Customer Relationship Management CRM

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Customer Relationship Management (CRM)
CHAPTER 19
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Learning Outcomes

• Define customer relationship management
• Explain how to establish customer relationships
  within the organization
• Understand interactions with the current
  customer base
• Outline the process of capturing customer data

LOI
LO2
LO3
LO4
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Learning Outcomes

• Describe the use of technology to store and
  integrate customer data
• Describe how to identify the best customers
• Explain the process of leveraging customer
  information throughout the organization

LO5
LO6
LO7
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What Is Customer Relationship Management?
LOI
Define customer relationship management
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Customer Relationship Management
LOI
A company-wide business strategy designed to
optimize profitability, revenue, and customer
satisfaction by focusing on highly defined and
precise customer groups.
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Customer Relationship Management Strategy
LOI
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Customer Relationship Management Cycle
LOI
8
Implementing a CRM System

• Customers take center stage
• Business must manage the customer relationship
  across all points of customer contact

LOI
9
REVIEW LEARNING OUTCOMECustomer Relationship
Management
LOI
10
Identify Customer Relationships
LO2
Explain how to establish customer relationships
within the organization
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Identify Customer Relationships
LO2
Customer-Centric
The company customizes its product and service
offering based on data generated through
interactions between the customer and the company.
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Identify Customer Relationships
LO2
Learning
An informal process of collecting customer data
through customer comments and feedback on product
or service performance.
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Identify Customer Relationships
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.
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Knowledge Management
LO2
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Empowerment
LO2
Empowerment

• Delegation of authority to solve customers
  problems quicklyusually by the first person that
  the customer notifies regarding the problem.

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REVIEW LEARNING OUTCOMEIdentifying Customer
Relationships
LO2
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Interactions of the Current Customer Base
LO3
Understand interactions with the current
customer base
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Interactions of the Current Customer Base
LO3
Customer
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Interactions of the Current Customer Base
LO3
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REVIEW LEARNING OUTCOMEInteractions with Current
Customer Base
LO3
Customer
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Capture Customer Data
LO4
Outline the process of capturing customer data
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Capture Customer Data
LO4
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REVIEW LEARNING OUTCOMECapturing Customer Data
LO4
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Store and Integrate Customer Data
LO5
Describe the use of technology to store and
integrate customer data
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REVIEW LEARNING OUTCOMEStore and Integrate
Customer Data
LO5
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Identifying the Best Customers
LO6
Describe how to identify the best customers
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Identifying the Best Customers
LO6
A data analysis procedure that identifies
significant patterns of variables and
characteristics that pertain to particular
customers or customer groups.
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Data Mining

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

LO6
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Data Analysis
LO6
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Recency-Frequency-Monetary Analysis
LO6

• Identifies customers mostly like to purchase
  again
• Identifies and ranks best customers
• Identifies most profitable customers

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Casino
LO6
Biz Flix
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Data Manipulation Techniques
LO6
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REVIEW LEARNING OUTCOMEIdentify the Best
Customers
LO6
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Leverage Customer Information
LO7
Explain the process of leveraging customer
information throughout the organization
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CRM Marketing Database Applications
LO7
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Campaign Management
LO7
CampaignManagement
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Campaign Management
LO7
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Retaining Loyal Customers
LO7
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 reward loyal customers for
making multiple purchases
Loyalty programs provide information about
customers and trends
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Targeted Marketing Communications
LO7
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Increasing Effectiveness ofDistribution Channel
Marketing
LO7
Multichannel Marketing
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REVIEW LEARNING OUTCOME Leveraging Customer
Information
LO7