CH+9+CRM

Veronica Parihar Derek Dovale Chanpreet Gill


 * Frequency Marketing** – Frequent buyer programs – rewards
 * Affinity Marketing** – Marketing sponsored by an organization that solicits responses from individuals who share common interests and activities.
 * Database Marketing** – Use of software to analyze marketing info
 * CRM** – Strategies and tools that drives relationship programs, reorienting the entire organization yo focus on satisfying customers
 * Partnership** – Affiliation of 2 or more companies to help each other achieve common goals
 * Cobranding** – Harley Davidson F-150 – 2 Companies team up to link names on a single product
 * Comarketing** – 2 businesses market each others products
 * Electronic Data Interchange (EDI)** – PC to PC exchange of invoices, orders and other ducoments.
 * Vendor Managamed Inventory (VMI)** – Seller determines how much of a product is needed
 * Supply Chain** – Sequence of supplies that contribute to the creation and delivery of a good or service.

CRM – Customer Resource Management Process assists in a transition from transaction based marketing to relationship marketing - Focus on long term relationships with customers - Focus on keeping a customer rather than selling to them - Quality of customer service is a high priority - Encourages constant contact with the customer - Base relationship with customer on cooperation and trust - Commit all employees to provide high quality service and products Retaining customers is more profitable than losing them - 60% to 70% of selling to same loyal customer - 20% to 40% chance of winning back ex-customer - Only 5% to 20% chance of making prospect customer into loyal customer Purpose of database marketing - Identify most profitable customer and lifetime value of customers business - Build relationship that encourages brand loyalty - Improve retention and referral rates - Reduce marketing and promo costs to attract more customers - Boost sales volume per customer or customer group Qualities of CRM - Results driven and rely on CRM strategy - Up to date picture of customer, who they are, what their tendencies are, what products they are interested in, etc. - Find new markets and sales opportunities - Increase customer retention - Improve based on customer feedback and updating CRM database

**__CRM Database__** – Some info to capture and what to do with it Profile – get demographic info about customer Transaction/Sale – info about purchasing habits Tradeshow – get leads for future sales Customer Service – ensure history and future options for sales documented to provide better customer service by getting to know customer and their spending habits to offer better options in the future Subscribe – get updates of customer’s info, changes to their habits and preferences Sale Calls – proactive sales to meet customers needs and ensure optimal service

**Relationship Marketing: **Development, growth, maintenance all with individual customers. · Low prices, higher quality, prompt delivery, superior service · Less expensive to have happy customers than go looking for new ones. · Long term. · Keeps customers over making sale. · Customer service is a high priority. · A lot of customer contact. · Focus on guest commitment. · Trust/Cooperation. · Provide high-quality products. ** Customer Relationship Management (CRM): ** Fits needs of customer into firm’s tasks and relationships with suppliers. ** Elements of Relationship Marketing: ** 1. Gather information about customer. 2. Analyze data they have collected a. Modify marketing mix to deliver msgs. 3. Monitor levels of satisfaction. a. Generate cost of new customer. 4. CRM software, use intimate knowledge. ** Internal Marketing: ** · __External customers:__ People/organizations that buy firms products. · __Internal customers:__ employee/department in organization depending on the work of other employees/departments. o Helps organizations attract/select/retain employees o Employee knowledge/involvement is good. · __Employee Satisfaction:__ Critical for internal marketing. o If employees are unhappy they wont be able to satisfy customer. ** Relationship Marketing Continuum (3 Levels): **  · __1st Level: Focus on Price:__  o Most superficial, leads to long term customers.  o Rely on money incentives.  o Discounts attract new customers.  o Takes more than a lower price.  · __2nd Level: Social Interactions:__  o Interactions develop on a social level.  o Customer service/communication.  o Contact with customer.  · __3rd Level: Independent Partnership:__  o Buyer/seller work more closely.  o Dependence on each other.  o “Member status” meaning each can benefit from each other. ** Enhancing Customer needs (3 major steps): ** · __Understanding needs:__ Central customer concern o Measure // customer satisfaction // (by gaps between what customer expects and what they have perceived to of got). · __Obtaining feedback and ensuring satisfaction:__ o Compile feedback from customers. o Some companies hire mystery shoppers. · __Building buyer/seller relationships:__ o Allow for easier customer action. ** Frequency Marketing: **Reward programs for top customers with cash and prizes. ** Affinity Marketing: **Sponsored by organization, solicits responses from individuals who share common interest. ** Database Marketing: **Analyze information and target market and potential customers. · Track building patterns. · Identify most profitable customers. · Calculate lifetime value of customer. · Create meaningful dialogue. · Improve customer retention. · Boost Sales. ** Application Service Providers: **Provides software to capture/manipulate data collected. ** Grassroots Marketing: **Direct contact with potential customer through mainstream channels. ** Viral Marketing: **Firms let consumers spread the word (like a virus). ** Buzz Marketing: **Volunteers try products then talk about experience with family and friends. ** Customer Relationship Marketing: **Strategies and tools driving relationship programs. · __Successful CRM software include__: o Results driven. o Communicate well across functions. o Focus on customers. o Up to date information. o Identify new customers. o Seek improvement. · __Problems with CRM:__ o If everyone not committed, becomes a huge problem. o Failure to organize. ** Types of partnership: ** · __Buyer:__ Firm purchases good and services from provider. · __Seller:__ Exchanges goods for cash or other item. · __Internal:__ Customers within organization. · __Lateral:__ Strategic partnership with other companies. ** Co-Branding: ** Joins two strong brand names. ** Co-Marketing: **Two companies join to sell products in allied campaign.