2_Customisation

Building a data base is a step by step process Stage 1 = pioneering (marketing file) Stage 2 = specialisation (file analysis) Stage 3 = multifunctional teams (data base mgt) Stage 4 = system integration (real time & inter-phase) Stage 5 = one to one communication

2_Customisation
Which data? 1. Customer or prospect identification
Name, address, city, telephone number and e-mail address

2. Customer segment

Subgroup of customers according to socio-demographic data

What is the customers preferred channel

3. Communication channel preference

4. Transaction history 5. Communication history

CRM Marketing Aspects

1. 2. 3. 4. Customer knowledge Customisation Communication & channels Relationship policy

3_Communication & channels

All new channels require substantial investments and effort! The challenge is a matter of integration whilst keeping a single point of contact despite the fragmentation of the mass/media

3_Communication & channels

Multi-channels We talk about communication and not about distribution channels We talk about touch points Multi-channel management is not very different from managing all sorts of channels leading to various target groups

3_Communication & channels

Multi-channels
Impersonal
Low interactivity

Differentiated
Medium interactivity

Personal
High interactivity

Television Radio Billboards Magazine

Website E-mail Letter Telephone

Personal sales Service

CRM Marketing Aspects

1. 2. 3. 4. Customer knowledge Customisation Communication & channels Relationship policy

4_Relationship policy
Customisation To what degree do we want to approach customers in an individualised manner? What is the price of customisation?

4_Relationship policy
Customisation The best solution will need to be determined jointly, in interaction with the customer It requires reasoning from the standpoint of the customer instead of that of a product manager

4_Relationship policy
Differentiated pricing & revenue management

Segmentation

Price / segment

Forecast

Capacity allocation

4_Relationship policy
Goals 1. Improvement of size and quality of the customer base 2. Working per segment 3. Working per relationship phase 4. Look for contact moments 5. Loyalty programmes

4_Relationship policy
A Existing Customers Market develop retain migrate recover drop follow acquire activate

B
Segments C D

a
Potential Customers Segments b c d

The structure of the course

CRM
ORGANISATION MARKETING ANALYSIS SYSTEMS

1_Elements of CRM

1_Customer knowledge

1_Relationship Data

1_CRM systems

2_Customer-supplier

2_Customisation

2_Data mining

2_Implementation

3_Strategy

3_Communication

3_Data selection

3_The future

4_Relationship oriented

4_Relationship policy

4_Data reporting

4_Conclusion

Analysis - Introduction
What Do You Need to Know? Use this formula to determine your data and information needs: What do you want to know about your customers? What data will point you in the right direction? With the data in hand, ask why these numbers are what they are.

Analysis - Introduction
An important foundation of analytical CRM is created by the relationship data. Making sure the proper data are recorded with the desired intrinsic quality makes it possible to implement a selected relationship policy

Analysis Introduction
An important foundation of analytical CRM is created by the relationship data. The relationship data are used in statistical and data mining analysis to make marketing selections The selection analysis is the result of: The segmentation analysis The cross-selling analysis The retention analysis

Analysis Introduction
An important foundation of analytical CRM is created by the relationship data. These data should also allow for the measurement of the effectiveness and efficiency of the dialogue with the customer Are proper channels being used? Have activities lead to the desired financial results?

Analysis Introduction
Management reporting Does it allow to finalise the strategy? Does it allow to communicate? Does it allow to evaluate?

1_Relationship Data
What types of external and internal sources are there to expand the database qualitatively and quantitatively?

1_Relationship Data
We usually have the essential data, be it only because of prevention of money laundering regulations, but what about the other essential data? How is the data stream organised when there is a change? There is the internal as well as the external challenge in the quality of the data

1_Relationship Data
The receiver of the information should have it the way he or she prefers Even the smallest of mistakes can arouse negative emotions! A customer will be sensitive to the way we use data and the time span allowed for it to be effective (for instance: contact centres data processing time)

1_Relationship Data
From a technical point of view the following elements will be key issues: The rules of the input of data (customer education) The time span of access to data (in & external) The avoidance of duplication The avoidance of errors The matching of data The rules for distribution Speed and reliability

1_Relationship Data
Which data? Decisions about which data should be the result of an ideal customer profile; it will be the foundation on which the organisation will implement its relationship policy and subsequently CRM

1_Relationship Data
Customer profile
Segment Customer value Transactions Products Communication Satisfaction Customer characteristics Socio-demographic Annual contribution to profit Type and contribution Type and contribution Branch, internet, phone centre General satisfaction with supplier Lifestyle, preferences

1_Relationship Data
Price becomes a critical issue when:
1. Service quality seems indistinguishablecustomers

dont perceive any real difference between your offering and that of your competition.

2. Service quality seems universally poorcustomers do not believe that any provider can be relied upon to provide a superior service experience.

1_Relationship Data
Price becomes a critical issue when:
3. Service quality seems universally goodcustomers

believe they will receive an acceptable or even superior service experience at any location. This is more often true across a brand, such as a particular hotel chain, than across an entire industry segment.

2_Data mining
As you use the data and information youve gathered, remember a few rules of statistics: 1. Information is always old. It can only tell you what your customers did or thought yesterday. It will not guarantee a thing about what they will do tomorrow.

2_Data mining
As you use the data and information youve gathered, remember a few rules of statistics: 2. One person does not represent the group. Focus groups and surveys can be a lot of fun because you really get to know an individuals or small groups feelings. However, the only data that can show trends comes from statistically significant samples of the larger group.

2_Data mining
As you use the data and information youve gathered, remember a few rules of statistics: 3. Data is not a goal in itself; it is just a tool.

2_Data mining
The goal of data mining is mainly Related to the effectiveness of the sales effort
Example: price sensitiveness as result of promotions Example: effects of personalisation of an offer Example: for a specific product, determine who should be approached

Related to the selections

2_Data mining
How may statistical techniques (data-mining) be used to enrich the customer profile? How should the analysis process be designed? Which technique is going to be used?

2_Data mining
How should the analysis process be designed?
Goal Problem Analysis

Database

Analysis
Report

3_Data selection
Segmentation for the benefit of strategic marketing issues: How to divide the market into segments How to profile the segments How to develop the marketing service concepts per segments

4_Data reporting
How to evaluate the final result of the relationship marketing activities? How to define the economic customer value? How to work towards a balanced scorecard in this context?

The structure of the course

CRM
ORGANISATION MARKETING ANALYSIS SYSTEMS

1_Elements of CRM

1_Customer knowledge

1_Relationship Data

1_CRM systems

2_Customer-supplier

2_Customisation

2_Data mining

2_Implementation

3_Strategy

3_Communication

3_Data selection

3_The future

4_Relationship oriented

4_Relationship policy

4_Data reporting

4_Conclusion

1_CRM Systems
CRM is a strategy technology is the enabler
What CRM systems do? What is a data warehouse? What is a content management system?

1_CRM Systems
A variety of CRM sub-systems have been developed for the performance of the primary and secondary functions in front and back office and linking activities between the two

1_CRM Systems
The technical issue is to link front and back office: In many situations, companies use what is known as middle-ware to achieve this, which coordinates activities that take place through different channels.

1_CRM Systems
Sales
Intranet Website Administration Other data Products

E-mail
Phone Fax

CRM Application
Warehouse

Other units

1_CRM Systems
The question is to build ones own application or not. At first glance it is a way to avoid substantial investment in suppliers own systems. However, experience shows that is takes more time than expected with the risk of obsolescence before it is even put into function

1_CRM Systems
Well known suppliers of CRM systems
SAP Oracle Navision Intentia J.D.Edwards Siebel Onyx Pivotal Pegasystems Allegis NCR Unica Unisys

1_CRM Systems
A data warehouse is an isolated environment, it is a retrieval system: Destined for the support of management information systems That contains clear history In which users can find information for their educated decisions Which provides data for a campaign management system

1_CRM Systems
A content management system With time the need arises to automate the management of the web content, and software is available for that purpose or CMS (content management system) in short It is an intelligent form of document management.

1_CRM Systems
CRM system should provide 1. More effective data gathering 2. Sales and marketing automation 3. Deployment of precise customer info

1_CRM Systems
To enable 1. Recognition of customer needs & opportunities 2. More targeted marketing 3. Timely offering of specific/targeted products

Implementation

2_Implementation
Building on the work you have already done to identify potential CRM strategies, your task now is to brainstorm a list of all the objectives you may have for CRM.

2_Implementation
Key issue relating to CRM: how to optimise the customer information flow across multiple channels.

2_Implementation
Multiple channels: to solve this, following issues need to be addressed: how to capture data by the different channels, especially the soft personal info how to route this data to the Customer Information System for rapid & efficient analysis how to route precise & timely customer information back to the channels, in order to allow cross/up-selling or personalized advertising how to share identical on-line customer information across the different channels

2_Implementation
The IT element will decide whether institutions will progress from offering multiple channels to offering a real integrated channel strategy.