CRM NEED ID

8/7/2019 CRM NEED ID

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Understanding Customer Needs



The Gartner Group estimates that 55 percent of CRM

projects are not expected to produce results

In a survey of 1,500 companies in Marketing Week, almost

percent of respondents equated CRM to a database

primarily used for tracking transaction behavior.

Only 5 percent recognized its full potential as amechanism for maintaining and developing

customer loyalty

There is a difference between knowing about customers and

knowing customers



Three reasons why CRM fails1 ) Many companies are not fully aware of the importance of

knowing customer needs in the purchase decision-making process.

2) Even though some companies realize the importance of this

information, they are challenged by the difficulty and cost

of collecting and interpreting it. Core needs are often hiddenand hard to articulate.

3) Companies fail to harvest intuitive, interpretive, or ambiguous

information about customers that may be lodged inemployees· heads rather than somewhere in a database.

Existing CRM databases and modeling techniques do well

in describing the ´whatsµ of customer behavior, but fall

short of understanding the ´whys.µ



Understanding Customer needs

Purchase decisions are driven by two kinds of needs:

1 ) Functional³those satisfied by product functions; and

2) Emotional³deeper needs associated with the psychological

aspects of product ownership

Why do you purchase A Levis Jeans ?

Why do you go to Sayaji ?



Meeting customer needs is vital, so need-based segmentation holds

the key to building and sustaining more effective customer

relationships

Need-based segmentation, also known as benefit segmentation,

entails dividing up a market on the basis of the

needs satisfied by the product, then creating the appropriate

value proposition for one or more market segments.

Two Important characteristics associated

with communication channel richness:

1 ) Multiple modality and2) Immediate feedback

Recent neurological research suggests that people have a limited

Conscious knowledge of their needs



Motivation researchers are forced to employ rich channels in

Nondirective depth interviews,Projective techniques,

Archetype research,

Metaphor elicitation, and

Picture drawing

to delve deeper into customers· emotional needs

Cost-benefit Analysis



Building a full-spectrum Information Portfolio

Uses a combination of data collection approaches to provide a

wide range of customer information.

Makes use of :

1 ) Inexpensive lean channels for collecting well-defined

information, such as functional needs.

2) Richer, more expensive channels, such as telecommunications,

are applied to uncover customers· emotional needs

A full-spectrum approach is much more complex and ittakes time and effort to implementPeople need to be trained to collect rich information

System needs to be in place to capture, store, assemble, disseminate,

and exploit the information



1. Using rich channels in highly equivocal situations

2. Allocating rich channels where they produce the best

return

3. Using the rich information already available

4. Substituting for rich channels

Integrate different types of Information1) Attitudinal Loyalty

2) Behavioral Loyalty

CRM NEED ID

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