Copyright Cengage Learning 2013 All Rights Reserved 1 Chapter 21: Customer Relationship Management...
-
Upload
katrina-pamela-york -
Category
Documents
-
view
214 -
download
0
Transcript of Copyright Cengage Learning 2013 All Rights Reserved 1 Chapter 21: Customer Relationship Management...
Copyright Cengage Learning 2013
All Rights Reserved
1
Chapter 21: Customer Relationship
Management (CRM)
Introduction to
Designed & Prepared by Laura RushB-books, Ltd.
Copyright Cengage Learning 2013
All Rights Reserved
2
Learning Outcomes
Define customer relationship management
Explain how to identify customer relationships with the organization
Understand interactions with the current customer base
Outline the process of capturing customer data
LO1
LO2
LO3
LO4
Copyright Cengage Learning 2013
All Rights Reserved
3
Learning Outcomes
Describe the use of technology to store and integrate customer data
Describe how to identify the best customers
Explain the process of leveraging customer information throughout the organization
LO5
LO6
LO7
4
Customer Relationship Management
A company-wide businessstrategy designed to optimize
profitability, revenue, and customersatisfaction by focusing on highly
defined and precise customergroups.
Copyright Cengage Learning 2013
All Rights Reserved
5
Identify Customer Relationships
Customer-Centric - The company customizes its product
and service offering based on data generated through interactions between the
customer and the company.
Copyright Cengage Learning 2013
All Rights Reserved
6
Learning
An informal process of
collecting customer
data through customer
comments and feedback on
product or service performance.
Copyright Cengage Learning 2013
All Rights Reserved
7
Knowledge Management
The process by which learned
information from customers is
centralized and shared in
order to enhance the relationship
between customers and
the organization.
Copyright Cengage Learning 2013
All Rights Reserved
8
Interactions of the Current Customer Base
8
Touch-Points - All possible areasof a business where customers
communicate with that business.
Point-Of-Sale Interactions - Communications between
customers and organizations thatoccur at the same point of sale,
normally in a store.
Copyright Cengage Learning 2013
All Rights Reserved
9
Customer Data
Data Warehouse - A central
repository for data from various
functional areas of the organization
that are stored and inventoried on a
centralized computer system.
Database - A collection of data, especially one
that can be accessed and manipulated by
software.
Copyright Cengage Learning 2013
All Rights Reserved
10
Data Analysis
Predictive modelingPredictive modeling
Lifetime value analysisLifetime value analysis
Recency-frequency-monetary analysisRecency-frequency-monetary analysis
Customer segmentationCustomer segmentation
Copyright Cengage Learning 2013
All Rights Reserved
11
Data Manipulation Techniques
Lifetime Value Analysis
PredictiveModeling
A data manipulation technique that projects the future value of the customer over a period of years.
A data manipulation technique in which marketers try to determine what the odds are that some other occurrence will take place in the future.
Copyright Cengage Learning 2013
All Rights Reserved
12
Campaign Management
Communicating offerings in a waythat enhances customer relationships
Communicating offerings in a waythat enhances customer relationships
Developing customized offerings for appropriate segment
Developing customized offerings for appropriate segment
Pricing these offeringsattractively
Pricing these offeringsattractively
Copyright Cengage Learning 2013
All Rights Reserved
13
Retaining Loyal Customers
Loyalty programs reward loyal customers for making multiple purchasesLoyalty programs reward loyal customers for making multiple purchases
Retaining an additional 5 percent of customers increases profits by as much as 25 percentRetaining an additional 5 percent of customers increases profits by as much as 25 percent
Improving customer retention by 2 percent candecrease costs by as much as 10 percentImproving customer retention by 2 percent candecrease costs by as much as 10 percent
Loyalty programs provide information about customers and trendsLoyalty programs provide information about customers and trends
Copyright Cengage Learning 2013
All Rights Reserved
14
Cross–Selling Other Products and Services
• CRM provides opportunities to cross-sell related products
•Cross-sell to customers with demographic, lifestyle, or behavioral characteristic matches
•Internet companies use product and customer profiling to reveal cross-selling opportunities
Copyright Cengage Learning 2013
All Rights Reserved
15
Targeted Marketing Communications
InfrequentUsers
ModerateUsers
HeavyUsers
• Offer direct incentives, such as a price discount
• Offer more reinforcement of past purchase decisions
• Design around loyalty and reinforcement of purchase
Copyright Cengage Learning 2013
All Rights Reserved
16
Reinforcing Customer Purchase Decisions
•Cognitive dissonance is the feeling consumers experience when they recognize inconsistency between values and opinions and their purchase behavior
•Thanking customers help cement a long-term, profitable relationship
•Update customers periodically on the status of their order
Copyright Cengage Learning 2013
All Rights Reserved
17
Increasing Effectiveness ofDistribution Channel Marketing
CRM DatabasesCRM Databases
RFID technologyRFID technology
Multichannel MarketingMultichannel Marketing
Copyright Cengage Learning 2013
All Rights Reserved
18
Improving Customer Service
•Level of customer service is influential in customer retention
•Customer retention – the percentage of customers that repeatedly purchase products from a company
Copyright Cengage Learning 2013
All Rights Reserved
19
Privacy Concerns
• How companies use consumer data is governed by some laws, such as Gramm-Leach-Bliley Act and HIPAA
• Many companies have privacy policies, in line with growing consumer concerns over privacy.
Copyright Cengage Learning 2013
All Rights Reserved