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Customer relationship management approach

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Customer relationship management as a tool that leads companies to improve its relationship and engagement with their most important reason to be on business, the customers.

"The present is an era of company loyalty to the customer in order to obtain customer loyalty to the company"

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Customer relationship management approach

  1. 1. Miriam Revert Cabanes BIM 6 – SS 2012 Customer Relationship Management
  2. 2. - Index - 1. Introduction 2. Customer Relationship Management 2.1. Definition 2.2. Principles 3. Reasons for adopting CRM 3.1. Benefits 3.2. Return on Investment and Implementation 4. CRM issues: Customer Privacy 5. Case Study 6. Conclusions @miriamrevert
  3. 3. 1. Introduction People went to their neighborhood general store to purchase goods • The propietor knew the customer‘s preferences and wants. • The customer remained loyal to the store. @miriamrevert
  4. 4. • The nations grew, and the supermarkets were stabilished to achieve Economies Of Scale. • New Relationship: faceless and nameless! • Customers moved to the supplier who provided the most attractive object. @miriamrevert
  5. 5. Customer Relationship Management Objective: return to the world of personal marketing. Mass Marketing  Personal Marketing @miriamrevert
  6. 6. It is a process companies use to understand their customer groups and respond quickly—and at times, instantly— to shifting customer desires. Revenue Customer Satisfaction Profitability @miriamrevert
  7. 7. Principles 1. Treat customer Individually, Personalization. 2. Acquire and retain customer Loyalty through Personal Relationship. 3. Select “good” customer instead of “bad” customer based on Lifetime Value. @miriamrevert
  8. 8. 3. Reasons for adopting CRM “It is less costly to retain a customer than to find a new one” • Pareto’s Principle: 20% of a company’s customers generate 80% of its profits. • A typical dissatisfied customer tells 8 to 10 people about his or her experience. @miriamrevert
  9. 9. Benefits Source: Paul Gray Professor, Information Science Claremont Graduate School @miriamrevert
  10. 10. ROI and Implementation • CRM does not bring any direct monetary benefits after implementation. • The benefits on a long-term basis. • SURVEY: Success Failure Failure @miriamrevert
  11. 11. 4. CRM issues: Customer Privacy • The personalization process requires… identification of each individual customer and collections of demographic and behavioural data. Ethical Dilemma Personal and private sphere @miriamrevert
  12. 12. THE CUSTOMER SHOULD BE… … notified their personal information is collected and will be used for specific purposes. … able to decline to be tracked. … allowed to access their information and correct it. … protected from unauthorized usage. @miriamrevert
  13. 13. Case Study @miriamrevert
  14. 14. “Customers who bought this item also bought these items.” ‘Welcome to Recommendations’ • Personalized Web pages, vast selection of products, and low price lead customer loyalty and long-term relationship of Amazon.com. @miriamrevert
  15. 15. • The percentage of returning customers is about 15 to 25 percent, compared with 3 to 5 percent for other e-business retailers. • Amazon.com assembles large amounts of information on individual customer buying habits and personal information. • Jeff Bezos, founder of Amazon.com, believes the Internet store of the future should be able to guess what the customer wants to buy before the customer knows. @miriamrevert
  16. 16. Conclusions! • The present is an era of company loyalty to the customer in order to obtain customer loyalty to the company. • CRM is very hard to implement throughout a company. Executives must be willing to support the CRM implementation process forever because CRM never ends. @miriamrevert
  17. 17. @miriamrevert