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    CRM in RETAILING

    Uploaded by

    Sai Kiran
    The document discusses CRM processes including collecting customer data through various approaches, analyzing that data through techniques like market basket analysis to identify patterns, and implementing CRM programs. The goal of CRM programs is to convert good customers into best customers through retention programs while dealing with unprofitable customers. Privacy concerns around data collection are also addressed.

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

    CRM in RETAILING

    Uploaded by

    Sai Kiran
    134 views20 pages
    The document discusses CRM processes including collecting customer data through various approaches, analyzing that data through techniques like market basket analysis to identify patterns, and implementing CRM programs. The goal of CRM programs is to convert good customers into best customers through retention programs while dealing with unprofitable customers. Privacy concerns around data collection are also addressed.

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    CRM in RETAILING.ppt

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    The document discusses CRM processes including collecting customer data through various approaches, analyzing that data through techniques like market basket analysis to identify patterns, and implementing CRM programs. The goal of CRM programs is to convert good customers into best customers through retention programs while dealing with unprofitable customers. Privacy concerns around data collection are also addressed.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    134 views20 pages

    CRM in RETAILING

    Uploaded by

    Sai Kiran
    The document discusses CRM processes including collecting customer data through various approaches, analyzing that data through techniques like market basket analysis to identify patterns, and implementing CRM programs. The goal of CRM programs is to convert good customers into best customers through retention programs while dealing with unprofitable customers. Privacy concerns around data collection are also addressed.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 20

    CRM Process

    PPT 11-1
    Collecting Customer Data

    • Types of Information in the Customer


    Database
    • Approaches for Collecting Information
    • Privacy Concerns

    PPT 11-2
    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
    • Customer’s responses to promotions
    PPT 11-3
    Approaches for Collecting
    Customer Information

    Need to connection contacts with a specific


    customer identifier
    • Ask for identifying information
    – Telephone number, name and address
    • Encourage use of frequent shopper cards
    • Link checking account number and/or third
    party credit cards to customer

    PPT 11-4
    Privacy Concerns

    Control over Collection


    • Do customers know what information is being
    collected?
    • Do customers feel they can decide on the amount
    and type of information collected by retailers?
    Control over Use
    • Do customers know how the information will be used
    by the retailer?
    • Will the retailer share the information with third
    parties?

    PPT 11-5
    Customer’s Decision to
    Offer Information
    Balance benefits and risks

    Disclosure of Information
    Unwanted Sales Contacts
    Discounts
    Special Treatment
    Personal Attention

    PPT 11-6
    Analyzing Customer Data

    Data Mining – technique used


    to identify patterns in data.
    Market Basket Analysis
    Identifying Market Segments
    Identifying Best Customers

    PPT 11-7
    Market Basket Analysis

    Data analysis focusing on


    the composition of the
    customer’s market basket
    – what items are bought at
    the same time.

    Uses:
    -Adjacencies for displaying merchandise
    -Joint promotions
    PPT 11-8
    Identifying Best Customers

    • Estimating Lifetime Value


    • Classifying Customers by recency, frequency, and
    monetary value of purchases (RFM Analysis)

    PPT 11-9
    Customer Pyramid

    Platinum
    Best
    Most loyal
    Least price sensitive

    PPT 11-10
    Customer Pyramid

    Gold
    Next best
    Not as loyal

    PPT 11-11
    Customer Pyramid

    Iron
    Doesn’t deserve
    much attention

    PPT 11-12
    Customer Pyramid

    Lead
    Demands attention
    May have
    negative value

    PPT 11-13
    CRM Programs

    Retailing Best Customers

    Converting Good
    Customers to Best
    Customers
    Getting Rid of
    Unprofitable
    Customers

    PPT 11-14
    Customer Retention Programs

    • Frequent Shopper
    Programs
    • Special Customer Services
    • Personalization
    – 1-to1 Retailing
    • Community

    PPT 11-15
    Elements in Effective
    Frequent Shopper Programs

    • Tier Based on Customer Value


    • Offer Choices of Rewards
    – Non-monetary incentives
    • Reward all Transactions
    • Transparent and Simple

    PPT 11-16
    Issues with Effective
    Frequent Shopper Programs
    • Expense
    • Difficulty in Making Changes
    • Impact on Loyalty Questionable
    • Easily Duplicated – Difficult to Gain Competitive
    Advantage
    – Need to offer “invisible” benefits

    PPT 11-17
    Converting Good Customers to Best
    Customers
    • Cross-selling
    • Add-on selling

    PPT 11-18
    Dealing with
    Unprofitable Customers

    • Offer less approaches


    for dealing with these
    customers
    • Charge customers for
    extra services
    demanded

    PPT 11-19
    Implementing CRM Programs

    • Need systems, databases


    +
    • Close coordination between departments –
    marketing, MIS, store operations, HR
    • Shift in orientation

    Product Centric Customer Centric

    PPT 11-20

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