1. C USTOMER R ELATIONSHIP M ANAGEMENT – CRM MKT 405: Distribution Management M Wahidul Islam Summer 2014

2. Elements of Distribution Management Planning, Forecasting & Budgeting Sales Force Management Product Pricing and Promotion Product Visibility Distribution Channels Channel Information Systems Warehousing and Logistics

3. C USTOMER R ELATIONSHIP M ANAGEMENT – CRM Traditionally the word CRM is used to refer to relationship management with End Customers Objective of CRM Build End Customer Loyalty Loyal customer refers to someone, Who is most likely to make repeat purchases Who will resist the activities of competitors attempting to attract patronage

4. C USTOMER R ELATIONSHIP M ANAGEMENT – CRM Applying the concept of the CRM to Distribution Channel CRM Objective Channel Partner Loyalty

5. T HE CRM P ROCESS Collect Customer Data Analyze Develop CRM Programs Implementations

6. C OLLECTING C USTOMER D ATA Foundation for subsequent CRM activities Customer Data Warehouse Numerical Data Intangible / Qualitative Data Numerical Data Transactions / sales data Market share Company investment Intangible / Qualitative Data Preferences Attitude towards the company Responses to marketing activity

7. D EVELOP CRM P ROGRAM A NALYZING C USTOMER D ATA Data Mining Technique used to identify patterns in data, typically patterns that the on mere observation may not reveal. Market Basket Analysis Specific type of Data analysis that focuses on the composition of the shopping basket, or bundle of products purchased by a household during a single shopping occasion. Analyzing the composition of the retailers order pattern Identifying Market Segments Segment channel members based on need / profile / location The Objective is to Identifying Best Customers

8. A NALYZING C USTOMER D ATA I DENTIFYING B EST C USTOMERS Lifetime Value Contribution to company’s overall profit over the entire relationship Customer Pyramid 80 – 20 rule Example: Platinum > Gold > Iron > Lead RFM Analysis Recency, frequency, monetary How recent they have made a purchase? How frequent they make purchases? How much they bought?

9. Customer Retention (Loyalty) Frequent Shopper Program Special Customer Service PersonalizationCommunity The Objective is to convert a good customer into the BEST CUSTOMER

10. R EFERENCES Chapter 11 – Customer Relationship Management Levy M. and Weitz B. A.(2004) Retailing Management (5 th Edition) New York: McGraw- Hill Companies, Inc.

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