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CRM
INDIRECT
Sell Strategies to
Keep Customers
LOYALTY
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It requires a clear focus on theservice attributes that represent
value to the customer and thatcreate
What is CRM ?
loyalty.
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It is the process of
profitable customers.
What is CRM ?
Acquiring,Retaining and
Growing
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ITS 1631 Customer Relationship Management
LECTURE IICRM: Customer Acquisition, Retention and StrategicCustomer Care
Yuku Ng15 September, 2010
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Learning Objectives
5
Classify customers into three categories in the stageof service evolution.
Apply the five strategic activities for implementing
Strategic Customer Care.
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Basic concept and
definition
Customers
Relationship
Management ofrelationship
Information Process Technology People
Implementation of CRM
Customer Relationship Management
teaching plan of
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Strategic Customer Care An Evolutionary
Approach To Increasing Customer Value AndProfitability
Stanley A. BrownJohn Wiley & Sons, Toronto, 1999, ISBN 0-471-64342-4
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Strategic Customer Care An Evolutionary Approach To Increasing Customer Value And Profitability
1.
3progressive stages of customer care
Stage I Customer Acquisition:
Promotions, Customer referrals, Copying strategies from competitors
Stage II Customer Retention:
Focus on maximizing relationship with customers, Segment customers into groups of different strategic values Different service + products to different groups of customers
Stage III Strategic Customer Care: Strengthen services on potentially profitable customers Grow with customers (e.g. Citibank Black Platinum Visa Card)
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2. The Five Strategic Activities for Implementing
Strategic Customer Care9
Fig 3.1 The five strategic activities for implementing strategic customer care.
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2.1 Profiling Customers
10
Define your customers characteristics in ameaningful way best to understand the attributesthey value most.
Video at seminar
Spending amount
Frequency of spending
Regency of spending
Classify customers into groups of commoncharacteristics.
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2. The Five Strategic Activities for Implementing
Strategic Customer Care
11
Fig 3.1 The five strategic activities for implementing strategic customer care.
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2.2 Segmenting Customers intoNatural Groupings
12
Profile of GoodCustomers
Contribute the highestproportion of gross profit
Have potential to add further togross profit
Are profitable organizationsthemselves
Customers who have permittedyou to achieve a dominant sharein the category
Are savvy and intelligent Conscious of the need to be
flexible and show adaptability
Willingness to become a partner
Trend of increased revenuesgenerated for your organization
Your current share ofcustomers business
Significance of your companysproduct or service to thecustomers business
Customers current gross profitand its potential
Potential to cross-sell and up-sell
Observe that they are not segmented by demographics
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2. The Five Strategic Activities for Implementing
Strategic Customer Care
13
Fig 3.1 The five strategic activities for implementing strategic customer care.
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2.3 Researching CustomersIndustries and Concerns
14
Going beyondloyalty, enterpriseneeds toobtain
a rich knowledge of theircustomersworldsin
order to achieve meaningfulserviceniche for the
customers E-Cards and Octopus
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Understand Your Customer(Not in your notes)
15
Knowing your product
Knowing the dialogue environment
Knowing the department
Knowing the company
Knowing the industry
Knowing the Political, Social,
Economic, Technology environment
The Point of Interaction
Selling Skills
Thehomeworkrequired forpreparing asales call
Thecommunicationskill
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2. The Five Strategic Activities for
Implementing Strategic Customer Care16
Fig 3.1 The five strategic activities for implementing strategic customer care.
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2.4 Investing in Technology to ProvideSolutions to Customers
17
Different customers deserve different levelsof service
Technology and efficiency will drive success
Strategic alliances are needed Satisfied customers lead to higher profits
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2.4 Investing in Technology to ProvideSolutions to Customers
18
Best practices in the use of technology Proactive database marketing Developed models to analyze profitability Use intranet and extranet for information sharing Executive Information System (EIS) Apply help desk, quality assurance and customer intelligenceetc.
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2. The Five Strategic Activities for
Implementing Strategic Customer Care
19
Fig 3.1 The five strategic activities for implementing strategic customer care.
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2.5 Managing Customers throughConsistency of Treatment
20
Systematically apply a streamlined accountmanagement process to all important customers
Involve senior management in the account
management process In the video at seminar, the CEO of Oriental Mandarin Hotel
write letters to his key account customers every week.
Provide operational objective to the strategicaccount team as well as the objective measurement
criteria
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End of Lecture 2