The structure of the course CRM ORGANISATION MARKETING ANALYSIS 1_Elements of CRM 2_Customer-supplier 3_Strategy 4_Relationship oriented 1_Customer knowledge 2_Customisation 3_Communication 4_Relationship policy 1_Relationship Data 2_Data mining 3_Data selection 4_Data reporting SYSTEMS 1_CRM systems 2_Implementation 3_The future 4_Conclusion

1_Customer knowledge

1_Customer knowledge Data Quality Using data

1_Customer knowledge Data Quality The ultimate goal is KNOWLEDGE Details Information = Meaning Knowledge = Basis for action

1_Customer knowledge Data Quality Data = simply the facts. The fact that you served 40 customers is data. Information = data with a meaning. Knowing that 40 customers is an average number to serve is information.

1_Customer knowledge Data Quality Data is to be seen as an asset which must generate a return The challenge is the combination of information which generates from different sources

1_Customer knowledge Data Quality From a technical point of view = fields in a database From a customer point of view = what the customer is ready to provide Quality Customer database Current Complete Correct Unique

1_Customer knowledge Data Quality Spending money on data quality = hardware and software that can combine: Back-office operations Topics discussed Front-office items Multi-channel information Spending money for an accurate customer profile

1_Customer knowledge Data Quality Not spending money on data quality means waste as a result of poor quality and will lead to errors 25 Questions on data

1_Customer knowledge Data Quality 25 Questions on data – Test your organisation

1_Customer knowledge Using data (1) Strategy Is there a data and information strategy? How has the level of importance been determined? Are the data available, to start with? How could data be merged into a single base?

1_Customer knowledge Using data (2) Knowledge of data resources Is there knowledge on how to convert data into useful information Can employees find the information they are looking for? Are information chains sufficiently defined?

1_Customer knowledge Using data (3) Access What are the procedures of access to data? How are data being shared?

1_Customer knowledge Using data (4) Quantity Are there too many data with little value? Are there a lot of redundant data? Are superfluous data deleted? Are terms properly defined?

1_Customer knowledge Using data (5) Quality Are data updated, accurate, consistent?

1_Customer knowledge Using data (6) Need for new data Are new data available at the right speed? Are the sources of new data reliable? Are data structures not too difficult and flexible enough?

1_Customer knowledge Using data (7) Use Is the use effective? Is decision making based on data? Are opportunities sufficiently clear?

1_Customer knowledge Using data (8) Security Are data protected from unauthorised use, theft, loss

1_Customer knowledge Using data (9) Privacy Is confidentiality clearly applied? Is the understanding clear on obligations in relation to customer and employee data?

1_Customer knowledge Using data (10) Organisation Are management responsibilities versus data clearly defined? Is there a clear data policy in line with the organisational structure Are procedures clear?

2_Customisation Organising Data Which Data?

2_Customisation Organising data : growth stages in database management Data selection Right data Integration One to one data Building a data base is a step by step process

2_Customisation Organising data Flow-charts will be used to describe the processes in different degrees of detail On the most detailed level, the process description are input of programmers It is a major challenge, especially that marketing data are less accurate than operational data

2_Customisation Building a data base is a step by step process Stage 1 = pioneering (marketing file) Stage 2 = specialisation (file analysis) Stage 3 = multifunctional teams (data base mgt) Stage 4 = system integration (real time & inter-phase) Stage 5 = one to one communication

2_Customisation Which data? Customer or prospect identification Name, address, city, telephone number and e-mail address Customer segment Subgroup of customers according to socio-demographic data Communication channel preference What is the customer’s preferred channel Transaction history Communication history

CRM Marketing Aspects Customer knowledge Customisation Communication & channels Relationship policy

3_Communication & channels All new channels require substantial investments and effort! The challenge is a matter of integration « whilst keeping a single point of contact » despite the fragmentation of the mass/media

3_Communication & channels Multi-channels We talk about communication and not about distribution channels We talk about « touch points » Multi-channel management is not very different from managing all sorts of channels leading to various target groups

3_Communication & channels Multi-channels Impersonal Low interactivity Differentiated Medium interactivity Personal High interactivity Television Radio Billboards Magazine Website E-mail Letter Telephone Personal sales Service

CRM Marketing Aspects Customer knowledge Customisation Communication & channels Relationship policy

4_Relationship policy Customisation To what degree do we want to approach customers in an individualised manner? What is the price of customisation?

4_Relationship policy Customisation The best solution will need to be determined jointly, in interaction with the customer It requires reasoning from the standpoint of the customer instead of that of a product manager

4_Relationship policy Differentiated pricing & revenue management Segmentation Price / segment Forecast Capacity allocation

4_Relationship policy Goals Improvement of size and quality of the customer base Working per segment Working per relationship phase Look for contact moments Loyalty programmes

4_Relationship policy Market Existing Customers Potential Segments A B D a b c d develop retain migrate recover drop follow activate acquire