Please enable JavaScript.
Coggle requires JavaScript to display documents.
CHAPTER 8: CUSTOMER LIFESTYLE COMMUNICATIONS AND CRM - Coggle Diagram
CHAPTER 8: CUSTOMER LIFESTYLE COMMUNICATIONS AND CRM
OVERVIEW
Online customer relationship management (CRM) is serving and nurturing customers into lifetime
customers makes sense as existing customers are, on average, five to ten times more profitable.
8.1 INTRODUCTION TO E-CRM
E-CRM enables digital marketers to create a multi-channel marketing process of:
Monitoring customer actions or behaviours
Reacting with appropriate messages, either online or offline
Monitoring response to these messages and continuing with additional reminder communications and monitoring
5 key trends in CMR applications:
Thompson et al (2011)
Operational CRM
Analytical CRM
Social CRM
Software-as-a-service (SaaS)
Sales applications
8 building blocks for CRM success:
Radcliffe et al (2001)
CRM vision
CRM strategy
Valued customer experience
Organization collaboration
CRM processes
CRM information
CRM metrics
CRM technology
8.2 RELATIONSHIP AND CUSTOMER-LIFECYCLE MARKETING
Real CRM involves treating each customer differently according to their characteristics
Building one-to-one relationships - Peppers & Rogers (1999)
Customer Identification
Customer Differentiation
Customer Interaction
Customized Communications
Example of a template for email contact strategy
Message Types
Welcome Message
Interval/trigger condition: Guest site membership sign-up Immediate
Outcomes required:
Encourage trial of site services
Increase awareness of range of commercial and informational offerings
Medium for message/Sequence: Email, post transaction page
Engagement message
Interval/trigger condition: 1 month: inactive (i.e. < 3 visits)
Outcomes required:
Encourage use of forum (good enabler of membership)
Highlight top content
Medium for message/Sequence: Email, home page, side panels deep in site
Initial cross-sell message
Outcomes required:
Encourage membership
Ask for feedback
Medium for message/Sequence: Email
Interval/trigger condition: 1 month: active
Conversion
Outcomes required: Use for range of services for guest members or full members
Interval/trigger condition: 2 days after browsing content
Medium for message/Sequence: Phone or email
Nurturing new relationships
via Facebook
Public comments on a brand or company pages
Asking customer service through private messages on the brand or company pages
Recommendations based on “Likes” by friends
Interactions through chat bots
8.3 DATABASE MARKETING AND MARKETING AUTOMATION
The database and profiling software is a
vital part of CRM
Enhances the ability to understand customers and enquirers, their needs, names, interests and a lot
more.
Database = historical data + predictive data
Managing a database:
Managing email list decay
Choosing the right software tool
Choosing the right automation system for CRM
Choosing the right email service provider
Seizing the opportunities and challenges of Big Data
8.4 USING MARKETING TECHNOLOGY TO SUPPORT CRM
Keeping the
relationship alive
Dialogue
Relevancy
Accuracy
Magic
Access
Good approach to
the CRM cycle
Attract data
Capture data
Get closer, embrace and attach golden handcuffs
8.5 PROFILING
Helps you to
See your customers more clearly
Identify customer segments
Separate your best from your worst customers
Tailor tempting offerings so that they are more relevant to specific customer profiles
Build lifetime relationships using insight Progressive Profiling
Enjoy lifetime value and grow share of wallet
8.6 PERSONALIZATION
Preference-based customization
Allows the visitor to select and set up their specific preferences
Individualization
Uses patterns of the customer’s own behaviour to deliver specific content that follows their patterns
of contact
Enhances the relationship with customers – feeling of ownership
Group characterization
The customer receives a recommendation based on the preferences of people ‘like’ them, using
approaches based on collaborative filtering and case-based reasoning.
8.7 EMAIL MARKETING
OUTBOUND EMAIL MARKETING
Practical tips for email marketing
Renderability
Email response decay
Deliverability
Communication preferences
Resource-intensive
Using outbound email marketing as part of e-CRM
Regular e-newsletter type
House-list campaign
Conversion email
Event-triggered email sequence
MANAGING INCOMING EMAILS
Having systems in place that:
Receive, sort and route incoming emails
Generate an ‘auto-acknowledgement’ response
Provide a suitable response, regardless of the quantities of incoming emails
Reducing the quantity of incoming emails without jeopardizing the relationship:
FAQs allow for many issues to be dealt with without the customer contacting you directly
Search facilities allow for customers to find out more about a topic without having to contact you directly
Linked web sites and other locations can allow customers to research a topic across the web without having to contact you directly
8.8 CONTROL ISSUES
Be aware of the e-CRM issues that lie ahead of you:
Inexperience
Unintegrated systems
Information overload
High churn rate
Spiralling cleaning costs
Changing regulations
8.9 CLEANING THE DATABASE
Regularly contact (by mail or email) inactive database members
Regularly cross-reference your new records against your old
Regularly scan your records for possible duplication
8.10 MAKING IT HAPPEN
Creating a CRM strategy Thompson (2010)
Set the destination
Audit the current situation
Map the journey
Managing the
database
Database design
Data quality
Data security
Data back-ups and recovery
User coordination
Performance monitoring
The eight building blocks of CRM
CRM Vision
Market Position
Value Proposition
Leadership
CRM Strategy
Objectives
Segments
Effective Interaction
Valued Customer Experience
Understand Requirements
Monitor Expectations
Satisfaction vs. Competition
Collaboration and Feedback
Customer Communication
Organizational Collaboration
Culture and Structure
Customer Understanding
People: Skills, Competencies
Incentives and Compensation
Employee Communications
Partners and Suppliers
CRM Processes
Customer Lifecycle
Knowledge Management
CRM Information
Analysis
One View Across Channels
Data
CRM Technology
Architecture
Infrastructure
Applications
CRM Metrics
Retention
Satisfaction
Value
Loyalty
Cost to Serve
How much does it all cost?
Set-up costs of the system
The type of the system
The scope of the system
The size of the system
The choice made about the database management system
The maintenance program
The use you make of it!
Where your physical database management system is geographically located
How long does it take to set up
an e-CRM system?
Time allowed for investigative system
Time allowed for design
Time for writing programmes
Time for data capture/ reassessment/input
Times for trials, piloting, testing and de-bugging