CUSTOMER

RELATIONSHIP
MANAGEMENT
 CRM FUNDAMENTALS

• Customer relationship management (CRM) –

involves managing all aspects of a customer’s
relationship with an organization to increase
customer loyalty and retention and an
organization's profitability
 CRM FUNDAMENTALS

• CRM
overview
 CRM as a Business Strategy

• CRM is not just technology, but a strategy, process,

and business goal that an organization must
embrace on an enterprisewide level

• CRM can enable an organization to:

– Identify types of customers
– Design individual customer marketing campaigns
– Treat each customer as an individual
– Understand customer buying behaviors
 Business Benefits of CRM

• Organizations can find their most valuable

customers through “RFM” - Recency,
Frequency, and Monetary value
– How recently a customer purchased items
(Recency)
– How frequently a customer purchased items
(Frequency)
– How much a customer spends on each purchase
(Monetary Value)
 Evolution of CRM

• CRM enables an organization to:

– Provide better customer service
– Make call centers more efficient
– Cross sell products more effectively
– Help sales staff close deals faster
– Simplify marketing and sales processes
– Discover new customers
– Increase customer revenues
 Evolution of CRM

• CRM reporting technology – help organizations

identify their customers across other applications

• CRM analysis technologies – help organization

segment their customers into categories such as best
and worst customers

• CRM predicting technologies – help organizations

make predictions regarding customer behavior such as
which customers are at risk of leaving
 Evolution of CRM

• Three phases in the evolution of CRM include

reporting, analyzing, and predicting
Evolution of CRM
 Operational and Analytical CRM

• Operational CRM – supports traditional

transactional processing for day-to-day front-
office operations or systems that deal directly
with the customers

• Analytical CRM – supports back-office

operations and strategic analysis and includes
all systems that do not deal directly with the
customers
Operational and Analytical CRM
USING IT TO DRIVE
OPERATIONAL CRM
 Marketing and Operational CRM

• Three marketing operational CRM

technologies:
1. List generator – compiles customer information
from a variety of sources and segment the
information for different marketing campaigns
2. Campaign management system – guides users
through marketing campaigns
3. Cross-selling and up-selling
• Cross-selling – selling additional products or services
• Up-selling – increasing the value of the sale
 Sales and Operational CRM
• The sales department was the first to begin
developing CRM systems with sales force automation
– a system that automatically tracks all of the steps in
the sales process

https://www.microsoft.com/businesssolutions/crm/demos/full_demo.htm
 Sales and Operational CRM

• Sales and operational CRM technologies

1. Sales management CRM system – automates each
phase of the sales process, helping individual sales
representatives coordinate and organize all of their
accounts
2. Contact management CRM system – maintains
customer contact information and identifies
prospective customers for future sales
3. Opportunity management CRM system – targets
sales opportunities by finding new customers or
companies for future sales
 Sales and Operational CRM

• CRM Pointers for Gaining Prospective

Customer
1. Get their attention
2. Value their time
3. Overdeliver
4. Contact frequently
5. Generate a trustworthy mailing list
6. Follow up
 Customer Service and
Operational CRM

• Three customer service operational CRM

technologies:
1. Contact center (call center)
2. Web-based self-service system
• Click-to-talk
3. Call scripting system
 Customer Service and
Operational CRM
• Common features included in contact centers
– Automatic call distribution
– Interactive voice response
– Predictive dialing
 Analytical CRM

Analytical CRM is the part of CRM that aims to storing, analyzing and
applying the knowledge about customers and about ways to approach
customers, typically using databases, statistical tools, data mining, BI
and reporting methodologies.

Analytical CRM analyzes customer data for a variety of purposes:

•Designing and executing targeted marketing campaigns

•Designing and executing campaigns, e.g. customer acquisition,
cross- selling, up-selling
•Analyzing customer behavior in order to make decisions relating to
products and services (e.g. pricing, product development)
•Management information system (e.g. financial forecasting and
customer profitability analysis)
 CRM Metrics
• Sales Metrics
– Number of prospective customers
– Number of new customers
– Number of retained customers
– Number of open leads
– Number of sales calls
– Amount of new revenue
– Amount of recurring revenue
– Number of proposals given
 CRM Metrics
• Service Metrics
– Cases closed same day
– Number of cases handled by agent
– Number of service calls
– Average number of service requests by type
– Average time to resolution
– Average number of service calls per day
 CRM Metrics

• Marketing Metrics
– Number of marketing campaigns
– New customer retention rates
– Number responses by marketing campaign
– Number of purchases by marketing campaign
– Revenue generated by marketing campaign
– Customer retention rate
 USING IT TO DRIVE
ANALYTICAL CRM

• Personalization – when a Web site knows enough about a

persons likes and dislikes that it can fashion offers that are
more likely to appeal to that person

• Analytical CRM relies heavily on data warehousing

technologies and business intelligence to glean insights into
customer behavior

• These systems quickly aggregate, analyze, and disseminate

customer information throughout an organization
 USING IT TO DRIVE
ANALYTICAL CRM
• Analytical CRM information examples
1. Give customers more of what they want
2. Value their time
3. Overdeliver
4. Contact frequently
5. Generate a trustworthy mailing list
6. Follow up
 CRM TRENDS: SRM, PRM, AND ERM

• Current trends include:

– Supplier relationship management (SRM)
– Partner relationship management (PRM)
– Employee relationship management
(ERM)
 BUSINESS
INTELLIGENCE
BUSINESS INTELLIGENCE
The term Business Intelligence (BI) refers to
technologies, applications and practices for the
collection, integration, analysis, and presentation of
business information. The purpose of Business
Intelligence is to support better business decision
making.

BI as a discipline is made up of several related activities,

including data mining, online analytical processing, querying
and reporting.
Customer relationship management (CRM) consists of

the processes a company uses to track and organize its

contacts with its current and prospective customers

Business intelligence (BI) refers to skills, technologies,

applications and practices used to help a business acquire

a better understanding of its commercial context

 BUSINESS INTELLIGENCE
• Business intelligence (BI) – applications and
technologies used to gather, provide access to,
and analyze data and information to support
decision-making efforts

• Parallels between the challenges in business and

challenges of war
– Collecting information
– Discerning patterns and meaning in the information
– Responding to the resultant information
The Problem: Data Rich, Information Poor

• Businesses face a data explosion as

digital images, email in-boxes, and
broadband connections doubles

• The amount of data generated is doubling

every year

• Some believe it will soon double monthly

 The Solution: Business Intelligence
• Improving the quality of business decisions
has a direct impact on costs and revenue
• BI systems and tools results in creating an
agile intelligent enterprise
 The Solution: Business Intelligence
• BI enables business users to receive data
for analysis that is:
– Reliable
– Consistent
– Understandable
– Easily manipulated

For instance, giving a customer a discount may or may not help the
bottom line, depending on the profitability of the client over the duration
of the relationship.
To improve the quality of business decisions, managers can provide
existing staff with BI systems and tools that can assist them in making
better, more informed decisions.
The result creates an agile intelligent enterprise.
A few examples of using BI to make informed business decisions include:
Retail and sales: Predicting sales; determining correct inventory levels and
distribution schedules among outlets; and loss prevention.
Banking: Forecasting levels of bad loans and fraudulent credit card use, credit
card spending by new customers, and which kinds of customers will best respond
to (and qualify for) new loan offers.
Operations management: Predicting machinery failures; finding key factors that
control optimization of manufacturing capacity.
Brokerage and securities trading: Predicting when bond prices will change;
forecasting the range of stock fluctuations for particular issues and the overall
market; determining when to buy or sell stocks.
Insurance: Forecasting claim amounts and medical coverage costs; classifying
the most important elements that affect medical coverage; predicting which
customers will buy new insurance policies.
 The Solution: Business Intelligence
• BI can answer tough customer questions
 OPERATIONAL, TACTICAL, AND
STRATEGIC BI
• Claudia Imhoff, president of Intelligent
Solutions, divides the Spectrum of data mining
analysis and business intelligence into three
categories:
– Operational
– Tactical
– Strategic
OPERATIONAL, TACTICAL, AND STRATEGIC BI
OPERATIONAL, TACTICAL, AND STRATEGIC BI
 BI’s Operational Value
• Richard Hackathorn’s graph demonstrating the value of
operational BI
Richard Hackathorn of Bolder Technologies developed an interesting graph to
demonstrate the value of operational BI.
This Figure shows the three latencies that impact the speed of decision making.
These are data, analysis, and decision latencies.
Data latency is the time duration to make data ready for analysis (i.e., the time for
extracting, transforming, and cleansing the data), and loading the data into the
database. All this can take time depending on the state of the operational data to
begin with.
Analysis latency is the time from which data are made available to the time when
analysis is complete. Its length depends on the time it takes a business to do
analysis. Usually, we think of this as the time it takes a human to do the analysis,
but this can be decreased by the use of automated analytics that have thresholds.
When the thresholds are exceeded, alerts or alarms can be issued to appropriate
personnel, or they can cause exception processes to be initiated with no human
intervention needed.
Decision latency is the time it takes a human to comprehend the analytic result
and determine an appropriate action. This form of latency is very difficult to reduce.
The ability to remove the decision-making process from the human and automate it
will greatly reduce the overall decision latency. Many forward thinking companies
are doing just that. For example, rather than send a high value customer a letter
informing him of a bounced check (which takes days to get to the customer), an
automated system can simply send an immediate email or voice message informing
the customer of the problem
 BI’s Operational Value
• The key is to shorten the latencies so that
the time frame for opportunistic influences
on customers, suppliers, and others is
faster, more interactive, and better
positioned
 DATA MINING
• Data mining – process of analyzing data to extract
information

• Data-mining tools – use a variety of techniques to find

patterns and relationships in large volumes of
information
– Classification
– Estimation
– Affinity grouping
– Clustering
 DATA MINING
• Common forms of data-mining analysis
capabilities include:
– Cluster analysis
– Association detection
– Statistical analysis
 Cluster Analysis
• Cluster analysis – a technique used to divide an
information set into mutually exclusive groups such
that the members of each group are as close
together as possible to one another and the
different groups are as far apart as possible

• CRM systems depend on cluster analysis to

segment customer information and identify
behavioral traits
Some examples of cluster analysis include:

• Consumer goods by content, brand loyalty or similarity

• Product market typology for tailoring sales strategies
• Retail store layouts and sales performances
• Corporate decision strategies using social preferences
• Control, communication, and distribution of
organizations
• Industry processes, products, and materials
• Design of assembly line control functions
• Character recognition logic in OCR readers
• Data base relationships in management information
systems
 Association Detection
• Association detection – reveals the degree
to which variables are related and the nature
and frequency of these relationships in the
information
– Market basket analysis
analyzes such items as Web sites and checkout scanner
information to detect customers’ buying behavior and
predict future behavior by identifying affinities among
customers’ choices of products and services
 Statistical Analysis

• Statistical analysis – performs such

functions as information correlations,
distributions, calculations, and variance
analysis
– Forecast – predictions made on the basis of
time-series information
– Time-series information – time-stamped
information collected at a particular frequency
 BUSINESS BENEFITS OF BI
• Benefits of BI include:
– Single Point of Access to Information for All
Users
– BI across Organizational Departments
– Up-to-the-Minute Information for Everyone

http://www.insidecrm.com/features/strategies-apple-loyal-customers/
 Four Primary Categories of
BI Benefits
• Four main categories:
– Quantifiable benefits
– Indirectly quantifiable benefits
– Unpredictable benefits
– Intangible benefits
 THE DIFFERENCES

Business Intelligence CRM

Display the name and address of Display customer's most recent
business customer. inbound contact on my PDA, along with
their current corporate address.
Display customers who visit one of Once a month for the next six months, direct
the video stores in our chain on a mail customers most likely to rent next
weekly basis. month's new features who are not weekly
visitors to the store.
Display a list of customers who have Contact all high-value customers who
lodged a complaint within the last 30 have lodged a complaint. Generate
days. retention recommendations for each
customer (using CRM product feature).

Analyze the top 5 most popular Identify the top 5 purchased office
office supplies and compare supplies and trial-run a Web RFQ
approved vendors' prices to prices system for limited quantities to test
of other potential suppliers. price improvements.
http://www.cio.com/article/109454/The_Brain_Behind_the_Big_Bad_Burger_and
_Other_Tales_of_Business_Intelligence

Read the above article and discuss the following:

A) What does business intelligence really mean to a business?

B) What are the negative impacts of business intelligence?

C) How does a database and data warehouse support business

intelligence?
 ETHICS AND BI
Mining Physician Data
Every day, thousands of representatives from pharmaceutical
companies visit physicians to get them to prescribe the company's
newest drugs. What some doctors don't realize is that drug salesmen
know exactly what drugs an individual doctor prescribes.

And they use that information to hone their sales pitches. Drug
companies love the data. But critics contend it is an invasion of privacy
and drives up the cost of health care. Maine has just become the third
state to pass a measure limiting access to the data.

Ref: http://www.npr.org/templates/story/story.php?storyId=11382945

Answer the following questions

1) Do you agree that mining physician data should be illegal? Why or why not?
2) As a patient how do you feel about pharmaceutical companies mining your
doctor's data?
3) As an employee of one of the pharmaceutical companies how do you feel
about mining physician data?
CRM in Marketing

CRM Initiatives
CRM Marketing Initiatives

 Cross-Selling

 Selling a product or service to a customer

as a result of another purchase

 Selling the right product to the right

customer
CRM Marketing Initiatives

 Cross-Selling (continued)
 Selling more products to a customer
increases revenue from that customer and
costs less than acquiring a new one

 Not every customer is a good candidate

 It is critical to understand the ways by which

customers evaluate how and whether to
respond to promotions
CRM Marketing Initiatives
 Up-Selling
 Motivating customers to trade up to more profitable
products

 Customer Retention
 Analyzing customer attrition
 Understanding why customers have left
 Understanding who
 How do you keep them?
 Churn prediction
 What is CHURN?
CRM Marketing Initiatives

 Behavior Prediction
 Using modeling and data mining techniques,
including
 Propensity to buy analysis
 What product is a particular customer likely to buy next
 Next sequential purchase
 What product is a customer likely to buy next
 Product affinity analysis
 Which products will be purchased with other products
 Price elasticity modeling and dynamic pricing
 Determining the optimal price for a given product
CRM Marketing Initiatives

 Customer Profitability and Value

Modeling
 Can a customer be unprofitable but still
considered valuable?

 Customer Lifetime Value (LTV)

 Potential value
 Competitive value (wallet share)
CRM Marketing Initiatives

 Customer value measurement is data-

intensive
 Value modeling is only as accurate as the
customer data is rich
CRM Marketing Initiatives

 Channel Optimization
 Means optimizing a company’s “inbound” channels
with its “outbound” means of customer interaction

 Knowing how to choose the best approach for each

 Understanding the channels through which specific

customers prefer to interact with the company
AND
 How best to communicate with your customers
CRM Marketing Initiatives

 Personalization
 Customizing customer communication
based on knowledge preferences and
behaviors at the time of interaction
 Online messages tailored to a particular
customer or customer segment
 In the B2C model, personalizaiton is based
on the analysis of a customer’s clickstreams
CRM Marketing Initiatives

 Personalization
 Clickstreams
 A customers navigation path through a company’s Web
site
 A company can see not only what a customer purchased
by how the customer reached the site in the first place
 How he traveled through the site after he got there
 How much time he spend on each page
 Which products might have stimulated purchases of other
products
CRM Marketing Initiatives

 What new tactics can analyzing

clickstreams trigger?
 Changes to Web images

 Custom promotions or discounts

 Customized Web pages according to the

visitor’s use of the site
CRM Marketing Initiatives

 Event-Based Marketing
 Time-sensitive marketing or sales
communication reacting to a customer-
specific event.
 Also called event-driven marketing

 Can apply to a segment of customers or to

individual customers
 This is what companies adopting CRM are
striving for
CRM Marketing Initiatives

 Event-based marketing
 Combine personalization techniques with
process design to ensure that the right
action targets the right customer at the right
time
 Ideal goal is to react to customers in near
real-time
Campaign
Management
 Campaign
• Campaigns are Marketing Activities or
Marketing Programs.
• A campaign delivers one or more offers to
a target segment through customer touch
point (Mail, Email, Website, Telephone,
Fax, Face to Face, etc.) base on
scheduled or on the occurrence of a
business event .
 Campaign Management
• Is managing and monitoring customer
communications across multiple touch points.
• Allows you to build, manage, track and analyse
powerful one to one marketing campaigns and
their messages over a certain period of time and
channels.
• Uses information in a DW or marketing DB to
plan, manage and assess marketing campaigns
designed to impact customer behavior.
 Campaign Management Software
• Campaign management software
automates and integrates the planning ,
execution, assessment and refinement of
possibly tens to hundreds of highly
segmented campaign running monthly,
weekly, daily or intermittently.
 Campaign Management

Execution of Campaign is intended to

Achieve any of the fundamental Marketing
Objectives:
• Acquire new customers
• Retain existing customers
• Cross-sell, Up-sell and promote products
• Improve brand equity and customers’
experiences with your brand.
Campaign Management and CRM
 Campaign Management
One to one marketing
two-way dialogue
Multi channel communication
Rule base scenario
efficient tracking
Time to Market
Building A Model
• Analytic user creates a
model using data
mining system

• The model is then

exported into campaign
management system
Model-Based Campaigns
• Campaign management
system invokes model-
based customer segments

• The customers in those

segments are passed to the
data mining server where
they are scored
• Customers are then
selected based on score
results
A Very Simple Campaign
Define the campaign universe

Identify target audience

Split to test offer strategy

Control group introduced

Statistically validate the offer

Output to touch point systems

and databases
Wave Campaign

Introduce follow up and

multiple contact strategy

Introduce New Channel

Continuous Marketing
Customer Relationship
Management &
Customer Experience
Why CRM?
 5% increase in retention had impacts as high as 95%
on the net present value delivered by customers
 Repeat customers generate over twice as much gross
income as new customers
 By 10% of improvement: customer values to increase:
 Revenue from repeat customer -- +5.8%
 % of customers who repeat purchase + 9.5%
 Customer churn rate -6.7%
 CRM Life Cycle Phases
1. Acquire New Relationships

Differentiation
• Innovation
• Convenience

Bundling Adaptability
Bundling
• Reduce Costs • Listening
• Reduce
Customer Service
Costs • New Products
• Customer Service

2. Enhance 3. Retain
Existing Relationships Customer
Relationships
 Integrated CRM

Acquire Enhance Retain

Cross-sell Proactive
Direct Marketing
And Up-sell Service

Sales Force Customer

Automation Support

Integrated CRM Application

CRM Goals

 Using existing relationships to grow

revenues
 Using integrated information for excellent
service
 Introducing consistent, replicable channel
processes and procedures
CRM for Growth and Profitability
 Customer Interaction
Direct Indirect

Banks Airlines
Telecom Package Goods
High Retail Drugs

Interaction
Frequency Personal
Computers Furniture
Low Internet Autos
Infrastructure
 How CRM Works
Loyal Customers
•Increased ARPU (Average
•Better responsiveness revenue per user)

CRM to customer needs •Stronger brand attitude

•Less price sensitive
Program •Increased customer
•Reduce customer churn
satisfaction

Customer
Database •Increased ARPU

Cross-selling
•Cost reductions
Data •More targeted
Mining Better Target Marketing communications

Market Research
Source: Dowling (2002)
•New customer insights
•Early warning system
The Eight Building Blocks of CRM
1. CRM Vision
2. CRM Strategy

3. Valued Customer 4. Organizational

Experience Collaboration

5. CRM Processes
6. CRM Information
7. CRM Technology
8. CRM Metrics
You need capabilities in all these areas for successful
CRM:
CRM Vision: Building a market position against
competitors with defined customer value propositions
(CVPs), based on requirements, personified by the brand
and communicated to the market.
CRM Strategies: Turning the customer base into an asset
through the delivery of CVPs. Gives objectives (such as
development) and how resources will be used in
interaction.
Valued Customer Experience: Ensuring constantly that
the propositions have value to customers and the
enterprise, achieve the market position and are delivered
consistently.
Organizational Collaboration: Involving the changing of
culture, structures and behaviours to ensure staff,
partners and suppliers work together to deliver what is
promised.
Processes: Managing customer life cycle processes
(enquiry, welcome, complaints and win-back) and
processes in analysis and planning that build
customer knowledge.

Information: Ensuring the right data is collected and

the right information goes to the right place.

Technology: Involving data and information

management, customer-facing applications and
supporting IT infrastructure and architecture.

Metrics: Involving internal and external measures of

CRM success and failure.
Outcomes: More-Effective
Customer Interactions
 Consistency across channels
 Employee empowerment and compensation
 Employee skills/training
 Cross-functional roles
 Involvement of partners
 Minimal transfers
 Link to value proposition
Evolve the Customer Experience Using
Research and Feedback
Strategic research:
Research on strength of relationship
drivers of satisfaction and loyalty
Business
Intelligence

Data Relationship
Collection Planning

Customer
Interaction
Operational feedback:
Event-driven checks on customer experience
Customer reviews
Monitor complaints and compliments
Use best practices
 Customer Relationship Optimization
Customer Profitability Behavioral Simulation Business
Analysis Analysis Modeling and Testing Rules
 Loyalty
 Churn
Business Campaign
Development likelihood
Intelligence
 Current
CRM profitability
Data Mart Content
Data Relationship Management
 Lifetime value
Collection Planning  Decision
Data drivers
Channel
Warehouse Management  Life events
Customer
Interaction  Relationship
Management events
Channel  External
Feedback Hand Off
Customer Action Rule-Driven to events
Interaction Selection Triggers Channels
The CRM Metrics Framework: Aligning Metrics and Processes to
Achieve Goals
Why CRM Projects Fail?
1. Data quality is ignored.
2. Organizational politics are driving departmental or
totally disconnected initiatives.
3. IT and business organizations can’t work together.
4. There is no plan.
5. CRM is implemented for the enterprise, not the
customer.
6. A flawed process is automated.
7. No attention is paid to skill sets.
 Customer Information is the Lifeblood of CRM
Data Quality Challenges Data Fragmentation and
Consistency Challenges
? ?
John Mr J.
Smith Smith

• Data Quality — Operational and Analytical

• Data Ownership — Stewardship

Challenges in enabling consistent, Challenges in creating and

integrated customer Interactions applying customer insight

?
Single Customer
View ? Customer Profitability

Propensity to Churn

Lifetime Value
CRM Integration: Priorities and Tradeoffs
 CRM Value Development Framework

3/13/2019 ECT 589 Susy Chan, Ph.D. 19

Critical Success Factors
1. Articulate a clear vision.
2. Know which strategies support corporate goals and
tie measurement processes to them.
3. Understand which business processes must be
optimized to support the strategies.
4. Employ technologies and measurement processes
that enable them to measure their progress toward
becoming customer-centric.
5. Ensure that the skills, knowledge and associated
behaviors required by the workforce support the
enterprise’s CRM strategy
6. Change the compensation of the workforce to
achieve the desired behaviors and cultural shift and
motivate employees to rally behind the strategy.
What Skills Do Companies Need for a
Successful Implementation?
 Process Knowledge Project Management Technical Knowledge
 Sales, Marketing, Customer  Enterprise program  Client/Server and Web
Service , Best Practices management technologies
 B2B  Project control  Performance / benchmarking
 B2C  Issue resolution  ACD, IVR, CTI technologies
 Risk management  Middleware
 Leadership  Email routing systems
 Expectation Management

People, Process,and Technology

 Product Expertise Change Management Industry Knowledge

 Applications Knowledge  Job analysis and Redesign  Best practices
 Architecture Knowledge  Training and documentation  Industry issues
 Project Management  Team building  Industry specific solutions
 Stakeholder management

ECT 589 Susy Chan, Ph.D.

Customer Privacy
What Is Privacy?

• Freedom from observation, intrusion, or attention

of others
• Society’s needs sometimes trump individual privacy
• Privacy rights are not absolute
• Balance needed
• Individual rights
• Society’s need
• Privacy and “due process”
Privacy and the Law

• No constitutional right to privacy

• The word “privacy” is not in the Constitution
• Congress has passed numerous laws
• Not particularly effective
• Issue is pace of change
• Privacy is a function of culture
• Privacy means different things in different countries
and regions
• Serious problem on global Internet
 Collecting Personal Information (e.g.,
your email address => email spam)
• Notice/awareness
• You must be told when and why
• Choice/consent
• Opt-in or opt-out
• Access/participation
• You can access and suggest corrections
• Integrity/security
• Collecting party is responsible
• Enforcement/redress
• You can seek legal remedies
Collecting Personal Information

• Often voluntary
• Filling out a form
• Registering for a prize
• Supermarket “Rewards” cards
• Legal, involuntary sources
• Demographics
• Change of address
• Various directories
• Government records
Completing the Picture

• Aggregation
• Combining data from multiple sources
• Complete dossier
• Demographics
• Finding missing pieces
• Browser supplied data – TCP/IP
• Public forums – monitoring
• Samurai
Capturing Clickstream Data

• Record of individual’s Internet activity

• Web sites and newsgroups visited
• Incoming and outgoing e-mail addresses
• Tracking
• Secretly collecting clickstream data
• ISP in perfect position to track you
• All transactions go through ISP
• Using cookies
• Using Web bugs
Tracking with cookies.

Cookies Web page

• Client requests
Gotcha's Gotcha's
cookies <IMG>
Acme page
• Acme returns page
1 Request page
• Client requests Client Acme's
embedded banner browser Return page 2 Web server
from Gotcha 3

• Gotcha returns Request banner

Return cookies
Return banner
Return another cookie
banner and cookie 4

Gotcha's Gotcha's
Web server database
Tracking with Web “pixel spyware”

• Web pixel spyware – single-pixel clear GIF

• Image reference buried in HTML
• Browser requests image
• Server returns bug plus cookie
• Request provides clickstream data
• Difficult to spot a Web pixel spyware
• Web pixel spyware in HTML formatted e-mail
• Secret return receipt
A demonstration Web spyware.

• This Web bug is

designed to be
seen
Surveillance and Monitoring

• Surveillance
• Continual observation
• Tampa – facial scanning at Super Bowl
• Packet sniffing
• Monitoring
• The act of watching someone or something
• E-mail Web bugs
• Workplace monitoring is legal
Surveillance and Monitoring Tools

• Spyware
• Sends collected data over back channel
• Snoopware
• Records target’s online activities
• Retrieved later
• Screen shots, logs, keystrokes
• Other surveillance/monitoring sources
• OnStar and GPS tracking
• E-ZPass systems
• Phone calls and credit card purchases
Spam

• Electronic junk mail

• Spammers use anonymous remailers
• Mailing list sources
• Online personal information services
• Dictionary attack software
• Do not respond in any way!
Anonymous Remailers

• Some good FAQs

• http://www.andrebacard.com/remail.html
• An example
• http://www.anonymizer.com
• What they know about you
• Not an endorsement
This banner ad mimics a dialog box. Do not
click “OK”.

• Fake banner ads like this one are very annoying

• Spawner – spawns its own pop-up ads
• Mouse-trapper
• Turns off browser’s Back button
• Disable pop-ups ad’s close button
• No way to close ad – must reboot
• Spam is a source of spawners and mouse-trappers
Fraud

• The crime of obtaining money or some other benefit by deliberate

deception.
• Most common forms of IT fraud
• Identity theft
• Credit card fraud
• Scammers and con artists
• Financial swindles
Protecting Your Online Privacy

• Implement appropriate security measures

• Get a copy of your credit report
• Use:
• Junk e-mail account
• Anonymous remailer
• Stealth surfing service
• Common sense
• Deal with recognized, trusted e-retailers
• Keep important numbers and passwords secret
• Use good passwords
• If your computer acts strangely, find out why
 What is M arketing Autom ation?
A m oder n m ark et in g sy stem of record
Marketing automation refers to software platforms and
technologies designed for marketing departments and
organizations to more effectively market on multiple
channels online (such as email, social media, websites, etc.)
and automate repetitive tasks.
• A Process
• NOT a Software
 The M odern M arketing Era
People have no interest in
being undated with
product specs.

What is Marketing Automation? age2 3

PPage
Automation Makes Marketing
More Valuable

Old school marketing methods

don’t cater to today’s buyer.
What You Need in Your Toolk it

5. Marketing
1. Ta rget in g. 2. En gagem ent 3. Conv er sion 4. A n a ly sis Technology

Th e 5 Ten et s of M oder n M ark et in g

Get to Know Your Audience’s
Digital Body Language

Analyzing behavioral insight helps you:

Increase revenue performance with

qualified marketing leads.

Align marketing to sales with process

and system integration.

Demonstrate marketing value and

accountability.

Establish a Modern Marketing system

of record.
Get Down with Data
Make the most of what you
already know…

With the right strategies you can

enhance campaigns and provide
relevant offers.

Campaigns suffer when built with

bad data.
Target Your
Communication

Segmenting your database can

be hard!

Buyer profiles help marketers

understand where to focus
marketing resources.

“If you don’t know where

you’re going, you might
not get there”
— Yogi Berra
 What Social Say s About Buy ers

Social media enables you to

capture:

-Interests
-Influence
-Connections
-Sharing behaviors
 Triggering Content
Fire Wh en Th ey ’re Ready !

Marketing automation supports content

Rules of
delivery based on interest, inquiry, and Engagement
engagement.

When a prospect clicks on your

Facebook Page, predefined rules help
you present information specific to their
topical interests.
 Right Tim e, Real Tim e
Not on You r Tim e

Automation helps you deliver content to

the right person at the right time.
Email Centralizes Multi-Touch
Communication

Email is still the hub that

supports marketing
communications.
Report Beyond Opens
and Clicks

Get visibility into which

email elements make the
most impact.

Then you can fine tune

your trigger-based
marketing campaigns and
serve the right message.
Social M edia + Content
= Inbound Influence

“If content is fire,

social media is the
gasoline that fuels it.”
— Jay Baer, Author,
“Youtility”
 Buyers Leverage All Sorts of Channels
to Find Out About You!

Automation helps you cultivate a

role in the independent discovery
process.
How do you find out
what they need?

Circulate and track content based on

buyer profiles and segment your
prospects and customers according to
their roles, interests, or other attributes
that make sense for
your business.

Make your marketing work for your

audience, and for you!
 Lead M anagement

Make sales and marketing BFFs with a

3-step lead qualification process

1. Define each stage of the 2. Determine what criteria 3. Create a lead scoring
buying cycle. will be used to arrive at model.
those definitions.
Automation helps you get your buyers
where they’re going
Routing your leads helps organize your
marketing AND give your audience the
right content they need
Before they’re ready to buy,
can you act on the fly?

You just need a

little nurturing!
Before they’re ready to buy,
can you act on the fly?

Nurturing offers an innovative

approach to managing different
types of leads, based on interest
or other profile attributes.
Marketing automation has automated
lead scoring in place so prospects
actively opening all communications sent
by marketing receive the appropriate
response.
It’s not just about
closing the deal!

Help your sales reps become the

information concierge buyers need to
succeed.

SiriusDecisions estimates that the

buyer’s journey is 70% complete by the
time they contact a sales person.
Drive Sm art M arketing

Business Intelligence, or BI, is the brains

of your strategy and sales operations.

Richer profiles feed sales intelligence,

such as prospect scoring, to help
salespeople identify likely buyers.
 But wait, there’s m ore!

Automation helps yield

key data, including:

Reporting to understand how marketing

activities and campaigns are driving pipeline,
revenue, and ROI.

Website analytics reporting for insight into

demand generation performance

Database health reporting to help diagnose

the health of the marketing database
Find the balance of marketing
art and science

Marketers are streamlining

campaign execution to better
target, engage, convert, and
analyze business in more
meaningful ways.