CUSTOMER RELATIONSHIP

MANAGEMENT--- CRM

Keeping customers for life

JOE Girard- Relationship
Marketing
 Database Marketing
 Start Marketing stop selling
 Law of 250
 How to get more out of existing customers
 Keep customer for life
Nestle
 In France ,people go on long vacation in summertime
 Long highways-- campgrounds all around France which
are well maintained.
 But what about families with small babies?
 Nestle came up with the answer-- rest stop structures
alongside the highway where parents can feed and change
their baby.
 Each summer Nestle hostesses at these rest stops
welcome around 150000 baby visits .
Nestle
 The babies are given free food--
 There are free disposable diapers
 This generated tremendous word-of - mouth publicity.
 In all Nestle advertising , direct mail and packaging ,
parents are reminded of a toll- free number for free baby-
nutrition counseling service.

 Nestle maintains and updates a database of new mothers

with the names and addresses extracted from maternity
records.
 Nestle

 The first mailing contains a reply card on which the new

mother can fill in baby’s name and indicate interest in
receiving further mails.
 Based on this , Nestle sends 6 mail packages --- after 3
months,6 months, nine months, 1 year, 18 months and 2
years.
 These packages contain -- free samples of baby food and
promotional coupons and tips from dieticians and
pediatricians.
Nestle
 The first birthday package contains--- chocolate cake mix,
candles, recipe card telling how to bake the cake .
 The mother also gets some special gifts.
 This helped in creating a powerful bond between Nestle
and the mothers.
 Nestle used the principles of direct marketing/relationship
marketing/one-to -one marketing to become the number 2
player in France.
Customer Relationship Management
 Basics of CRM
 Key words --- Data warehouse, data
Mining
 Steps in CRM
Customer Relationship
Management.

 It is a process or methodology used to learn more about

customers' needs and behaviors in order to develop
stronger relationships with them.
 CRM is as a process that will help bring together lots of
pieces of information about customers, sales, marketing
effectiveness, responsiveness and market trends.
 CRM helps businesses use technology and human
resources to gain insight into the behavior of customers
and the value of those customers.
 Advantages of CRM
Using CRM, a business can:
 · Provide better customer service
 · Increase customer revenues
 · Discover new customers
 · Cross sell/Up Sell products more
effectively
 · Help sales staff close deals faster
 · Make call centers more efficient
 · Simplify marketing and sales processes
 The types of data CRM
projects collect

  Responses to campaigns
 · Shipping and fulfillment dates
 · Sales and purchase data
 · Account information
 · Web registration data
 · Service and support records
 · Demographic data
 · Web sales data
Data Warehouse
 Defn :The process of organizing information in such a
way as to create data based knowledge

 The goal of business intelligence and data warehousing

- changing data into information and knowledge.
Data Warehouse
 A database where data is collected for the purpose of
being analyzed.
 The defining characteristic of a data warehouse is its
purpose.
Data Warehouse
 Most data is collected to handle a
company's on-going business.
 This type of data can be called "operational
data".
 The systems used to collect operational
data are referred to as OLTP(On-Line
Transaction Processing).
Data Warehouse
 A data warehouse collects, organizes, and makes
data available for the purpose of analysis - to give
management the ability to access and analyze
information about its business.
 This type of data can be called "informational
data".
 The systems used to work with informational data
are referred to as OLAP (On-Line Analytical
Processing).
Data Warehouse
 Bill Inmon coined the term "data
warehouse" in 1990. His definition is:
 "A (data) warehouse is a subject-oriented,
integrated, time-variant and non-volatile
collection of data in support of
management's decision making process."
Data Warehouse
 Subject-oriented - Data that gives information about a
particular subject instead of about a company's on-going operations.
 Integrated - Data that is gathered into the data
warehouse from a variety of sources and merged into a coherent whole.
 Time-variant - All data in the data warehouse is
identified with a particular time period.
 Non-volatile - Data is stable in a data warehouse. More
data is added, but data is never removed. This enables management to
gain a consistent picture of the business.


Data Warehousing
 The process of visioning, planning,
building, using, managing, maintaining,
and enhancing data warehouse
Data Mining
Defn:The process of finding hidden patterns and
relationships in the data.
 Analyzing data involves the recognition of significant
patterns.
 Human analysts can see patterns in small data sets.
Specialized data mining tools are able to find patterns
in large amounts of data.
 These tools are also able to analyze significant
relationships that exist only when several dimensions
are viewed at the same time.
Data Mining
 Users can ask data questions using standard
queries when they know what they're looking for.
 Queries can be written for questions like this:
"Which of our out-of-town customers have given
us the most business in the last year?"
 Data mining is needed when the user's questions
are more vague or general in nature.
 Data mining questions would include: "What
attributes characterize the customers that gave us
the most business in the past year?"