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1、Customer Relationship Management- A Winning Customer Strategy,Seminar presentation April 2004,Agenda,Customer Relationship Management Presentation8:00-9:15 Break9:15-9:30 Case 1 San Fabian Supply Company9:30-10:30 Case 2 Solo Mobile Phone Company10:30-12:00,2,Author/Division,What is CRM in your mind
2、?,What is customer relationship management? What does CRM bring to companies?,A survey on senior marketing executives at Fortune 1000 companies indicates a widespread frustration about the return on CRM investments,Source: Booz Allen Hamilton Survey, 2001,3,Author/Division,CRM is a customer- and val
3、ue-based management approach to increase the company value,Customer Relationship Management is a customer- and value-based company orientation with the goal of building up and fully benefiting from lasting and profitable customer relationships through holistic and individualized marketing, sales and
4、 service concepts using state-of-the-art technologies,CRM definition,Identifying the top customers and exploiting the maximum share of their expense budgets Raising the efficiency of customer management Establishing customer loyalty and lifetime relationships Fully exploiting the potential customer
5、segments by acquiring new customers Thereby increasing the company value,CRM objectives,4,Author/Division,Customer Relationship Management differs from classical marketing in many ways,Traditional marketing,Customer relationship management,Objectives,Generate sales,Create a loyal customer,Focus,Acqu
6、isition phase,Total customer life-cycle,Timeframe,Short term,Medium to long term,Performance indicators,Market share, sales,Share of wallet, customer profitability, customer value,Customer knowledge,Demands from customer segments,Individual preferences and needs,Product,Stand-alone product,Integrati
7、on of products and services,Price,General discounts,Price differentiation on the basis of customer loyalty,Sales channels,Traditional sales channels (multi-level),Disintermediation, multi channel management,Communication,Unidirectional communication,Interactive dialog with customers and communities,
8、 24 hrs./7 day availability,5,Author/Division,CRM is the holistic approach to a customer-value based company orientation four enablers set up the frame .,Create,Gain,Understand,Retain,ORGANIZATION,STRATEGY,CULTURE,CRM-Strategy,Holistic approach/ top-management issue Definition of target segments and
9、 customers Value-based prioritization,Organization and processes,Customer-oriented structures and processes Customer process/touchpoint innovation Organizational anchoring of the CRM responsibility,TECHNOLOGY,Technology,System integration Use of e-technologies Selection of system/ technology partner
10、s,Culture and change management,Consolidating the customer value orientation Management processes and incentive systems Continuous change management and improvement processes,Customer value,CRM enablers,6,Author/Division,CRM creates lasting strategic competitive advantages,Understand markets and cus
11、tomers,Create superior customer offers,Retain profitable customers,Gain profitable customers,Building up superior customer knowledge Identifying target segments and developing target customer specific marketing, sales and service concepts Focusing on the highest-valuecustomers,Raising the entry barr
12、iers for competitors by building up lasting relationships with the customers Developing a learning relationship in long-term customer relationships,Raising the entry barriers for competitors through specific product and service offers,Higher competitive barriers by covering all sales channels Loweri
13、ng conflict potential through the proactive integration of the various channels,Raising customers costs of changing suppliers by covering all needs,7,Author/Division,Marketing-Mix are core elements of customer relationshipstrategy,Marketing-Mix,Target Market,product,place,Marketing-Mix provides a de
14、cision-making method for deciding howto manage the customer relationship,Differentiated product targeting different customer segment Product customization: design, function, packaging Service level,Price strategy: e.g. charge price premium for valuable customer segment Payment terms Special discount
15、s,Select of Marketing Communication vehicle to better reach target customer: TV ads, PR, Sponsorship Events for valuable customers VIP club,Effective channel strategy: one-to-one visit, call center, stores Various channel combination to more efficiently serve target customers,8,Author/Division,The t
16、hree main application areas of CRM,Operational CRM,Analytical CRM,Collaborative CRM,Data Mining/Data Warehouse,Purchase probability Forecasting Customer segmentation Cross-selling-potential Regional-purchase-behavior,9,Author/Division,There are quite a few obstacles to effectively apply CRM,Lack of clear value proposition and failure to target customers Technology is introduced before companies master marketing fundamentals Reliance on mass marketing,Incomplete information Inaccurate information
