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    Chapter 11

    Uploaded by

    Dr. Firoze Khan
    Customer Relationship Management.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Chapter 11

    Uploaded by

    Dr. Firoze Khan
    179 views18 pages
    Customer Relationship Management.

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

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    Customer Relationship Management.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    179 views18 pages

    Chapter 11

    Uploaded by

    Dr. Firoze Khan
    Customer Relationship Management.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 18

    Chapter 11

    Customer Relationship
    Management

    McGraw-Hill/Irwin
    PPT
    11-1
    Levy/Weitz: Retailing Management, 5/e

    Copyright 2004 by The McGraw-Hill Companies, Inc. All rights

    Customer Relationship Management


    A business __________ and set of strategies,
    programs, and systems that focus on identifying and
    building _______ with a retailers most valuable
    customers.

    PPT 11-2

    http://www.neimanmarcus.com/store/sitelets/incircle/index.jhtml

    Three Components of Customer Loyalty


    1. _________ to purchasing merchandise and
    services from a retailer
    2. ______ _______ of competitors to attract the
    loyal customer
    3. _________ attachment to retailer
    Personal attention
    Memorable positive experiences
    Brand building communications programs

    PPT 11-3

    CRM Process

    PPT 11-4

    Collecting Customer Data


    (3 things to consider)
    Types of Information in the Customer Database
    Approaches for Collecting Information
    Privacy Concerns

    PPT 11-5

    Information About Each Customer in the


    Data Base
    History of purchases
    Purchase date, price paid, SKUs bought, whether or
    not the purchase was stimulated by a promotion

    Customer contacts by retailer (touch points)


    Visits to web site, inquires to call center, direct mail
    sent to customer

    Customer preferences
    Descriptive information about customer
    Customers responses to promotions
    PPT 11-6

    Approaches for Collecting


    Customer Information
    1. Ask for ___________ information
    Telephone number, name and address
    2. Encourage use of _______ shopper cards
    (loyalty programs)
    3. ____ checking account number and/or third
    party credit cards to customer

    PPT 11-7

    Analyzing Customer Data


    Data ______ technique used
    to identify patterns in data.

    Market Basket Analysis

    Identifying Market Segments

    Identifying Best Customers


    PPT 11-8

    Market Basket Analysis


    Data analysis focusing on
    the composition of the
    customers market basket
    what items are bought at
    the same time.
    Uses:
    -Adjacencies for displaying merchandise
    -Joint promotions
    PPT 11-9

    Identifying Best Customers


    Estimating Lifetime Value
    Classifying customers by recency, frequency, and
    monetary value of purchases (RFM Analysis)

    PPT 11-10

    Which Customer Probably Has the


    Greatest Lifetime Value?
    Purchases Over Last 10 Weeks

    1 2 3 4 5 6 7 8 9 10
    Jack $20 $20 $20 $20 $20 $20 $20 $20 $20 $20
    Jill $210 $0 $0 $0 $0 $0 $0 $0 $0 $0

    PPT 11-11

    Customer Pyramid
    Platinum
    Best
    Most loyal
    Least price sensitive

    PPT 11-12

    Illustration of RFM Application


    A catalog retailer is deciding which group of
    customers to send a catalog.. Based on experience
    and an RFM analysis of customer database:
    Average order size for customers in cell - $40
    Contribution margin 50%
    Response rate 5%
    Cost of catalog and mailing -$.75

    Will the retailer make a profit mailing to this RFM


    segment?
    PPT 11-13

    Customer Retention Programs


    Frequent Shopper Programs
    Special Customer Services
    Personalization
    _________ Retailing
    Community

    YOUR ONLINE PERSONAL SHOPPER


    PPT 11-14

    Elements in Effective
    Frequent Shopper Programs
    Tier Based on Customer
    Value
    Offer Choices of Rewards
    Non-monetary
    incentives
    Reward all Transactions
    __________ and Simple
    PPT 11-15

    Issues with Effective


    Frequent Shopper Programs

    Expense
    Difficulty in Making Changes
    Impact on Loyalty Questionable
    Easily _________ Difficult to Gain
    Competitive Advantage
    Need to offer invisible benefits

    PPT 11-16

    Converting Good Customers to Best


    Customers
    _____-selling
    ______ selling

    PPT 11-17

    Implementing CRM Programs


    Systems, databases

    +
    Close coordination between departments
    (marketing, MIS, store operations, HR)

    =
    _______
    Centric

    PPT 11-18

    Shift in _________

    ________ Centric

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