1 n Customer relationship management (CRM)  Term applied to processes implemented by a company to handle its contact with its customers  CRM is a software-based approach to handling customer relationships  Store information on current and prospective customers

2 n Control over buying process  Information, comparison, selection, easy to find n Best possible price  Delivery (free), quality n All payment options  Secure n Communication designed to suit needs  Computerized, complex, caring

3 n All forms of trading  Direct  Traditional  Retail  E-commerce  Wholesale  Combination

4 n New convergence  Telephony & telemarketing  Internet  Mobile, SMS  Digital TV  Cable & satellite

5 n Customer relationship management (CRM)  From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a variety of employees in different roles and departments  CRM is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provides a mechanism for tracking customer information

6 n Information in the system can be accessed and entered by employees in different departments)  Sales  Marketing  Customer service  Training  Professional development  Performance management  Human resource development

7 n Details on any customer contacts can also be stored in the system  The rationale behind this approach is to improve services provided directly to customers  To use the information in the system for targeted marketing and sales purposes

8 Many inter-related aspects  Front office operation  Back office operations  Business relationships  Analysis

9 n Direct interaction with customers  Face to face meetings  Phone calls   Online services etc

10 n Operations that ultimately affect the activities of the front office  Billing  Maintenance  Planning  Marketing  Advertising  Finance  Manufacturing

11 Interaction with other companies and partners  Suppliers/vendors  Retail outlets/distributors  Industry networks (lobbying groups, trade assn’) n This external network supports front and back office activities

12 Key CRM data can be analyzed in order to plan  Target-marketing campaigns  Conceive business strategies  Judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability)

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14 n CRM initiatives often fail  Implementation was limited to software installation  Inadequate motivations for employees to learn, provide input, and take full advantage of the information systems

16 Three key phases  1. Customer Acquisition  2. Customer Retention  3. Customer Extension Three contextual factors  4. Marketing Orientation  5. Value Creation  6. Innovative IT.

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18 Attracting our customer  For the first purchase  We have acquired our customer Growth  Market orientation, innovative IT & value creation  Aim is to increase the number of customers that purchase from us for the FIRST TIME

19 Re-purchase  Our customer returns and buys for a second time  This is most likely to be the purchase of a similar product or service, or the next level of product or service. Growth  Market orientation, innovative IT & value creation  Aim is to increase the number of customers that purchase from us REGULARLY

20 Additional, supplementary purchases  Our customers are regularly purchasing  We introduce products and services to our loyal customers different from original purchase  Once purchased, our goal is to retain them as customers for the extended products or services Growth  Market orientation, innovative IT & value creation  Aim is to increase the number of customers that purchase ADDITIONAL products

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22 Focused upon the three levels of needs of customers  Actual, tangible product  Core product and its benefit  Also the augmented product such as a warranty and customer service

23 Core Benefit Basic Product Expected Product Augmented product Potential Product

24 Generation of shareholder value  Based upon the satisfaction of customer needs (as with marketing orientation)  Delivery of a sustainable competitive advantage

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28 Updated IT  Efficient, speedy and focus upon customer needs  Whilst IT and/or software are not the entire story for CRM, it is vital to its success  CRM software collects data on consumers and their transactions  Organizations will track individuals, and try to market products and services to them based upon similar buyer behavior seen in other individuals

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30 n 1. Validation 2. Discovery n 3. Action

32 n 1. Validation 2. Discovery n 3. Action

33 Correct data  Ensuring that the data you have on your customers is not only correct  Also, in a suitable state for targeting communications programs

34 Use of data mining techniques  To find relationships that you did not know existed  Sometimes conventional analysis is impaired by your own natural assumptions and prejudices  Discovery techniques help to solve these issues by starting from ground zero  They simply search for relationships in the database against a set of objectives

35 Right communication  Your customers and prospects need to have the right messages communicated to them  Quality Inter-Action drives quality Trans-Action  This is done with a Campaign Management tool that can automatically select the right targets and the right messages via the right channels  The responses are then fed back into the Validation process for evaluation and refinement

36 CRM is corporate strategy composed of applications, technology and products that fulfill three essential requirements  1. Organization perspective  2. Customer perspective  3. Front office staff perspective

37 360° view of each customer  For consistent and unified contact with that customer whenever anyone anywhere in the enterprise deals with that customer  This knowledge increases the opportunities for sales and the effectiveness of customer service

38 Customers to have a consistent view  To enable your customers to have a consistent view of your enterprise, regardless of the way the customer contacts you  This improves customer satisfaction and customer retention 2. Customer perspective

39 Staff performance  To enable front office staff to perform sales, service and marketing tasks more efficiently as a team  Increasing expertise and reducing costs

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42 n Important  Business starts with the acquisition of customers  However, any successful CRM initiative is highly dependent on a solid understanding of customers

43 n Understand  Demographics, purchase patterns & channels  Segmentation to identify logical unique groups  Primary research to capture needs and attitudes  Customer valuation to understand profitability n Differentiate  Based on the value customers are expected to deliver

44 n Develop  Products, services, channels and media can be customized based on the needs of quantitative customer segments Customize  Based on the potential value delivered by customer segment

45 n Interact  Not just through marketing, sales and media  Distribution, shipping, customer service & online Deliver  Delivering value is a cornerstone  Factors including quality, convenience, speed, ease of use, responsiveness and service excellence

46 n Acquire  Learning about customers makes it easy to identify those producing the greatest value Retain  Maintain interaction;  Deliver on value  Customers change as they move through differing life stages  Modify the service

 Subconscious Expectations  Pizza with specified toppings  Take 10 minutes  Come in a packed box  Remain warm till you reach home  Charges – standard and acceptable price  Pizza will taste reasonably good  You will come back is all the above are met

 If you go regularly  Rapport with employees  You forgive if they mess up with one or two expectations  Degree of confidence determines tolerance  If using first time, and even one expectation is not met  You will never go again

 Exceeded expectations  Deliver on all expectations  Give you a garlic bread FREE !  You will tell everyone about it