topic 10 of b2b
TRANSCRIPT
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CUSTOMER RELATIONSHIP MANAGEMENTCUSTOMER RELATIONSHIP MANAGEMENT
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Barter Age
Customized Product Age
Mass Production Age
- Customer
- Consumer Customization Age: 1:1 Relationship
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Strategy, Process,Software, Philosophy, Project???
a) CRM is about Strategy
CRM isaboutcreatingacompetitiveadvantagebybeingthebestatunderstanding,communicating,deliveringanddevelopingexistingcustomerrelationships,inadditiontocreatingand keepingnewcustomers (Strategic CRM)
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Whatproductsandservicesareweofferingnowandinthefuture?
Inwhatmarkets? Whatcustomergroupswilltheseproductsand
servicesappealto? Whichoftheseareofgreatestvaluetothe
organization?In termsofexpenditure,
reliability,growthpotential? Whatadditionalneedsdothemostvaluable
customergroupshave? Adiitionalproducts?Additionalservices?
Inwhatdifferentwayscanwedobusinessto
delivertoourcustomersbetter?
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Cog Wheel Process: CRM (UK) Ltd.(Four Key Areasofthe Business)
- Strategy
- People
- Technology
- Processes
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St p 1: Defi e t ee isti c st errel ti s i
management pr cesses wit in t ec mpany St p 2: Determine t e percepti ns of how the
company managestheirc stomerrelationshipsboth internally and e ternally
St p 3: Design theidealc stomerrelationshipmanagementsol tionsrelati eto thecompany orindustry
St p 4: Deli er a strategy fortheimplementationoftherecommendations based on thefindings
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Com etition: Globalization
Customer Ex ectation: e-Commerce
Technology: Touchpoints
Diminishing im act of advertising:Informationthroughe-mailandwebsites
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b) CRM the customer thread
Whetherthecustomersarecurrent / potential /selectedCRM isaboutacquiring,retaining,partnering,personalizing relationshipswiththem
CRM helpsbusinessesusetechnologyandhumanresourcestogaininsightintothebehaviorofcustomersandthevalueofthesecustomers.
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Customization: Customizationassumes
thatmanufacturerwilldesign / orenabledesigningaproducttosuitcustomerneeds.
Personalization: Personalizationisaboutcustomerbecomingaco-creatorofthecontentoftheirexperience.
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TRUTH # : Customersarenolongerloyal.
TRUTH # : Customersdonotreallywantarelationshipbutcompaniesdo.
- Your BestCustomersCan Leave
- Your MarginalCustomersCan Move
- ConsumersCan BecomeCustomers TRUTH # : Customerswantinformation.
TRUTH # : Customersnotonlywanttobethankedfortheirpatronage,theyexpectit.
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TRUTH # 5: Customerscontroltheselling
process. TRUTH # 6: The Lifetime Valueofacustomer
isnotrelevant.
TRUTH # 7: Donotovercomplicatethe
program. TRUTH # 8: Keepreportingsimpleand
focusedonthecustomer.
TRUTH # 9:WHATIF? Ask itoften.Experimenteverychanceyougetanddontcallittesting.
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Investmentin relationshipwithvariousstakeholdersisveryimportant.CRM isthedomainofrelationshipmanagementwithcustomers.
Industrial Revolution: ThisiswhatImake,wontyoupleasebuyit?
Customer Revolution: ThisiswhatIneed,Cantyoupleasemakeit.
Companieshavetoturnfroma make and sellphilosophytosense and res ondphilosophy.
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TheTHREE dimensions (CRM, Relationship MarketingandMarketing) areextremelylucidlyintegratedinaconceptcalledHolistic Marketingframework.
TheHolistic Managementframework enablesmanagementtoanswersfollowingquestions:
1. Howcanacompanyidentifynewvalueopportunitiesforrenewingitsmarketing (MarketingDimension)
2. Howcanacompanycreatemorepromisingnewvalueoffering? (Stakeholders Relationshi Dimension)
3. Howcanacompanyuseitscapabilitiesandinfrastructuretodeliverthenewvalueofferingefficiently? (CRMDimension)
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TheTHREE dimensions (CRM, Relationship MarketingandMarketing) areextremelylucidlyintegratedinaconceptcalled
Holistic Marketingframework.ManagementDecision de ends on:1. Howcanacompanyidentifynewvalueopportunitiesfor
renewingitsmarketing (MarketingDimension)2. Howcanacompanycreatemorepromisingnewvalueoffering?
(Stakeholders Relationshi Dimension)
3. Howcanacompanyuseitscapabilitiesandinfrastructuretodeliverthenewvalueofferingefficiently? (CRMDimension)
Threeorganizationalfunctionswillplaythemajorroleintheeconomy: the demand managementfunction,the resourcemanagementfunctionand network (Relationshi )
managementfunction.
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Transaction arketing Relationship arketing
Functional Marketing Cross-functional marketing
Focus on a single sale Focus on customer retention
Orientation on product feature Orientation to customer values
Short time scale Long time scale
Little emphasis on customer service High emphasis on customer service
Moderate customer contact High customer contact
Quality is a concern of production Quality is everyones concern
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1. Classic Market Relationshi : Consistingoftherelationshipbetweenthesupplierandthecustomer,betweenthecustomer-
supplier-competitorandtheclassisnetwork distributionchannels.
. S ecial Market Relationshi : Relationshipviafulltimeandparttimemarketers,interactionbetweencustomersandserviceproviders,relationshipinindustrialandbusinessmarketing,e-relationship,greenrelationship (environmentandhealthbased,lawbased)
. Mega Relationshi s: Personalandsocialnetwork,massmedia
. Nano Relationshi s: Relationshipbetweeninternalcustomersandinternalsuppliers,therelationshipbetweenoperationsmanagementandmarketing,relationshipwiththeemployeemarket.
FirstTWOconsidersasDirectmarket Relationshipand LastTWOconsidersas Non-MarketRelationships
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1. Proactive versus Reactive CRM
1. Operational, Collaborative and
Analytical CRM
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1. Operational CRM: FrontofficeCRM.Interactionbetweenthecustomerandmarketerdirectlythrough
customer touchpoint (POS,Callcenters,webetc.). Face to face touchpoints:
Sales/Service/Channel/Events/Stores/Promotions Database driven touchpoints:
Telephones/Email/Mail/SMS/Fax/LoyaltyCards/ATMs
Mass Media:Advertising/PR/Websites
AnyTransactioncantakeplacethroughthesetouchpoints. Lowlevelmanagersinteractinthisstageandprocesstheinformationto
themidlevelmanagers
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2. Collaborative CRM: Twowaydialogbetweenacompanyanditscustomersthroughavarietyofchannels (businesspartners,agents,brokers,intermediaries) tofacilitateandimprovethequalityofcustomerinteractionsandmaintainalongterm
profitablerelationship.
Performedby Midlevelmanagersandtransformtheinformationtothetoplevelmanagersanddecisionmakers.
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3. Analytical CRM: Knownas back-officeor
strategicCRM.Itinvolvesunderstandingthecustomeractivitiesthatoccurredinthefrontoffice.Usingtechnology,massdataisgoingtotransformedinto business knowledge (behaviorpatters,preferences,valuesofcustomers).
Top Levelmanagersanddecisionmakersestablishtheprocessandconveythemessagetothemidlevelandlow
levelmanagersforimplementation.