1. Customer relationship Development and Management

2. Which Is More Important
Customer Acquisition?
Customer Retention?
Retention if more profitable, but all marketers have to acquire in order to maintain and grow their customer base.
Why Is That?

3. Retention increases profitability
Average Company Loses Half Its Customers Every 5 Years
Reducing Defections 5% can Increase Profits 25 – 85 %
As Many as 85% of Customers Who Defect were Satisfied
Customers Who Are ‘Extremely Satisfied’ are 6x More Likely to Repurchase Than Those Merely ‘Satisfied’
A Satisfied Customer Tells 5 People; A Dissatisfied Customer Tells 9

4. CLV, Not Profits from 1st Sale
Value of Loyal Customer
Spent 67% More in Last 6 Mo.
Than in First 6 Mo.
3 Referrals After 1st Purchase
After 10 Purchases, 7 Referrals
Would Buy Other Product Lines
Facebook Fans Buy More,
Recommend More

5. Customer Relationship Management Customer Relationship Marketing
CRM?
Customer Relationship Management or
Customer Relationship Marketing
Can marketers really “manage’ customers?
Especially in the age of social networks?

6. The ELEMENTS OF CRM Strategy Operations Analytics
Strategy is always the foundation of a CRM program

7. Why Do Traditional Mass Media Marketers Find CRM Difficult?
The difficulty of identifying and communicating with them 1 on 1. The need to do this was the basis of database marketing in the days before the Internet, but it is easier on the net.

8. Requires focus on the customer

9. The B2B foundations of crm

10. SFA to support crm originally B2B, can apply to b2c
Sales Force Productivity Tools.
Direct Mail Sales Lead Generation & Fulfillment Campaigns (now )
Telemarketing to Follow Up Leads (now often )
Management Tools, Including Sales Forecasting & Reporting.

11. Software tools, (Pre Social media)

12. Data drives every step With Each Contact > More, Deeper Data
More Personal, Relevant Communications

13. International Speedway Corporation
13 Regional NASCAR Tracks
‘Different Strokes for Different Folks’
Different Strategies for Different Tracks if you prefer.
There is likely to be a track not too far away from anywhere in the US. Suggest going to the site of that track (or Daytona, for the best known) to look at their strategy. They have differences you can observe in the offers made to loyal fans. All have active Facebook pages. Daytona has a twitter page and at least one YouTube account; probably the others do also. They link to the other channels for that track but little evidence of communication from the parent corporation itself.

14. Different communications > Different stages in Customer Cycle

15. Ultimate personalization?
Every time I visit this site there is something new and creative going on
They now have partnerships with the NFL, NBA, and MLB
The Facebook page is equally inventive
Now it seems to be hosted by Ms. Brown
My observation suggests that their twitter page was slow to take off. It is lively now, but without the emphasis on the characters.

16. Process relies on Database
Build Models, Mine Data for
Strategic Insights
Plan, Execute
CRM Campaigns
See the section on social CRM (Figure 11.13) for a permission-based example of social crm

17. Many opportunities for deepening relationship
What they offer is visible on the site, so it makes a good live demo

18. Simple personalization Can bring significant lift in results

19. Profiles, Models Identified or Anonymous

20. How Does Marketer Obtain Data
From Anonymous Users?
How Does Marketer Identify Users
In Order to Communicate,
Obtain More Data?
Good to go through some or all of registration process on one of the sites shown, which will illustrate some of the initial data and can be used to discuss the types of data that can be obtained in communications that follow.

21. Cisco needed to reactivate thousands of accounts worldwide
Careful Design by Title
Cell 1. High-position group
Get a Starbucks card by updating your profile.
Cell 2. Low-position group 1
Get a white paper by updating your profile.
Cell 3. Low-position group 2
Update your profile to stay current.

22. Similar Emails to all 3 Cells
Based on cost effectiveness
Which Cell Was ‘Winner?’

23. Types of Personalization
Rules-Based
If. . .Then
User-Controlled
User Provides, Registration Form, etc.
Information-Driven
Profiles, Models
Data Provided by User and Captured on Web

24. Tesco Loyalty Program for Personalized offers
Began in 1995
Millions of Members
Behavioral Data for Database
Segmentation Analysis
Add Strategic Partners
Attracted by Database for Marketing
Targeted Offers, Promotions
Data Drives Marketing Strategy
Suggest going live to the Tesco site to see the wide variety of products and services offered.
Click on the Club Card icon for latest customer offers.
They have smart phone apps and are active on Facebook and Twitter
Both the videos in IE 11.3 are good, but the South Korean program is exceptional

25. Apps Increasingly Important in CRM

26. Social crm Improves experience, Adds data
Awareness’s Facebook Campaign Manager software is an early effort in permission-based social media marketing. Their webinar is archived; all 40 minutes of it
Presentation slides are available on this page, but at this point there’s not a shorter explanation of an important subject

27. Best Buy Focuses on Service, Support
Geek Squad for Installations and Support
Twelpforce for Twitter Support
Extensive Community Forum for Customer Discussion and Questions
Mobile Website, Mobile App, Text Alerts
Sales and Support
The customer service page also includes many self-service items like video support
The community page is carefully organized
The Geek Squad page has a lot of how-to information and live chat
Good mobile offering

28. Cost of CRM Elements of Cost Ways of Obtaining
Hardware, Software, Personnel, Consulting
Ways of Obtaining
Purchase Software
License Software (per Seat)
Actual Costs Can Run into $Millions
Database Construction as Well as Software
Seat Licenses from $Hundreds to Thousands per Seat
Estimates vary widely and most of the studies are old.
For a conceptual approach see
Has cloud computing changed the equation? Probably but material openly available is promotional, hard to determine objectivity.

29. How Many CRM Projects Fail? And What is ‘Failure?’
Many Do Not Produce Desired Results
Catastrophic, Not Implemented > 18 – 31%
Failure to Meet ROI Targets > 47 – 56%

30. Why Such Low Success Rate?
Lack of Clear Strategy and Objectives
Lack of Organizational Buy-In, Commitment
Focus on Technology, Not on Marketing & Business Requirements
The Reasons are More Often
Organizational Than Technological

31. The 360 Degree Vision Technology That Meets Customer Needs
All Customer
Contact Points

32. Summary Retention More Profitable Than Acquisition
CLV is the Criterion
Customer Focused, Data Driven
Communications Based On Customer Lifecycle
Opportunitiesfor More Data, Deeper Relationships
Personalization > Rules, User-Supplied, Models
Loyalty Programs Old Tool
Apps and Social CRM Trending
CRM Can Be Expensive, Prone to Failure
Requires Organizational Discipline & Commitment