Chapter 5 CRM in B2C Markets.pdf

7/27/2019 Chapter 5 CRM in B2C Markets.pdf

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KeyKeyCRM inCRM in

ustomers andustomers and

onsumer Marketsonsumer Markets


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Covera eCovera e

ey ustomers Campaign Managem

CRM Programs

n ar e s

Operational, Analyti

CRM

nt

al and Collaborative

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Ke CustomersKe Customersare those customers whos

.

Loyal Customers

Perceive a companys products as mu

Competitive customersPerceive a companys products as slig

Switchable customers

Perceive a competitors product as sli

Competitor loyal custo

Perceive a competitors product as m

needs and wants can be

h superior to competitors products.

tly superior to a competitors product

htly superior to the company's product.

3

ers

ch superior to the companys product.


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Considerations toConsiderations to

Role of product in need fulfil Position vis a vis competitors

Length of relationship

Strate ies for ke customers

Develop personal trust (Meetinoffering good value for money and notcomplaints received from the customer

Create entry barriers in the ccompetitor products (Highly coresonance, strategic partnerships to en

decide ke customersdecide ke customers

ent

all commitments made to the customer,overcharging, prompt attention to any

nsumer mind space forpetitive prices, innovative features, brandance value delivery)

4

, ,


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Cam ai n ManaCam ai n Mana

e ra ona approa

Cull consumer names

Sent offers to custom

ustomers rece v ng

relevant to them.

Proper segmentation

ementement

:

from a databse

rs

ers or pro ucts not

5nd database qualification


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CAMPAIGN MACAMPAIGN MA

Psychographic profile

segment

Which products wouldpar cu ar segmen

Choice of variants and s

particular segment

Preferred action o tion

AGEMENTAGEMENT

e deemed suitable by a

zes

.

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Effective cam aiEffective cam ai

before deciding on t

se segmen c araccommunication chan

Analyze the respons

Create metrics to m

.

n mana ementn mana ement

e offers made.

er s cs o ec e onnel, product variants

s to previous campaigns

asure the success of the

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T es of cam aiT es of cam ai

Single stage campaign

Multi stage campaign

Single channel campaign

Multi-channel campaign

Trigger based campaign

nsns

A one-off communication to a customer.

Follow-ups on earlier communication with a

defined strategy for non-responders.

Maybe a single or muti-stage but using only one

channel for communication

A single/multi-stage campaign through multiple

channels.(such as email, telephone and directmai

Based on a trigger generated as a result of

customer profile, purchase behavior

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Measurement mMeasurement m

o ume o commun

percentage of respo

Volume of responses

Volume of sale

Cost of campaign vs

trics for cam ai nstrics for cam ai ns

a on sen an

ses received.

converted into sales

alue of sales.

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O eraO era

Operational CRM aims atmarketing databases into a s

improving the efficiency of cus

It automates and im roves

supporting business processes.

ional CRMional CRM

combining sales, support andingle repository that tracks and

,

omer interactions.

customer facin and customer

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O eratiO erati

Marketing Automation

Market Segmentation

Campaign Management

Event based Marketing

Sales Force Automation

ccoun anagemen

Lead Management

Contact Management

Pipeline Management

Quotation and Proposal Gene

nal CRM..nal CRM..

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ration


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Anal tAnal t

for strategic or tactical purpoand firm value.

Analytical CRM aids decisio

ranging from simple spreads.

The analysis should ena

behaviour and meet the ob e

for the purpose of business p

improvement.

ical CRMical CRM

ses to enhance both customer

making using various tools

eet analysis to sophisticated

le insight into consumer

ctives of the CRM initiatives

rformance management and

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Anal tical CRMAnal tical CRM

collected through Operationalto meet the objectives of the C

-

Creating segments of custome

Understanding a customers puproducts/brands) etc.

Making sense of changing trend

Analyzing the response to cam

Analysing the response to rete

RM. The analysis needs to be doneM initiatives. The aspects that could

s based on their purchase behavior.

rchasing preferences (choice of

.

aigns.

tion strategies.

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O erational andO erational and

Operational CRM

Front office involvement

Aims at bettering the customer

Focus on actual customer interface

Helps to gather information to b

used for anal tical CRM

Anal tical CRMAnal tical CRM

Analytical CRM

Back office involvement

s Aims at understanding the .

s Focus on analysis of customer

Depends on operational CRM for

ettin the in ut data on which

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analysis is done.


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Collaborative CR

between the customers and the companies.

Collaborative CRM facilitates interacti

and between members of the company ar

communication and coordination, to raise c

customer intimacy and retention.

It involves business collaboration manage

rgan sa ona co a ora on resu s ngreater profitability by enhancing c

collaborative CRM technologies are voic

.

ns between customers and com anies

und customer information to improve

ustomer switching costs and to increase

ment technologies.

ro uc v y en ancemen resu ng noss functional effectiveness. Some

, conferencing, email, web based and

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Sin le CustomerSin le Customer

Personal preferences

Lifecycle stage and circ

For eg-ICICI Bank has customer

account, credit cards,home loan

The same customer may avail oa savings account holder taking

. ,

customer view and not multiple

iew-Personalisationiew-Personalisation

mstantial needs

across various divisions-savings

s, car loans, demat accounts etc.

multiple facilities from ICICI viz.a home loan as well as becoming

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views of the same customer.


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Cross selling

result of another purchasemade to a customer.

Eg-a Savings Bank account customer may

have requirements for a home loan and

the bank should be able to realise this

account the customer profile.

Cross selling efforts are fruitful if

the database is created throughwell qualified prospects and

campaign management is done

ear ng n m n persona za on

and customization requirements.

Upselling

Sellin a su erior roduct to a

customer when he hasoutgrown the old product.

Customer profile and

segmentation aspects

should be taken intoaccount

Regular customer interactions

may help to understand the

psyche of a customer.

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g- aru sen s an o er o owners o e r

Zen model for upgrading to an Esteem

after 3 years.


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Multi-channelsMulti-channels

Type of channel

Retail shops

Online-Internet website

Issues of consideration

Continuos training to all personnel manning

the shops to ensure uniform consumer

interactions

Collating data from all other channels and

providing access for shop personnel to ensure

a unified customer view.on ict among t e retai s ops owing to

discounts offered by some shops.

Ensuring updated data on the site

Security issues wrt consumer transactionsIntegrating website properly with offline task

enablers like logistics service providers.

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CRM Pro ramsCRM Pro rams

Mass Markets

Customer Types

Pro ram T es

Continuity After-Marketing

ar et ng

Cross-selling

One - to - One

Marketing

Permission

Marketing

Personalization

Partnerin / Affinity

Co-Marketing Partnering

Co-BrandingSource : Sheth & Parva

DistributorsBusiness to Business

Special SourcingContinuous

Replenishment

ECR Programs

Key Account

Global Account

Programs

Customer Business

Development

Strategic PartneringLogistics

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o- es gn

Co-DevelopmentPartnering

Joint Marketing

iyar, 2001


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General CRM FrGeneral CRM Fr

1) Cu

St

4) Marke

CRM Im

2) Integration and

alignment of

organ za ona processesand structures

meworkmework

tomer Oriented

ategy

ing-Driven

lementation

3) Information capture

and ali nment of

technology

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Com onentsCom onents

Value Perceived

Benefits Received

Core Product /

Service

Service Peripherals

Purchasing Efficiency

f Perceived Valuef Perceived Value

by Customers

Costs Incurred

Monetary Costs

(Price)

Time & Effort Costs

Psychological Cost

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Impact of Com

Satisfacti

Impact of Com

SatisfactiHigh

Increase

Competit

Low

Customer

Source : Jones & Sasser, Why Satisfied Custom

88-99.

petition on Customer

on and Lo alt

petition on Customer

on and Lo alt

d

on

gatisfaction

22

ers defect, Harvard Business Review, Nov.-Dec. 1995,


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Principal Reason for

"Other" Friendships 5%

Product

Competition 9%

Dissatisfaction

14%

Source: Blanchard Training and Development

er

ustomer Defection is

Move Away 3%

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e ve n erence


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Profit Im act of MProfit Im act of M

more for the same basic product

Perceived service leaders impro

of 6% a year, whereas the perceimuch as 2% MS per year

Most loyal customers are likOthers simply take their busi

rketin Strate PIMSrketin Strate PIMS

-

or service

e their market share at an average

ed poor service providers lost as

ly to take the time to complain.ness elsewhere

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Technical Assistan

TARP

Technical Assistan

TARP

Each dissatisfied customer on an

ac sat s e customer w te n

e Research Programe Research Program

verage will tell 15 other people

o more t an

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Technical Assista

TARP

Technical Assista

TARP

complaint to more than one e

satisfactorily if they only need

level drops down to 61% if mnvo ve n so v ng e pro e

If a customer complaint was h

ce Research Programce Research Program

mployee in the company

to deal with one individual. This

re than one employee was.

ndled well, 95% of the customers

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Sales Force autSales Force aut

ompre ens ve p c

Enabling sales with t

Analysis of sales

materials

To be covered in de

mationmation

re o sa es s ua on

e power of automation

ail later

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Chapter 5 CRM in B2C Markets.pdf

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