V. Kumar Andrew Petersen Instructor s Presentation Slides

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1 V. Kumar Andrew Petersen Instructor s Presentation Slides

2 Chapter Nine The Future of CRM 2

3 Introduction As technology develops, organizations have to constantly update themselves with the latest changes and adapt their marketing strategies to remain competitive in the market. It is important for CRM managers to be aware of these changes and take those changes into account when formulating and implementing the marketing strategies (Kumar, 2008). Three marketing methods that are receiving increased attention from marketers social media, mobile marketing, and customized campaigns 3

4 Social Media (Web 2.0) Blogs Online journals/a virtual storehouse of information, A corporate blog: a powerful marketing tool for firms Micro-blogging (e.g. Twitter) Social networking platforms Facebook, Myspace, and Linkedin Used distinctly unique approaches, with the same common goal of raising and improving brand awareness (by Papa John s, RedBull, and Target) Content communities YouTube, and Google Videos/Flickr, and Picasa/ Digg.com, and Del.icio.us/Wikipedia), and public epinions.com Ex. Kohl s & H&M use YouTube Social coupons Offer online daily deals and discounts, e.g. Groupon and LivingSocial customers significant discounts (ranging from 50 90% off), the firm received a huge demand for its services 4

5 Social Media (Web 2.0) There will be an increasing interaction between customers and firms. There will be increased interaction among customers, which will lead to increased prominence of online communities, which in turn will gradually become a trusted source of information for consumers. Social networks will play a key role in becoming the intermediary medium between consumers and brands. (Research Issues) Are social coupons really helping small and medium business ensure long-term profitability? What type(s) of customer segments (new or existing, local or walk-in, etc.) should businesses target in order to achieve the maximized long-term profitability? (Kumar and Rajan, 2011) How can social networking be applied and evaluated in B2B and B2C settings, and to what extent will the user characteristics pertaining to CLV affect/influence online customer-to-customer (C2C) exchanges? (Kumar et al., forthcoming) 5

6 Mobile Marketing A new marketing channel for firms to reach out to customers on an individual basis Conducted and communicated through hand-held mobile devices, e.g., mobile phones, personal digital assistants (PDAs), smart phones, and portable tablet computers(e.g., ipads) The most important benefit of mobile marketing is that it works even when the intended recipients are on the move. A source of customer data, acquired through the opt-in feature, provides firms with a quantifiable measurement of reach and impact of a marketing program (Aaker et. al, 2010). Through interaction with customers, mobile marketing can be used to collect more contextual and location-based types of data. Ex. Standard Chartered and HSBC send out promotional offers to customers through SMS to mobile phones. 6

7 Customized Marketing Campaigns Campaigns containing marketing messages that are tailored to a selected individual customer based on their specific profile, preference, and needs. (oneto-one marketing campaigns) An effective way to ensure information is conveyed to the targeted customers by overcoming the media clutter. A perfect way for firms to build a long-term relationship with customers A great way for firms to differentiate themselves from their competitors Ex. Amazon.com uses information acquired from individual customer transactions and profile to filter and determine the type of products it will recommend to each customer. 7

8 Conclusion Social media opens a new source of information for marketers that can be used as inputs for developing CRM models. Mobile marketing offers a new, better, and more effective channel of communication to reach out to individual customers. Customized campaigns show promise of providing firms with the much-needed competitive advantage in engaging and managing customers. Adopting one or all of these methods, as the company situation demands, will ensure firms future success in ensuring a profitable customer relationship. 8

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