Marketing-Mix
• Differentiated product targeting different customer segment
• Product customization: design, function, packaging
• Service level
product
Target Market
CRM definition
Customer Relationship Management is a customer- and value-based company orientation with the goal of building up and fully benefiting from lasting and profitable customer relationships through holistic and individualized marketing, sales and service concepts using state-of-the-art technologies
CRM enablers
Technology
• System integration • Use of e-technologies • Selection of system/
technology partners
STRATEGY
Understand
Create
TECHNOLOGY
Culture and change management
d
TECHNOLOGY
ORGANIZATION
• Raising the entry barriers for competitors by building up lasting relationships with the customers
• Developing a "learning relationship" in long-term customer relationships
Short term Market share, sales Demands from customer segments
Medium to long term
Share of wallet, customer profitability, customer value
Individual preferences and needs
• What does CRM bring to companies?
• A survey on senior marketing executives at Fortune 1000 companies indicates a widespread frustration about the return on CRM investments
• Raising customers' costs of
sales and service concepts
STRATEGY
changing suppliers by covering
all needs
• Focusing on the highest-value
Understan
Create
customers
Customer Relationship Management -- A Winning Customer Strategy
Seminar presentation April 2004
Agenda
• Customer Relationship Management Presentation
8:00-9:15
Custome r value
Retain
Gain
CULTURE
• Higher competitive barriers by covering all sales channels
• Lowering conflict potential through the proactive integration of the various channels
CRM components
Collaborative CRM
Face-to-Face
Call-Center
Brief/Fax
Channel-management
Author/Division
9
Data Mining/Data Warehouse •Purchase probability •Forecasting •Customer segmentation •Cross-selling-potential •Regional-purchase-behavior
CRM objectives
• Identifying the top customers and exploiting the maximum share of their expense budgets
• Raising the efficiency of customer management
Source: Booz Allen Hamilton Survey, 2001 Author/Divhnology term, but instead, a strategy driven holistic management approach
3
CRM is a customer- and value-based management approach to increase the company value
the company value
Author/Division
4
Customer Relationship Management differs from classical marketing in many ways
Objectives
Focus
Timeframe Performance indicators Customer knowledge Product
• Establishing customer loyalty and "lifetime" relationships
• Fully exploiting the potential customer segments by acquiring new customers
> Thereby increasing
• Consolidating the customer value orientation
• Management processes and incentive systems
• Continuous change management and improvement processes
Custome r value
"Retain" profitable customers
"Gain" profitable customers
Author/Division
7
Marketing-Mix are core elements of customer relationship strategy
Marketing-Mix provides a decision-making method for deciding how to manage the customer relationship
• Events for valuable customers • VIP club
Author/Division
8
The three main application areas of CRM
campaign management Automatically distribution
ERP-integration Customer service
• Price strategy: e.g. charge price premium for valuable customer segment
• Payment terms • Special discounts
promotion
• Select of Marketing Communication vehicle to better reach target customer: TV ads, PR, Sponsorship
place
• Effective channel strategy: one-to-one visit, call center, stores…
• Various channel combination to more efficiently serve target customers
price
Stand-alone product
General discounts Traditional sales channels (multilevel) Unidirectional communication
Integration of products and services
Price differentiation on the basis of customer loyalty
• Break
9:15-9:30
• Case 1– San Fabian Supply Company
9:30-10:30
• Case 2– Solo Mobile Phone Company
10:30-12:00
Author/Division
2
What is CRM in your mind?
• What is customer relationship management?