CUSTOMER RELATIONSHIP
MANAGEMENT--- CRM
Keeping customers for life
JOE Girard- Relationship
Marketing
Database Marketing
Start Marketing stop selling
Law of 250
How to get more out of existing customers
Keep customer for life
Nestle
In France ,people go on long vacation in summertime
Long highways-- campgrounds all around France which
are well maintained.
But what about families with small babies?
Nestle came up with the answer-- rest stop structures
alongside the highway where parents can feed and change
their baby.
Each summer Nestle hostesses at these rest stops
welcome around 150000 baby visits .
Nestle
The babies are given free food--
There are free disposable diapers
This generated tremendous word-of - mouth publicity.
In all Nestle advertising , direct mail and packaging ,
parents are reminded of a toll- free number for free baby-
nutrition counseling service.
Nestle maintains and updates a database of new mothers
with the names and addresses extracted from maternity
records.
Nestle
The first mailing contains a reply card on which the new
mother can fill in baby’s name and indicate interest in
receiving further mails.
Based on this , Nestle sends 6 mail packages --- after 3
months,6 months, nine months, 1 year, 18 months and 2
years.
These packages contain -- free samples of baby food and
promotional coupons and tips from dieticians and
pediatricians.
Nestle
The first birthday package contains--- chocolate cake mix,
candles, recipe card telling how to bake the cake .
The mother also gets some special gifts.
This helped in creating a powerful bond between Nestle
and the mothers.
Nestle used the principles of direct marketing/relationship
marketing/one-to -one marketing to become the number 2
player in France.
Customer Relationship Management
Basics of CRM
Key words --- Data warehouse, data
Mining
Steps in CRM
Customer Relationship
Management.
It is a process or methodology used to learn more about
customers' needs and behaviors in order to develop
stronger relationships with them.
CRM is as a process that will help bring together lots of
pieces of information about customers, sales, marketing
effectiveness, responsiveness and market trends.
CRM helps businesses use technology and human
resources to gain insight into the behavior of customers
and the value of those customers.
Advantages of CRM
Using CRM, a business can:
· Provide better customer service
· Increase customer revenues
· Discover new customers
· Cross sell/Up Sell products more
effectively
· Help sales staff close deals faster
· Make call centers more efficient
· Simplify marketing and sales processes
The types of data CRM
projects collect
Responses to campaigns
· Shipping and fulfillment dates
· Sales and purchase data
· Account information
· Web registration data
· Service and support records
· Demographic data
· Web sales data
Data Warehouse
Defn :The process of organizing information in such a
way as to create data based knowledge
The goal of business intelligence and data warehousing
- changing data into information and knowledge.
Data Warehouse
A database where data is collected for the purpose of
being analyzed.
The defining characteristic of a data warehouse is its
purpose.
Data Warehouse
Most data is collected to handle a
company's on-going business.
This type of data can be called "operational
data".
The systems used to collect operational
data are referred to as OLTP(On-Line
Transaction Processing).
Data Warehouse
A data warehouse collects, organizes, and makes
data available for the purpose of analysis - to give
management the ability to access and analyze
information about its business.
This type of data can be called "informational
data".
The systems used to work with informational data
are referred to as OLAP (On-Line Analytical
Processing).
Data Warehouse
Bill Inmon coined the term "data
warehouse" in 1990. His definition is:
"A (data) warehouse is a subject-oriented,
integrated, time-variant and non-volatile
collection of data in support of
management's decision making process."
Data Warehouse
Subject-oriented - Data that gives information about a
particular subject instead of about a company's on-going operations.
Integrated - Data that is gathered into the data
warehouse from a variety of sources and merged into a coherent whole.
Time-variant - All data in the data warehouse is
identified with a particular time period.
Non-volatile - Data is stable in a data warehouse. More
data is added, but data is never removed. This enables management to
gain a consistent picture of the business.
Data Warehousing
The process of visioning, planning,
building, using, managing, maintaining,
and enhancing data warehouse
Data Mining
Defn:The process of finding hidden patterns and
relationships in the data.
Analyzing data involves the recognition of significant
patterns.
Human analysts can see patterns in small data sets.
Specialized data mining tools are able to find patterns
in large amounts of data.
These tools are also able to analyze significant
relationships that exist only when several dimensions
are viewed at the same time.
Data Mining
Users can ask data questions using standard
queries when they know what they're looking for.
Queries can be written for questions like this:
"Which of our out-of-town customers have given
us the most business in the last year?"
Data mining is needed when the user's questions
are more vague or general in nature.
Data mining questions would include: "What
attributes characterize the customers that gave us
the most business in the past year?"
