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Introduction to e-CRM
•E-CRM (Electronic Customer Relationship Management)
2Professor L.A. Macaulay
Objectives
Outline different methods of acquiring customers via electronic media
Evaluate different buyer behaviour amongst online customers
Describe techniques for retaining customers and cross- and up-selling using new media
Core reference Chaffey www.booksites.net/chaffey
3Professor L.A. Macaulay
Issues for managers
• What is the balance between online and offline investment for customer acquisition?
• What technologies can be used to build and maintain the online relationship?
• How do we deliver superior service quality to build and maintain relationships?
4Professor L.A. Macaulay
E-CRM – a definitionE-CRM is:
• Applying…Internet and other digital technology… (web, e-mail, wireless, iTV, databases)
• to… acquire and retain customers (through a multi-channel buying process and customer lifecycle)
• by…improving customer knowledge, targeting,service delivery and satisfaction
5Professor L.A. Macaulay
Marketing applications of CRM
A CRM system supports the following marketing applications:1. Sales force automation (SFA). Sales representatives are
supported in their account management through tools to arrange and record customer visits.
2. Customer service management. Representatives in contact centres respond to customer requests for information by using an intranet to access databases containing information on the customer, products and previous queries.
3. Managing the sales process. This can be achieved through e-commerce sites, or in a B2B context by supporting sales representatives by recording the sales process (SFA).
4. Campaign management. Managing ad, direct mail, e-mail and other campaigns.
5. Analysis. Through technologies such as data warehouses and approaches such as data mining, which are explained further later in the chapter, customers characteristics, their purchase behaviour and campaigns can be analysed in order to optimize the marketing mix.
6Professor L.A. Macaulay
Three phases of customer relationship management
Three phases of customer relationship management
7Professor L.A. Macaulay
A summary of an effective process of online relationship building
A summary of an effective process of online relationship building
8Professor L.A. Macaulay
From old media to new media1. From push to pull.2. From monologue to dialogue.3. From one-to-many to one-to-some and
one-to-one.4. From one-to-many to many-to-many
communications5. From ‘lean-back’ to ‘lean-forward’.6. Form of tools changes.7. Increase in communications
intermediaries.8. Integration remains important.
9Professor L.A. Macaulay
Offline and online communications techniques for e-commerce
Offline and online communications techniques for e-commerce
10Professor L.A. Macaulay
Evaluate the effectiveness of the tools with AIMRITE
• Audience: can the target audience be reached?
• Impact: can message get through the clutter?
• Message: is message communication effective?
• Response: is responding easy (direct/indirect)?
• Internal management: can the tools be managed readily by agency or internally?
• The End Result: What are the response rates, costs and returns?
11Professor L.A. Macaulay
AIMRITE – Online advertising Positive features Negative features
Audience
Impact
Message
Response
Information management
End Results
12Professor L.A. Macaulay
The relationship between banner ads and destination sites
The relationship between online ads and destination sites
13Professor L.A. Macaulay
Skyscraper to microsite example
14Professor L.A. Macaulay
Standard landing page
http://www.norwichunion.com/products/insurance/travel/single_annual_travel.htm
15Professor L.A. Macaulay
Online ads - effectiveness
• Instruct, not hope• Evolve, not cycle• Flash, not GIF
(Rich media)• Use large ad formats
www.lemonad.com
• Brand the first frame• Brand top of skyscrapers• Ditch ‘Click here!’• High contrast• Use < 15 ad elements• Use large logos• Include a human face
www.avantmarketer.com
16Professor L.A. Macaulay
AIMRITE – Search engine marketingPositive features Negative features
Audience
Impact
Message
Response
Information management
End Results
17Professor L.A. Macaulay
Search engine marketing
Adwords select(PPC)
Position: CPC and CTR
Premium Sponsorships (Position:CPM)
18Professor L.A. Macaulay
1 Search engine registration
• What is it?‘Timely submission of domain names, especially campaign-specific names to key search engines’.
• The issues:1. Representation. Are you registered on the main search engines? Do you check continuously?
2. Time to register. Plan ahead and make use of paid inclusion services to ensure that campaign-specific URLs can be found when your campaign goes live.
3. New search engines. Search engines change in popularity – are you listed with the latest ones?
19Professor L.A. Macaulay
2 Search engine optimization (SEO)
• What is it?‘Improving your competitive position in the search engine results listings’.
• The issues:1. It’s not just meta-tags. Ignored by most search engines – keyword frequency in body copy, <title> tags, headings and links are much more important.2. Doorway pages. Creating special pages optimised for different product-related keywords and search engines is a key technique for high listings.3. It’s a continuous process. Search engine algorithms, popularity and competitor activity all change, so to stay competitive, SEO demands continuous attention (Use an agency).
20Professor L.A. Macaulay
Search engine indexing
Stages involved in creating a search engine listing (Chaffey et al., Internet Marketing)
21Professor L.A. Macaulay
3 Search engine advertising (PPC)
• What is it?‘Keyword-based, paid for placements or sponsored links to increase your prominence (Position based on bid)’.
• The issues:
1. SEO is not enough. Increasingly, SEO alone does not give sufficient visibility in many search engines. Paid placements are necessary to ensure visibility.
2. Is your PPC effective? As with any campaign, there are more and less effective approaches. Case study shows that by rationalising PPC, sales per day were doubled, while the cost per click was halved.
3. It’s a continuous process. Competitor activity varies, so automated bid management tools need to be used to optimise the bids, with frequent reviews of strategy effectiveness (www.gotoast.com, www.bidbuddy.co.uk).
22Professor L.A. Macaulay
Overture / Freeserve ad options
Bid: £1.50
Bid: £1.32
Bid: £1.31
23Professor L.A. Macaulay
AIMRITE – Affiliates and links Positive features Negative features
Audience
Impact
Message
Response
Information management
End Results
24Professor L.A. Macaulay
Link building
• Affects ‘Page Rank’ or link popularity in Google – Type primary keywords into Google – Use “link:site name” or Optilink to find referrers – Beat them: in number AND reputation (referring text)
• A structured link-building programme will reap benefits both in terms of visitors and enhanced Google listings.
• Reciprocal links are free, but are mainly practical for intermediaries.
• Online PR is another form of link building. Is this neglected?
25Professor L.A. Macaulay
Affiliates
• What are they?‘A commission based arrangement where referring sites (publishers) receive a commission on sales by merchants’.
• ‘Affiliate networks’ such as Trade Doubler have over 400,000 companies across Europe. Used for financial services and travel as well as retailers. MFI derives 8% of its online revenue from affiliates
• Affiliates help expand reach through niche sites
26Professor L.A. Macaulay
AIMRITE – E-mail marketingPositive features Negative features
Audience
Impact
Message
Response
Information management
End Results
27Professor L.A. Macaulay
Why e-mail marketing?
• Higher response rates • Shorter campaign creation • Faster response • Shorter overall cycle time• Lower costs
More precise targeting Multiple messages to convert More detailed testing and measurement
28Professor L.A. Macaulay
Example e-mail – rented list
OHT 9.30
© Marketing Insights Limited 2004
Example e-mail – rented list
29Professor L.A. Macaulay
Example e-mail house list
30Professor L.A. Macaulay
Example e-mail multi-message campaign
Example of a campaign structure for an e-mail campaign.
From Chaffey et al. Internet Marketing.Supplied by UK-based e-mail marketing specialists Harvest Digital (www.harvestdigital.com)
31Professor L.A. Macaulay
Reasons why businesses do not buy supplies online
Reasons why businesses do not buy supplies online
Source: DTI (2002)
32Professor L.A. Macaulay
The simple buying process
The simple buying process
33Professor L.A. Macaulay
Online behaviours• Directed information seekers. Will be looking for product, market
or leisure information such as details of their football club’s fixtures. This type of user tends to be experienced in using the web and they are proficient in using search engines and directories.
• Undirected information seekers. These are the users usually referred to as surfers, who like to browse and change sites by following hyperlinks. This group tends to be novice users (but not exclusively so) and they may be more likely to click on banner advertisements.
• Directed buyers. These buyers are online to purchase specific products. For such users, brokers or cybermediaries who compare product features and prices will be important locations to visit.
• Bargain hunters. These users want to use the find offers available from sales promotions such as free samples or prizes.
• Entertainment seekers. Users looking to interact with the web for enjoyment through entering contests such as quizzes.
34Professor L.A. Macaulay
Responses to question: ‘How did you find the product website you used to research a purchase?’
Responses to question: ‘How did you find the product website you used to research a purchase?’
Source: DoubleClick (2003b)
35Professor L.A. Macaulay
RS Components web site (www.rswww.com)
RS Components web site (www.rswww.com)
36Professor L.A. Macaulay
Personalisation on Silicon.com (www.silicon.com) for an IT manager audience
Personalization on Silicon.com (www.silicon.com) for an IT manager audience
Used with permission from CNET Networks UK Ltd. © 2001, all rights reserved
37Professor L.A. Macaulay
Permission marketing• Interruption marketing
– To promote we must compete with many marketing messages and cut into what the customer is currently doing.
• Permission marketing– Give customers the option to receive information if they feel it will be
of value to them.
www.permission.com
Opt-in Opt-outIncentivise
38Professor L.A. Macaulay
What exactly is permission marketing?
• Key features:– Opt-in – Based on initial incentive– Opt-out– Continue incentives through time to:
• Learn more about customer• Tailor product offerings• Sell more
Seth Godin: www.permission.com B2B Example: www.microstrategy.com
39Professor L.A. Macaulay
Permission marketing vs SPAM
Reactions to permission marketing vs SPAM
Source: DTI (2000)
40Professor L.A. Macaulay
IDIC
Source: Chaffey et al. (2003)
41Professor L.A. Macaulay
Cisco site feedback options (www.cisco.com)
Cisco site feedback options (www.cisco.com)
42Professor L.A. Macaulay
Overview of the components of CRM technologies
An overview of the components of CRM technologies
43Professor L.A. Macaulay
Summary
– Outline different methods of acquiring customers via electronic media
– Evaluate different buyer behaviour amongst online customers (B2C, B2B)
– Describe techniques for retaining customers and cross- and up-selling using new media
– Core reference Chaffey www.booksites.net/chaffey