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CRM - Coggle Diagram
CRM
- Definition: Recency, Frequency, Monetary value analysis.
- Application: Targeting offers, promotions.
- RFM Meaning: Details on R (Recency), F (Frequency), M (Monetary).
- Purpose: Target specific offers, increase spending, re-engage customers.
- How It Works: Dividing customers into groups, assigning RFM scores.
- Uses: Marketing, customer service, relations, ranking suppliers/salespeople.
- Strengths: Targeted marketing, budget focus, incentivizing customers.
- Weaknesses: Limited variables, potential customer oversight, relationship-building misses.
- Necessity of CRM in Retailing
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- Continuous communication.
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- Benefits of CRM for Retailers
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- Ensure customer satisfaction.
- Cross-selling opportunities.
- Protection from competition.
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- Customer Compile Information.
- Person-to-person experience.
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- Marketing and communication.
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- Analyzing Data & Identifying Targets:
Data Mining
Market Basket Analysis
Uses:
- Adjacencies for displaying merchandise
- Joint promotions
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- Developing CRM Programs: Retain best customers, convert good to best, manage unprofitable customers. - Customer Pyramid
- Implementing CRM Programs: Strategy and technology integration, shift from product centric to customer-centric operations.
- Earlier: Retailers were complacent.
- Today: Customers are demanding and knowledgeable.
- Shift in Retailing: From traditional to modern marketing with a focus on relationships.
- Strategy Purpose: Manage interactions, establish relationships.
- Goals: Increase customer value, optimize profitability.
- Tools: CRM programs for economic value and competitive advantage.
- Platinum: Most loyal, least price-sensitive.
- Gold: Next best, less loyal.
- Iron: Receives less attention.
- Lead: Negative LTV, phased out.