CRM and Relationship Marketing

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CRM and Relationship Marketing

• MKT 490.2
• Feb 27, 2002

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What is CRM?

• Customer Relationship Management means different
  things to different people. There meanings and
  continually evolving.
• For the purpose of E-business, essentially CRM is
  a comprehensive approach for

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CRM- customer information

• Integrating customer information from all
  functions and departments across the enterprise
• Continental Airlines has introduced a Customer
  Information System where every one of
  Continentals 43,000 gate, reservation and
  service employees will have access to the history
  and value of each customer.
• The system suggests specific service recovery
  remedies and perks such as coupons for delays and
  automatic upgrades.
• The system is provides more consistent staff
  behavior and service delivery.

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CRM- personalized approach

• Providing customers with easy access to
  personalized product and service information,
  order status, account history, and special offers
• Sears, Roebuck Cos most profitable credit card
  customers get to choose a preferred two-hour time
  window for repair appointments.
• Regular customers are given a four-hour time
  window

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CRM- shared information

• Leveraging intranets and extranets to bring
  people together within and outside the
  organization
• Dealer Extranets

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CRM- new channels and segments

• Creating new sales channels and reaching new
  market segments over the internet

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Amazon.com

• Recommendations, notifications on topics of
  specific interest, purchase circles, saved
  information (included addresses of other people I
  send books to), 1-click ordering, excellent
  fulfillment, customer service
• Percentage of returning customers is about 15 to
  35 compared to the 3-5 average for e-tailers

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How CRM?

• CRM achieves these objectives by optimizing and
  coordinating people, processes and technology
• A CRM system may include
• Data warehouses
• Data marts
• Call and contact centers
• Customer and product-support operations
• Sales force automation tools

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Players

• Oracle (eBusiness Suite)
• PeopleSoft (Vantive)
• Pivotal (eRelationship)
• Quintus (eContact)
• Remedy
• Sales Logix (Interact and Act)
• SAP
• Saratoga System
• Siebel
• Trilogy (Multichannel Commerce)

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What is relationship marketing?

• Relationship Marketing is about establishing,
  maintaining, enhancing, and commercializing
  customer relationships through promise
  fulfillment
• RM involves
• two way communication with stakeholders
• 1-1 marketing
• CRM- customer relationship management

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Bottom Line Goal of RM

• Create a positive experience for each customer,
  every time they interact with your company,
  product or service

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RM- Buzz Words

• best-customer targeting
• market of one
• individualized consumerism
• one-to-one marketing
• mass customization
• loyalty marketing
• account-specific, co-marketing programs

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3 Components to Success

• Good Data
• Right Technology
• Commitment to Customer Service

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Continuum from Mass to Relationship Marketing
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3 Levels or RM
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Online RM

• The Internet provides a new medium for this
  concept
• highly interactive
• intranet
• email direct

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Goals of a RM program

• Retain and grow key customers and channels
• create individual relationships
• reduce customer turnover
• build sales through improved brand loyalty
• grow profits with strategies that push beyond
  price

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Why Focus on Retention?
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Why you Need a Customer Database

• Deliver custom-tailored products
• Personalized service
• Acknowledgement of their importance
• The old neighborhood store feeling

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Benefits

• Higher level of repeat business
• Lower promotional and sales costs
• lower market research costs
• Access to just-in-time information

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Word of Mouth via Email

• Free Giveaways
• stock
• 200 Gap cloths

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Don Peppers and Martha Rogers

• Probably the two consultants (among many) most
  associated with CRM their website is
  www.1to1.com
• http//www.1to1.com/Building/CustomerRelationships
  /content/videoList.jsp?BV_SessionID_at__at__at__at_1150699629
  .0989110831_at__at__at__at_BV_EngineIDhalklchflgfbfdlchlcfin
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