Professional Documents
Culture Documents
Chapter 4
Chapter 4
Chapter 4
STRATEGIC
CUSTOMER
RELATIONSHIP
MANAGEMENT
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
VITAL ROLE OF CUSTOMER
RELATIONSHIP MANAGEMENT
4-4
CRM AT FUNCTIONAL LEVEL
4-5
CRM AT CUSTOMER-FACING LEVEL
4-6
CRM AT THE ORGANIZATIONAL
LEVEL
* Knowledge about
customers and their
preferences have
implications for the entire
organization.
4-7
CUSTOMER RELATIONSHIP
MANAGEMENT
CRM Recognizes That
Customers:
4-8
4-3
This is an important figure to know because it helps you make decisions about how
much money to invest in acquiring new customers and retaining existing ones.
4-9
Example of CLV
4-10
Example of CLV
4-11
Calculating CLV
4-12
Example:
4-13
Calculating CLV
Average
Average value No. of times
CLV= of a purchasex the customer x length of the
customer
will buy each
relationship
year
=100 (in years)
4 8
CLV= $3,200
4-14
CALCULATE THE CLV
4-15
4-4
STRATEGIC-
THE ENTIRE
COMPANY
4-16
4-5
Source: V. Kumar and Werner J. Reinartz, Customer Relationship Management (Hoboken, NJ: John Wiley & Sons, Inc.), 2006, 39.
4-17
4-6
5 2
Other Business
Stakeholders CRM Case
STRATEGY
Enterprise 4 3 Customer
Transformation Plan Strategy
Source: V. Kumar and Werner J. Reinartz, Customer Relationship Management (Hoboken, NJ: John Wiley & sons, Inc.), 2006,
42.
4-18
4-7
IMPLEMENTATION DANGERS
Implementing Without Developing a
Customer Strategy
4-19
4-8
Successful Value
Exchange
4-20
4-9
METRICS
FEATURE How General Electric Co. Measures Customers’
Experience
Happy (And Not-So-Happy) Customers
General Electric is a big user of the “Net Promoter” concept of customer
satisfaction, popularized by Fred Reichheld of Bain & Co. Below, questions
similar to those on which GE’s Capital Solutions unit asks customers to rate the
unit’s performance on a 0 – 10 scale.
• How willing are you to recommend us to a friend or
associate?
• How would you rate our ability to meet your needs?
• How would you rate our people?
• How would you rate our processes?
• What is your impression of our market reputation?
• How would you rate the cost of doing business with us?
• How would you rate the overall value of our product or
service as being worth what you paid?
Source: Kathryn Kranhold, “Client-Satisfaction Tool Takes Root,” The Wall Street Journal, July 10, 2006, B3. 4-21
4-10
4-22
4-11
CRM STRATEGIC
MARKETING
4-23