Customer Relationship Management
Customer Relationship Management
• “The purpose of a business is to create customers” – Peter Drucker
• New customers cost you money – money spent on advertising and marketing
1
Company Orientations toward the marketplace 2
CRM
Customer Relationship Management (CRM) enables an organization to better management relationships with suppliers, distributors, and dealers, among others
3
CRM
• The purpose is to identify, retain, and place the right kind of customer and foster their repeat usage
• The focus of CRM is on relationship
4
CRM’s Goal
• CRM’s Goal is to increase the opportunity (of customer buying again) by improving the process to communicate with the right customer, providing the right offer (product and price), through the right channel, at the right time
• The purpose of CRM programs is to recognize the best customers, retain them, encourage greater usage of the company’s product or service, and trade them up to more prestigious and expensive items over time
5
Objectives of CRM Systems
To summarize, the objectives of CRM systems include:
• Identification of potential customers
• Understanding of customer needs
• Differentiating profitable from unprofitable customers and segments • Decreasing attrition by increasing value and satisfaction
6
Objectives of CRM Systems
• Increasing usage of current products and services
• Increasing prestige items produced by a company
(trading-up)
• Increasing customer service and satisfaction
• Improving campaign management
• Moving customers up the relationship hierarchy from strangers to acquaintances to friends to partners
7
CRM & Productivity
CRM systems can enhance productivity across the range of key marketing functions such as;
• Cross-selling – getting customers to buy other company products and services
• Upward migration – convincing customers of the value of ‘trading up’ (ex; Ticket value, Personal
Shopper)
8
CRM &
• “The purpose of a business is to create customers” – Peter Drucker
• New customers cost you money – money spent on advertising and marketing
1
Company Orientations toward the marketplace 2
CRM
Customer Relationship Management (CRM) enables an organization to better management relationships with suppliers, distributors, and dealers, among others
3
CRM
• The purpose is to identify, retain, and place the right kind of customer and foster their repeat usage
• The focus of CRM is on relationship
4
CRM’s Goal
• CRM’s Goal is to increase the opportunity (of customer buying again) by improving the process to communicate with the right customer, providing the right offer (product and price), through the right channel, at the right time
• The purpose of CRM programs is to recognize the best customers, retain them, encourage greater usage of the company’s product or service, and trade them up to more prestigious and expensive items over time
5
Objectives of CRM Systems
To summarize, the objectives of CRM systems include:
• Identification of potential customers
• Understanding of customer needs
• Differentiating profitable from unprofitable customers and segments • Decreasing attrition by increasing value and satisfaction
6
Objectives of CRM Systems
• Increasing usage of current products and services
• Increasing prestige items produced by a company
(trading-up)
• Increasing customer service and satisfaction
• Improving campaign management
• Moving customers up the relationship hierarchy from strangers to acquaintances to friends to partners
7
CRM & Productivity
CRM systems can enhance productivity across the range of key marketing functions such as;
• Cross-selling – getting customers to buy other company products and services
• Upward migration – convincing customers of the value of ‘trading up’ (ex; Ticket value, Personal
Shopper)
8
CRM &