JM503 – eMarketing

Week 11 e-CRM

From last week

• BBC – Click archive

E-CRM

• Assess the relevance of the concepts of relationship, direct and database marketing marketing on the Internet;

• evaluate the potential of the Internet to support one-to-one marketing and the range of techniques and systems available to support dialogue with the customer over the Internet;

• assess the characteristics required of tools to implement one-to-one marketing.

Is CRM worthwhile?

eCRM - Wallstrip Video

Questions for marketers

• How can the Internet be used to support the different stages of the customer lifecycle?

• How do I implement permission marketing?• What do personalisation and mass

customisation mean and how should I apply them in my marketing?

Differences between relational and transactional marketing

Transactional paradigm

Relational paradigm

Market segment Individual customer

Transaction duration Lifetime

Margin Lifetime value

Market share Most valued customers and customer share

Mass market broadcast Dialogue and tailored communications

Passive consumers Empowered clients

CRM applications

1. Sales force automation

2. Customer service management

3. Managing the sales process

4. Campaign management

5. Analysis

CRM data

• Personal and profile data– Contact details– Preferences

• Transaction data– Sales history

• Communications data– Campaign history– Research / Feedback / Support queries– Contact reports (B2B)

CRM aims and focus

5Is

• Identification – can the customer be recognised for different channel contacts?

• Individualisation – can communications and products be tailored?

• Interaction – are communications two-way?• Integration – is there a 360 degree view of the

customer?• Integrity – is the relationship built on trust?

Permission marketing

• Key concepts– Not interruption marketing– Not SPAM– Requires opt-in (online to e-mail)– Opt-out– Learning about the customer– Initial and continued relationship is based on

incentives

Mass customisation and personalisation

Online relationship building

Example – Virgin Megastores

IDIC

e-CRM tools

• Database• Data mining• Personalisation systems• Outbound e-mail• Inbound e-mail management• Virtual communities

Tutorial next week

• Check Moodle for readings and research