Information Drives Marketing Decision Making chapter 04 PERSPECTIVES

Information Drives Marketing Decision Making chapter 04 PERSPECTIVES ON CUSTOMER RELATIONSHIP MANAGEMENT chapter 05 MANAGING MARKETING INFORMATION chapter 06 UNDERSTANDING COMPETITORS: ANALYSIS TO ACTION chapter 07 UNDERSTANDING CUSTOMERS – BUSINESS TO CONSUMER MARKETS chapter 08 UNDERSTANDING CUSTOMERS – BUSINESS TO BUSINESS MARKETS part TWO McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved

Perspectives on Customer Relationship Management 04 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved

LEARNING OBJECTIVES Define CRM and articulate its objectives and capabilities Describe the CRM process cycle Understand the concept of customer touchpoints and why touchpoints are critical in CRM Distinguish customer marketing from consumer marketing, and understand why the distinction is important Discuss what happens when CRM fails and how to avoid potential failure McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 3

WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT? Cuts across the whole business enterprise Is a business strategy, set of operational processes, and analytic tools Is enabled by technology but is not just “the software” Has the ultimate goal of maximizing performance of the customer side of the enterprise Requires a customer-centric philosophy and culture, as well as leadership and commitment to CRM from the top McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 4

Why CRM? CRM is a timely and relevant topic that ties together a number of important concepts of modern marketing management. CRM is an important enabler of great marketing. McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 5

OBJECTIVES AND CAPABILITIES OF CRM Customer Relationship Management (CRM): a comprehensive business model for increasing revenues and profits by focusing on customers. McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 6

OBJECTIVES AND CAPABILITIES OF CRM Ultimately, CRM has three major objectives: McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 7

OBJECTIVES AND CAPABILITIES OF CRM To accomplish these objectives requires a clear focus on product and service attributes McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 8

THE CRM PROCESS CYCLE Knowledge Discovery Market Planning Customer Interaction Analysis and Refinement McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 9

Process Cycle for CRM EXHIBIT 4.1 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 10 Source: Ronald S. Swift, Accelerating Customer Relationships: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001), p. 40.

THE CRM PROCESS CYCLE Knowledge Discovery McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 11

CUSTOMER MARKETING VERSUS CONSUMER MARKETING Mass Marketing Consumer Marketing Customer Marketing McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 12

Marketing Evolution with Characteristics and Technology Attributes EXHIBIT 4.2 McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 13 Source: Ronald S. Swift, Accelerating Customer Relationships: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001), p. 38.

Advantages of Customer Marketing McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 14

CRM Facilitates a Customer-Centric Culture Adopting a relationship or partnership business model overall, with mutually shared rewards and risk management. Redefining the selling role within the firm to focus on customer business consultation and solutions. Increasing formalization of customer analysis processes. Taking a proactive leadership role in educating customers about value chain opportunities available by developing a business relationship. Focusing on continuous improvement principles stressing customer satisfaction and loyalty. McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 15

CRM Enables Transformation into a Relationship-Based Enterprise Customers Who are our customers? What do our customers want and expect? What is the value proposition of our customers? McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 16

CRM Enables Transformation into a Relationship-Based Enterprise The Relationship What kind of relationship do we want to build with our customers? How do we foster exchange of value between us and our customers? How do we work together and share control? McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 17

CRM Enables Transformation into a Relationship-Based Enterprise Managerial Decision Making Who are we and what is our value proposition? What do our products and brands represent to customers? How do we organize to move value closer to our customers? How do we measure and manage our performance? How do we increase our capacity for change? McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 18

WHAT HAPPENS WHEN CRM FAILS? McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 19

WHAT HAPPENS WHEN CRM FAILS? McGraw Hill/Irwin Copyright © The McGraw Hill Companies, Inc. All rights reserved 20