Electronic Customer Relationship Management [E-CRM]
CRM is journey of
Strategic – Process – Organizational – Technical Change
CRM comprises the acquisition & deployment of knowledge about
customers to enable a company to sell more of their product or
services more efficiently.
CRM ensures that individual customer needs are profitable satisfied at
the right time in the right channel with the right offer.
Two cornerstones of CRM.
The knowledge or customer information platform.
The customer interaction platform.
CRM is the process of …
Acquiring, retaining & growing profitable customers.
To be effective in managing the customer relationship, an organization
must….
Define its customer policy
Create a channel & product strategy
Understand the importance of a robust and integrated
infrastructu
Strategies of Evolution of CRM
Mass Marketing
Target Marketing
Customer relationship Management
Mass Marketing
Replaced intimacy of direct sales force
This has been occurred because of...
Centralized large scale production
Wide geographic distribution
One way communication
This has been enabled through...
TV, Radio, Printing Press
Powerful means of communications
Main Measure of Success ---- Market Share
Target Marketing
1980 -- Advancement in technology
Refinement in direct mail & telemarketing
Selection of specific (targeted) customers via mail or telephone
Direct response of a customer
Gauge of success -- Response rates
Primary measure -- Market Share
Customer Relationship Management
Moves back towards developing an intimacy with today’s
customer
Two variables...
First Variable -- Information & Analysis (Knowledge)
• Customer’s wants, Needs & Values
Second Variable -- Need for interactivity & Personal
contact
Measure -- Share of customers
Anatomy of the CRM Campaign
Database Can contain the existing customers
Find potential candidates for the campaign
Scoring / Scoring algorithm
Telemarketing Outbound Representative makes the calls
Inbound Representative accept the calls
Types of CRM
1) Win back / Save
2) Prospecting
3) Loyalty
4) Cross selling / Up selling
Win Back / Save
Process of convenience a customer to stay with the organization
when the customer have / is going to left / discontinue.
4 times more likely to succeed if contact is made within first
week than it is made in the forth week.
Prospecting
Effort to win new first time customer
3 most critical elements
Segmentation
• Need based Segmentation – What customer wants
• Profit based Segmentation – How valuable the
customer is
Selectively
Sources
Loyalty
Most difficult to gain accurate measures
Organization is trying to prevent customers from leaving & uses
3 essential elements
Value based segmentation
• Willing to invest in retaining a customer loyalty
Need based segmentation
• Offer a customized loyalty program
Predictive churn models
• Depending on the future predictions
Cross Sell / Up Sell
Selling in a way which gives usage to the targeted customers
The replacement of analog line with an ISDN line – Examplere strategy.
CRM is journey of
Strategic – Process – Organizational – Technical Change
CRM comprises the acquisition & deployment of knowledge about
customers to enable a company to sell more of their product or
services more efficiently.
CRM ensures that individual customer needs are profitable satisfied at
the right time in the right channel with the right offer.
Two cornerstones of CRM.
The knowledge or customer information platform.
The customer interaction platform.
CRM is the process of …
Acquiring, retaining & growing profitable customers.
To be effective in managing the customer relationship, an organization
must….
Define its customer policy
Create a channel & product strategy
Understand the importance of a robust and integrated
infrastructu
Strategies of Evolution of CRM
Mass Marketing
Target Marketing
Customer relationship Management
Mass Marketing
Replaced intimacy of direct sales force
This has been occurred because of...
Centralized large scale production
Wide geographic distribution
One way communication
This has been enabled through...
TV, Radio, Printing Press
Powerful means of communications
Main Measure of Success ---- Market Share
Target Marketing
1980 -- Advancement in technology
Refinement in direct mail & telemarketing
Selection of specific (targeted) customers via mail or telephone
Direct response of a customer
Gauge of success -- Response rates
Primary measure -- Market Share
Customer Relationship Management
Moves back towards developing an intimacy with today’s
customer
Two variables...
First Variable -- Information & Analysis (Knowledge)
• Customer’s wants, Needs & Values
Second Variable -- Need for interactivity & Personal
contact
Measure -- Share of customers
Anatomy of the CRM Campaign
Database Can contain the existing customers
Find potential candidates for the campaign
Scoring / Scoring algorithm
Telemarketing Outbound Representative makes the calls
Inbound Representative accept the calls
Types of CRM
1) Win back / Save
2) Prospecting
3) Loyalty
4) Cross selling / Up selling
Win Back / Save
Process of convenience a customer to stay with the organization
when the customer have / is going to left / discontinue.
4 times more likely to succeed if contact is made within first
week than it is made in the forth week.
Prospecting
Effort to win new first time customer
3 most critical elements
Segmentation
• Need based Segmentation – What customer wants
• Profit based Segmentation – How valuable the
customer is
Selectively
Sources
Loyalty
Most difficult to gain accurate measures
Organization is trying to prevent customers from leaving & uses
3 essential elements
Value based segmentation
• Willing to invest in retaining a customer loyalty
Need based segmentation
• Offer a customized loyalty program
Predictive churn models
• Depending on the future predictions
Cross Sell / Up Sell
Selling in a way which gives usage to the targeted customers
The replacement of analog line with an ISDN line – Examplere strategy.
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