MKTG CH 14

CRM - customer relationship management

* Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
* Involves tech, business rules, operational processes, coop w stakeholders within org

business pov

* 3 interactions with customers

1. customer acquisition
2. customer retention
3. customer reacquisition

customer perceived value

customers evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers

customer satisfaction

* Info about customers used to create marketing programs = customer satisfaction
* IT and database system great starting point for CRM
* Oracle, SAP, IBM
* Customize each system to specific customers needs

CEM - customer experience management

* Involves managing customer interactions to build brand equity and improve long term profit
* Focuses on customer interactions or touch points
* Touch point: any customer interaction with brand or company

Cultural changes

* Company needs to view CRM as overall company strat not as software project
* Ex: hotel suffering from poor employee customer service skills cannot use software alone to solve issue
* CRM requires top down long run commitment and attitude change by management
* Tech enabler of CRM but successful CRM strat is executed by high performing employees

Social media and CRM

* Social media provides excellent way for companies to build and maintain relationships with customers
* Tourism section used social media first
* Can be biased if company provides incentives for consumers to use - have to post on social media and good things

Customer acquisition and retention

* CRM can find commonalities among profitable customers - can pinpoint potential customers
* Loyalty programs
* Pareto's Rule: 80% brand sales come from 20% of its customers
* Heavy users should be rewarded differently than light users

Privacy

* Use of tech needs more privacy
* PIPEDA - Personal Information Protection and Electronic Documents Act: rules for how personal info is handled during course of business

Database marketing

* Essential practice for enhancing customer experience
* Effective integration of data mining into CRM strat allow improved customer service and sales performance

CRM and customer reaquisition

* Realize losing customer more than losing a sale
* First step in customer recovery is to find the customer who is in jeopardy of being lost to the company

touch point

any situation in which a customer comes into contact with a brand or company

* human
* sales staff or call centre
* interactive
* websites, email
* static
* radio or newspaper ads

data mining

process of analyzing customer patterns and insights to make better decisions

data warehouse

central repo of data

share of wallet

percentage of a customer’s purchases that a company has in a specific product category

* ex: my share of wallet for Dove shampoo is 50%