Chapter 21- customer relationship management (CRM)

customer relationship management
a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
targeting customer example
ORBITZ tailor their results whether your a mac vs pc users
CRM strategy
organizes company around customer segments
encourage and track customer interaction with the company
foster customer-satisfying behaviors
customer loyalty example
MY COKE reward program
reward program
implementing CRM system
customers take center stage
customer-centric
a philosophy under which the company customizes its product and service offering based on DATA GENERATED through interactions between the customer and the company
ex: youre just a data point, no realtionships
learning
an informal process of collecting customer data through customer comments and feedback on product or service performance
knowledge management
collected information includes:
experiential observations
comments
customer actions
qualitative facts
empowerment
delegation of authority to solve customers’ problems quickly—usually by the first person the customer notifies regarding the problem
interaction
the point at which a customer and a company representative exchange information and develop learning relationships
the expanded customer experiment
platinum
gold
iron
lead
capture customer data
in a CRM system
customer data
only useful if consistent and accurate
use information technology to capture, store, and integrate important information (data warehousing)
apply marketing analytics
predict future behavior
profile
cloning
customer profiling and cloning
establish process to regularly clans and identify customer information to (check slide)
data mining
data analysis approach that identifies parrens that relate to cetain customers
ex: PREGNANT WOMEN like unscented lotion and multivitiamins
recency-frequency-monetary
identifies customers most likely to purchase again
identifies and ranks “best customers”
identifies most profitable customers

ex: GAMING INDUSTRY, WINE

RFM code construction
look at slide
customers that come the most are the best customers
not the ones who only come one but spend a lot