1. April 20023CSG1CRM 1 Electronic Commerce Customer relationship management John Wordsworth Department of Computer Science The University of Reading J.B.Wordsworth@rdg.ac.uk. Room 129, Ext 6544

2. April 20023CSG1CRM 2 Lecture objectives Understand what is meant by customer relationship management in and e-business environment. Review the four-level e-business maturity model. Review the information sources and activities for each level.

3. April 20023CSG1CRM 3 What is CRM? An integrated approach to marketing, sales, and service which applies the understanding of customer preferences and behaviours to deliver personalised products and services, and to manage the lifetime value of customers. CRM contributes to enhanced market presence increased customer and product profitability improved customer satisfaction

4. April 20023CSG1CRM 4 Business effectiveness Marketing campaigns, advertising, promotions: what promotions are attracting and converting visitors? Service problems and resolutions: how is customer service affecting Web customer loyalty? Sales, orders, and products: how is the structure of my site affecting sales? Customers: individuals, households, businesses: what segments are most likely to buy online?

5. April 20023CSG1CRM 5 Who are the customers? Demographics Lifestyle Purchase behaviour intended (77%) browsing (14%) impulse (6%) other (3%) how many sites? Product profile

6. April 20023CSG1CRM 6 E-business maturity model Stage 1: Broadcast perform Web site activity analysis Stage 2: Interact perform customer analysis Stage 3: Transact perform customer sales analysis Stage 4: Integrate perform integrated customer analysis

7. April 20023CSG1CRM 7 Web site activity analysis Use the Web server logs to determine: popular and unpopular pages page stickiness popular navigation routes trends over time Results: streamline the Web site identify the customers understand the referrers

8. April 20023CSG1CRM 8 Customer analysis Use cookies and registration files to determine: customer demographics trends in customer behaviour (browse time) navigation paths of individual customers customer growth rate Results: streamline the Web site identify propensity to buy increase and personalise service turn browsers into buyers

9. April 20023CSG1CRM 9 Customer sales analysis Use cookies, registration files, and order data to determine: customers and the products they purchase shopping basket analysis average time spent browsing trends in customer behaviour Results: better iMarketing and iAdvertising understand propensity to buy improve and personalise Web service increase sales

10. April 20023CSG1CRM 10 Integrated customer analysis Use Web server logs, cookies, registration files, demographic data, 3 rd party tools to determine: customers and the products they purchase across all channels trends in customer behaviour over time trends in customer behaviour across channels customer service contact history Results: 360-degree view of customer, including buying history perform customer product and channel profitability analysis improve and personalise Web site, service, and products increase sales, services, profitability, and market share

11. April 20023CSG1CRM 11 Key points Customer relationship management is an integrated approach to e-business aimed at managing the lifetime value of customers. The e-business maturity model has four stages: Broadcast, Interact, Transact, and Integrate At each stage more information sources are used to improve on the results of the previous stage.