1. MKT 606: CHAPTER 4
STRATEGIC CUSTOMER MANAGEMENT: SYSTEMS, ETHICS, AND SOCIAL RESPONSIBILITY
MKT 606 CH 04 MNH

2. PIVOTAL ROLE OF CUSTOMER RELATIONSHIP MANAGEMENT
CRM in Perspective
CRM Levels
CRM Strategy Development
CRM Implementation
CRM and Database Marketing
Transactions
Customer Contacts
Descriptive Information
Response to Marketing Stimuli
MKT 606 CH 04 MNH

3. CUSTOMER RELATIONSHIP MANAGEMENT
CRM is a cross-functional core business process concerned with achieving improved shareholder value through the development of effective relationships with key customers and customer segments.
CRM Recognizes That
Customers:
Vary in their economic value
to the company
Differ in their expectations
toward the firm
MKT 606 CH 04 MNH

4. CUSTOMER LIFETIME VALUE
4-3
CUSTOMER LIFETIME VALUE
Customer lifetime value (CLV) calculates past profit produced by the customer for the firm – the sum of all the margins of all the products purchased over time, less the cost of reaching that customer
To this is added a forecast of margins on
future purchases (under different assumptions
for different customers), discounted back to
their present value.
This process provides an estimate of the
profitability of a customer during the time
span of the relationship.
The CLV calculation is a powerful tool for
focusing marketing and promotional efforts
where they will be most productive.
MKT 606 CH 04 MNH

5. THE STEPS IN DEVELOPING A CRM STRATEGY
4-5
THE STEPS IN DEVELOPING A CRM STRATEGY
Gain enterprise commitment
Build a CRM project team
Business needs analysis
Define the CRM strategy
MKT 606 CH 04 MNH

6. Successful Implementation
CRM Implementation
Successful Implementation
Front office with integrating with sales, marketing and service functions across all media
A data warehouse of customer
Business rules developed from data analysis
Measures of performance to improve CRM continually
Integrate the operational support from back office
MKT 606 CH 04 MNH

7. DEFINE THE CRM STRATEGY
4-6
DEFINE THE CRM STRATEGY
Value Proposition 1 5
Other Stakeholders 2
Business
Case
CRM STRATEGY 4 3
Enterprise Transformation Plan
Customer Strategy
MKT 606 CH 04 MNH

8. Causes of Failures Implementing Without Developing a Customer Strategy
4-7
Causes of Failures
Implementing Without Developing a Customer Strategy
Failing to Initiate Necessary Organizational Change
Allowing Technology to Dominate the CRM Process
Focusing on the Wrong Customers
MKT 606 CH 04 MNH

9. VALUE CREATION PROCESS
4-8
VALUE CREATION PROCESS
Value Received by the Customer
Value Received by the Organization
THE VALUE EXCHANGE
Successful Value Exchange
MKT 606 CH 04 MNH

10. CRM AND VALUE CHAIN STRATEGY
4-10
CRM AND VALUE CHAIN STRATEGY
The Perfect Customer Experience
“The perfect customer experience, which must be affordable for the company in the context of the segments in which it operates and its competition, is a relatively new concept. This concept is now being embraced in industry by companies such as TNT, Toyota’s Lexus, Oce, and Guinness Breweries, but it has yet to receive much attention in the academic literature. Therefore, multi-channel integration is a critical process in CRM because it represents the point of co-creation of customer value. However, a company’s ability to execute multi-channel integration successfully is heavily dependent on the organization’s ability to gather and deploy customer information, from all channels and to integrate it with other relevant information.”
MKT 606 CH 04 MNH

11. CRM and Strategic Marketing Implementation Performance Metrics
Short-Term Versus Long-Term Value
Competitive Differentiation
MKT 606 CH 04 MNH

12. Ethics and Social Responsibility in Strategic Marketing
Corporate Reputations
Ethical Imperatives
Defining Ethical Standards
Drivers of Ethical Demands
Proactive Responses by Firms
Organizational Involvement
Organizational Culture
Assignment of Responsibility
Ethics Codes
Guidelines and Operating Processes
Actions
Monitoring and Control
CSR Initiatives
Defining CSR
Drivers of CSR
Defensive CSR
Strategic CSR
Customer Value and Competitive Positioning
MKT 606 CH 04 MNH