An Overview of Marketing

1
MKTG
Lamb, Hair, McDaniel 2008-2009
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Customer Relationship Management (CRM)
CHAPTER
Designed by Amy McGuire, B-books, Ltd.
Prepared by Deborah Baker, Texas Christian
University
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Learning Outcomes
Define customer relationship
management Explain how to establish customer
relationships within the organization Understand
interactions with the current customer
base Outline the process of capturing customer
data
LO1
LO2
LO3
LO4
3
Learning Outcomes
Describe the use of technology to store and
integrate customer data Describe how to identify
the best customers Explain the process of
leveraging customer information throughout the
organization
LO5
LO6
LO7
4
What Is Customer Relationship Management?
LO1
Define customer relationship management
5
Customer Relationship Management
CustomerRelationshipManagement
LO1
6
Customer RelationshipManagement Strategy
LO1
7
Customer Relationship Management Cycle
Identify customer relationships
Store and integratecustomer data using IT
LO1
8
Implementing a CRM System
LO1
9
REVIEW LEARNING OUTCOME
LO1
Customer Relationship Management
10
Identify Customer Relationships
LO2
Explain how to establish customer relationships
within the organization
11
Identify Customer Relationships
Customer-Centric
LO2
12
Identify Customer Relationships
Learning
LO2
13
Centered on Customers
LO2

• Unilever and Stop Shop teamed up to create a
  customer-centric promotion that was so
  successful, they won an award for their
  innovation and creativity.
• Stop Shops goal get customers to make more
  stock-up trips, the stores most profitable type
• Unilevers goal get customers to buy more
  Unilever products per trip
• When asked, the customers said theyd stock up
  more if it were simpler to find things. So, the
  team built signs and made rip-off shopping lists,
  distributed store maps, and centrally stocked a
  breadth of customers favorite items. The result,
  the biggest sales spike in two years. And better
  yet, the team has been able to replicate the
  results in other stores.

Beyond the Book
SOURCE Julie Gallagher, Stop Shop and
Unilever Share Customer-centric Plan,
Supermarket News, October 22, 2007.
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Identify Customer Relationships
KnowledgeManagement
LO2
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Knowledge Management
LO2
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Empowerment
Empowerment
LO2
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Empowering Employees
LO2

• Training and Skill Development
• Communication Development
• Recognition and Rewards
• Employee Growth Strategy
• Compensation and Benefits Reviews
• Resource and Workload Planning
• Performance Appraisals
• Career Planning

Beyond the Book
SOURCE Society for Human Resource Management and
CRM Today
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REVIEW LEARNING OUTCOME
LO2
Identifying Customer Relationships
19
Interactions of the Current Customer Base
LO3
Understand interactions with the current
customer base
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Interactions of the Current Customer Base
LO3
Customer
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Interactions of the Current Customer Base
LO3
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REVIEW LEARNING OUTCOME
LO3
Interactions with Current Customer Base
Customer
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Capture Customer Data
LO4
Outline the process of capturing customer data
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Capture Customer Data
LO4
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REVIEW LEARNING OUTCOME
LO4
Capturing Customer Data
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Store and Integrate Customer Data
LO5
Describe the use of technology to store and
integrate customer data
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REVIEW LEARNING OUTCOME
LO5
Store and Integrate Customer Data
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Identifying the Best Customers
LO6
Describe how to identify the best customers
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Identifying the Best Customers
Data Mining
LO6
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Data Mining

• Identify and profile the best customers
• Calculate their lifetime value
• Predict purchasing behavior

LO6
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Data Analysis
LO6
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Recency-Frequency-Monetary Analysis

1. Identifies customers most likely to purchase
   again
2. Identifies and ranks best customers
3. Identifies most profitable customers

LO6
33
Biz Flix
Casino
LO6
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Data Manipulation Techniques
LO6
35
REVIEW LEARNING OUTCOME
LO6
Identify the Best Customers
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Leverage Customer Information
LO7
Explain the process of leveraging customer
information throughout the organization
37
CRM Marketing Database Applications
LO7
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Campaign Management
CampaignManagement
LO7
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Campaign Management
LO7
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Retaining Loyal Customers
Retaining an additional 5 percent of customers
increases profits by as much as 25 percent
Improving customer retention by 2 percent
candecrease costs by as much as 10 percent
Loyalty programs reward loyal customers for
making multiple purchases
Loyalty programs provide information about
customers and trends
LO7
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Targeted Marketing Communications

• Offer direct incentives, such as a price
  discount

• Offer more reinforcement of past purchase
  decisions

• Design around loyalty and reinforcement of
  purchase

LO7
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Increasing Effectiveness ofDistribution Channel
Marketing
LO7
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REVIEW LEARNING OUTCOME
LO7
Leveraging Customer Information
Marketing Information

• Campaign management
• Retaining loyal customers
• Cross-selling other products
• Designing targeted marketingcommunications
• Reinforcing purchase decisions
• Inducing product trial by new customers
• Increasing effectiveness of distribution channel
  marketing
• Improving customer service

CRM Database
Applications