Marketing Aspects of CRM

Dr. Suresh Malodia

Marketing aspects of CRM includes
• Customer Knowledge: How can data from databases
be used to help us create customer knowledge?
How can we derive a return on our investments in
customer knowledge? How can we avoid violating
customer’s privacy?
• Customisation: How can we use this customer
knowledge to provide our customers with a
customised offer? How can we meet their specific
needs and how can we gear pricing to their
individual situations
Contd….
• Communication: How can we improve
accessibility for our customers? How can we
conduct a useful dialogue with them?
• Relationship Policy: How do we develop a high
quality customer database with customers
with whom it is worthwhile developing a
relationship? How do we develop a mutually
profitable relationship with these customers.
Customer Knowledge

Customer Data

Customer Information

Customer Knowledge
 This Chapter Answers Following:
• What is the value of customer knowledge?
• How to utilise data: taking action based on customer
data?
• What demands are placed on the use of customer data
that represent an important asset for the organisation?
• How to organise for data management (various stages
of professionalisation)
• How to transform data into customer knowledge
(developing the desired customer profile)
Contd…
• How to combine data into customer knowledge
(developing the desired customer profile).
• How to combine data from various sources to develop
the customer image.
• How to respect privacy.
• What is in the Personal Data Protection Act.
• How to formulate an information policy: how can you
honour customer’s privacy and at the same time use
customer data to create value for the customers as well
as for the company supplying the products or services?
The Value of Customer Knowledge
Data Quality
• From Technical Point of View: Use of
specifications, standards & norms.
• Practical Value: from the point of view of the
customer. (value perception & needs)
• Practical Value: from the point view of the
supplier (commercial value)
• Intrinsic Value: Current, Complete, Correct &
Unique.
 Spending Money on the Data Quality
• Set-up and maintenance of a database.
• Relevant customer data need to be gathered.
• Information on identity & profile of customer ,
ex-customer & prospects has to be collected &
registered.
• Compiling from different sources, & if necessary
brought from external data suppliers.
• Mistakes have to be identified & corrected.
 The Waste Resulting From Poor Data

• Identification Errors
- Mistaken gender designation
- Incorrect company name
- Error in company name
- Not addressed to the proper person
- Last name misspelled.
• Profile Errors
 Benefits of Quality Data
• Influence on the Effectiveness of Acquisition
Activities: Data quality increases the
effectiveness of acquisition. The response rate to
efforts increases: the right customer is
approached with the right offer at the right time.
• Influence on the Customer Value: Data quality
will deeply influence customer retention &
relationship development. There is a direct
relationship between data quality & customer
life time value.
 The Utilization of Data as an Asset
• The value of data resources only becomes
apparent at the moment they are put to use.
It is only then that data are converted to
information and knowledge.
• Improper handling of data leads to only a
portion of data’s potential value being
realized, or even worse, a situation in which
data value is nullified.
 Typical Problems in Utilization of Data
• Strategy
• Knowledge of Data Resources
• Access
• Quantity
• Quality
• Need for New Data
• Use
• Security
• Privacy
• Organisation
The Organisation of Data Management
Degree of Success of
Professionalization one to one
Crisis
Success of
Integration
Crisis
Success of
the data
Crisis
Success of
Selection
Crisis

Time
 Which Data Human
Profile
Market research
Domain User’s
Profile
Customer
Database Domain Profile
Media
Use

Transaction
Identification History

Customer Knowledge