1. Sule Ozmen-CRM CRM Customer Relationship Management Şule Özmen Week 6 Digital Economy Customers Became Number One They are empowered customers

2. Sule Ozmen-CRM WHO IS YOUR CUSTOMER? Whether traditional or electronic business The one whom you sell your product or service The one who buys your product or your service The one whom you met their needs The one whom you want to satisfy “Müşterilerimiz velinimetimizdir”

3. Sule Ozmen-CRM MARKETING PROCESS New and Traditional Buyer Seller Search promote Order and paymentDelivery Identifying the needs, wants, desires Product / service design

4. Sule Ozmen-CRM WHO IS YOUR CUSTOMER IN DIGITAL ECONOMY? Who doesn’t buy every product or service you offer like in “good old days” Good old days for producers Good old days for marketers Ben üretirim alan alır

5. Sule Ozmen-CRM Today’s customers Equipped with information Less brand loyal, runs away to your rival by a click – If not satisfied

6. Sule Ozmen-CRM What is the Solution Customer Relationship Marketing CRM Relationship Technologies Accelerating Customer Relationship Source: Accelerating Customer Relationship Ronald S. Swift : 2001 Prentice Hall PTR

7. Sule Ozmen-CRM CRM CRM is an enterprise approach to understanding and influencing customer behavior through meaningful communications in order to improve customer acquisition, customer retention, customer loyalty, customer profitability All these are enhanced by IT (e-business, e-commerce, e- marketing)

8. Sule Ozmen-CRM Customer Acquisition (1) Multiple types of customers and customer groups Consumers – end users Other businesses Channel/distributor/franchisee

9. Sule Ozmen-CRM Customer Acquisition (2) Steps of Target Marketing: 1.Market segmentation 2.Market targeting 3.Market positioning

10. Sule Ozmen-CRM Levels of Market Segmentation –Mass Marketing (no segmentation) –Segment Marketing –Niche Marketing –Micro Marketing –Local Marketing –One to One Marketing

11. Sule Ozmen-CRM Return Rates in Marketing Mass Marketing 1% - 2% Segment Based Marketing 8 % - 10 % Event Based Marketing 15 % - 20 % With Data mining tools 37 %

12. Sule Ozmen-CRM Customer Retention Know your customer - customers expect you to know and remember them Get closer (but not an end in itself) Be aware that customers experience different stages. They will change from day to day Market Basket Analysis –MBA – Correlating multiple products within a customers’ purchase to understand what products are bought with what products

13. Sule Ozmen-CRM Customer Loyalty Churn: customers switching back and forth among competing suppliers e.g. Churn Rate in the mobile phone industry is between 20 and 30% therefore a small reduction in churn can generate millions in revenue

14. Sule Ozmen-CRM Customer Profitability Keep current profitable customers Increase customers’ spending over time (increase share of the wallet – cross and upsell Attract new customers turn them to be profitable Acquire new customers (by using price promotion techniques)

15. Sule Ozmen-CRM Customer Profitability Simulate some unprofitable customer to your competitor –If they are not profitable –Cost of making them profitable is too high

16. Sule Ozmen-CRM Technology is enabler in new marketing process Collect teradata amounts of data to identify their needs. Current and potential needs. Offer the products or service faster through alternative distribution channels Receive orders and accept payment through internet Follow your customer after delivery Don’t lose contact with your customer once interacted you Communicate with your customer on the basis of the knowledge obtained from the data warehouse

17. Sule Ozmen-CRM Conclusion: It is now possible to Know who your customers are and who your best customers are Stimulate what they buy or know what they won’t buy Know the time when, what and how they buy Learn customers’ preferences and make them loyal customers Define characteristics that make up a great/profitable customer Model best channels to address a customer’s need Predict what they may or will buy in the future – propensity to buy Keep your customers for many years -loyalty

18. Sule Ozmen-CRM What is next? Assignment Please refer to the following sources on Internet (www.1to1.com and www.crmguru.com) and prepare an assignment about one page which provides a general description of CRM and one to one marketing. Do you have any idea about what is DINK?