Marketing Exam 3, Lecture 20

customer relationship managment

a business strategy that seeks to understand, anticipate, and needs of current and potential customers - build realtionships and life-time value

CRM technology

measured through every business part that touches the customer with combined data, people, processes, technology

why CRM matters

customers are strategic assets, inc. retention by 5% can inc. profits by 25-95%

CRM Value chain

collect customer data, analyze customer behavior, segment customers, personalize marketing, manage relationships over time

customer data

sales calls, purch history, website behavior, demographics, customer service interaction, loyalty program data, social media activity, personal information

operational CRM

supports daily customer interactions

analytical CRM

analyzes customer data to generate insights

collaborative CRM

coordinates interactions across departments

CRM software platforms

sales force, oracle, hubspot, microsoft dynamics, netsuite, active campaign

benefits of CRM system

centralizes data across firm, enhance effectivness of sales calls, assist with market segmentation, improve sales forecasts, better customer service, inc. customer retention, better coordination with marketing and sales

CRM example Starbucks

CRM tools: mobile app + loyalty Result: offers “you can get 20% off today”

goal of modern CRM

orchestrate personal experiances across the entire customer journey in real time

CRM success factors

1. clear customer strategy

2. high quality data

3. integration across departments

4. employee training

5. appropriate technology

marketing technology

software and tools marketers use to plan campaigns, execute marketing activities, manage customer relationships, and analyze performance

Martech stack

collection of technologies a company uses to manage marketing

core components of MarTech stack

CRM systems, marketing automation, customer data platforms, content and digital channel tools, analytics and measurment tools

Evolution of marketing technology 1950-70

mass marketing and direct mail

Evolution of marketing technology 1980

database marketing

Evolution of marketing technology 1990

CRM systems emerge

Evolution of marketing technology 2000s

digital marketing and email automation

Evolution of marketing technology 2010s

big data, marketing automation, social media tools

Evolution of marketing technology 2020s

AI-driven personalization

how AI is transforming CRM

predicitve lead scoring, manage sales pipelines, improve forecasting, reccomend products, virtual assistance, dynamic pricing

AI in marketing functions

automating and enhancing several marketing activities - customer segementation, insights, content creation, ad targeting

AI in sales functions

helps teams manage prospects and customers - forecasting, cust insights, sales coaching, outreach, scheduling/follow up —> sales people spend more time selling and less on administrative tasks

How will AI and marketers combine

AI will help, not replace marketers

AI vs. human skills

AI: patterns, data processing, automation

Humans: strategy, creativity, critical thinking, brand storytelling, ethical judgment, relationship building