The document discusses the evolution of customer relationship management (CRM) strategies over time, including targeted marketing, database marketing, event-driven marketing, and loyalty and retention programs. It then defines CRM as an integrated business strategy focused on acquiring, retaining, and growing profitable customer relationships through coordinated policies, processes, technology, and people. The key aspects of a successful CRM program are also outlined.

1. CRM Before and Beyond…

4. Segmentation is Based Upon…

5. Segmentation Based Upon RFM Analysis Recency , Frequency , and Monetary calculations are used extensively in retail for customer segmentation

6. Or Mosaic-like Typecasting

7. Tesco’s Segmentation Shopping Habits Share of Shopping, Recency & Frequency Primary Channel Preferred Format (Supermarket, Express, On-line, Petrol) Brand Advocacy Participation in Extensions (Tesco.com, TPF, Baby Club, Win club) Promotional Promiscuity Cherry picking deals, bulk buying to larder fill Life Stage Application Form, What They Buy Basket Typology Vegetarian, Organic,You Are What You Eat! Profitability Brand Choice, Packaging Preference, Weight of Purchase

8. Tesco’s Targeted Communication Organics Finer Foods Healthy Living Price Sensitive

9. Then there was Database Marketing “ Database Marketing is a form of direct marketing using databases of customers or potential customers to generate personalized offers and communication in order to promote a product or service for marketing purposes.”

10. 400 Million Euros Down The Drain

11. Database Marketing at ZARA

14. Event Driven Marketing Needs Client Needs Client(Segments) Product Centric Client Centric Needs Client(Segments) Event Driven Event 1 Event 2 Event 3 Event 4 Event 5

16. Static Moments: Pre-Sale

17. Variable Moments: Newly Borns

18. Variable Moments: Concepts

20. Continuous Cycle Deliver Message Understand Customer Behavior Insight Gather Data, Results Analysis Strategy Right message to the right person at the right time through the right channels Communications Plan, Creative Materials

21. Or… EDM for Dummies Listening to guinea pigs

24. Understanding Loyalty Components Rational What we think Price Quality Service Location etc. Emotional What we feel Trust Confidence Affinity Behavioral How we act Repurchase Rates Recommendation Rates Share of Spend Component Meaning Key Issues

27. When you’re close to your customers you don’t have to shout

30. British Airways - Executive Club Loyalty

31. KLM Wings Loyalty

33. Boots Loyalty

36. Contact Directly at the Till We see specific shopping behaviour at the point of purchase… … and can respond by sending a message to the till to print a coupon … this is then handed to the customer by the checkout operator The customer returns to store to redeem the coupon Not just product coupons, but a wide range of options and offers Clubcard data used to understand purchasing behaviour and profile our customers

37. How many Loyalty Cards do you have?!

40. Club Nokia Loyalty

41. NRC Handelsblad Loyalty

42. What the F*CK is CRM then? “ Customer Relationship Management (CRM) is a business strategy to acquire , grow and retain profitable customer relationships. It is a customer-centric way of doing business that includes policies and processes, partners, employees, marketing, systems and IT.” www.customerthink.com

44. So…. Not just a Marketing Activity CRM Product & Packaging POS Promotions Mass Marketing Web

45. But CRM Encompasses all of these Relationship Marketing Product & Packaging POS Promotions Mass Marketing Web CRM In-and External Processes Internal Stakeholders Systems & Technology Partners / Suppliers

48. CRM Transformation

49. CRM Transformation Business focus: het ontwikkelen van een visie en een missie met gerelateerde doelstellingen om zodoende CRM te implementeren. De klant wordt belangrijker dan het product.

50. CRM Transformation Organizational structure: omdat de klant centraal staat is het van belang dat de organisatiestructuur zodanig wordt ingericht dat geen sterke scheiding bestaat tussen beleidsbepalers en uitvoerders, waarin iedere medewerker wordt geacht mee te denken en waarin klantgroep-managers worden aangesteld die verantwoordelijk zijn voor acquisitie en klantbehoud.

51. CRM Transformation Business metrics: het meetbaar maken van de performance van de organisatie op basis van de customer lifetime value en loyalty. In plaats van op basis van product- of campagne-performance.

52. CRM Transformation Customer interactions: omslag in communicatie van massacommunicatie naar een interactieve dialoog.

53. CRM Transformation Technology transformation: omslag naar gebruik van technologie die de dialoog met de klant mogelijk maakt ‘at all points of contact’.

54. Impact on Organization Structure CROSS-SELL PROFILE PROBABILTY SCORING

56. This Means: Connecting Media and People Using Data Data Warehouse A T M M O B I L E I N T E R N E T P. O. S. E – M A I L M A I L S A L E S C A L L C E N T R E

57. This Means: Thinking in Campaign Management Funnels

58. CRM is Easier for ‘Newbies’

60. Amazon.com: The Website and Database

62. Amazon.com: Cross-Selling By Movie (by keyword) By Category By Director (By Artist)

63. Amazon.com: Price Bundling It suggests another movie and, at the same time, offers them together at a lower price

66. Beyond CRM “ And if we’ve managed all these ‘Looney Tunes’ for our clients, then let’s come back and take it a step further. With the latest stuff like, eCRM , Analytical CRM , VRM en Social CRM ”

67. But for now…..