ELC 310 Day 24

Agenda Sixth Student Case Logistics.com A & B by Steve presentations at least 15 min before class so I may upload to web server Case studies are tied to proceeding chapters, make sure you discuss the connection Discussion/lecture Build a Trusting Relationship with Customer

Case study Grading rubric (corrected) Grade Generation for analysis Demonstrated Mastery of Case Study35% Understanding of How Case Study Fits35% Presentation effectiveness 10% Quality of PowerPoint 10% Ability to Engage the Class in Discussion 10% 2 nd round of grades will be posted Dec 12

® Tony Gauvin, UMFK, 2007 Rest of Schedule Today Logistics.com A & B (Steve) Build a Trusting Relationship with Customers Dec 9 Course evaluations Travelocity (Randy) The Future of Digital Marketing Dec 12 Citibank Online (Emlyn) Take Home Quiz #4 Assigned Dec 1 PM Take Home Quiz #4 Due Written Case Study & Presentations Due

Overview Introduction Trust is a process CRM Cross selling Constant Innovation

Introduction Understanding customer needs and behavior Formulate a strategy to fill needs Implement effectively and efficiently Build trusting relationship with customers Theory T Trust is inherent Theory P Relationship is adversarial

Trust is a Process Trust comes from fulfillment of a a promise Does not require perfection Requires honesty Two phases in company/customer relationship Building Trust while acquiring customers Set expectations Show evidence that expectations were meet for previous customers  3 rd party endorsements Building trust after acquiring customers Follow through on expectation set in customer acquisitions phase  Direct experiences Web plays role in both phases

CRM Goal is to create loyal, profitable customers Strategy that provides a company with a complete view of its customer base Technology drives the strategy Key outcomes Increased profitability Friendly interactions with customers Increased communication Greater market responsiveness

Cross Sell and Grow Relationship Cross Sell The sale of additional products and services to a customer Once a trusting relationship is built with a customer you have an opportunity to offer other products to the customer Leverage the trust Better customer <> product matching

Constant Innovation CRM requires constant innovation Customer needs are changing Help customer move in directions the customer wished to go Examples GE First Tech CU

GE Aircraft Engines GE Aircraft Engines before GE Aircraft Engines $11.4 Billion of $126 billion 1996 Services was $1 billion 2001  $5 billion Sell engines at LOW prices Sell 30 year of parts at high price Now  reduce TCO Material by the hour Power by the hour At the customer, for the customer

First Tech CU Credit Union History Initially a German idea (1864, Raiffeisenbank) Made popular in North America by French Canadian Alphonse Desjardins From Québec (Caisse populaire de Lévis on 1901) Alphonse Desjardins CU’s in US spread into New England by French Canadian immigrants CU are inherently trusted due to organizational structure (owned by the depositors) First Tech is a CU created by Microsoft, Intel and other high tech company employees First Tech Uses on-line advisors