C USTOMER R ELATIONSHIP M ANAGEMENT – CRM MKT 405: Distribution Management M Wahidul Islam Summer...
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Transcript of C USTOMER R ELATIONSHIP M ANAGEMENT – CRM MKT 405: Distribution Management M Wahidul Islam Summer...
CUSTOMER RELATIONSHIP MANAGEMENT – CRMMKT 405: Distribution Management
M Wahidul Islam
Summer 2014
Elements of Distribution Managemen
t
Planning, Forecasting
& Budgeting
Sales Force Managemen
t
Product Pricing and Promotion
Product Visibility
Distribution Channels
Channel Information
Systems
Warehousing and
Logistics
CUSTOMER RELATIONSHIP MANAGEMENT – CRM
Traditionally the word CRM is used to refer to relationship management with End Customers
Objective of CRMBuild End Customer Loyalty
Loyal customer refers to someone,Who is most likely to make repeat
purchasesWho will resist the activities of
competitors attempting to attract patronage
CUSTOMER RELATIONSHIP MANAGEMENT – CRM
Applying the concept of the CRM to Distribution Channel
CRM ObjectiveChannel Partner Loyalty
THE CRM PROCESS
Collect Customer
Data
Analyze
Develop CRM
Programs
Implementations
COLLECTING CUSTOMER DATA
Foundation for subsequent CRM activities
Customer Data WarehouseNumerical DataIntangible / Qualitative Data
Numerical Data
•Transactions / sales data•Market share•Company investment
Intangible / Qualitative Data•Preferences•Attitude towards the company•Responses to marketing activity
DEVELOP CRM PROGRAMANALYZING CUSTOMER DATA
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
ANALYZING CUSTOMER DATAIDENTIFYING BEST CUSTOMERS
Lifetime ValueContribution to company’s overall profit
over the entire relationship Customer Pyramid
80 – 20 ruleExample: Platinum > Gold > Iron > Lead
RFM AnalysisRecency, frequency, monetary
How recent they have made a purchase? How frequent they make purchases? How much they bought?
Customer Retention(Loyalty)
The Objective is to convert a good customer into the BEST CUSTOMER
REFERENCES
Chapter 11 – Customer Relationship Management Levy M. and Weitz B. A.(2004) Retailing Management
(5thEdition)New York: McGraw- Hill Companies, Inc.
END