MKTG CH 14

CRM - customer relationship management

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%