CRM in Marketing by sofiaie

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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
     Modeling
        Can a customer be unprofitable but still
         considered valuable?

        Customer Lifetime Value (LTV)
           Potential value
           Competitive value (wallet share)
CRM Marketing Initiatives

    Customer value measurement is data-
     intensive
        Value 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

    Personalization
      Customizing 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 Marketing
      Time-sensitive marketing or sales
       communication reacting to a customer-
       specific event.
      Also called event-driven marketing

      Can apply to a segment of customers or to
       individual customers
      This is what companies adopting CRM are
       striving for
CRM Marketing Initiatives

    Event-based marketing
      Combine 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 Study
        P. 45-49 The CRM Handbook

								
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