A Framework for Customer Relationship Management (CRM)

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A Framework for Customer Relationship Management
(CRM)
Russell S. Winer

• University of Bern
• Faculty of Business and Social Sciences
• Institute of Marketing and Management (IMU)
• Management Department

• Katrina Goba
• Yanick Rossier
• Dorothea Maag
• Artemis Truffer

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Market Driven Organizations Fall 2010
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CRM Basic ModelData Base Analysis

• Data Base
• How to create a database of furniture store
  clients?

Data Analysis What does each customer deliver to
the company in terms of profits?
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Market Driven Organizations Fall 2010
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Customer Selection Targeting
Customer Selection Segmentation-type analysis for
most desired customer segment (e.g. highest
purchasing rates or greatest brand
loyalty) Descriptor variables (e.g. age,
preferences or industry type) provide information
for deploying the marketing tool Build
customer-based profitability through lifetime
customer value (LCV) Example Targeting the
Customer 1-to-1 marketing to build individual
relationship with the customer (e.g. email or
SMS) Example
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Relationship Marketing
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Market Driven Organizations Fall 2010
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Privacy Issues Metrics

• A CRM System takes adequate personal information
  for granted
• May lead to privacy concerns
• Continuum of Privacy Concerns (study by
  Forrester Research)
• Simple irritation ? Feelings of violation ?
  Fear of harm ? Nightmarish
• visions
• 2 options to hold against privacy concerns
• Opt-in
• Opt-out
• Metrics
• Besides traditional metrics (profitability,
  market share) CRM-based measures
• become more important (customer acquisition
  costs, retention/churn rates)

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Market Driven Organizations Fall 2010
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The Future of CRM

• The implementation of successful CRM System
  remains a
• challenge!
• Key (future) Factors for a successful CRM
• Split the marketing manager job into 2 parts
  Acquisition Retention
• Engage a chief customer officer (CCO)
• Move from CRM to Customer Experience Management
  (CEM)

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Market Driven Organizations Fall 2010