Customer management starts with understanding the:
process People and Organization Technology Measuring the effect CM Activity Targeting Enquire management Welcoming Know customers Customer development Managing problems Win back The customer Experience competitors The Proposition Analysis and planning
Many Companies have not determined how to deal with the rapidly increasing volumes of data about customers now being recorded in and about their business, through research, operations or external data suppliers.
Consumer goods retailers,
Utilities, financial services and industrial marketing companies.
Definition - Data mining is extraction of previous unknown, comprehensive and actionable information from large positories of data, and using it to make a crutial business decisions and their support implementation, including formulating tactical and strategic marketing initiatives and measuring their successes
Does the problem involve sequencing or time dependencies Does the problem involve summarizing variation in the data USE CORRELATION USE SEGMENTATION Is the main interest in broad class or usual class Look for deviation . USE DEVIATION ANALYSIS USE PROPENSITY ANALYSIS Does the problem involve predicting Behaviour Look for classes Yes Yes Yes Yes No No
Data mining interactive analysis Marketing and sales application Data mining application Data mining analysis function Data warehouse External databases Other databases Operational database RELATIONSHIP BETWEEN DATA MINING AND DATA WAREHOUSING
To determine whether the quantitative and qualitative boundaries between customer types remain the optimum.
To determine whether the relationship offered remains the optimum.
To identify which types of sales initiative and promotion work best for different customer types.
To identify opportunity area for achieving customer migration to higher-spend types
Customer Recruitment, Retention and Competitive Defence
To provide clear definition of which customers who are not currently in a relationship with the supplier should be targeted for recruitment taking into account their quality, creditworthiness, likely persistence etc.
To identify which customers are most at risk of or actually experiencing declining spend or completely inactive relationship with the supplier and the reason for this.
To identify which actions are most likely to prevent these customers from reducing or canceling their commitment to the supplier and which actions are most likely to regenerate their commitment.
To identify number and type of non-spending customers and evaluate the results of campaigns designed to stimulate them into use.
To evaluate the requirement for actions to stimulate cusomers who only buy rarely or customers gained from competition into continued purchasing activity
Mobile phone are just one kind of wireless devices that can be used in customer management.
Combined with an appropriate smart card, the mobile phone adds remote functionality to the smart card, enabling the customer to execute all kinds of transactions that would have required insertion of the card into a reader.
Coming from another direction is the personal digital assistant (PDA). With opertaing system desgined to optimize use of limited display and battery life.
Financial services, where wireless technology is already being used for trading checking balances and the like, and where we expect it to be used in areas such as claims management and general customer service.
Travel and transport, where the prime use will be checking schedules, booking, delay alerts, tracking, locating facilities and the like.
Automotive, where use will be in marketing and sales, in locating new and used cars, managing the services cycle, and as an in-car device for all other purposes.
Utilities and telecommunications, where billing, switching and servicing will be the prime uses.
General business to business, where general use for communications within the supply chain will be supplemented by all other uses in this section for managing customers, suppliers and business partners.
DEFINITION OF SERVICES SERVICE TYPE NATIONAL Multinational International To whom Customers experience service in one country only Customers experience service in one country only from company supplying in several countries Customers experience service in more than one country Examples Many customers of small firms Customers of multinational consumer goods companies User of international travel and communication Main competitive issue Identify service needs of local customers monitor competitor’s service standards As for nationals, plus development competitive advantage by transferring best practice from other countries A for Multinationals, plus identify international service needs of customers monitor international service needs of customers and monitor international competitor’s service standards Focus of service delivery Full range of technique –systems standards, recruitments and training etc used to attune delivery to customer needs As for national, plus….. Head office may focus on whether methodology being followed and right infrastructure exist Very strong focus on how people from different cultures handle people from different culture
Car makers are increasingly bypassing dealers in the UK, especially in their relationship with fleet buyers.
Major trend- to buy smaller fleets to buy direct.
Buying are negotiable.
Direct selling experiments are widespread , and the web is used extensively to support selected dealers.
CRM applications of call centers Targeting Outbound telemarketing to prospect list generated from internet and coupon campaign Acquisition Booking test drive, perhaps ordering too Welcoming Welcome and introduce call for every purchase Account management-Retention Replacement cycle calling at timed intervals before expected replacements Account management-Development Campaigns to cross sell and up sell (eg. warranties, accessories, financial services) to the buyers and to family members Intensive care-Service Problem Ensure availability to handle complaints, allow easier complaint tracking Intensive care- customer change Regular calling cycle to collect data on an y changes in need Pre-divorce Extra careful ‘listening’ in call center; triggering urgent action; active calling to identify what else can be done to help customers Divorce Outbound call to protect brand and offer route back Win back Out bound telemarketing
Period to be measured- the average length of time between the real decision about which suppliers to use , eg three years for cars, five to six years for mortgages. But for a product like LPG , monthly retention Measurement is necessary.
Retention of all customers is not equally desirable.
Most utilities have very high fixed cost, so unlike other companies, they cannot afford to be too indifferent to loosing large number of lower value customers.