Marketing concepts and Customer Relationship management. The Role of CRM in Customer Relationship management .

1. Customer Relationship
Management
Marketing Aspects of CRM
Presented by
Rahul Upadhyay
1

2. 2
Customer Knowledge Communications &
multi-channels
Individual customer
Proposition
The Relationship
Policy
Marketing Aspects of CRM

3. Customer Knowledge

4. The Value of Customer Knowledge
Everything Depends on Data Quality

5. The Value of Customer Knowledge
What is Data Quality
Technical POV • Depth & Adherence to Specifications
Customer POV • Data leading to Better Service
Company PoV • Needs to Have Commercial Value
Intrinsic Quality of Data = Current x Complete x Correct x Unique

6. Data Quality
Costs Money
Investment in Collection
Investment in Collation
Investment in Correction
Investment in IT Systems

7. Data Quality
Waste due to Poor Data Quality
Broken Relationship

8. Data Quality
The Impact of Good Quality Data
Effective
Acquisition
Faster
Acquisition
Lower Costs
Higher Csat
Relationship
Development

9. 9
Data Sources
Whereabouts
Access to Data Quantity
Strategy
Disconnect
Accuracy
Need for New
data
Security &
Privacy Concerns
Data As an Asset
Utilizing Data – Challenges
Organisation Usage

10. Data Management
Stages of Organisation Evolution
• Individual effort
by Mktg
Pioneer
• Dbase Specialist
• Collection &
Organising
Data
Specialization
• Part of Profit
Centre
• Defined
Objectives
Multifunctional
Team
• IT Investment
• Multi Channel
• Two Way
System
Integration
Final Stage : One to One Communication

11. Data → Customer Knowledge
Creating a Customer Profile- Elements
11

12. Customer Knowledge
Privacy Issues
12
Acceptable Vs. Un-Acceptable
Required Vs. Un-necessary
Data Safety Concerns

13. Customer Knowledge
Unacceptable Use e.g
13

14. Customer Knowledge
The Legal Aspects
14
Permissions based- Implicit & Explicit
Person/ Entities Responsible- Storage / Processing
Right to Inspect & Objection
In India Held as a Right under Right to Life by SC

15. Communication & Multi Channels

16. Multi Channels
16
Contact Process between a Customer & a Supplier or its Channels

17. Multi Channels
The Communications Continuum
17
One to Many One to One
Impersonal
Undifferentiated
Unaddressed
Differentiated
Addressed
Very Personal
Mass Media
Catalogues
Website
Emailer
Telephone Personal Sales
Service Employee
Independent of Time & Place
Content & Context Driven

18. Multi Channels
Power of Channels
18
Aim : To Create a Seamless Network of “ Touch Points” by using
Channels at different points of the Contact Process
Degree of
Interactivity
Degree of
“Personality”
No. of Senses
Activated/
Engaged
Dimensions

19. Multi Channels
Interweaving of Channels- Example
19

20. Multi Channels
Discussion-Interweaving of Channels
20
BANKS

21. Deploying Multi Channels-B2C
Consumer Traits & Factors to Consider
21
Conservative
• Security, Familiarity
• Skeptical
Active
• Need for Control
Open
• Experimental, Knowledgeable
• Self Driven
Instrumental
• Purpose Driven
• Transactional
Social
• Relationship Oriented
• Face to face interactions
ToM
Awareness
Risk
Perception
Intrinsic
interest Time
Channel
Familiarity Product
Factors

22. Multi Channel
B2B deployment
22
Personal Selling
• Account Managers
IT Enabled CRM Systems & Internet
• Integrated CRM Systems
• Internet

23. Multi Channel
B2B CRM Systems- Oracle
23

24. Tech enabled Channels
Impact on Pricing
24
• Enabling free Information flow
• Informed decision making
Transparency
• Virtual Transactions
• Faster decision making
Reduced Transaction
Costs
• Larger Choice
• Price Comparisons
Customer Power
• Transaction Orientation
• Enabling Two way Communication
• Facilitating P2P interactions
Relationships

25. Tech enabled Channels
Objectives
• Surpass the Shop Experience
• Efficiency/Cost reduction
• Increase Market Size
• Improve Orgn. Adaptability
25

26. Tech enabled Channels
Roles in Contact Process
26
• B2B
• Information
• Learn
• Advise
• Transact
• Support
• Relationship
building
• Acquire
• Information
• Transact
• Support
• Information
• Advice
• Learn
• Support
• Relationship
Building
Account
Manager Call Centre Social Media Internet Email
• Information
• Learn
• Advise
• Transact
• Support
• Information
• Advise
• Transact
• Support
• Relationship
building
Judicious deployment of Channels Post Purchase can open further
Upselling Opportunities and Lower Costs

27. Tech enabled Channels
Salesforce 360 in action
27

28. The Individualised Customer Proposition

29. Individualised Customer Proposition
29
Customer
Behaviour
Customer
Processes
Customer
Actions
Individual
Customer
Propositions

30. Mass Customization
30
Enables flexible mfr. processes to produce products according to precise customer wants

31. Individualised Customer Proposition
Forms of Mass Customisation
31
• Change
• No
Change
• Change
• Change
Cosmetic
Adaptive
Transparent Collaborative
Product
Representation
?

32. Individualised Customer Proposition
Mass Customisation & Supply Chains
Segmented Customized Made to measure

33. Individualised Customer Proposition
Mass Customisation - Dell

34. Mass Individualisation
The Next Step
• Co-Creation at design level
• Involves all the stake holders
• Facilitated by interface for end-
user interaction

35. Individualised Customer Proposition
Custom Pricing Policy
Factors
Differential Value
among Customers
Time Value
Situation Value
Challenges
Customer
acceptance
Price Sensitivity
Competition

36. Individualised Customer Proposition
Custom Pricing Policy- Price sensitivity
• Alternates
• Cost of switching
• Product difference
• Transactional or Long term
relationship oriented
• Who’s Paying ?
• Is the buyer the end user
• Price & Quality relationship
• Accessibility
• Time constraint

37. Custom Pricing Policy
Internet enabled Pricing Strategies
Pricing Structures
• Bundling Vs Unbundling
• Discounts & Additional Compensation for additional Products/ Services
• Fixed Vs Dynamic Price – Time Value
• Price accepting Vs Price setting
• Price Tailoring
Freemium Auctions Pay Per View Pay as You Go

38. Revenue Management
Formulating a Revenue Policy-Steps
Segment buyers basis Price & Quality Preferences
Price Strategy Per Segment
Demand Forecast per Segment
Allocation of Capacity across Segments
Revenue Management = Maximising Yields by allocating different Capacities across different Prices

39. Revenue Management
Tourism Industry

40. The Relationship Policy

41. Designing Relationship Policy
By Relationship Phase
Exploratory Growth Maturity Decline
Transaction Low Growing Stable Declining
Commitment Avg. High Decreasing Maximum Low
Objective Both Higher Both Higher Retain Prevent/
Separation
Policy
Inform,
Differentiate,
Measure
Satisfaction
Interact, Appeal,
Cross- selling ,
Customisation,
Exceed expectations
Change
Routine
Cause analysis,
suggest
solutions.

42. Relationship Policy
Getting the Data Right
1. Which Customers ? Size & Quality.
2. Objectives from each Segment
3. Acquisition Plan for desired
Customers
4. Retention Plan
5. Recovery Plan

43. Designing Relationship Policy
Customer Segmentation & Interaction

44. Relationship Policy
Segment Communication & Service Profile Eg.

45. Relationship Policy
Phases & Communication Plan
• Welcome
Pack
• Questionnaire
• Transaction
Exploration
• Partnership
• Cross selling
opportunities
Growth
Phase • Customized
• Relationship
oriented
Maturity
Decline
• Interest
• Solutions
• Exit Interviews
Reasons to Communicate
1. New Launches
2. Customer Life Events
3. Building Familiarity
4. Legislative Changes

46. Relationship Policy
Loyalty Programmes
A Structured Marketing effort that encourages preferred buying behavior
which is beneficial to the issuing business entity

47. Loyalty Programs
Categories
Savings
Program
• Purchase
• Points & Gifts
• Increase spends
• Customer
Retention
• Free or additional
payment rewards
Club Program
• Registration
• Min Threshold for
acceptance
• Brand/Product
Oriented Comms.
• Increase Customer
Involvement
• Information,
Discounts etc.
Relationship
Marketing
Program
• Min no. of
Transactions
• Comms driven
towards Customer
usage , Brand
,Points & Gifts.
• Aim is to increase
mutual
involvement
• Generate long
term Commitment

48. Loyalty Programs
The Starbucks Experience