Relationship, CRM,

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Relationship, CRM, one-to-one Marketing
(chapter 10)
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Shift in Marketing

• Transaction-based marketing
• Based on of sales
• Lacks communication on going relationships
• Relationship marketing
• Views customers partners
• Promotes loyalty on-going

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Shift in Marketing

• CRM
• High level of relationship
• for LONG TERM

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• Forms of Buyer-Seller Interactions on a Continuum
  from Conflict to Cooperation to integration

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Transaction vs. Relationship p. 319
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Elements of CRM

• Customers at center
• Blend quality customer service 4 Ps
• Achieving CRM
• Gather information _at_ customers
• Analyze data
• Monitor customers interactions
• Use customer preferences
• to orient all organization

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Relationship Continuum

• 1st Level Focus on Price
• Most superficial
• Used as incentives
• 2nd Level Social Interactions
• Getting to know customers
• Sending information about ???

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Relationship Continuum

• Third Level
• Interdependent Partnerships
• Work closely together
• Long term

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• 3 Levels of Relationship Marketing

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• Three Steps to Measure Customer Satisfaction

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Building Buyer/Seller Relationships

• Understanding
• Convenience
• Reduce choices
• Simplification
• Why do relationships end?

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Building Relationships

• Value to companies
• cost savings
• increased profits
• 5 gain in retention
• frequency marketing (Loyalty programs)
• Discover card / Neiman Marcus N-Circle Club
• affinity marketing
• Alumni associations
• Affinity credit cards (OSU OU pictured)

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Building relationships

• Database marketing
• benefits
• identifying best
• calculating Life time value (LTV)
• WalMart 250,000
• creating dialogue
• New idea interactive television
• application service providers (ASPs)
• See story on p. 328

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• One-to-One marketing
• Grassroots mktg
• Viral mktg
• WOM
• Guerilla
• Figure 10.7
• NEC offering Support for One-to-One Marketing

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CRM

• The combination of strategies and tools that
  drive relationship programs,
• re-orientating company to
• a concentrated focus on
• satisfying customers
• Managing Virtual Relationships
• Retrieving Lost Customers
• Customer winback

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B2B - Relationships

• Advantages
• lower prices
• quicker delivery
• improved quality
• improved reliability
• customization
• better terms

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B2B relationships

• Types of Partnerships
• Buyer partnership
• Seller partnerships
• Internal partnerships
• Customers within organization
• Lateral partnerships
• Strategic alliances

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• Co-branding and Co-marketing
• Figure 10.10
• A Co-marketing Effort Involving SpongeBob
  Squarepants

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Improving Buyer-Seller Relation B2B

• National Account Selling
• (house accounts)
• B2B Databases
• Electronic Data Interchange (EDI)
• Quick-response (QR) mdsing

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Improving Buyer-Seller Relation B2B

• Vendor-Managed Inventory (VMI)
• Collaborative planning, forecasting,
  replenishment (CPFaR)
• Seller determine amount for company to buy
• Managing the Supply Chain

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Evaluating CRM Programs

• Lifetime value of customer
• (RIB) - C LTV
• Revenues
• Intangible benefits
• costs

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Additional techniques

• Tracking behavior
• Customer complaints
• customer comments
• "click-through" behavior

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