59 59 Crm in Marketing

CRM in Marketing
CRM Initiatives

CRM Marketing Initiatives
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Cross-Selling
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Selling a product or service to a customer as a result of another purchase Selling the right product to the right customer

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CRM Marketing Initiatives
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Cross-Selling (continued)
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Selling more products to a customer increases revenue from that customer and costs less than acquiring a new one
Not every customer is a good candidate It is critical to understand the ways by which customers evaluate how and whether to respond to promotions

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CRM Marketing Initiatives
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Up-Selling
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Motivating customers to trade up to more profitable products

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Customer Retention
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Analyzing customer attrition
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Understanding why customers have left Understanding who How do you keep them? Churn prediction
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What is CHURN?

CRM Marketing Initiatives
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Behavior Prediction
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Using modeling and data mining techniques, including
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Propensity to buy analysis
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What product is a particular customer likely to buy next What product is a customer likely to buy next Which products will be purchased with other products Determining the optimal price for a given product

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Next sequential purchase
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Product affinity analysis
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Price elasticity modeling and dynamic pricing
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CRM Marketing Initiatives
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Customer Profitability and Value Modeling
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Can a customer be unprofitable but still considered valuable? Customer Lifetime Value (LTV)
Potential value  Competitive value (wallet share)
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CRM Marketing Initiatives
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Customer value measurement is dataintensive
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Value modeling is only as accurate as the customer data is rich

CRM Marketing Initiatives
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Channel Optimization
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Means optimizing a company’s “inbound” channels with its “outbound” means of customer interaction Knowing how to choose the best approach for each
Understanding the channels through which specific customers prefer to interact with the company AND How best to communicate with your customers

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CRM Marketing Initiatives
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Personalization
Customizing customer communication based on knowledge preferences and behaviors at the time of interaction  Online messages tailored to a particular customer or customer segment  In the B2C model, personalizaiton is based on the analysis of a customer’s clickstreams
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CRM Marketing Initiatives
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Personalization
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Clickstreams
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A customers navigation path through a company’s Web site A company can see not only what a customer purchased by how the customer reached the site in the first place How he traveled through the site after he got there How much time he spend on each page Which products might have stimulated purchases of other products

CRM Marketing Initiatives
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What new tactics can analyzing clickstreams trigger?
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Changes to Web images Custom promotions or discounts Customized Web pages according to the visitor’s use of the site

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CRM Marketing Initiatives
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Event-Based Marketing
Time-sensitive marketing or sales communication reacting to a customerspecific event.  Also called event-driven marketing  Can apply to a segment of customers or to individual customers  This is what companies adopting CRM are striving for
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CRM Marketing Initiatives
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Event-based marketing
Combine personalization techniques with process design to ensure that the right action targets the right customer at the right time  Ideal goal is to react to customers in near real-time
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Eddie Bauer
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Read the Case Study
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P. 45-49 The CRM Handbook