Why we need CRM Defining CRM Identifying different customer types Developing customers Loyalty programs Good CRM

has a sophisticated database Management of customers dont have to be passive recipients of their behavior

 The purpose of a business is to create and keep a customer.

(Peter Drucker in The Practice of Management(1954)

B&S
Time line

RM

CIMS

CRM

e-CRM

Late 80s

Early 90s

Mid 90s

2002 - Future

B&S Buying & Selling RM Relationship Marketing CIMS Customer Information Management Systems CRM Customer Relationship Management e-CRM- A subset of CRM that focuses on enabling customer interactions via e-channels (The web, email and wireless)

Traditional Marketing

CRM

Goal: Expand customer base, Goal: Establish a profitable, increase market share by long-term, one-to-one mass marketing relationship with customers; understanding their needs, preferences, expectations
Product oriented view Mass marketing / mass production Standardization of customer needs Transactional relationship Customer oriented view Mass customization, one-to-one marketing Customer-supplier relationship Relational approach
4

Customer Relationship Management (CRM) is a widely implemented strategy for managing a companys interactions with customers, clients and sales prospects.

The Elements of CRM

Sales force automation Call center telephone sales E-commerce Field sales Retail Customer service/call center management Call Centers Managing aspects Of customer contact Marketing automation

Campaign management

Web-based self service

Content management

Third-party brokers, Distributors, agents

Field services and dispatch

Data analysis And business Intelligence tools

Data warehouse and data cleaning tools

Develop better communication channels Collect vital data, like customer details and order histories Create detailed profiles such as customer preferences Deliver instant, company-wide access to customer histories Identify new selling opportunities

Reductions in operating costs A higher percentage of cross-selling due to offering a single point of contact with the company More success in attracting new customers and closing deals faster, through quicker and more efficient responses to customer leads and customer information Simplification of marketing and sales processes by understanding customer needs Better customer service

IT infrastructure(ERP,SAP) Process change

Continuity A contact point Personalisation

Acquiring New Relationships

You acquire new customers by promoting your

companys product and service leadership.

Enhancing Existing Relationships

You enhance the relationship by encouraging

excellence in cross-selling and up-selling, thereby deepening and broadening the relationship.

Retaining Customer Relationships

Retention focuses on service adaptability delivering

not what the market wants but what customers want.

1. 2. 3. 4. 5.

Build a database Analyse, define types, profitability Customer selection Activities to delight selected customers - discourage others Analyse again to see how were doing

Demographics
How do you get people to provide this?

History of contacts Transaction history or summary Response to marketing communications

How did you hear about us (this offer?)

 Platinum

Heavy, reliable users, not price-sensitive, try new products, loyal Gold Large users who push for price breaks, shop around and not so loyal Iron Low volume or intermittent users; cost to serve them is quite high Lead Demanding, want special attention but dont buy much and show no loyalty

 While

company is quickly growing, customers are more satisfied as well Service provided in a better way, and a quicker way Sales force automated Integrated customer information Certain processes eliminated Operation cost cut, and time efficient Brand names more quickly established

A central database so that everyone in your company can keep track of customer contacts Sales and marketing teams can benefit from having all this inside knowledge about customers Lets you set up rules for distributing work throughout your company Lets you pick and choose the functionality that you want

Organizational wise change of priority to customers. Significant investment of time and money Threatens managements control/power struggle Heightens peoples resistance to change Inappropriate integration leads to disaster

Proximty to customers Product quality and variety Reasonable prices Transportation servise Self checkout system Good Design Fresh products Social activities

Self checkouts reached 90 stores with 22% penetration on consumer traffic in related stores. Providing target mass campaing MIGROS has 30 percent return. 80% of their domestic sales are made with Money Club Card.

Migros Club loyalty program, launched in 1998. Now the number of active customers of this club this year has exceeded 4.5 million.

They divide their customers into segments. According to lifestyle and shopping budget they offer special advantages. They organize wine tasting for their clients, film premieres and some activities such as cooking courses.

According to MIGROS officials they have approximately 5 terabayt information about customers.

Capital Magazine-CRM LEADERS(july 12) www.migros.com.tr www.crminturkey.org www.wikipedia.org

Thank you for your time.

QUESTIONS??