Customers Company Competition Context Marketing Strategy Market Segmentation Target Market Selection Product Positioning Delivering Value Marketing Mix (The 4 P’s) Product Place Promotion Capturing Value Pricing Customer Acquisition Customer Retention Sustaining Value Profits / Market Value

11/26/2017 Pre-Requisite #2: QMBU 301 Statistical techniques in business data analysis Decision making under uncertainty Concept of loss functions, decision trees, Bayes' Rule Correlation analysis, simple and multiple regression analysis (variable selection, model building, residual analysis); exponential smoothing methods; autoregressive (AR), moving average (MA), and ARMA models Extensive use of computer-based computational tools and business applications

Course Evaluation & Expectations 11/26/2017 Course Evaluation & Expectations

Class Attendance is 10% of your grade 11/26/2017 Class Attendance is 10% of your grade I expect you to attend every class … You may not be able to make it to every class … but you are responsible for everything discussed in class You loose all your participation points if you miss 10 classes or more

Course Participation is 10% of your grade 11/26/2017 Course Participation is 10% of your grade III - Four (4) readings that I would assign for preparation and class discussion can help you gain up to 4 participation points Readings would be made available with discussion questions prepare readings outside of class participate I- Participation in class discussions and course activities (4 points) II- Group case study (2 points) contribution to the group work  “Team Evaluation Form” at the end of the syllabus If you don’t attend classes, you can’t hope to make these points

Honor Code: Academic Honesty and Trust are Key 11/26/2017 Honor Code: Academic Honesty and Trust are Key I expect you to scrupulously abide by the Honor Code In-class exam Group case assignment Individual assignments

Course Structure – Part I 11/26/2017 Course Structure – Part I A – Strategic CRM Importance and value of Long Term Relationships B – CRM Metrics Marketing Metrics & Customer Based Metrics for CRM C – Implementing CRM Collecting & Organizing Data for CRM In Class Exam (30%) + Group Case (20%)

Course Structure - Part II 11/26/2017 Course Structure - Part II D – Data Analytics Analyzing Data for CRM Heavy “hands-on” flavor”: you will analyze datasets using statistical analysis programs – RFM Analysis – Regression & Logistic Analysis – Lift Charts 2 Individual Assignments (30%)