Customer Relationship Management unit 2 understanding customers Anna university BA 7015 Academic year 2017-2018

1. Prepared and presented by,
N. Ganesha Pandian,
Assistant professor,
Madurai School of management.
IIyearIIISemester
Academicyear2017-2018

2.  Customer information database
 Customer profile analysis
 Customer perception, expectation and analysis
 Customer behavior in relationship perspectives;
individual and group customer’s
 Customer life time value
 Selection of profitable customer segments

3.  Data base marketing is the process of
building, maintaining and using customer
databases and other databases (products,
suppliers, sellers ) to contact, transact and
build customer relationships
 Customer information databases includes
personal information, contact address, phone
number and demographic details and etc.,

4.  Contact names
 Demographic and psychographic information
 Address
 Buying history
 Source of sale
 Job title and job definitions
 Name of company
 Methods to contact them
 Source of lead
 Special needs of customers

5. Define the information requirements
Define the database functions
Identify the information sources
Select the database technology and hardware
platform
Populate the database
Maintain the database

6.  Extracting information
 Cleaning
 Merging
 Analyzing the information

7.  Helps in segmentation
 To improve product development
 Helps in finding most profitable customers
 Understanding the customers
 Customer communication
 Customer service
 Campaign management

8.  Improved customer relationships
 Contributes to market success
 Data management
 Market intelligence
 Sales management
 Management information
 Product planning

9.  A customer profile is a series of descriptive
phrases that paint a picture of a selected
target consumer.
 A profile is built from demographic,
expenditure, lifestyle and media preference
data and is used to immediately understand
the characteristics of s given customer

10.  Geographic details
 Demographic details
 Psychographic details
 Buyer behavior

11.  Surveys
 Point of purchase
 Profile by parameter
 Demographics
 Enterprises and business management

12. ‘the right product for the right market’
principle
 Systematic aspects of customers
 Creating long term value of customers
Value= Perceived benefits/price
 Market segmentation

13.  According to Philip kotler, “Market
segmentation is sub-dividing a market into
distinct homogenous sub-groups of
customers, where any group can conceivably
be selected as a target market to be met
with distinct marketing mix”

14. 1. Geographical variables
2. Demographical variables
3. Psychographic variables
4. Behavioral variables

15.  Identifying the best customer
 Planning out retention plans for new customers
 Inducing buying from existing customers
 Improving customer services
 Effective campaign planning
 Increasing market share
 Increase overall profitability

16.  Value may be best defined from the
customer’s perspective as a trade-off
between the benefits received Vs price paid
Value = perceived benefits / price

17.  Customer-defined
 Opaque
 Contextual
 Multi-dimensional
 Trade-off
 Relative
 Mindset

18.  Functional value
 Social value
 Emotional value
 Conditional value

19. 1. Identifying Appropriate customer value segments
2. Designing value delivery systems
3. Planning customer value delivery strategy
i. identify the value
ii. Choose the value
iii. Value creation/delivery
iv. Value communication
v. assessing the value
4. Value enhancement

20.  Customer satisfaction is the degree of satisfaction
provided by the goods or services of a company as
measured by the number of repeat customers
 Customer satisfaction occurs when the
performance meets customer expectations
 Value is the satisfaction of customer requirements
at the lowest total cost of acquisition, ownership
and use

21.  A marketing concept that encompasses a
customer's impression, awareness and/or
consciousness about a company or its
offerings. Customer perception is typically
affected by advertising, reviews, public
relations, social media, personal experiences
and other channels.

22.  1. Self Perception
 2. Price Perception
 3.Benefit Perception

24.  Understanding and Managing Customer
Perception
 Identifying customer needs
 Identifying customer influencing variables
 Customer Segmentation
 Identifying behavioural intentions
 Creating awareness
 Direct contact with the customers

25.  Business performance improvement activities
 Sales force effectiveness programmes
 Strategic re-positioning
 Exploring current and new market needs and
opportunities
 Strategic change programmes
 Developing customer-centric capability models

26.  Customer expectations touch on everything a
company's clients -- or the market, in general --
anticipate in terms of product, service, price
and distribution outlet. Marketing strategists
view such expectations through the lens of client
desires, needs and wants at a given point in
time. Given the significance of client
expectations in marketing analysis, running a
business without

27.  Explicit Expectations
 Implicit Expectations
 Static Performance Expectations
 Dynamic performance Expectations
 Technological Expectations
 Interpersonal Expectations
 Situational Expectations

28.  First stage
 Second stage
 Third stage
 Fourth stage

29.  Consumer behaviour is the study of
individuals, groups, or organizations and the
processes they use to select, secure, and
dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that
these processes have on the consumer and
society.

30. The 6 stages are
 Problem Recognition
 Information search
 Evaluation of Alternatives
 Purchase decision
 Purchase
 Post-Purchase Evaluation

31.  Routine Response/Programmed Behaviour
 Limited Decision Making
 Extensive Decision Making
 Impulse buying

32.  Personal
Factor
 Psychological
factors
Motives
Perception
Ability and
Knowledge
Attitudes
Personality
Lifestyles
 Social Factors
Opinion leaders
Roles and Family
Influences
Reference
Groups
Social Class
Culture and Sub-
culture

33.  In every buying decision, a consumer asks the
same question: is what I am going to receive
worth what I have to give up in order to get it?
The gain the consumer receives for the benefit is
weighed against the cost the consumer must pay
to acquire the benefit. The value the individual
consumer places on a product or service
becomes the customer value for that offering.
 Benefits – cost = Customer Value

34.  In marketing, customer lifetime value (CLV) (or
often CLTV), lifetime customer value (LCV), or
user lifetime value (LTV) is a prediction of the
net profit attributed to the entire future
relationship with a customer. The prediction
model can have varying levels of sophistication
and accuracy, ranging from a crude heuristic to
the use of complex predictive analytics
techniques.

35.  Example:
 Marketing – how much should I spend to acquire
a customer
 Product – who are my best customers? How can I
offer products and services tailored for them?
 Customer support – how much should I spend to
service and retain a customer?
 Sales – what types of customers should sales reps
spend the most time on?

36.  Churn rate
 Discount rate,
 Contribution margin

37.  determination of the optimal level of investments in
marketing and sales activities
 encourages marketers to focus on the long-term value of
customers instead of investing resources in acquiring
"cheap" customers with low total revenue value
 Implementation of sensitivity analysis in order to
determinate getting impact by spending extra money on
each customer.
 optimal allocation of limited resources for ongoing
marketing activities in order to achieve a maximum return

38.  Customer Segmentation is the subdivision of
a market into discrete customer groups that
share similar characteristics. Customer
Segmentation can be a powerful means to
identify unmet customer needs.