Customer Relationship Management

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1 Customer Relationship Management

2 Introduction... Ed Sander 15+ years of experience in Direct Marketing, Database Marketing, CRM, On-line Marketing Pet Food, Tissue Products, Mail Order Office Supplies, Pharmaceuticals, Financial Services. (B2B & B2C) Docent Beeckestijn Business School Event Driven Marketing Accountability & Marketing Metrics Co-author & editor of Event Driven Marketing (Kluwer, 2004/06) Follow That Customer! (USA, Racom, 2010) Author of various columns & articles (publicaties.failsafe.nl) Marketing Consultant / International Volunteer for Shaanxi Western Development Foundation / VSO / Agape

3 Contents What is CRM? Strategy: Customer Value Customer Knowledge: Databases Customer Communication Culture & People

4 What is CRM?

5 Definition By CRM (Customer Relationship Management), we understand the implementation of a strategy whereby a company or institution attempts to optimize customer relationships in terms of customer yield and customer satisfaction. CRM is regarded as an ongoing, systematic and organizationwide activity. CRM Association, 2010.

6 6 What is CRM?

7 Path towards CRM Orientation Production Product Sales Market Person / Individual Information economy Database marketing IM of CRM Service economy Direct marketing Industrial economy Mass marketing Company as production organisation (technical & operational knowledge) Company as process orientated organisation (behaviorial data & knowledge)

8 Characteristics Focus on the individual customer. Increase of profit by increasing customer satisfaction. Usage of ICT in order to realise optimal and cost efficient company processes. Win-win situation with advantages for both the organisation and the customer.

9 What is a customer? A customer is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration. (Wikipedia) Exchange. Fulfilling of a need... Not necessarily money...

10 What is a customer? Child Care & Health Care Chance to do something for society Self-realisation References Experience Chance to do something for society CSR Chance to do something for society Do Good = Feel Good Support in areas where capacity or expertise is missed Poverty alleviation Harmony

11 Elements of CRM Strategy Customer Knowledge Data Databases & Technology Analyses Customer Communication Media People Culture

12 Strategy: Customer Value

13 Customer Ladder

14 Customer Value Volunteering Hours Donations

15 Market- vs Customer Share Sales per Customer CRM Traditional Marketing Number of Customers 15

16 Marketing Programs Marketing Programs Acquisition Development Retention Member Get Member Improve Sales Reduce Costs Affinity Reactivation Cross-Sell Efficient Distribution Channel Privilige Re-Sell Efficient Communication Channels Point Programs Up-Sell

17 Customer Retention: Short term importance Break-Even Pay-back Period Credit Card Car Insurance Life Insurance 1 year 3 year 5 year Time

18 Customer Retention: Long term importance Remaining Customers Remaining Customers after 5 years At retention rate: % % 23 75% Year

19 The Loyalty Effect

20 Retention rate increases

21 Number of purchases increases

22 Average purchase price increases

23 Customer Service costs decrease

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25 Why Loyalty? Recognition Service Convenience Helpfulness Information Identification Build Loyalty Retention Referral Higher Spending Lower Costs to Serve

26 Increasing customer value Acquisition Identify your target groups and develop services for and partnerships with: - Donors - Volunteers - Corporates Use word-of-mouth by existing supporters. Development Make donors donate to more programs, upgrade to a sponsorship or buy products. Find new volunteering opportunities for existing volunteers. Get them to volunteer more hours. Create new CSR proograms for existing corporate partners. Retention Frequently communicate with your donors: provide proof of success and make them feel appreciated. Reward volunteers and give them recognition. Provide pro-activity, excellent service and added value to corporations.

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28 Customer Knowledge: Databases

29 Data Collection 数 据 采 集 取 决 于 你 的 目 标 Determine your goal 清 晰 的 定 义 你 的 目 标 小 组 和 分 组 Make a clear definition of your target group and sub-groups 确 定 这 些 组 织 的 所 有 相 关 数 据 Determine all relevant data on these groups

30 独 特 ID (Unique ID) 13 公 司 名 称 (Company Name) 西 安 国 际 商 务 论 坛 (Xi'an International Business Forum) 国 家 (Country) 中 国 邮 政 编 码 (Postal Code) 城 市 (City) 西 安 区 (District) 高 新 区 地 址 (Address) 科 技 路 50 号 金 桥 国 际 广 场 A 座 公 司 电 话 (Company Phone) 公 司 传 真 (Company Fax) 网 站 (Website) 类 型 (Type) 外 企 (International) 商 务 领 域 (Business Sector) Other Services (except Public Administration) 员 工 数 (Nr. Of Employees) 1 盈 利 (Revenue) 状 态 (Status) 潜 在 的 (Prospect) 姓 (Last Name) 王 名 (First Name) 艳 性 别 (Gender) 女 (Female) Job Title Business Manager 电 子 邮 箱 ( Address) laura.wang@xibf.org 语 言 (Language) 座 机 号 码 (Telephone No.) 移 动 电 话 (Mobile Phone No.) QQ 赞 助 项 目 (Projects Sponsored)

31 Data Collection 数 据 采 集 注 意 完 整 性 但 需 避 免 多 余 和 重 读 Aim for completeness but avoid redundancy 确 定 正 确 的 资 源 : Determine the right sources: 可 靠 性 Reliability 完 整 性 Completeness 及 时 性 Up-to-dateness 数 据 变 化 : 不 断 及 时 更 新 你 的 记 录 Data changes: keep your records up-to-date

32 Data Standardisation 数 据 标 准 化 用 标 准 化 的 统 一 方 式 注 册 数 据 Register data in a standardised, uniform way 优 势 : Advantages: 更 容 易 做 出 选 择 着 Selections are easier to make 报 告 更 准 确 更 专 业 Reports are more accurate and professional 交 流 方 式 将 变 得 更 专 业 Communications will be more professional

33 Try to answer these questions 试 着 回 答 这 些 问 题 Given Name 名 字 Family Name 姓 Fruit 水 果 Qty 数 量 Mark Takefman Apples 10 Mark Takefman Oranges 5 Ed Sander Bananas 20 Yali Zeng Apples 50 Ed Sander Coconuts 3 Jun Tian Bananas 5 选 取 买 苹 果 的 人 Select everybody that sells 'apples' 多 少 人 卖 香 蕉?How many people sell bananas? 多 少 人 卖 水 果?How many people sell fruit? 多 少 个 椰 子 正 在 被 出 售 How many coconuts are being sold?

34 Try to answer these questions 试 着 回 答 这 些 问 题 Given Name 名 字 Family Name 姓 Fruit 水 果 Qty 数 量 Mr. Takefman Pingguo 10 Mark Oranges 5 Ed Sander Bananas & Coconuts 23 Mrs. Tian Bananas 3 Yali Zeng Apples 50 TJ Bananas 2 选 取 买 苹 果 的 人 Select everybody that sells 'apples' 多 少 人 卖 香 蕉?How many people sell bananas? 多 少 人 卖 水 果?How many people sell fruit? 多 少 个 椰 子 正 在 被 出 售 How many coconuts are being sold?

35 Deduplication of Databases 删 除 重 复 数 据 Laowai Database Volunteer Database Funny People Database What if Mark s address changed? 如 果 马 克 的 地 址 变 更 了? People Database 名 姓 老 外 志 愿 者 搞 笑 的 人 Given Name Family Name Laowai Volunteer Funny Mark Takefman Yes Yes Yes

36 Deduplication of records 删 除 重 复 数 据 Given Name 名 Family Name 姓 Mr. Takefman Mark Ed Sander Mrs. Tian Yali TJ Zeng Gender 性 别 Family Name 姓 Given Name 名 Male Takefman Mark Male Sander Ed Female Tian Jun Female Zeng Yali

37 Procedures 程 序 创 建 一 个 清 晰 的 数 据 库 结 构 : 这 个 结 构 要 尽 可 能 多 的 支 配 数 据 输 Set up a clear database structure: have the structure dictate data entry as much as possible 为 不 同 类 别 进 行 类 别 的 预 先 设 定 Use pre-defined fields for categories

38 Procedures 程 序 为 数 据 输 入 制 定 规 则 ( 大 写 字 母, 缩 写 ) Define rules for data entry (capital letters, abbreviations) 如 有 可 能, 请 对 系 统 进 行 语 法 检 查 If possible have the system check the syntax ed.sander@agape.org.cn 1 2 3

39 Agape Supporter Database

40 Agape Supporter Database

41 Agape Supporter Database

42

43 Customer Communication

44

45 Why customers leave...

46 Culture & People

47 The right attitude... Who pays your salary? Word-of-mouth can be positive or negative: the average customer tells 9 people about his bad experience. Complaint handling: acknowledge, solve timely and fairly. Professionalism (training Mark). Producing quality work Be Responsible: means having the ability-to-respond Understanding the importance of communication

48

49 Contact Ed Sander Failsafe Marketing T E ed@failsafe.nl W

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