SESSION -6 8/11/06

Why We Brand
Identity Branded Product
Differentiation Customer

Reputation

Success is measured by growth in brand equity

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So Why Not Brand Customers?

Identity Branded Product Differentiation Reputation Branded Customer

Success is measured by growth in customer

equity

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Customer EquityA Fix for Modern Marketing

Customer equity is the total combined customer
lifetime values of all the companys customers.

The emphasis on building relationships rather

than transactions is the central theme

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Customer LifeCycles
It is simply the behavior of a customer with
your company over time. Customers begin a relationship with you, and over time, either decide to continue this relationship, or end it.

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The Customer Life Cycle (CLC) and CRM

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Four major stages of Customer Life Cycle:

Consider: Purchase: Set up: Use:

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Business Strategy and CRM

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The model has three key phases and three contextual factors:
1. Customer Acquisition - This is the process of attracting our customer for the first their first purchase. We have acquired our customer.
Growth - Through market orientation, innovative IT and value creation we aim to increase the number of customers that purchase from us for the first time.
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2. Customer Retention
Our customer returns to us and buys for a second time. We keep them as a customer. This is most likely to be the purchase of a similar product or service, or the next level of product or service. Growth - Through market orientation, innovative IT and value creation we aim to increase the number of customers that purchase from us regularly.

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3. Customer Extension
Our customers are regularly returning to purchase from us. Growth - Through market orientation, innovative IT and value creation we aim to increase the number of customers that purchase additional or supplementary products and services.

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4. Marketing Orientation
That the wholes organization is focused upon the needs of customers.

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5. Innovative IT
Information Technology must be up-to-date. It should be efficient, speedy and focus upon
the needs of customers.

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" Customer relationship management (CRM) is a

business philosophy that aligns strategy, business culture, customer information and technology in order to manage customer interactions to the mutual benefit of the customer and the enterprise.

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BUSINESS INTELLIGENCE AND DATA WAREHOUSING

A customer centric data warehouse that
provides a unified view of customer data is the backbone of any successful CRM application.

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Analytical CRM data warehouse solution framework offers the following: Integrated customer views across
applications, channels, geographies. Customer centric data model to capture and track customer product holding, product usage, contact history and events . Phased iterative implementation methodology .

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Key applications supported by this framework are:

Integrated view of the customer (irrespective

of the different sources of information) . Campaign performance analysis Customer segmentation analysis Customer churn prediction Customer loyalty analysis

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CRM-centric data warehouse.

Step 1 of this process, data is tracked at the point of

customer interaction. Whether this occurs at point-of-sale terminals in brickand-mortar companies or on the Web for e-commerce companies. The goal is to track and collect all relevant customer interaction data into a data warehouse or data mart that will subsequently serve as the platform for analyzing this data.
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CRM-centric data warehouse.

In Step 2, the data from various source
transaction systems is integrated in order to create a unified view of the customer. The focus on CRM is driving the need to create an enterprise wide, single view of a customer regardless of the customer's point of interaction with the company.

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CRM-centric data warehouse.

Step 3 of the process involves the analysis of the
data collected in the data warehouse.

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The Customer as Financial Asset

Why dont I ever hear the term customer assurance?

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What is Customer Assurance?

Strategies that synchronize business
intelligence, customer interactions, and marketing programs to optimize customer value.

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Breakdown of the key functions that come under this customer assurance umbrella:
Profitability Assessment: Tying costs and revenues to
specific customer segments to ensure products yield maximum profits.

Churn & Loyalty Management: Predictive modeling

& other techniques to proactively retain and increase the revenues of profitable customers.

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Breakdown of the key functions that come under this customer assurance umbrella:
Business Intelligence/Analytics: Data warehouse &
mining techniques to enhance decision making and uncover profitable data patterns.

CRM/Customer Care: Personal interaction

techniques and policies that improve the effectiveness of the call center, trouble desk, and field sales.

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Breakdown of the key functions that come under this customer assurance umbrella:
Campaign Management: Coordinating and
measuring advertising, direct marketing, and sales programs.

Data Integrity: Detecting, correcting, and

maintaining the accuracy of data used in customer assurance.
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How important are consumer and/or customer demographics in shaping a company or organization's CRM strategy, particularly in the retail sector?

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Profiles are made up of mainly static or slow-tochange demographic information: gender, wealth, favourite newspaper, holiday preferences, hobbies and interests, house value, etc.
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Companies make money from their customers in 4 ways:

By winning more customers By persuading customers to spend more By getting customers to buy more often And by convincing customers not to defect

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Customer Management Functions:

Quick and easy account setup Ability to import and export customer data Customer hierarchy (parent/child relationship)
to manage enterprise accounts Ability to merge two customer records into one, combining contacts, documents and ship-to addresses
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Customer Management Functions:

Searchable customer accounts, including quotes, orders,

pricing and revision history Ability to sort customer account history by time periods, sales reps, amount, status, gross margin, etc. Ability to create and assign custom catalogs to each contact at a customer, both internally and on the customer extranet Access to "Recent Customers" list from any page in the application

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CRM Architecture
There are three fundamental components in CRM: Operational - automation of basic business processes (marketing, sales, service) Analytical - analysis of customer data and behavior using business intelligence Collaborative - communicating with clients
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Operational CRM typically involves three general areas:

Sales force automation (SFA) : SFA
automates some of a company's critical sales and sales force management tasks: 1.Forecasting 2.Sales administration 3.Tracking customer preferences 4.demographics, 5.performance management etc
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Sales force automation

To improve sales force productivity To help sales force to document and
communicate their field activities SFA cultivating-customer relationship in improving customer satisfaction

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SFA the cradle of CRM

Better software to manage their :
accounts track opportunities establish and monitor sales organize contact list to sales forecast

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SFA the cradle of CRM

To communicate the manufacturing
department

Real time alert about customers event

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Sales territory management:

Which sales people are assigned to which
accounts?

Who already reached sales quota?

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Contact Management:
A subset of sales force automation that deals
with organizing and managing data across and within a company's client.

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Contact Management:
Track all contacts and related opportunities,
cases, activities, and other details from a common repository Create the hierarchy of contacts within a company to have a better coordination while dealing with customers

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Contact Management:
Import contacts from external sources CRM
and other business applications Export contacts to spreadsheet software, such as Microsoft Excel, OpenOffice, and others for further analysis

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Contact management can help the sales force:

Who is our contact individual for client A ? Who is contact for each department? What is client Xs mailing address? Billing
address?Who is my next sales call? When was the last time I called on that customer?

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Lead Management
Opportunity and pipeline mgmt. Data of prospect:
product interest discretionary budget amount likely competitors

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Lead Management
Manage leads end-to-end (from creating
leads to converting them into opportunities) Capture leads directly from your Web site using Web-to-lead form and transfer to your CRM system

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Lead Management
Customize Web-to-lead form as per your
organization requirements Import leads from external sources, such as Web downloads, trade shows, seminars, direct mail, and other types of campaigns

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Enterprise marketing automation (EMA)

EMA provides information about the
business environment, including information on competitors, industry trends, and macro environmental variables.

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Analytical CRM
Analytical CRM analyzes data (gathered as
part of operational CRM, or from other sources) in an attempt to identify means to enhance a company's relationship with its clients.

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Other examples of the applications of analyses include:

Evaluating and improving customer

satisfaction Optimizing sales coverage Fraud detection Financial forecasts Price optimization Product development
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Collaborative CRM
Collaborative CRM focuses on the
interaction with customers (personal interaction, letter, fax, phone, Internet, email etc.)

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Collaborative CRM includes:

Providing efficient communication with
customers across a variety of communications channels Providing online services to reduce customer service costs Providing access to customer information while interacting with customers

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Human touch + Top Tech Tools=Effective CRM

Telephone
E-mail Fax Online form filing Web-enabled live instant messaging
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Touch points only have Value in the Eyes of the Customer

There will be value of some kind to come out of

the dialogue Any information provided is timely and useful There is some level of personalisation just for them Any information they provide will not be misused They feel a degree of comfort with the means, method and mode of dialogue There is a set of actions that will proceed from this dialogue.
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Tips
Bring the customers to you:
Invite customers to visit you frequently Teach people to ask insightful questions that will help them form a vivid picture of what life is like for the customer.

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Tell stories, take pictures

Audiotape or videotape customer feedback
sessions and play them at meetings Take photos of customers using your product and hang them on the walls. Use photos of customers in your newsletters.

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Customer- Run Meetings

Ask the customer to come in and run a meeting . Have them pick the topic and design the agenda. Make this a regular way to get feedback

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Reserve a Chair
Have a special chair at your conference table for
the customer.

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Send the staff shopping

Give members of the staff money to go out and
spend being customer of someone else. Send them with a checklist of service behaviors to watch out for and observe

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Celebrate a customer day

Have one every month celebrate one of your
business customers successes, meeting their goals, reaching their dreams, theres usually something to celebrate if you look for it.

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The Drive to be Customer Centric

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A Holistic Perspective is Important

The value of the
RELATIONSHIP MANAGEMENT SALES PRODUCTION

Sustained MARKETING Market DISTRIBUTION Success

FINANCE SERVICE

PRODUCT DEVELOPMENT

individual elements of the organizational system is determined by their relationship to all other elements of that system.
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What Really Makes Customers Happy?

Overall quality of the product or service

supplied . Friendliness of staff . Handling problems and complaints . Speed of service . Helpfulness of staff . Handling enquiries
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What Really Makes Customers Happy?

Being treated as a valued customer. Competence of staff . Ease of doing business and being kept informed.

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