Prepared and presented by,

N. Ganesha Pandian,

Assistant professor,

Madurai School of management.

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Customer information database

Customer profile analysis

Customer perception, expectation and analysis

Customer behavior in relationship perspectives;

individual and group customer’s

Customer life time value

Selection of profitable customer segments

Data base marketing is the process of

building, maintaining and using customer

databases and other databases (products,

suppliers, sellers ) to contact, transact and

build customer relationships

Customer information databases includes

personal information, contact address, phone

number and demographic details and etc.,

Contact names

Demographic and psychographic information

Address

Buying history

Source of sale

Job title and job definitions

Name of company

Methods to contact them

Source of lead

Special needs of customers

Define the information requirements

Define the database functions

Identify the information sources

Select the database technology and hardware

platform

Populate the database

Maintain the database

Extracting information

Cleaning

Merging

Analyzing the information

Helps in segmentation

To improve product development

Helps in finding most profitable customers

Understanding the customers

Customer communication

Customer service

Campaign management

Improved customer relationships

Contributes to market success

Data management

Market intelligence

Sales management

Management information

Product planning

A customer profile is a series of descriptive

phrases that paint a picture of a selected

target consumer.

A profile is built from demographic,

expenditure, lifestyle and media preference

data and is used to immediately understand

the characteristics of s given customer

Geographic details

Demographic details

Psychographic details

Buyer behavior

Surveys

Point of purchase

Profile by parameter

Demographics

Enterprises and business management

‘the right product for the right market’

principle

Systematic aspects of customers

Creating long term value of customers

Value= Perceived benefits/price

Market segmentation

According to Philip kotler, “Market

segmentation is sub-dividing a market into

distinct homogenous sub-groups of

customers, where any group can conceivably

be selected as a target market to be met

with distinct marketing mix”

1. Geographical variables

2. Demographical variables

3. Psychographic variables

4. Behavioral variables

Identifying the best customer

Planning out retention plans for new customers

Inducing buying from existing customers

Improving customer services

Effective campaign planning

Increasing market share

Increase overall profitability

Value may be best defined from the

customer’s perspective as a trade-off

between the benefits received Vs price paid

Value = perceived benefits / price

Customer-defined

Opaque

Contextual

Multi-dimensional

Trade-off

Relative

Mindset

Functional value

Social value

Emotional value

Conditional value

1. Identifying Appropriate customer value segments

2. Designing value delivery systems

3. Planning customer value delivery strategy

i. identify the value

ii. Choose the value

iii. Value creation/delivery

iv. Value communication

v. assessing the value

4. Value enhancement

Customer satisfaction is the degree of satisfaction

provided by the goods or services of a company as

measured by the number of repeat customers

Customer satisfaction occurs when the

performance meets customer expectations

Value is the satisfaction of customer requirements

at the lowest total cost of acquisition, ownership

and use

A marketing concept that encompasses a

customer's impression, awareness and/or

consciousness about a company or its

offerings. Customer perception is typically

affected by advertising, reviews, public

relations, social media, personal experiences

and other channels.

1. Self Perception

2. Price Perception

3.Benefit Perception

Understanding and Managing Customer

Perception

Identifying customer needs

Identifying customer influencing variables

Customer Segmentation

Identifying behavioural intentions

Creating awareness

Direct contact with the customers

Business performance improvement activities

Sales force effectiveness programmes

Strategic re-positioning

Exploring current and new market needs and

opportunities

Strategic change programmes

Developing customer-centric capability models

Customer expectations touch on everything a

company's clients -- or the market, in general --

anticipate in terms of product, service, price

and distribution outlet. Marketing strategists

view such expectations through the lens of client

desires, needs and wants at a given point in

time. Given the significance of client

expectations in marketing analysis, running a

business without

Explicit Expectations

Implicit Expectations

Static Performance Expectations

Dynamic performance Expectations

Technological Expectations

Interpersonal Expectations

Situational Expectations

First stage

Second stage

Third stage

Fourth stage

Consumer behaviour is the study of

individuals, groups, or organizations and the

processes they use to select, secure, and

dispose of products, services, experiences, or

ideas to satisfy needs and the impacts that

these processes have on the consumer and

society.

The 6 stages are

Problem Recognition

Information search

Evaluation of Alternatives

Purchase decision

Purchase

Post-Purchase Evaluation

Routine Response/Programmed Behaviour

Limited Decision Making

Extensive Decision Making

Impulse buying

Personal

Factor

Psychological

factors

Motives

Perception

Ability and

Knowledge

Attitudes

Personality

Lifestyles

Social Factors

Opinion leaders

Roles and Family

Influences

Reference

Groups

Social Class

Culture and Sub-

culture

In every buying decision, a consumer asks the

same question: is what I am going to receive

worth what I have to give up in order to get it?

The gain the consumer receives for the benefit is

weighed against the cost the consumer must pay

to acquire the benefit. The value the individual

consumer places on a product or service

becomes the customer value for that offering.

Benefits – cost = Customer Value

In marketing, customer lifetime value (CLV) (or

often CLTV), lifetime customer value (LCV), or

user lifetime value (LTV) is a prediction of the

net profit attributed to the entire future

relationship with a customer. The prediction

model can have varying levels of sophistication

and accuracy, ranging from a crude heuristic to

the use of complex predictive analytics

techniques.

Example:

Marketing – how much should I spend to acquire

a customer

Product – who are my best customers? How can I

offer products and services tailored for them?

Customer support – how much should I spend to

service and retain a customer?

Sales – what types of customers should sales reps

spend the most time on?

Churn rate

Discount rate,

Contribution margin

determination of the optimal level of investments in

marketing and sales activities

encourages marketers to focus on the long-term value of

customers instead of investing resources in acquiring

"cheap" customers with low total revenue value

Implementation of sensitivity analysis in order to

determinate getting impact by spending extra money on

each customer.

optimal allocation of limited resources for ongoing

marketing activities in order to achieve a maximum return

Customer Segmentation is the subdivision of

a market into discrete customer groups that

share similar characteristics. Customer

Segmentation can be a powerful means to

identify unmet customer needs.