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Slide 9.1
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
CHAPTER 9
CUSTOMER RELATIONSHIP
MANAGEMENT
RAHUL
GUPTA
GALGOTIAS
UNIVERSITY
Slide 9.2
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Learning outcomes
 Outline different methods of acquiring
customers via electronic media
 Evaluate different buyer behaviour amongst
online customers
 Describe techniques for retaining customers
and cross-and up-selling using new media.
Slide 9.3
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Management issues
 What is the balance between online and offline
investment for customer acquisition?
 What technologies can be used to build and
maintain the online relationship?
 How do we deliver superior service quality to
build and maintain relationships?
Slide 9.4
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
What is CRM?
 An approach to building and sustaining long-term
business with customers
 CRM comprises of four marketing activities:
 Customer selection
 Customer acquisition
 Customer retention
 Customer extension
Figure 9.1 The four classic marketing activities of customer relationship management
Slide 9.6
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Marketing applications of CRM
A CRM system supports the following marketing applications:
 Sales force automation (SFA). Sales representatives are supported in their
account management through tools to arrange and record customer visits.
 Customer service management. Representatives in contact centres respond
to customer requests for information by using an intranet to access databases
containing information on the customer, products and previous queries.
 Managing the sales process. This can be achieved through e-commerce
sites, or in a B2B context by supporting sales representatives by recording
the sales process (SFA).
 Campaign management. Managing ad, direct mail, e-mail and other
campaigns.
 Analysis. Through technologies such as data warehouses and approaches
such as data mining, which are explained later in the chapter, customers’
characteristics, their purchase behaviour and campaigns can be analysed in
order to optimize the marketing mix.
Slide 9.7
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
E-CRM – a definition
E-CRM is:
 Applying –
Internet and other digital technology…
(web, e-mail, wireless, iTV, databases)
 To –
acquire and retain customers
(through a multi-channel buying process
and customer lifecycle)
 By –
Improving customer knowledge, targeting,
service delivery and satisfaction.
Slide 9.8
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Benefits of e-CRM
 Targeting more cost-effectively
 Achieve mass customization of the marketing
messages
 Increase depth, breadth and nature of
relationship
 A learning relationship can be achieved
 Lower cost
Slide 9.9
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Permission marketing
 Customers agree to be involved in an
organization’s marketing activities, usually as a
result of an incentive
 Godin (1999) suggests that dating the
customer involves:
 Offering the prospect an incentive
 Using the attention to teach
 Reinforce the incentive
 Offer additional incentive
Slide 9.10
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Conversion Marketing
 Using marketing communications to maximize
conversion of potential customers to actual
customers and existing customers to repeat
customers
 Agrawal et al. (2001) scorecard:
 Attraction
 Conversion
 Retention
Slide 9.11
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
The Online Buying Process
 Five different types of web users
 Directed information-seekers
 Undirected information seekers
 Directed buyers
 Bargain hunters
 Entertainment seekers
Slide 9.12
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Differences between B2B and
B2C buyers
 Market structure
 Nature of the buying unit
 Type of purchase
 Services: low-volume, high-value
 Stationary: high-volume, low-value
Slide 9.13
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Marketing Communications for
Customer Acquisitions
 From push to pull
 From monologue to dialogue
 From one-to-many to one-to-some
 From one-to-many to many-to-many
 From ‘lean-back’ to ‘lean-forward’
 The medium changes
 Increase in communication intermediaries
 Integration remains important
Figure 9.6 Measures used for setting campaign objectives or assessing campaign
success increasing in sophistication from bottom to top
Slide 9.15
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Assessing marketing
communication effectiveness
 0 Volume or number of visitors
 1 Quality or conversion rates to action
 2 Cost (cost per click)
 3 Cost (cost per action or acquisition)
 4 Return on investment
 5 Branding metrics
 6 Lifetime-value-based ROI
Slide 9.16
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Types of CRM applications
 Ideal CRM system will support multi-channel
communications or the customer preferred
channel
Figure 9.18 An overview of the components of CRM technologies
Contact no.9582050723
The End!

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Ch09 ecrm

  • 1. Slide 9.1 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 CHAPTER 9 CUSTOMER RELATIONSHIP MANAGEMENT RAHUL GUPTA GALGOTIAS UNIVERSITY
  • 2. Slide 9.2 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Learning outcomes  Outline different methods of acquiring customers via electronic media  Evaluate different buyer behaviour amongst online customers  Describe techniques for retaining customers and cross-and up-selling using new media.
  • 3. Slide 9.3 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Management issues  What is the balance between online and offline investment for customer acquisition?  What technologies can be used to build and maintain the online relationship?  How do we deliver superior service quality to build and maintain relationships?
  • 4. Slide 9.4 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 What is CRM?  An approach to building and sustaining long-term business with customers  CRM comprises of four marketing activities:  Customer selection  Customer acquisition  Customer retention  Customer extension
  • 5. Figure 9.1 The four classic marketing activities of customer relationship management
  • 6. Slide 9.6 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Marketing applications of CRM A CRM system supports the following marketing applications:  Sales force automation (SFA). Sales representatives are supported in their account management through tools to arrange and record customer visits.  Customer service management. Representatives in contact centres respond to customer requests for information by using an intranet to access databases containing information on the customer, products and previous queries.  Managing the sales process. This can be achieved through e-commerce sites, or in a B2B context by supporting sales representatives by recording the sales process (SFA).  Campaign management. Managing ad, direct mail, e-mail and other campaigns.  Analysis. Through technologies such as data warehouses and approaches such as data mining, which are explained later in the chapter, customers’ characteristics, their purchase behaviour and campaigns can be analysed in order to optimize the marketing mix.
  • 7. Slide 9.7 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 E-CRM – a definition E-CRM is:  Applying – Internet and other digital technology… (web, e-mail, wireless, iTV, databases)  To – acquire and retain customers (through a multi-channel buying process and customer lifecycle)  By – Improving customer knowledge, targeting, service delivery and satisfaction.
  • 8. Slide 9.8 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Benefits of e-CRM  Targeting more cost-effectively  Achieve mass customization of the marketing messages  Increase depth, breadth and nature of relationship  A learning relationship can be achieved  Lower cost
  • 9. Slide 9.9 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Permission marketing  Customers agree to be involved in an organization’s marketing activities, usually as a result of an incentive  Godin (1999) suggests that dating the customer involves:  Offering the prospect an incentive  Using the attention to teach  Reinforce the incentive  Offer additional incentive
  • 10. Slide 9.10 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Conversion Marketing  Using marketing communications to maximize conversion of potential customers to actual customers and existing customers to repeat customers  Agrawal et al. (2001) scorecard:  Attraction  Conversion  Retention
  • 11. Slide 9.11 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 The Online Buying Process  Five different types of web users  Directed information-seekers  Undirected information seekers  Directed buyers  Bargain hunters  Entertainment seekers
  • 12. Slide 9.12 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Differences between B2B and B2C buyers  Market structure  Nature of the buying unit  Type of purchase  Services: low-volume, high-value  Stationary: high-volume, low-value
  • 13. Slide 9.13 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Marketing Communications for Customer Acquisitions  From push to pull  From monologue to dialogue  From one-to-many to one-to-some  From one-to-many to many-to-many  From ‘lean-back’ to ‘lean-forward’  The medium changes  Increase in communication intermediaries  Integration remains important
  • 14. Figure 9.6 Measures used for setting campaign objectives or assessing campaign success increasing in sophistication from bottom to top
  • 15. Slide 9.15 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Assessing marketing communication effectiveness  0 Volume or number of visitors  1 Quality or conversion rates to action  2 Cost (cost per click)  3 Cost (cost per action or acquisition)  4 Return on investment  5 Branding metrics  6 Lifetime-value-based ROI
  • 16. Slide 9.16 Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007 Types of CRM applications  Ideal CRM system will support multi-channel communications or the customer preferred channel
  • 17. Figure 9.18 An overview of the components of CRM technologies