COMM 204 CRM and Marketing Principles Notes

Customer Relationship Management (CRM)

• Definition of CRM:

  • A strategic approach to building and maintaining profitable customer relationships.
  • Focuses on delivering superior customer value and satisfaction.

• Key Components:

  • Customer-centric culture is essential; it needs to be adopted at all organizational levels.

Building Profitable Relationships

• Three key interactions:
  • Customer Acquisition:
  • Identifying prospective customers using profiles of popular customers.
  • Customer Retention:
  • Maintaining relationships for longevity, resulting in lower acquisition costs.
  • Customer Reacquisition:
  • Strategies to win back lost customers.

Workplace Culture and CRM

• Importance:
  • CRM should not be viewed merely as a software project, but as an overall strategy aligned with the company’s mission and values.

The Role of Marketing in CRM

• Listening to Customers:
  • Engagement preferences matter: 53% of consumers have felt ignored by brands.
  • 89% prefer two-way conversations across social platforms.

Customer Experience Management

• Impact on Brand:
  • Good customer experiences build brand equity, potentially increasing lifetime value.
  • Three touchpoints:
  • Human Contact: Sales staff/call centers.
  • Interactive Channels: Websites, emails, social media.
  • Static Channels: Traditional ads (radio, print).

Customer Acquisition and Retention

• Strategy:
  • Use existing customer data for targeted acquisition.
  • Customer longevity correlates with retention success.
  • Long-term customers are less price-sensitive and more likely to promote the brand.

Loyalty Programs

• Pareto's Principle:

  • 80% of profits come from 20% of customers.
  • Heavy users should be rewarded more generously to sustain loyalty.

• Challenges:

  • Less than 50% of Canadians find loyalty programs trustworthy due to data privacy concerns.

Database Marketing

• Definition:

  • Process of collecting and analyzing customer and competitor data to tailor marketing strategies effectively.

• Data Mining:

  • Analysis of patterns to enhance decision-making.

• Data Warehouse:

  • A centralized data repository that assists in recognizing customer needs and behaviors.

Customer Reacquisition

• Importance of retention:
  • Losing a customer means losing future purchases.
  • Often due to poor experiences; feedback is crucial for recovery.

Strategic Marketing Planning

• Levels of Strategy:

  • Establishing a board to set overarching strategies for the organization.

• Core Terminology:

  • Stakeholders: All parties impacted by organizational performance include customers, employees, and suppliers.
  • Mission: A statement outlining the organization's purpose, aligning with stakeholder interests.

Mission and Goals

• Goals Examples:
  • Include profit, sales, quality, and social responsibility, converted from mission to performance targets.

Strategic Directions

• Analysis Techniques:
  • Business Portfolio Analysis: Identifies strengths and strategic units (SBUs) for resource allocation.
  • BCG Matrix: Uses market growth rate and relative market share to assess SBUs.
  • Market-Product Analysis: Evaluates growth opportunities based on current markets and products.

Marketing Ethics and Social Responsibility

• Ethics, Morals, and Values:

  • Definitions: Morals dictate right and wrong actions; ethics are accepted standards in practices.

• Criticism of Marketing:

  • Issues include high prices, deceptive practices, and unsafe products.

• Consumer Advocacy:

  • Advocates push for transparency, safety, and better product quality for consumers.

Sustainable Marketing Principles

• Focus on:

  • Innovative strategies, mission-oriented marketing, and ethical decision-making steps adopted by firms.

• Marketing Ethics Policies:

  • Guidelines covering distributor relations, advertising standards, customer service, and pricing.

Future Considerations

• Upcoming Assignments:

  • Emphasize group work for strategic guidance on future organizational direction.

• Final Review:

  • Preparation through one-on-one meetings and cumulative exam strategies.