CRM strategies

Lect. Univ. Dr. Corina Pelau

Customer Relationship Managemnt

0. Introduction 1. Definition, development and importance of CRM 2. Customer satisfaction, loyalty and relationship The effect chain of CRM 3. CRM strategies 4. Customer orientation in the Marketing-Mix 5. Customer loyalty programs and other CRM specific instruments 6. Customer relationship management on the internet 7. Complaint and reclamation management 8. Internal Marketing Employees as contact persons in the relation with the customer (Customer oriented structures/ departments in a company) 9. Customer data bases 10. Customer value and customer evaluation methods 11. Applications of customer relationship management

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Which aspects should be taken in consideration in a CRM strategy?

Customer Relationship Strategy

WHAT?
Relational object of CRM

W HO M?

? OM WH

W ITH

Cooperation strategies of CRM

Target group of CRM

CRM STRATEGY
Intensity and timing of CRM Types of customer relations

CRM instruments

WITH WHAT?
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HO W ?

W HO

N TE OF

D AN ? EN WH

Relationship to What

Relationship towards a brand Relationship towards a producer

Relationship towards a retailer

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Relationship to whom
Customer target group Classification of customers with the purpose of having an efficient resource allocation Structure of customers

(Source: Helm, Guenter, 2003, pg. 16)

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Relationship to whom

high

Questionmark customers
Turnover

Star customers

Selection customers
low low

Recommendation customers
high

Customer value

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Relationship with what

CRM Instruments Instruments of the Marketing Mix Loyalty programs Loyalty Cards Clubs Customer magazines Customer Newsletter

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Relationship with whom (cooperation partners)

Co-branded loyalty cards Horizontal Vertical Lateral Co-branded Clubs
Synergies

Producer
Information

Retailer

Customer relationship strategy

Customers
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Co-branded horizontal loyalty programs

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Co-branded lateral loyalty program

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Relationship how
Emotional relation Economical relation Contractual relation Functional relation

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Timing of relationship
Intensity and Timing of a customer relation: Determination of contact moments Determination of contact intervals Risks: Not to annoy the customers with to many information Reaction against loyalty programs

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Timing of relationship
Example buying of car 01.07.2006 01.03.2007 11.05.2007 Present with the delivery of a car Mail about the checking of the car Mail with Birthday Wishes for the customer

01.07.2007 One year after the transaction: survey with the satisfaction of the customer 01.07.2008 Sending of an offer about new models

01.10.2008 Mail about checking the car and information about new products .....
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Which are the principles of CRM?

Principles of CRM

Idea Interaction Information Integration Individualisation

Investment

(Source: Diller, 1995)

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Information
About customer behavior About customer satisfaction Customer loyalty Customer value ..

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Investmentin services

(Source: Meyer, Bluemelhuber, 2000, pg. 107-125)

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Investmentin services

(Source: Meyer, Bluemelhuber, 2000, pg. 107-125)

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Investment in communication with the customer

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(Source: Henning-Thurau, 2000, pg. 127-146) 20

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Efficiency of investment

(Source: Henning-Thurau, 2000, pg. 127-146)

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Efficiency of investment

(Source: Henning-Thurau, 2000, pg. 127-146)

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Individualization
din 5 abonamente, unu-i sigur pentru tine

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Individualization

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Individualization

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Integration & Interaction

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Idea
The value proposition of a company or a brand Value proposition is a marketing statement that summarizes why a consumer should buy a product or use a service.

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Customer relationship marketing at Volkswagen

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Volkswagen AG
Volkswagen is the largest automobile manufacturer in Europe Worldwide, there are more than 36 million VW cars

(Source: Chojnacki, 2000, pg. 49-58)

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Customer analysis at VW

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(Source: Chojnacki, 2000, pg. 49-58)

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Customer analysis at VW

(Source: Chojnacki, 2000, pg. 49-58)

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Customer research results at VW

(Source: Chojnacki, 2000, pg. 49-58)

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Club membership program at VW

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(Source: Chojnacki, 2000, pg. 49-58)

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Loyalty program at VW

(Source: Chojnacki, 2000, pg. 49-58)

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VW Database

(Source: Chojnacki, 2000, pg. 49-58)

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Customer information at VW

(Source: Chojnacki, 2000, pg. 49-58)

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Data base services at VW

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(Source: Chojnacki, 2000, pg. 49-58)

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Implementation of CRM
Initial phase Objective: Acceptance and knowledge

Implementation Objective: Measures and competencies

Development Objective: Adaptation and innovation

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Initial phase Acceptance and knowledge

Transmission of information about customer orientation anf about the implementation project Making sure, that everyone understands the concept Making sure that everyone on all management levels are ready and willing to be involved in the project Acceptance of implementation gaps Desire and acceptance of change

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Implementation Measures and competencies

Specification of concept parts for increasing the customer orientation Evaluation of measures and repartisation of responsabilities Creation of implementation teams Transformation of knowledge in know-how Adaptation of structures Development of sysytems Changing of companies culture

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Development Adaptation and innovation

Adaptation of companies potential for the implemented CRM strategy Qualification of employees and creation of incentive- and motivation systems Making customer oriented thinking and acting as something usual Combination of revolutionary and evolutionary thinking

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Questions?

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