This document summarizes a course on Customer Relationship Management (CRM) taught by Dr. Anshu Jalora. The course objectives are to understand what CRM is, distinguish between customer satisfaction and delight, develop a framework to classify and identify customer segments, and recognize the importance of holistic marketing in CRM initiatives. Participants are expected to identify actions to improve their organization's CRM. The document defines CRM, discusses the importance of customer centric processes and lifetime value, and covers topics like acquisition, retention, upselling, and reasons for CRM failure.
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The power of marketing metrics proving marketing's value to the organization ...dmadetroit
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Marketing Operations (MO) is an emerging discipline with the potential to significantly increase performance and accountability in complex marketing organizations. It leverages a strong front-end infrastructure to reinforce marketing strategy and back-end programs and tactics. This article identifies the characteristics that signal your organization's readiness for MO.
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Marketing Operations (MO) is an emerging discipline with the potential to significantly increase performance and accountability in complex marketing organizations. It leverages a strong front-end infrastructure to reinforce marketing strategy and back-end programs and tactics. This article identifies the characteristics that signal your organization's readiness for MO.
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Brochure for the Loyalty & Advocacy Marketing course taking place in Kuala Lumpur, Malaysia on 7-8 November 2012. Trainer: Michael Leander Organizer: Marcus Evans
Learn more about Michael Leander here http://www.michaelleander.me
As a supporter of open innovation in SM we present our thoughts on what is involved
in advancing Supply Management as a core competence and invite interested parties to share their views to develop this theme.
Times are hard out there. But whatever the realities
of our current economic climate, sales leaders are still
accountable for the results of the selling organization.
In this current do-more-with-less environment, what’s
a CSO to do?
Marketing Operations: MObilizing Marketing For A Web 2.0 WorldClearAction
A sneak preview of my latest thinking, in which I parallel Web 2.0 and Marketing Operations. I have not presented this work live as of 5/11/09.
See https://ClearAction.com
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2. Course Objective
• By the end of this course, the participants will be able to
– Articulate what is Customer Relationship Management, Customer Lifetime
Value
– Distinguish between customer satisfaction and delight, and role of customer
delight in long term relationship management
– Develop a framework to classify and identify target customer segments, and
how to best serve them
– Recognize the significance of holistic marketing in CRM initiatives
• Expectation
– The participants will identify a set of action items to improve the CRM
initiatives at their organizations
Participate, share & co-learn, and have fun!!
11/21/2012 Dr. Anshu Jalora 2
3. Lets get started…
• What is marketing?
• What is Customer Relationship Management?
– Customer care?
– Door-to-door selling? Cold calls?
– Customer order processing?
– Loyalty?
• Why is CRM important?
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4. Customer Relationship Management
• CRM is a business strategy & philosophy encompassing marketing, sales,
service, technology. It involves customer care.
• CRM involves customer centric processes for identifying, acquiring,
nurturing, retaining customers & developing lifelong relationships with
them by providing best possible service & satisfaction in the process of
achieving organizational goals.
• CRM means two things – Knowing Your Customer (KYC) & “Appearing as
one Entity” to the customers.
• Taking a customer centric approach at all points of interactions with
customers, leading to higher profitability.
• Identify patterns in customer behavior and use information about
individual customers to create marketing strategies which develop and
sustain desirable customer relationships.
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5. Customer Centric View
Direct and Indirect customers, life time value
Value to Value of
customers customers
Acquisition, Retention, Up-sell strategies
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7. Customer Relationship Cycle
Development
of Offering
Targeting
and Sales
Marketing
CR Cycle
Retention
Superior
and Win-
Experience
Back
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8. Threadless.com
Development of
Offering
Targeting
and Sales
Marketing
CR
Cycle
Retention
Superior
and Win-
Experience
Back
11/21/2012 Dr. Anshu Jalora 8
9. Development of
Offering
Targeting
and Sales
Marketing
CR
Cycle
Retention
Superior
and Win-
Experience
Back
10. Development of
Offering
Targeting
and Sales
Marketing
CR
Cycle
Retention
Superior
and Win-
Experience
Back
11. Give examples of post sales activities that lead
to a positive experience for the customers.
Development of
Offering
Targeting
and Sales
Marketing
CR
Cycle
Retention
Superior
and Win-
Experience
Back
11/21/2012 Dr. Anshu Jalora 11
12. How can you win back a lost customer?
Development of
Offering
Targeting
and Sales
Marketing
CR
Cycle
Retention
Superior
and Win-
Experience
Back
11/21/2012 Dr. Anshu Jalora 12
13. Customer Scoring and Campaign
Management
Development of
Offering
Targeting
and Sales
Marketing
CR
Cycle
Retention
Superior
and Win-
Experience
Back
11/21/2012 Dr. Anshu Jalora 13
14. Customer Lifetime Value
• CLV = profit contributions from all current and likely future
purchases from the customer base
– Good indicator of the sustainability
– Gives a method to assess the fair market value of the company
• CLV can be increased in three ways
– Acquisition
– Retention
– Up-selling
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15. Acquisition
• What would make a customer chose your product / service over
others?
• Are all customer same? Are their needs same? Are more customers
better?
• Acquisition funnel
– Suspects, Prospects, Qualified prospects
• Qualifying prospects
– Segmentation / profiling (demographic & psychographic)
• Select target segments
– Size, growth, structural attractiveness, objectives and resources, and
economies of scope
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16. Retention
• Why are the reasons you might lose a customer?
• Which is costlier, acquisition or retention?
– Even if acquisition is less costly, when would you still like to retain?
• What are the properties of good customer service?
• How to win back a lost customer?
• Focus retention initiatives on customers identified by
– Recency criteria
– Frequency criteria
– Monetary criteria
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17. Customer Delight
• Experience spectrum
– Customer outrage and pain
• Poor and unanticipated
scenarios
– Dissatisfaction
• Expectations have not been met
– Satisfaction
• Expectations have been met
– Delight
• Fulfillment of unexpected,
valuable, memorable, and
positive events Kano Model
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18. Customer Delight
• How companies delight their customers
– Recognizing the importance of courtesy, empathy, and
efforts in understanding customer needs
– Finding exactly the right product / delivering unanticipated
value
– Refusing to be content with merely satisfying customers
– Making sure that novelty and entertainment are provided
– Focusing on multiple points of contact with customers
– Repositioning the business to deliver “solutions,” as
opposed to products and services
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19. Purchase Process
Search Evaluate
Options Options
Problem
Loyalty Purchase
Recognition
Post – Purchase Behavior
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20.
21. Up-Sell
• Increase the average ticket amount
• Up-sell
– Sell higher value products to the customers
– Use demographic and psychographic data to identify right product for
the right customer
• Cross-sell
– Database marketing (Collaborative filtering)
• Direct mail marketing / email / tele marketing
• Customization
– Product bundling & promotions
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22. Where and How to use CRM?
• Is the issue being addressed of strategic importance?
– Long term view vs. short term / slightly better view
• Where does it hurt?
– Prioritize, because there is a lot that can be done.
– Focus on ROI
• Do we need perfect data?
– Better to be roughly correct than precisely wrong!
– What is the ROI on the level of precision?
• Where do we go from here?
– CRM reveals more than planned originally. Look out for newer
opportunities.
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23. Common Reasons for the Failure of CRM
• Implementing CRM technology before creating a customer
strategy
– Articulate the customer retention, acquisition, and up-selling strategy
• Installing CRM technology before creating a customer-focused
organization
– Holistic marketing
• Assuming that more CRM technology is better
– It’s the strategy, not the technology that drives the results
• Stalking, not wooing, customers
– Relationship is mutual; contact customers in ways they value
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25. Marketing Mix by Stage
Prospects First Time Buyers Early Repeat Buyers Core Customers Defectors
Advertising Awareness Reinforcement Reinforcement Personal Apology
Sales Force Closers Personal Service Personal Service Personal Service Closers; personal Service
Pricing Low Moderate Increasing Higher Higher
Promotions Trial Similar to trial Limited Reward Apology
Product Offerings Lead Second lead Add-on Add-on Broad
Customer Service Limited Problem-focused Problem-focused Personal attention Problem-focused
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