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    CRM - Unit 2

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    Toshini Barhate
    CRM aims to integrate internal processes and functions with external networks to create value for targeted customers at a profit. Key CRM models include the IDIC model, CRM value chain, Payne and Frow's 5-process model, and Gartner's competency model. Differentiating customers based on their needs, like through customer lifetime value calculations, allows companies to improve customer satisfaction, loyalty, and gain competitive advantages.

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    CRM - Unit 2

    Uploaded by

    Toshini Barhate
    28 views26 pages
    CRM aims to integrate internal processes and functions with external networks to create value for targeted customers at a profit. Key CRM models include the IDIC model, CRM value chain, Payne and Frow's 5-process model, and Gartner's competency model. Differentiating customers based on their needs, like through customer lifetime value calculations, allows companies to improve customer satisfaction, loyalty, and gain competitive advantages.

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    CRM aims to integrate internal processes and functions with external networks to create value for targeted customers at a profit. Key CRM models include the IDIC model, CRM value chain, Payne and Frow's 5-process model, and Gartner's competency model. Differentiating customers based on their needs, like through customer lifetime value calculations, allows companies to improve customer satisfaction, loyalty, and gain competitive advantages.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views26 pages

    CRM - Unit 2

    Uploaded by

    Toshini Barhate
    CRM aims to integrate internal processes and functions with external networks to create value for targeted customers at a profit. Key CRM models include the IDIC model, CRM value chain, Payne and Frow's 5-process model, and Gartner's competency model. Differentiating customers based on their needs, like through customer lifetime value calculations, allows companies to improve customer satisfaction, loyalty, and gain competitive advantages.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 26

    CUSTOMER RELATIONSHIP

    MANAGEMENT

    “A business absolutely devoted to Customer Service Excellence will have only one worry about profits.
    They will be embarrassingly large.”
    − Sir Henry Ford
    UNIT 2 (a) Identifying Customers
    (i) What does identifying mean
      (ii) Customer Data revolution

    Implementing
    (b) Differentiating the customers
    CRM A Model for
    (i) Why differentiation is required
    Managing CRM
    (ii) Concept of Customer Life Time value
    • CRM is the core business strategy that integrates
    internal processes and functions, and external networks,
    to create and deliver value to targeted customers at a
    BASICS OF CRM profit. It is grounded on high-quality customer-related
    data and enabled by information technology.
    • The IDIC model
    IMPORTANT • The CRM Value Chain
    MODELS OF CRM
    • Payne and Frow’s 5-process model
    • The Gartner competency model
    • Customer Satisfaction
    • Building Customer Loyalty
    • Enhancing Cx through customised
    CRM MODEL
    STRATEGIES products/services
    • Competitive advantage
    • Establishing strong multichannel
    communication network
    THE IDIC MODEL (PEPPERS AND ROGERS, 1995)
    THE CRM VALUE CHAIN (FRANCIS BUTTLE’S MODEL)

    (Customer Lifecycle)
    PAYNE AND FROW’S 5-PROCESS MODEL
    (ADRIAN PAYNE AND PENNIE FROW)
    THE GARTNER COMPETENCY MODEL
    (GARTNER INC.-RESEARCH AND ADVISORY)
    The Quality Competitiveness
    Index Model (QCI)
    IDENTIFYING • What does identifying mean?
    CUSTOMERS • Customer Data revolution

    DIFFERENTIATING • Why differentiation is required?


    THE CUSTOMERS • Concept of Customer Life Time value
    • What is Customer Identity?
    • Who Holds Customer Identity?
    • Platforms

    WHAT DOES • Agencies

    IDENTIFYING • Brands

    MEAN? • How to Establish Customer Identity?


    • Challenges in Accomplishing Customer Identity
    CUSTOMER DATA • Concept
    REVOLUTION
    • CRM and CDP
    • Future of CDP
    DIFFERENTIATING • Why differentiation is required?
    THE CUSTOMERS • Concept of Customer Life Time value
    • Customer lifetime value is the present-day value of all net margins earned
    from a relationship with a customer, customer segment or cohort.
    • CLV is defined as the present value of future profits generated from a
    CONCEPT OF customer over his or her life of business with the firm
    CUSTOMER LIFE
    • Customer lifetime value is a primary metric for understanding your
    TIME VALUE
    customers. It’s a prediction of the value your relationship with a customer
    can bring to your business.
    • This approach allows organizations to demonstrate the future value they
    can generate from their marketing initiatives.

    How to calculate CLV?


    CLV = Average Transaction Size x Number of Transactions x Retention Period

    CLV = average value of a purchase X number of times the customer will buy each year X average
    length of the customer relationship (in years)
    To understand
    • How much you can spend to acquire a similar
    customer and still have a profitable relationship
    • What kinds of products customers with the
    highest CLV want
    • Which products have the highest profitability
    WHY SHOULD WE • Who your most profitable types of clients are
    CALCULATE CLV? • About Improved Forecasting
    • You Can’t Improve What You Don’t Measure
    • How much should I invest to retain or win back
    my customers?
    • How much time should my sales and marketing
    team spend on customer acquisition?
    • Are my offers well-suited for my best customers?
    What increases CLV in business, according to a survey by Criteo

    https://piwik.pro/blog/customer-lifetime-value-important-for-your-business/
    • Segment your customers effectively
    • Optimizing acquisition
    • Lift retention
    • Improve forecasting
    • Recognize best customers
    HOW TO APPLY
    CUSTOMER • Customer Loyalty or Rewards Programs

    LIFETIME VALUE • Customer Experience


    • Put your customers in spotlight and be sensitive
    (WAYS TO IMPROVE CLV) towards their needs
    • Know your customers and give reasons to
    celebrate
    • Improve Customer Onboarding
    • Customer Engagement
    • Improved Customer Service
    • Design programs for frequent buyers and Reward customer
    loyalty
    • Customer Feedback Loop
    HOW TO APPLY
    • Invest in Technology & Software
    CUSTOMER
    LIFETIME VALUE • Upsell and Cross-Sell with personalized shopping experience
    • Increase Pricing
    (WAYS TO IMPROVE CLV)
    • Presence on all Social Media channels
    • Simple Purchasing Experiences
    • Make Returns Easy
    • Targeted Content
    • Categorizing customers by their needs
    • Basics
    • Needs
    • Customers
    DIFFERENTIATING • Examples
    CUSTOMERS BY
    • Understanding Customer Behaviors and Needs
    THEIR NEEDS
    • Illustration
    • Characterizing Customers by Their Needs and Behaviors
    • Market Segmentation
    • Customer Profile
    • Understanding The Needs
    • Customer needs can be situational in nature.
    • Customer needs are dynamic and can change over time as well
    • Customers have different intensities of needs and different need profiles.
    • Customer needs often correlate with customer value

    Understanding The Needs• The most fundamental human needs are psychological.
    • Some needs are shared by other customers while some needs are uniquely
    individual.
    • There is no single best way to differentiate customers by their needs.
    • Need Open Dialogue
    • Build a relationship
    USING NEEDS
    DIFFERENTIATION • Customer knowledge management
    TO BUILD • Illustration
    CUSTOMER VALUE.

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