Professional Documents
Culture Documents
Customer Relationship Management CHPT 2
Customer Relationship Management CHPT 2
Current facts
CRM strategy
Organizational change
Corporate culture
Winning back a lost customer can cost up to 50-100 times as much as keeping a
current one satisfied.
Rob Yanker, Partner, McKinsey & Company
Why CRM?
Product
Pricing
Distribution
Building a customer-centric
approach to Internet
marketing by focusing on
customers
Community
Communication
CRM Basics
Increased competition
Globalization
Growing cost of customer acquisition
High customer turnover
Extended enterprise
World wide web and the Internet
Defining CRM
Targeting
Acquisition
Retention
Expansion
Defining CRM
Targeting
Who do we target?
What segments are most profitable?
What segments match our value proposition?
What is the best segmentation strategy for us/our industry?
Acquisition
Defining CRM
Retention
Expansion
Goals of CRM
CRM
Acquiring
Enhancing
Retaining
new customers
profitability of existing
customers
profitable customers
for life
Cross selling is used by suggesting alternative products or upselling by rendering the customer more informed with the new
products and services.
Integrated CRM
Customer
Life cycle
Acquire
Enhance
Direct Marketing
Partial
Functional
Solutions
Complete
Integrated
Solutions
Retain
Proactive Service
Customer Support
Fax
Prospect
Or
Customer
Phone
Field Sales
and Service
Customer
Service and
Billing
eMail
WWW
Loyalty
and Retention
Programs
Content Management
Technical Infrastructure
Cost of Targeting
Cost of Acquisition
Service and Usage Revenue
Cost of service
Duration of relationship
Customer
recognizes
the firm but
has not
initiated any
transactions
Exploration
Exploration //
Expansion
Expansion
Commitment
Commitment
Customer
Customer
gathers
information
about the
firm which
determines
whether
repeated
transactions
will occur
Dissolution
Dissolution
Total
loss of
commitment
and
relationship