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! Target Marketing involves the practice of promoting a

product or service to a subset of customers and prospects.

! Propensity-to-Buy Segments:
! Early Adopters(Most likely to buy newly offered products and
services. Especially attracted to technology innovation)
! Pragmatists (Will purchase new products after value is well
understood. Might need to see the product in action)
! Skeptics (Only purchase if value is proven. Chances increase
with rebates or money-back guarantees.)
! Laggards (Await mass-acceptance of product prior to purchase.
Not likely to respond to new promotions)

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! ?elationship Marketing is embraced as a way for marketing
departments to get to know their customers more intimately by
understanding their preferences and thus increasing the odds of
retaining them.
! One-to-one means not only communicating with customers as
individuals but also developing custom products and tailored
messages based on customers· unspoken needs. It relies on a two-
way dialog between a company and its customers to foster a true
relationship and allow customers to truly express the desires the
company can help fulfill. In this approach the company creates an
entirely unique product or marketing program for each customer
in the target segment. It is common in business markets where
companies design unique programs and /or systems for each
customer.


 ! Permission marketing goes hand-in-hand with one-to-one
and in permission marketing customers gives companies
permission to specifically target them in their marketing
efforts. The most common tool used in permission marketing
is the opt-in-e-mail list where customers permit a firm or a
third party partner of the firm to send periodic e-mail about
goods and services that they have interest in purchasing.
When customers order product online , they receive the
option of receiving or not receiving future e-mail
notifications about new products. In many cases, customers
can deselect a box at the end of the order form, or they will
be added to the e-mail list.

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! Cross-Selling and Up-Selling
! Cross-selling is the act of selling a product or service to a
customer as a result of another purchase. Cross-selling is all the
rage nowadays, because selling more services to an existing
customer increases revenue from that customer and costs less
than acquiring a new one.
! Up-Selling means motivate existing customers to trade up to
more profitable products.
! Customer ?etention

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 ! Behavior Prediction
! Propensity-to-buy analysis: Understanding which products a
particular customer is likely to purchase
! Next sequential purchase: Predicting what product or service a
customer is likely to buy next
! Product affinity analysis: Understanding which products will be
purchased with other products
! Price elasticity modeling and dynamic pricing: Determining the
optimal price for a given product, often for given customer or
customer segment.

! Customer Profitability and Value Modeling

! Channel Optimization

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 ! Personalization
! Personalization is the capability to customize customer
communication based on knowledge preferences and behaviors
at the time of interaction.
! Examples of Personalization :
! You log on to your favorite music Web site. The site greets you with:µ Hi,
Jill, welcome back! We have some new picks for you!µ. This is an online
message tailored to a particular customer.

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 ! Event-Based Marketing (Event-Driven Marketing)
! It can apply to a segment of customers or to individual customers,
For Instance, mailing an application for an increase in collision
damage insurance to all customers who·ve recently had traffic
accidents is an example of Event-Based Marketing to a largely
undifferentiated segment of the existing customer base.
! But it·s individual event-based marketing that companies adopting
C?M are striving for. In our previous example, the insurance
company would suggest to each individual customer how much
collision damage insurance would be appropriate, given specific
factors such as the customer·s current coverage, claims history, and
demographics. Such Event-Based marketing tactics combine
personalization techniques with process design to ensure that the
right action targets the right customer at the right time.

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 ! Most companies developing Event-Based Marketing are doing
so based on a clearly defined set of high-profile events that
call for straightforward action. For instance, a Credit Card
Company calls a customer who has made a purchase
transaction far from home for the first time, confirming the
purchase- a common fraud-avoidance tactic.
! The ideal goal of event-based marketing is to able to react to
customer events in real-time, soon after the actual event
occurs. Event-based marketing requires solid process
automation and a well calibrated workflow to be effective.

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! The marketing processes themselves should be sound.

! Marketing practices are very industry specific

! The greater the variety of campaigns and the more robust the
analysis, the greater the choices for future campaigns.


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â The Call Center and Customer Care
â Call Centers are also known as Contact Centers or Customer
Interaction Center. Call Center effectiveness was measured by
how quickly the operator could get the customer off the phone.
When the customer·s call required research, tracking down a
product specialist who can work on the problem can take days
or even weeks.
â The Contact Center Gets Automated
â Call ?outing
â Contact Center Sales Support
â Web-Based Self-Service
â Customer Satisfaction Measurement


 ! Call-Scripting
! The reason for the contact
! The customer·s value
! Cross-selling opportunities and propensity-to-buy data
! Current product promotions or discounts
! Past-due bills or accounts payable issues
! Cyberagents
! Some C?M Vendors are taking the concept of self-service one better by
introducing cyberagents, lifelike ´representativesµ. Cyberagents attempt to
pull together the best of both personalization and advanced technology. On
the one hand, the cyberagent is given a personality-complete with voice and
facial expressions-often communicating with the Web visitor by her first
name. On the other hand, the cyberagent can draw from a wealth of detailed
information to answer basic FAQs as well as guide a customer to the
appropriate screen for making a purchase or checking an order.

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 ! Workforce Management
! Ability to forecast contact volumes to predict busy periods
! ?ecommendations for the optimum number of CS?s for certain
peak periods
! Performance tracking by customer value, customer satisfaction
etc
! Employee scheduling based on skills, tenure or preferred work
hours


 ! A Customer Service Checklist for Success
! Choose your technologies carefully
! Provide CS?s with everything they need to know about
customers
! Establish processes for call center staff
! Agree on success metrics
! Understand the issue of service recovery
! Ensure that your contact center reps are properly trained
! Staff the contact center at appropriate levels
! Share key learnings
! Improve CS? compensation

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