Post on 01-Jan-2016
CRM & the new economy april 091
CRM & the New Economy
Dirk van der Laan University of Applied Sciences Windesheim
School of Business & Economics Zwolle
The Netherlands
2 CRM & the new economy april 09
CRM & the new economy april 093
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CRM in the new economy
What is the new economy?– Trends & characteristics
E-business design: change from– Focus on supply to– Focus on demand
Growing power of the customer:– CRM
The latest developments
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New economy
Webshopping in the Netherlands– 2000 – 2006 growth from 0,5 to 3,8 billion– Average shopping amount grew from 269 to 441
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Aspects of the new economy
– Digitalization and connectivity– Digital products Software, cd’s, manuals, mp3, Ipod
TDC (time, distance, complexity)– Rapid world 24*7– Worldwide economy callcenters in India– Complex world mortgage, calculations
– Disintermediation and reintermediation: changes in the industrial column
Dell, tickettracker.nl, air france.com, easyjet, independer
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Aspects of the new economy
– Customization– Reverse of chains Dell– Transparency of markets– Individual offers and demands
Harley-Davidson, Mercedes, Windesheim– Demanding customers
Letsbuyit.com (buyers join forces)– Services instead of products
OCE– Industry convergence
– Kodak (chemicals to electronics)– Shiseido (cosmetics to dermatology drugs)– Disney (cartoons, theme parks to films, hotels, ships, retail stores)– Vodafone (digital television, phone, new services)
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customizing
www.italiaanseoverhemden.nl
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Mass marketing 1-1 marketing
Average customer Individual customer
Customer anomity Customer profile
Standard product Customized market offer
Mass production Customized production
Mass distribution Individualized distribution
Mass advertising Individualized message
Mass promotion Individualized incentives
One way message Two way messages
Economies of scale Economies of scale
Conclusion
Power to the Customer Competitor is 2 clicks away
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New economy
– Knowledge– Creativity– Relationships
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How to react on the demands of the new economy???
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E-Business design
Self diagnosis Reverse the value chain Choose a focus
– Service excellence (customer intimacy) – Operational excellence– Continuous innovation excellence
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E-Business design
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Here we come to CRM
What is CRM???
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CRM
CRM means:– Redesigning functional roles– Reengineering work processes– Motivating people– Implementing CRM technology
CRM creates the possibility to realize customization
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CRM definitie 1
CRM is the continuously and systematically creating and developing of relationships with individual customers to obtain mutual benefits.
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CRM
Customer Relationship Murder
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CRM
CRM comprises 3 phases:
1. Acquiring new customers (relatively expensive !) Like going on a first date
– (only a determined suitor acts despite the feelings of insecurity, hesitancy, fear and anticipation)
2. Enhancing the profitability of existing customers– Cross-selling
– Other product, complementary item– Up-selling
– Similar product of better quality Deep-selling
– Selling more of the same product cup a soup (instant soup) Lower the costs
– (self service gas station, event driven marketing) References
– Tupperware parties
3. Retaining profitable customers– Reward agents that retain customers– Reward customers that retain (State Farm insurance)– Branding, loyalty programs
CRM
Customers
Sales
Sales/customer
retention
acquisition
enhancing
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CRM marketing and fulfillment
Sell well and deliver fast Campaign management Opt-in and opt-out
Fulfillment structure: product delivery and question answering
Sales force automation
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CRM loyalty and retention
Keep track of the account and transaction histories of your customers
Site is built to sell
Integrate e-commerce systems with traditional sales channels and fulfillment apps
Value drivers CRM
improved ability to target profitable customers; integrated offerings across channels; improved sales force efficiency and effectiveness; individualized marketing messages; customized products and services; improved customer service efficiency &
effectiveness improved pricing
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New economy
Customer segments Customer lifetime value Focus on stakeholders Customer retention Customer satisfaction Under-promising, over-delivering
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CRM
Information system
Customer Product Process Communication Marketing
Modern marketing
Growing power of Google Search engine marketing Conversion-marketing
– Web analytics– Multivariable testing
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The latest developments
Experience Economy– Not only information exchange but experience
Games Clips Meeting places Good quality
– Blue ray– 17 inch– Audio surround
This is a communication platform for marketeers!
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New ways of communication
Viral marketing Hyves, facebook, MSN Mobile Marketing Experience Youtube Wilders, Obama Social Media Crowd Sourcing Social webshopping
– Cobrowsing, chatting, swarming– LiveCom & Cobrowser.net
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Social Media
• Crowd sourcing • Data mining • Rating • Co creation• Word of mouth Marketing
Zoekterm “Geert Wilders”
A) Geert Wilders: Pushing the envelope Radio Netherlands - Jan 24 2008 B) Geert Wilders’ anti-Koran film goes live on Internet PanARMENIAN.Net - Mar 28 2008 C) Prosecutor will not charge Dutch politician Geert Wilders for incitement against Muslims San
Diego Union Tribune - Jun 30 2008 D) Dutch court orders prosecution of anti-Islamic legislator Geert Wilders KBS Radio - Jan 21 2009 E) Geert Wilders, martyr Telegraph.co.uk - Feb 12 2009
Marketing + Education
Brand
Community
Consumer
Relation
Rel
atio
n Relatio
n
Before Current
Crowd sourcing
Tom tom map share User
Firm
No proft Proft
No proft
Proft
Before: 100 designers avg age 29
After: 1.000.000 designers avg age 9
AFOL: Adult Fan of Lego
Wikipedia
User
Firm
No proft Proft
No proft
Proft
Started in 2001684 million visitors in 2008. 75,000 active contributors 10,000,000 articles 250 languages.
Relatively few people actively contribute
Charlie bit my finger - again
http://www.youtube.com/watch?v=_OBlgSz8sSM&feature=related
http://www.youtube.com/watch?v=BIWeEFV59d4
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Summary
We talked about New economy New business models CRM The latest developments
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links
Internet and marketing magazins: Advertising age www.adage.com Businessweek www.businessweek.com C-net Bussiness www.news.com E-Commerce Times www.ecommercetimes.com Hotwired www.hotwired.com The Red Herring www.redherring.com Web Week www.webweek.com Wired www.wired.com Adformatie www.adformatie.nl E-merce www.emerce.nl Webwereld www.webwereld.nl
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FIN
http://www.youtube.com/watch?v=4eQyIGkxlKY