Customer Relationship Management unit 2 understanding customers
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Transcript of Customer Relationship Management unit 2 understanding customers
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Prepared and presented by,
N. Ganesha Pandian,
Assistant professor,
Madurai School of management.
II y
ear
III Sem
est
er
Academ
ic y
ear
2017-2
018
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Customer information database
Customer profile analysis
Customer perception, expectation and analysis
Customer behavior in relationship perspectives;
individual and group customer’s
Customer life time value
Selection of profitable customer segments
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Data base marketing is the process of
building, maintaining and using customer
databases and other databases (products,
suppliers, sellers ) to contact, transact and
build customer relationships
Customer information databases includes
personal information, contact address, phone
number and demographic details and etc.,
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Contact names
Demographic and psychographic information
Address
Buying history
Source of sale
Job title and job definitions
Name of company
Methods to contact them
Source of lead
Special needs of customers
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Define the information requirements
Define the database functions
Identify the information sources
Select the database technology and hardware
platform
Populate the database
Maintain the database
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Extracting information
Cleaning
Merging
Analyzing the information
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Helps in segmentation
To improve product development
Helps in finding most profitable customers
Understanding the customers
Customer communication
Customer service
Campaign management
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Improved customer relationships
Contributes to market success
Data management
Market intelligence
Sales management
Management information
Product planning
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A customer profile is a series of descriptive
phrases that paint a picture of a selected
target consumer.
A profile is built from demographic,
expenditure, lifestyle and media preference
data and is used to immediately understand
the characteristics of s given customer
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Geographic details
Demographic details
Psychographic details
Buyer behavior
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Surveys
Point of purchase
Profile by parameter
Demographics
Enterprises and business management
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‘the right product for the right market’
principle
Systematic aspects of customers
Creating long term value of customers
Value= Perceived benefits/price
Market segmentation
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According to Philip kotler, “Market
segmentation is sub-dividing a market into
distinct homogenous sub-groups of
customers, where any group can conceivably
be selected as a target market to be met
with distinct marketing mix”
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1. Geographical variables
2. Demographical variables
3. Psychographic variables
4. Behavioral variables
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Identifying the best customer
Planning out retention plans for new customers
Inducing buying from existing customers
Improving customer services
Effective campaign planning
Increasing market share
Increase overall profitability
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Value may be best defined from the
customer’s perspective as a trade-off
between the benefits received Vs price paid
Value = perceived benefits / price
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Customer-defined
Opaque
Contextual
Multi-dimensional
Trade-off
Relative
Mindset
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Functional value
Social value
Emotional value
Conditional value
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1. Identifying Appropriate customer value segments
2. Designing value delivery systems
3. Planning customer value delivery strategy
i. identify the value
ii. Choose the value
iii. Value creation/delivery
iv. Value communication
v. assessing the value
4. Value enhancement
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Customer satisfaction is the degree of satisfaction
provided by the goods or services of a company as
measured by the number of repeat customers
Customer satisfaction occurs when the
performance meets customer expectations
Value is the satisfaction of customer requirements
at the lowest total cost of acquisition, ownership
and use
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A marketing concept that encompasses a
customer's impression, awareness and/or
consciousness about a company or its
offerings. Customer perception is typically
affected by advertising, reviews, public
relations, social media, personal experiences
and other channels.
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1. Self Perception
2. Price Perception
3.Benefit Perception
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Understanding and Managing Customer
Perception
Identifying customer needs
Identifying customer influencing variables
Customer Segmentation
Identifying behavioural intentions
Creating awareness
Direct contact with the customers
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Business performance improvement activities
Sales force effectiveness programmes
Strategic re-positioning
Exploring current and new market needs and
opportunities
Strategic change programmes
Developing customer-centric capability models
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Customer expectations touch on everything a
company's clients -- or the market, in general --
anticipate in terms of product, service, price
and distribution outlet. Marketing strategists
view such expectations through the lens of client
desires, needs and wants at a given point in
time. Given the significance of client
expectations in marketing analysis, running a
business without
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Explicit Expectations
Implicit Expectations
Static Performance Expectations
Dynamic performance Expectations
Technological Expectations
Interpersonal Expectations
Situational Expectations
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First stage
Second stage
Third stage
Fourth stage
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Consumer behaviour is the study of
individuals, groups, or organizations and the
processes they use to select, secure, and
dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that
these processes have on the consumer and
society.
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The 6 stages are
Problem Recognition
Information search
Evaluation of Alternatives
Purchase decision
Purchase
Post-Purchase Evaluation
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Routine Response/Programmed Behaviour
Limited Decision Making
Extensive Decision Making
Impulse buying
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Personal
Factor
Psychological
factors
Motives
Perception
Ability and
Knowledge
Attitudes
Personality
Lifestyles
Social Factors
Opinion leaders
Roles and Family
Influences
Reference
Groups
Social Class
Culture and Sub-
culture
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In every buying decision, a consumer asks the
same question: is what I am going to receive
worth what I have to give up in order to get it?
The gain the consumer receives for the benefit is
weighed against the cost the consumer must pay
to acquire the benefit. The value the individual
consumer places on a product or service
becomes the customer value for that offering.
Benefits – cost = Customer Value
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In marketing, customer lifetime value (CLV) (or
often CLTV), lifetime customer value (LCV), or
user lifetime value (LTV) is a prediction of the
net profit attributed to the entire future
relationship with a customer. The prediction
model can have varying levels of sophistication
and accuracy, ranging from a crude heuristic to
the use of complex predictive analytics
techniques.
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Example:
Marketing – how much should I spend to acquire
a customer
Product – who are my best customers? How can I
offer products and services tailored for them?
Customer support – how much should I spend to
service and retain a customer?
Sales – what types of customers should sales reps
spend the most time on?
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Churn rate
Discount rate,
Contribution margin
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determination of the optimal level of investments in
marketing and sales activities
encourages marketers to focus on the long-term value of
customers instead of investing resources in acquiring
"cheap" customers with low total revenue value
Implementation of sensitivity analysis in order to
determinate getting impact by spending extra money on
each customer.
optimal allocation of limited resources for ongoing
marketing activities in order to achieve a maximum return
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Customer Segmentation is the subdivision of
a market into discrete customer groups that
share similar characteristics. Customer
Segmentation can be a powerful means to
identify unmet customer needs.
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