crm in marketing crm initiatives. crm marketing initiatives cross-selling selling a product or...
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CRM in Marketing
CRM Initiatives
CRM Marketing Initiatives
Cross-Selling
Selling a product or service to a customer as a result of another purchase
Selling the right product to the right customer
CRM Marketing Initiatives
Cross-Selling (continued)Selling more products to a customer
increases revenue from that customer and costs less than acquiring a new one
Not every customer is a good candidate
It is critical to understand the ways by which customers evaluate how and whether to respond to promotions
CRM Marketing Initiatives
Up-Selling Motivating customers to trade up to more profitable
products
Customer Retention Analyzing customer attrition
Understanding why customers have left Understanding who How do you keep them? Churn prediction
What is CHURN?
CRM Marketing Initiatives
Behavior Prediction Using modeling and data mining techniques,
including Propensity to buy analysis
What product is a particular customer likely to buy next Next sequential purchase
What product is a customer likely to buy next Product affinity analysis
Which products will be purchased with other products Price elasticity modeling and dynamic pricing
Determining the optimal price for a given product
CRM Marketing Initiatives
Customer Profitability and Value ModelingCan a customer be unprofitable but still
considered valuable?
Customer Lifetime Value (LTV)Potential valueCompetitive value (wallet share)
CRM Marketing Initiatives
Customer value measurement is data-intensiveValue modeling is only as accurate as the
customer data is rich
CRM Marketing Initiatives
Channel Optimization Means optimizing a company’s “inbound” channels
with its “outbound” means of customer interaction
Knowing how to choose the best approach for each
Understanding the channels through which specific customers prefer to interact with the company
AND How best to communicate with your customers
CRM Marketing Initiatives
PersonalizationCustomizing customer communication
based on knowledge preferences and behaviors at the time of interaction
Online messages tailored to a particular customer or customer segment
In the B2C model, personalizaiton is based on the analysis of a customer’s clickstreams
CRM Marketing Initiatives
Personalization Clickstreams
A customers navigation path through a company’s Web site
A company can see not only what a customer purchased by how the customer reached the site in the first place
How he traveled through the site after he got there How much time he spend on each page Which products might have stimulated purchases of other
products
CRM Marketing Initiatives
What new tactics can analyzing clickstreams trigger?Changes to Web images
Custom promotions or discounts
Customized Web pages according to the visitor’s use of the site
CRM Marketing Initiatives
Event-Based MarketingTime-sensitive marketing or sales
communication reacting to a customer-specific event.
Also called event-driven marketingCan apply to a segment of customers or to
individual customersThis is what companies adopting CRM are
striving for
CRM Marketing Initiatives
Event-based marketingCombine personalization techniques with
process design to ensure that the right action targets the right customer at the right time
Ideal goal is to react to customers in near real-time
Eddie Bauer
Read the Case StudyP. 45-49 The CRM Handbook