5. Semester_CRM_A.1 Flashcards
(18 cards)
What are the methods/economic principals of CRM?
- Operational
- Strategic
What does the operational method of CRM means?
CRM is the practice of …
1) analyzing &
2) using marketing databases &
3)leveraging communication technologies
… to determine corporate practices and methods that maximize the lifetime value of each customer to the firm
What does the strategic method of CRM mean?
CRM is the strategic process of selecting customers that a firm can most profitably serve
-> shaping interactions between the company and these customers
What is the Goal of the strategic method of CRM?
Optimize the current and future value of customers for the company
What did marketing used to look like?
Product Marketing
- > product-driven
- > one-to-many campaigns
- > revenue targeted or scatter gun approach
- > experienced as advertising
What does marketing look like today?
Customer Relationship Management
- > customer-centric
- > needs-driven
- > specific, targeted
- > experienced as guidance
Transactional Marketing vs. Relationship Marketing – By what is it guided?
Transactional Marketing
Guided by short term transaction success
-> priority of short term skimming of customers
-> growth through new customers
-> transaction based view of customer relationship
Relationship Marketing
Guided by long term relationship success
-> priority of long-term skimming of full customer potential
-> growth by loyalty and retention
-> evolutionary understanding of customer relationship
Transactional Marketing vs. Relationship Marketing – What’s the priority?
Transactional Marketing
Priority of product success
-> Overall goal: revenue and market share
-> overall market or market segment perspective on marketing management
-> controlling of advantageousness of each transaction
Relationship Marketing
Priority of customer success
-> customer proximity,satisfaction and loyalty as overall goals
-> individual management of customer relationships
-> trust and fairness in business processes
Transactional Marketing vs. Relationship Marketing – How does the marketing processes look like?
Transactional Marketing
Marketing processes based on push campaigns
-> “broadcasting”-communication
-> standardized marketing activities
-> anonymous mass marketing
-> explicit frontier towards customer
Relationship Marketing
interactive marketing processes
-> dialog communication
-> individualized marketing measures
-> active support of interaction
-> customer integration
How does the marketing processes look like?
Interplay of offer, timing, channel, and customer experience
- right offer
- right moment
- right channel
- great experience
Scope of Customer Management
How does the closed loop marketing look like?
Before:
- decide on Channels for lead generation (media, website)
- establish contact
During:
1. Provide Information (advertising material/website) & lead screens information
2. Identification (clicking in email/reply to questions) & lead converts into prospect
3. Guidance (recommendations) & prospect tells demand
4. Request for further interaction (following up conversations) & prospect becomes customer
5. Development of preferences (Newsletter communication9 & customer agrees to communication
Tracking during of:
- preferences
- information
- contact approach
- transactions
What’s the core function of trade shows/business events?
Matching / Match making
What’s the prime interest of exhibitors?
Collection and exchange of information with exhibitors
-> requirement: wide exhibitor portfolio, representative for range of an industry
What are the two goals for customer management objectives?
- effectiveness goals
- efficiency goals
Effectiveness goals – What are the strategic approaches?
1) Customer-oriented objectives
- > image
- > number/structure of customers
- > cross-selling rate
- > customer value
2) sales-oriented objectives
- > number/structure of orders
- > number of services sold
- > sales revenue
- > marginal return
3) information-oriented objectives
- > range/accuracy of customer data
- > knowledge about customers & customer structure
- > knowledge about customer satisfaction
- > accuracy of sales forecasts
Efficiency goals – What are the strategic approaches?
1) cost-oriented objectives
- > sales costs/customer
- > order costs
- > visiting costs / new customers
- > investment per customer
2) quality-oriented objectives
- > complaints customer
- > customer satisfaction
- > number of returns
- > certifications
3) speed-oriented objectives
Exceeding time limit for…
-> customer response
-> customer information
-> delivery
-> repairs/improvement of service
Flexibility…
- > resource allocation
- > customer handling
What Customer segments are there?
