CRM in Marketing

Target marketing

Relationship marketing and One-to-one

Campaign management
CRM marketing Initiatives
• Cross-selling and Up-selling
• Customer retention
• Behavior prediction
1.Propensity-to-buy analysis
2.Next sequential purchase
3.Product affinity analysis
4.Price elasticity modeling and dynamic pricing
• Customer profitability and value modeling
• Channel optimization
• Personalization
• Event-based marketing
 3

CRM Requires Learning and More

Form a learning relationship with your customers
 Notice their needs
On-line Transaction Processing
Systems
 Remember their preferences
Decision Support Data Warehouse
 Learn how to serve them better
Data Mining
Act to make customers more profitable
CRM Programs Can Potentially Improve
• Analytical CRM
▫ Customer Segmentation
▫ Trend Analysis
• Operational CRM
▫ Campaign Management
▫ Tele-Marketing/Tele-Sales
▫ Activity and Time Management
▫ Quotation and Order Processing
▫ Delivery and Order Fulfillment
▫ Customer Service and Support
▫ Remote Access
• Collaborative CRM
▫ Enterprise Portals
▫ Customer Access
▫ Supplier Access
▫ Personalization
Areas of CRM Activity

Sales Force Automation (SFA)

 Customer Service and Support (CSS)
Help Desk
Field Service
Marketing Automation
Areas of CRM Activity: Sales Force
Automation

• 35-40% of all CRM activity

• Manages lead generation, tracks movement of leads
through the pipeline, allows better usage of customer
data, integrates activities across sales channels,
simplifies relationship management, forecasts for
opportunities (SWOT)
• Goldmine and SalesLogix are examples of prepackaged
SFA solutions.
Ex. Staples used SFA to integrate catalog, online, in-store
sales efforts directed at its best customers
Areas of CRM Activity: Customer Service and
Support (CSS)
• 20-25% of CRM
• Assign, escalate, and track trouble tickets,
inquiries, solution attempts through resolution
• Provides information to support customer call
center activity
• Gleans customer data from those interactions
and records it in SFA for later use
• Remedy, Siebel, Vantive, and Clarify are major
vendors
Ex., 3M Adhesive Products division
Areas of CRM Activity:
Help Desk
• 15-20% of all CRM
• Allows individuals to access network database to
solve their own problems or find information.
• Can be internal or external
• Offers many bottom-line savings
• Human Click, Tivoli, LivePerson, are providers
• Ex., Land’s End Live allows customers browse
FAQ’s but also click a link to talk directly with
live representative.
Areas of CRM Activity: Field Service CRM

• 3-5% of all CRM activity

• Mobile service technicians can log information
about work orders and service calls, as well as
access information from the remote site.
• Can feed information from customer problems
into SFA for salesperson leads.
• Market information can be gathered and logged
into central database.
• Ensures appropriate resource allocation by
matching available resources to job requirements
• Major vendors are RTS, Metrix, eDispatch
Areas of CRM Activity: Marketing Automation
• 3-5% of CRM, but growing 5X faster than all others
• Interfaces with data warehouses and data mining
activities to tailor page views, products, and
promotions, so that the right offer goes to the right
person at the right time.
• Can interact with SFA to support field sales efforts
• Provides customized customer interactions critical to
segment of one marketing, mass customization,
customerization, etc.
• www.webgroove.com, Epiphany, Oracle, Siebel, and
Personify are leaders
Commercial E-Communities
 Goal is to create an environment where people get
meaningful interactions with the company and
other users so that they feel part of the enterprise.
 Adds human component and engages customers.
 Creates more stickiness and “ownership”
 Ex. User Groups for software products (Oracle,
Intergraph)
 Ex. Dell / Sony technical support communities
 New Frontiers in CRM
• Customerization
▫ Mass Customization – Using flexible processes and
organizational structures to produce varied and
individualized products and services at the price of
standard mass-produced offerings.
▫ Personalization – Customization of some features of a
product or services so that the customer enjoys more
convenience, lower costs, or some other benefit.
▫ Segment-of-One Marketing – Based on the idea of the
firm learning individual reactions to marketing strategies,
then treating this customer differently than other
customers.
▫ Customerization – Mass customization + personalization
+ segment-of-one, dependent on a web-based or
electronic interaction
Distinctions in Customerization
Mass Marketing Customerization

Relationship Customer is passive Customer is active co-

with customers participant in process producer,

Customer needs Researched and May not be articulated

articulated
Product and service Marketing and R&D Customized based on
offering drive offering customer interactions
Price Fixed prices with Value based pricing;
discounting customer determined
Communication Advertising and PR Integrated, interactive

Distribution Mix of direct and Direct (online)

indirect
Making CRM Happen
• Evaluate products and processes customers’ terms.
• Analyze the multiple channels through which the
company interacts with customers.
• Examine how the company understands its customers.
Does it keep good data? How does it get that data?
Does information flow between functional areas?
• Provide fingertip access to all information.
• Analyze human resources and ensure that everyone has
an understanding of philosophy of CRM