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Retaining Customers In An Economic Downturn03

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How to use CRM 2.0 tools, strategies, and techniques to retain your customers during the recession.

How to use CRM 2.0 tools, strategies, and techniques to retain your customers during the recession.

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  • 06/07/09 15:24 © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Retaining Customers In An Economic Downturn03 Presentation Transcript

  • 1. Paul Greenberg Author: CRM at the Speed of Light
  • 2. Caveat #1: I’m not an economist
  • 3. Caveat #2: CRM is not a panacea
  • 4.
    • Why a Problem?
      • Poor economic conditions do change customer behaviors (transactions)
        • Customers desire to spend greatly diminished
        • Makes it easier to do nothing – or bolt
        • Your ability to spend on customers reduced
      • It can affect customer attitude but not always (interactions)
        • Your business has some control over this
  • 5.
    • Why Develop Strategy?
      • Acquisition costs much higher
        • Traditionally, 6 to 13X the cost of retention
        • David’s Bridal – shift in view of customer
      • Loyal customers will continue to spend with you because they trust you and are comfortable with you
  • 6.
      • Advocates are the paradigm – even in a downturn
      • Committed customers will help you acquire new customers
      • Because they will market and sell for you
        • Community retailing – Karmaloop, Threadless
  • 7.
      • Community Retailing – Karmaloop
        • Combination of name brand & independently designed clothes
        • Community building (nearly million) key focus via UGC, indie design exposure, and street teams who are incented to sell – and to be involved in community building
          • 20% discount
        • One percent of that community drives 15% of their total revenue through buying and WOM
          • 2006 - $4 million
          • 2008 - $40 million (with 30% reduction in original forecast due to recession)
  • 8.
    • Investigating your situation
      • Find out what customers want – and need
        • What have they been buying is important here too
        • How? Call them up; email them; tweet them if you’re so inclined
      • Determine what you have to give them – and what you need to do
        • Obviously price/cost is a consideration
        • Clean out ineffective processes – those with no value to you or your customer
        • Using Web 2.0 tools to provide customers with what they want.
  • 9.
    • Developing your strategy
      • Decide whether acquisition or retention is at the core? Or a mix ….
      • Recognize that your customer moves from being a “client” to a “partner” – or needs to be
      • Understand that there are three things that you have to do for the customer
        • Communications
        • Value
        • Service
  • 10.
    • Adjusting approach
      • What can you do to keep engaging customer?
      • What can you do to intensify loyalty w/customer as a partner?
      • What kind of value can you provide customer when price takes center stage?
      • Think in terms of operating as a business leader not just a sales organization
  • 11.
    • Economic
    • Communications
    • Engagement (Loyalty)
    • Engagement (Value)
    • Technology
    • Doing it Wrong
    • Doing it Right
  • 12.
    • Price moves to front of the line as part of overall experience
      • Provide discounts where possible to:
        • Customers directly
        • Partners in your business ecosystem if large enough
      • Financing options
        • Give customer payment options based on what you can do
          • Large company – multiple financing options
          • Small company – informal options to avoid difficulty
          • Sometimes, you have to compromise
  • 13.
    • Communications Plan
      • Find out how customers want to control their engagement - frequency, channel etc.
        • Opt-in, not opt-out
      • Find out where they congregate (e.g. Facebook, local bar)
        • Stay in touch - outreach
  • 14.
    • Communications Plan
      • Find out what they want from you during downturn
        • Their interests will matter
      • Make clear what your own situation is (transparency)
      • But don’t forget your own business plan – customer needs to be partner – and understand you too (authenticity)
  • 15.
    • If you have loyalty program:
      • Adjust loyalty program to fit need but
      • Be sure you fulfill obligations you already made
    • If you don’t:
      • Provide best customers with some unsolicited awards – small tokens of appreciation are fine
        • “ Thanks for sticking with us during these difficult times”
  • 16.
    • Operate as business leader, not sales person
      • Treat customer as human partner, not object of sale subject to your desperation
      • Provide information on how to cope with bad economy – both as business, and personal
        • Large company – do webinars; provide ebooks; send out targeted emails to customers on how to handle specific issues; corporate blogs, podcasts; create communities
        • Small company – send links to articles of interest; blogs and podcasts; phone calls to key customers
  • 17.
    • Use of CRM tools
      • On demand v. on premise
      • Good financing terms
      • Customer service
    • Social media tools
      • Blogging tools either server-based or SaaS
      • Podcasting tools
      • Community creation for larger companies
  • 18.
    • High End Cruise Line
      • Sent out letter to prospects that began with scare tactics about economy
        • Stressed stress and said solution to the stress was to effectively engage nature – by traveling with them
        • Letter was signed “personally” by the owner of the company and addressed to “Dear Traveler”
  • 19.
    • Car dealers in Midwest
      • Providing multiple financing options outside standard “vehicles”
        • Working with local & smaller regional banks to get financing
      • Preparing leaseholders in advance on their options so that they aren’t surprised
    • Sports teams
      • Nets free tickets to unemployed fans
        • Resumes posted to Nets website
        • Resumes go to team sponsors
  • 20.
    • Caretaker of the Islands of the Great Barrier Reef – Tourism Queensland
      • Dissecting the elements
        • Watched a podcast on the job availability which is primarily to blog for 6 months.
        • Marketing Manager talks about “word of mouth being important now.”
        • Your relevant experience is to be highlighted in 60 second uploaded video (UGC)
        • The video is voted on and commented on by visitors to site (UGC)
        • 10 finalists chosen by committee; one “wildcard” by visitors
  • 21.
    • Most important to remember, these tips/tactics aren’t only for a downturn
      • Downturn simply helps filter the selection due to the emotional/mental state of the customer
      • The type of likely customer experience is what determines which approaches, tactics, etc. you use
      • AND, remember, I’m NOT an economist
      • BUT I do know something about customers & CRM
  • 22. Author: CRM at the Speed of Light (4th Edition, February 2009) President: The 56 Group, LLC Managing Partner/CCO: BPT Partners, EVP: National CRM Assn. Co-Chair: Rutgers CRM Research Center Named #1 CRM Influencer (Non Vendor) by InsideCRM 2007 Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008 CRM Magazine 2008 Top Influencer PGreenblog: http://the56group.typepad.com ZDNET Blog: http://blogs.zdnet.com/crm Email: [email_address] Twitter: http://www.twitter.com/pgreenbe Cell phone: 703-551-2337 THANK YOU