Audience relationship management
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  • 1. Exercise  Ask the neighbour behind you what other words they might use to define a customer?  Ask them the difference between a customer and a client?
  • 2.  Purchaser, vendee, end user, prospect, shopper, guest, buyes  A customer is simply a recipient of products or services in exchange for money. Even though the relationship to the provider might be long lasting, the sense is of discrete exchanges.  A client is engaged in a more qualitative relationship in which the provider generally applies professional skills to offer often intangible commodities such as legal services, insurance policies, etc.  Another distinction is that a customer is more likely to visit a retail establishment, whereas a client may more easily receive services without being physically present at the place of business.
  • 3. Definition  “The practice of identifying, attracting and retaining the most valuable customer to generate the profitable growth. It is the process by which companies manage relationships with their existing customers and new prospects.”  “A term for methodologies, technologies and e-commerce capabilities used by companies to manage customer relationships.”  Recently this definition has been extended to target a broader audience, not specifically existing customers.
  • 4. Why?
  • 5. Importance  There has been a shift from transactional marketing to relationship marketing.  Issues such as customer loyalty, brand loyalty and customer lifetime value have become increasingly important.  It has been realized that it is easier and cost effective to retain current customers rather than seeking new ones.  Advances in technology have changed consumer buying behavior  Technology and the Web has changed the way companies approach CRM strategies.
  • 6. A loyal customer is one who…
  • 7. Customer loyalty pays off
  • 8. Satisfaction vs. Loyalty
  • 9. Two Strategic Imperatives  Image and brand management  Non personal communication  Customer contact management  Personal communication/Two way dialogue  The coordination and management of all personal communications between organizations and it’s customers  Mail, telephone, email, social media, internet
  • 10. Customer Contact Management B2B Communications  First line contact is with trade customers  Very different to the contact made with end customers  The supplying organizations needs to be able to manage pre-purchase transaction and post-purchase situations in order to build relationships
  • 11. Database Marketing  Used to focus marketing activities towards targets  The use of accurate customer and prospect customer information, competitor information, marketing information and internal company information.  Examples of database marketing:  CASS – Computer-aided sales support  DRM – Direct response marketing  CIS – Customer information and service
  • 12. 3 Components of Database Marketing  Computer aided sales support  Internal support/information  The direct access to the database via pc’s and notebooks  Personal tools (diary/organisers), email, fax  Direct response marketing  Used by marketers target and contact end users  Based on addressable communications  Direct mail, telemarketing, email, text messaging  Customer information and service  Customer initiated contact  Based on the use of free phone or local number, email or over the internet
  • 13. Electronic Marketing and Telemarketing  Electronic marketing  The utilization of the internet to transact business  Also known as E-commerce  Telemarketing  The planed and controlled use of telephone communication to build profitable transactions and relationships with customer groups (actual and potential) who impact on an organizations success.  Call centres, automated call distributor
  • 14. Types of market segmentation  The type of segmentation is to a large extent determined by the product  Traditional market segmentation  (Geo)demographics  Lifestage  Behavioural segmentation  Psychographics  VALS
  • 15. Values, Attitudes and Lifestyle(VALS) Western Japan
  • 16. Strategic Implication Of Customer Contact Management  Integration  Advances in technologies provide businesses with reliable and profitable ways of improving enhanced customer contact management.  Reducing costs of sales and communications  Using traditional selling methods (sales person) is expensive and not very effective.  Less costly techniques and marketing functions  Extended Communication options  Reduce contact and transaction costs  Allowing customers more means of contact  Improving customer service
  • 17. Strategic Implication Of Customer Contact Management Cont.  Coverage and Penetration  Customer contact management is an effective and cost effective way of reaching specific target markets  Developing a mixed approach and new channels  Customer Retention/Relationship Marketing  Customer has more control  More available information, new market entrants, wider choices, new channels  New technologies allow customers to exercise their preference for conducting