BGSCustomer Relationship Management.ppt

BGSCustomer Relationship Management Chapter 1 Introduction to Customer Relationship Management OLD VS. NEW MARKETING OLD MARKETING Transaction oriented Market share oriented All customers are equal Marketers sell 4P marketing Mass marketing Sell to the customer Focus on new customers Offensive Broadcast oriented Transaction profit NEW MARKETING Relationship oriented Share of wallet oriented All customers are not equal Marketers manage demand Relationship marketing Individual marketing Manage customer experience Focus on existing customers Defensive Dialogue oriented Customer lifetime value Five Different Orientations Toward CRM CRM is software, system, technology. CRM is data storage and analysis. CRM is a change in corporate culture from a transaction focus to a customer centric one. CRM is “managing demand.” 5. CRM is a strategy cycle focusing on customers. A CRM System Contains Four Components Data warehouse Analytical tools Campaign management tools Interfaces to maintain databases CRM System Failure When CRM systems fail, it tends to be as a result of cultural as opposed to technological issues. The Market Share Fallacy Increasing market share should not be a company’s goal. Rather, increasing share of the right kinds of customers should be the goal. CRM is Founded on Four Tenets Customers should be managed as important assets. Not all customers are equally desirable. Customers vary in their needs, preferences, and buying behavior. By better understanding their customers, companies can tailor their offerings to maximize their overall value. THE CRM ADVANTAGE Definition “Customer Relationship Management is the initiation, enhancement, and maintenance of mutually beneficial customer and partner long-term relationships through business intelligence-generated strategies based on the capture, storing, and analysis of information gathered from all customer and partner touch points and transaction processing s