1. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-1 Chapter Seventeen Customer Relationship Management and Marketing Research

2. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-2 Learning Objectives  Understand the essential elements that comprise a customer relationship management program  Describe the relationship that exists between marketing research and customer relationship management  Understand the meaning of customer relationship management

3. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-3 Learning Objectives  Describe how organisations use customer information in a customer relationship management environment  Understand the role of technology in a customer relationship management program  Illustrate the process of data collection for a customer relationship management program

4. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-4 Introduction  Customer relationship management (CRM) and marketing research are linked in the relationship management process  CRM is the management of customer relationships based on the integration of customer information throughout the business in order to achieve maximum cash flow

5. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-5 Customer Interaction and Customer Knowledge  Customer interaction refers to the relationship between the business enterprise and the customer  Customer knowledge refers to the information which can be framed into ‘profiles’—which can be utilised to segment customers, tailor interactions and build robust customer relationships

6. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-6 The Customer Relationship Management Process

7. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-7 The Role of Marketing Research in CRM  What is the value of the customer segment?  What kind of relationship will add value to the enterprise’s customers (loyalty programs, preferred customer status, etc.)?  What relationship content will add value to the customer segment?  What are customers’ responses to promotions?

8. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-8 Strategic Use of Customer Information  Two key questions drive a CRM program; namely:  What does my customer value?  What is the value of my customer?

9. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-9 Information Based on a Transactional Focus  CRM moves out beyond the here and now of real-time transactions with customers  CRM attempts to determine what a customer really desires, not just what they happen to buy when a desired item is not available

10. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-10 Enterprise-wide Approach to the Use of Information  CRM views information as something to be disseminated across every internal department within the business enterprise and with other facets of the supply chain

11. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-11 Technology Support of the CRM Structure  Technology is the platform for turning customer data into customer knowledge:  CRM and technology work hand-in-hand to target market segments with more precision than ever before.  CRM and technology partner to integrate and store information in a centralised database called a data warehouse.  CRM and technology become unified in the desire to mine data for maximum profitability.  CRM and technology complement each other in an unceasing effort to determine the economics of customer acquisition, retention and lifetime value.

12. Copyright  2004 McGraw-Hill Pty Ltd PPTs t/a Marketing Research by Lukas, Hair, Bush and Ortinau Slides prepared by Tony Peloso 17-12 Data Collection in the CRM Environment  Passive Data  Active Data  Directed Data