1

REVIEW LEARNING OUTCOMECustomer Relationship Management

LOI

2

LO2

Customer-CentricThe company customizes its product and service offering based on data generated through interactions between the customer and the company.

Identify Customer Relationships

3

LO2

Learning

Identify Customer Relationships

An informal process of collecting customer data through customer comments and feedback on product or service performance.

4

LO2

KnowledgeManagement

The process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.

Identify Customer Relationships

5

LO2 Knowledge Management

Qualitative facts

Customer actions

Comments

Experiential observations

CollectedInformation

Includes:

6

LO2

EmpowermentDelegation of authority to solve customers’ problems quickly—usually by the first person that the customer notifies regarding the problem.

Empowerment

7

LO3

Requested Service

Channel PastRelationship

Currenttransaction

Interactions of the Current Customer Base

Customer

8

LO3

Touch PointsAll possible areas of a business where customers communicate with that business.

Point-of-SaleInteractions

Communications between customers and organizations thatoccur at the point of sale, normally in a store.

Interactions of the Current Customer Base

Online

http://www.bestbuy.com

9

REVIEW LEARNING OUTCOMEInteractions with Current Customer BaseLO3

Web

Point of Sale

Kiosk

Delivery, Installation

Survey

Product Registration

Customer

10

Capture Customer Data

LO4

Store visits

Conversations with salespeople

Interactions via the Web

Traditional phone conversations

Wireless communications

Online

http://www.geico.com

11

REVIEW LEARNING OUTCOMECapturing Customer DataLO4

12

REVIEW LEARNING OUTCOMEStore and Integrate Customer DataLO5

Database

Compiled listResponse list

Data Warehouse

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13

LO6

DataMining

A data analysis procedure that identifies significant patterns of variables and characteristics that pertain to particular customers or customer groups.

Identifying the Best Customers

14

LO6

Data Mining

Identify and profile the best customers Calculate their lifetime value Predict purchasing behavior

15

LO6

1. Identifies customers mostly like to purchase again

2. Identifies and ranks “best customers”

3. Identifies most profitable customers

Recency-Frequency-Monetary Analysis

16

Explain the process of leveraging

customer information throughout the organization

Leverage Customer InformationLO7

CRM Marketing Database Applications

Campaign management

Retain loyalcustomers

Cross-selling other products and services

Designing targetedmarketing communications

Reinforcing customerpurchase decisions

Inducing product trialby new customers

Increasing effectivenessof distribution channel

marketing

Improving customer service

LO7

18

LO7 Campaign Management

CampaignManagement

Developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.

19

LO7 Retaining Loyal Customers

Loyalty programs reward loyal customers for making multiple purchases

Retaining an additional 5 percent of customers increases profits by as much as 25 percent

Improving customer retention by 2 percent candecrease costs by as much as 10 percent

Loyalty programs provide information about customers and trends

20

Targeted Marketing Communications

LO7

InfrequentUsers

ModerateUsers

HeavyUsers

• Offer direct incentives, such as a price discount

• Offer more reinforcement of past purchase decisions

• Design around loyalty and reinforcement of purchase

21

REVIEW LEARNING OUTCOME Leveraging Customer InformationLO7

Campaign management Retaining loyal customers Cross-selling other products Designing targeted marketing

communications Reinforcing purchase decisions Inducing product trial by new customers Increasing effectiveness of distribution channel

marketing Improving customer service

Marketing Information

CRM Database

Applications