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7/27/2019 Chapter 5 CRM in B2C Markets.pdf
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KeyKeyCRM inCRM in
ustomers andustomers and
onsumer Marketsonsumer Markets
7/27/2019 Chapter 5 CRM in B2C Markets.pdf
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Covera eCovera e
ey ustomers Campaign Managem
CRM Programs
n ar e s
Operational, Analyti
CRM
nt
al and Collaborative
2
7/27/2019 Chapter 5 CRM in B2C Markets.pdf
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Ke CustomersKe Customersare those customers whos
.
Loyal Customers
Perceive a companys products as mu
Competitive customersPerceive a companys products as slig
Switchable customers
Perceive a competitors product as sli
Competitor loyal custo
Perceive a competitors product as m
needs and wants can be
h superior to competitors products.
tly superior to a competitors product
htly superior to the company's product.
3
ers
ch superior to the companys product.
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Considerations toConsiderations to
Role of product in need fulfil Position vis a vis competitors
Length of relationship
Strate ies for ke customers
Develop personal trust (Meetinoffering good value for money and notcomplaints received from the customer
Create entry barriers in the ccompetitor products (Highly coresonance, strategic partnerships to en
decide ke customersdecide ke customers
ent
all commitments made to the customer,overcharging, prompt attention to any
nsumer mind space forpetitive prices, innovative features, brandance value delivery)
4
, ,
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Cam ai n ManaCam ai n Mana
e ra ona approa
Cull consumer names
Sent offers to custom
ustomers rece v ng
relevant to them.
Proper segmentation
ementement
:
from a databse
rs
ers or pro ucts not
5nd database qualification
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CAMPAIGN MACAMPAIGN MA
Psychographic profile
segment
Which products wouldpar cu ar segmen
Choice of variants and s
particular segment
Preferred action o tion
AGEMENTAGEMENT
e deemed suitable by a
zes
.
6
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Effective cam aiEffective cam ai
before deciding on t
se segmen c araccommunication chan
Analyze the respons
Create metrics to m
.
n mana ementn mana ement
e offers made.
er s cs o ec e onnel, product variants
s to previous campaigns
asure the success of the
7
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T es of cam aiT es of cam ai
Single stage campaign
Multi stage campaign
Single channel campaign
Multi-channel campaign
Trigger based campaign
nsns
A one-off communication to a customer.
Follow-ups on earlier communication with a
defined strategy for non-responders.
Maybe a single or muti-stage but using only one
channel for communication
A single/multi-stage campaign through multiple
channels.(such as email, telephone and directmai
Based on a trigger generated as a result of
customer profile, purchase behavior
8
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Measurement mMeasurement m
o ume o commun
percentage of respo
Volume of responses
Volume of sale
Cost of campaign vs
trics for cam ai nstrics for cam ai ns
a on sen an
ses received.
converted into sales
alue of sales.
9
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O eraO era
Operational CRM aims atmarketing databases into a s
improving the efficiency of cus
It automates and im roves
supporting business processes.
ional CRMional CRM
combining sales, support andingle repository that tracks and
,
omer interactions.
customer facin and customer
10
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O eratiO erati
Marketing Automation
Market Segmentation
Campaign Management
Event based Marketing
Sales Force Automation
ccoun anagemen
Lead Management
Contact Management
Pipeline Management
Quotation and Proposal Gene
nal CRM..nal CRM..
11
ration
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Anal tAnal t
for strategic or tactical purpoand firm value.
Analytical CRM aids decisio
ranging from simple spreads.
The analysis should ena
behaviour and meet the ob e
for the purpose of business p
improvement.
ical CRMical CRM
ses to enhance both customer
making using various tools
eet analysis to sophisticated
le insight into consumer
ctives of the CRM initiatives
rformance management and
12
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Anal tical CRMAnal tical CRM
collected through Operationalto meet the objectives of the C
-
Creating segments of custome
Understanding a customers puproducts/brands) etc.
Making sense of changing trend
Analyzing the response to cam
Analysing the response to rete
RM. The analysis needs to be doneM initiatives. The aspects that could
s based on their purchase behavior.
rchasing preferences (choice of
.
aigns.
tion strategies.
13
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O erational andO erational and
Operational CRM
Front office involvement
Aims at bettering the customer
Focus on actual customer interface
Helps to gather information to b
used for anal tical CRM
Anal tical CRMAnal tical CRM
Analytical CRM
Back office involvement
s Aims at understanding the .
s Focus on analysis of customer
Depends on operational CRM for
ettin the in ut data on which
14
analysis is done.
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Collaborative CR
between the customers and the companies.
Collaborative CRM facilitates interacti
and between members of the company ar
communication and coordination, to raise c
customer intimacy and retention.
It involves business collaboration manage
rgan sa ona co a ora on resu s ngreater profitability by enhancing c
collaborative CRM technologies are voic
.
ns between customers and com anies
und customer information to improve
ustomer switching costs and to increase
ment technologies.
ro uc v y en ancemen resu ng noss functional effectiveness. Some
, conferencing, email, web based and
15
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Sin le CustomerSin le Customer
Personal preferences
Lifecycle stage and circ
For eg-ICICI Bank has customer
account, credit cards,home loan
The same customer may avail oa savings account holder taking
. ,
customer view and not multiple
iew-Personalisationiew-Personalisation
mstantial needs
across various divisions-savings
s, car loans, demat accounts etc.
multiple facilities from ICICI viz.a home loan as well as becoming
16
views of the same customer.
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Cross selling
result of another purchasemade to a customer.
Eg-a Savings Bank account customer may
have requirements for a home loan and
the bank should be able to realise this
account the customer profile.
Cross selling efforts are fruitful if
the database is created throughwell qualified prospects and
campaign management is done
ear ng n m n persona za on
and customization requirements.
Upselling
Sellin a su erior roduct to a
customer when he hasoutgrown the old product.
Customer profile and
segmentation aspects
should be taken intoaccount
Regular customer interactions
may help to understand the
psyche of a customer.
17
g- aru sen s an o er o owners o e r
Zen model for upgrading to an Esteem
after 3 years.
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Multi-channelsMulti-channels
Type of channel
Retail shops
Online-Internet website
Issues of consideration
Continuos training to all personnel manning
the shops to ensure uniform consumer
interactions
Collating data from all other channels and
providing access for shop personnel to ensure
a unified customer view.on ict among t e retai s ops owing to
discounts offered by some shops.
Ensuring updated data on the site
Security issues wrt consumer transactionsIntegrating website properly with offline task
enablers like logistics service providers.
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CRM Pro ramsCRM Pro rams
Mass Markets
Customer Types
Pro ram T es
Continuity After-Marketing
ar et ng
Cross-selling
One - to - One
Marketing
Permission
Marketing
Personalization
Partnerin / Affinity
Co-Marketing Partnering
Co-BrandingSource : Sheth & Parva
DistributorsBusiness to Business
Special SourcingContinuous
Replenishment
ECR Programs
Key Account
Global Account
Programs
Customer Business
Development
Strategic PartneringLogistics
19
o- es gn
Co-DevelopmentPartnering
Joint Marketing
iyar, 2001
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General CRM FrGeneral CRM Fr
1) Cu
St
4) Marke
CRM Im
2) Integration and
alignment of
organ za ona processesand structures
meworkmework
tomer Oriented
ategy
ing-Driven
lementation
3) Information capture
and ali nment of
technology
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Com onentsCom onents
Value Perceived
Benefits Received
Core Product /
Service
Service Peripherals
Purchasing Efficiency
f Perceived Valuef Perceived Value
by Customers
Costs Incurred
Monetary Costs
(Price)
Time & Effort Costs
Psychological Cost
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Impact of Com
Satisfacti
Impact of Com
SatisfactiHigh
Increase
Competit
Low
Customer
Source : Jones & Sasser, Why Satisfied Custom
88-99.
petition on Customer
on and Lo alt
petition on Customer
on and Lo alt
d
on
gatisfaction
22
ers defect, Harvard Business Review, Nov.-Dec. 1995,
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Principal Reason for
"Other" Friendships 5%
Product
Competition 9%
Dissatisfaction
14%
Source: Blanchard Training and Development
er
ustomer Defection is
Move Away 3%
23
e ve n erence
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Profit Im act of MProfit Im act of M
more for the same basic product
Perceived service leaders impro
of 6% a year, whereas the perceimuch as 2% MS per year
Most loyal customers are likOthers simply take their busi
rketin Strate PIMSrketin Strate PIMS
-
or service
e their market share at an average
ed poor service providers lost as
ly to take the time to complain.ness elsewhere
24
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Technical Assistan
TARP
Technical Assistan
TARP
Each dissatisfied customer on an
ac sat s e customer w te n
e Research Programe Research Program
verage will tell 15 other people
o more t an
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Technical Assista
TARP
Technical Assista
TARP
complaint to more than one e
satisfactorily if they only need
level drops down to 61% if mnvo ve n so v ng e pro e
If a customer complaint was h
ce Research Programce Research Program
mployee in the company
to deal with one individual. This
re than one employee was.
ndled well, 95% of the customers
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Sales Force autSales Force aut
ompre ens ve p c
Enabling sales with t
Analysis of sales
materials
To be covered in de
mationmation
re o sa es s ua on
e power of automation
ail later
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