Lesson CRM in Marketing

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Lesson "CRM in Marketing" lecture helps you understand the basics of CRM, its characteristics, and effective CRM applications. Hopefully you can use your knowledge of CRM applications for your business. We invite you to check out the details here.

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Nội dung Text: Lesson CRM in Marketing

CRM in Marketing Curtis Adams Jordan Burns Lindsey Birmingham Leah Barnhill
Motivational Research Motivational Research  -1960’s Practice  -Included everything from showing volunteers a series of advertising to administering focus groups  -Scope of these efforts remained unwavering in product focus  -However with the customer acting as a component of the purchase cycle…BRAND WAS KING.
Product Marketing  -Became a study within itself  -Part research…Part guessing game…part leap of faith  -Predictable  -Product marketing campaigns were designed to reach as many as possible  -Focused on all customers having the same needs and wants and the actual pitch of the product
Target Marketing  Customer data as  Segmenting important as the customers allowed product data room for specialized communication  Sum of all the  Segmenting customers to a customers based on single individual preferences can reveal interesting facts about consumer behavior
Relationship Marketing  -Understanding their preferences…increasing the odds of retaining them  -You are not trying to sell a single product to as many customers as possible  -You are trying to sell a single customer as many products as possible  -One to One means not only communicating with customers as individuals but also developing customer products and tailored messages based on customers unspoken needs  -Relies heavily on customer’s experience of the company as it does on the specific message received
Campaign Management  -CRM is a necessity.  -Hard Labor in launching new marketing campaigns  -Conceive, plan, define the target audience, determine channel of communication, launching the promotion  -CRM products offering campaign management present savings of time, labor and cost and demonstrate quantitative ROI  -Proactive campaign management is like a good wine…it gets better with age.  -Tracking campaign success results in higher response rates and greater ROI  -Use of results of campaigns to refine future campaigns has been acknowledged as the best CRM practice.
CRM Marketing Initiatives •Cross-selling and Up-Selling •Customer Retention •Behavior Prediction •Customer Profitability and Value Modeling •Channel Optimization •Personalization •Event-Based Marketing
Cross Selling and Up Selling  Cross-selling- the act of selling a product or service to a customer as a result of another purchase.  Example- New mothers buy clothes for their babies and then themselves as well.  Up-selling- motivating current customers to trade up to more profitable products.  Example- McDonalds super size option.
Cross Selling and Up Selling Ctd. These two forms of selling are an art and knowing which products will increase the customer’s buying is the key. Here are some things to think about:  Selling customers something they wouldn’t want or need could cause them to buy less.  Not every customer is a good candidate for these types of selling.  Understanding the ways how and whether the customer responds to promotions
Customer Retention  Understanding why customers leave for competitors is key to find ways to retain them in the future.  Churn- the customers leaving one business for its competitors.  When a customer leaves there is:  Loss of revenue  Loss of investment in acquiring them
Customer Retention Ctd.  Loss of stable market for new products  Businesses have studied the characteristics of those who have left their business to understand why, to predict who might leave next, and to find out who is desirable to keep.  They also are tying to find what method might work best to keep these customers, such as promotions or free stuff
Behavior Prediction This uses past consumer behavior to foresee the future behavior of their customers. This analysis includes several variations. 1. Propensity-to-buy analysis- understanding what a particular customer might buy. 2. Next Sequential Purchase- predicting the customers next buy. 3. Product Affinity Analysis- Understanding which products will be bought with others. Also known as market basket analysis. 4. Price elasticity modeling and dynamic pricing- determine the best price for a given product.
Behavior Predictions Ctd. The marketing decisions that come for this analysis: 1. Preemptively offering discounts or fee waivers to existing customers who are at risk of churning. 2. Refining target marketing campaigns so smaller customer segments or specific products. 3. Packaging certain products together and fixed- pricing them to sell more products and increase their profitability. 4. Cross-selling products likely to be purchased with other products.
Customer Profitability and Value Modeling  Customer Profitability- deals with the company’s view of the possible profit to be made from its customers.  Value Modeling –deals with the value of the customer’s other features like ability to bring in more profitable customers or the potential to be a more profitable customer.  Value modeling is only as accurate as the customer’s data is rich.
Channel Optimization  Offering the right message to the right customer at the right time.  Example: Customers who us Internet banking services might prefer a new emailed offer with their regular statement and a customer visiting a branch office might prefer a cup of coffee along with a brochure.  Once you understand the channels your customers prefer to interact with your company you must then decide what is the best way to communicate with them.
Personalization  This is the capability to customize customer communication based on knowledge preferences and behaviors at the time interaction.  Examples: a site you bought CD’s from greet you and offers you CD’s that are of your favorite artists when you enter the site or the home shopping channel operator greets you on when you call and helps you quickly purchase what you need and all because you shopped there once before.
Personalization Ctd  The first example used variable insertion to personalize the site for the current customer because it had information recorded from the last transaction. Over time, the customer is more and more known to the company through study of the customer’s profile: data, past purchases, click stream data, and web survey responses. Then the company knows what to offer the customer to entice them to buy more or keep them from churning.  Example: if a person responds to a discount on skis then they might also buy cold weather apparel.  Using personalization can take out he guess work in your business.  Personalization in the B2C space is based on studying click stream data (one’s navigation path through a company’s Website.
Clickstream Clickstream monitoring includes how customer:  Reached site  Traveled through site  Spent his time and how much did he spend  What was bought that stimulate buys of other products Analysis of clickstream can trigger new tactics in companies. Examples:  Changes in Web impressions according to customer’s clickstream  Custom promotions or discounts based on past purchases of research.  Customized web pages according to the visitor’s use of site.
Event Based Marketing  This is a time sensitive marketing or sales communication reacting to a customer-specific event.  Example: sending an application for collision insurance to people who recently had a car accident.  Businesses today are to focus in on the individual customer in a real time situation and get away from the blank event-based marketing.  An example of this ideal goal of reacting to customer’s event in near real time is: when a customer receives coupons at the store, right after their purchase, that they might be interested in.
Event Based Marketing Ctd.  This kind of marketing requires solid process automation and a well calibrated workflow to be effective in influencing the customer’s buying behavior.  The ultimate goal of a company, despite the type of customer communication, is to get them to visit the store or website to buy products they are happy with.