1. 1 REVIEW LEARNING OUTCOME Customer Relationship Management LO I

2. 2 LO 2 Customer-Centric The company customizes its product and service offering based on data generated through interactions between the customer and the company. Identify Customer Relationships

3. 3 LO 2 Learning Identify Customer Relationships An informal process of collecting customer data through customer comments and feedback on product or service performance.

4. 4 LO 2 Knowledge Management The process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization. Identify Customer Relationships

5. 5 LO 2 Knowledge Management Qualitative facts Customer actions Comments Experiential observations Collected Information Includes:

6. 6 LO 2 Empowerment Delegation of authority to solve customers’ problems quickly— usually by the first person that the customer notifies regarding the problem. Empowerment

7. 7 LO 3 Requested Service Channel Past Relationship Current transaction Interactions of the Current Customer Base Customer

8. 8 LO 3 Touch Points All possible areas of a business where customers communicate with that business. Point-of-Sale Interactions Point-of-Sale Interactions Communications between customers and organizations that occur at the point of sale, normally in a store. Interactions of the Current Customer Base Online http://www.bestbuy.com

9. 9 REVIEW LEARNING OUTCOME Interactions with Current Customer Base LO 3 Web Point of Sale Kiosk Delivery, Installation Survey Product Registration Customer

10. 10 Capture Customer Data LO 4 Store visits Conversations with salespeople Interactions via the Web Traditional phone conversations Wireless communications Online http://www.geico.com

11. 11 REVIEW LEARNING OUTCOME Capturing Customer Data LO 4

12. 12 REVIEW LEARNING OUTCOME Store and Integrate Customer Data LO 5 Database Compiled list Response list Data Warehouse :::::::::::::::::::::::::::::::::::::::::: \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\ ///////////////////////////////////// ////////////////////// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~

13. 13 LO 6 Data Mining Data Mining A data analysis procedure that identifies significant patterns of variables and characteristics that pertain to particular customers or customer groups. Identifying the Best Customers

14. 14 LO 6 Data Mining  Identify and profile the best customers  Calculate their lifetime value  Predict purchasing behavior

15. 15 LO 6 1.Identifies customers mostly like to purchase again 2.Identifies and ranks “best customers” 3.Identifies most profitable customers Recency-Frequency-Monetary Analysis

16. 16 Explain the process of leveraging customer information throughout the organization Leverage Customer Information LO 7

17. CRM Marketing Database Applications Campaign management Retain loyal customers Cross-selling other products and services Designing targeted marketing communications Reinforcing customer purchase decisions Inducing product trial by new customers Increasing effectiveness of distribution channel marketing Improving customer service LO 7

18. 18 LO 7 Campaign Management Developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.

19. 19 LO 7 Retaining Loyal Customers Loyalty programs reward loyal customers for making multiple purchases Retaining an additional 5 percent of customers increases profits by as much as 25 percent Improving customer retention by 2 percent can decrease costs by as much as 10 percent Loyalty programs provide information about customers and trends

20. 20 Targeted Marketing Communications LO 7 Infrequent Users Moderate Users Heavy Users Offer direct incentives, such as a price discount Offer more reinforcement of past purchase decisions Design around loyalty and reinforcement of purchase

21. 21 REVIEW LEARNING OUTCOME Leveraging Customer Information LO 7  Campaign management  Retaining loyal customers  Cross-selling other products  Designing targeted marketing communications  Reinforcing purchase decisions  Inducing product trial by new customers  Increasing effectiveness of distribution channel marketing  Improving customer service Marketing Information CRM Database Applications