Pillar 1 of CRM

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Pillar 1 of CRM by Mind Map: Pillar 1 of CRM

1. Marketing strategies

1.1. Transactional marketing

1.1.1. transactional marketing interest broad target audience priorities market share Having high proportion on market share rely on high transaction heavily focus on branding brand awareness brand reputation manufacture goods neutral CX

1.2. Relationship Marketing

1.2.1. relationship marketing interest Personalized customer experience approach Priorities wallet share Customers spending on category Rely on returning customers, loyal customers All departments have manufacture power Streamline target audience positive CX

1.2.2. relationship marketing advantage Lower cost focuses on customer retainment, cheaper to retain customer than acquiring new customer good reputation = positive word of mouth CHEAPEST ADVERTISING METHOD built loyalty how to build loyalty dimensions of customer loyalty types of customer loyalty increase revenue revenue from repeat purchase, cross-selling and up-sell positive word of mouth and good referrals will bring in new customers.

1.2.3. steps in successful relationship marketing customer satisfaction cater to customers needs and meeting customer expectation will improve customer experience Deliver customer value customer loyalty strong relationship towards the brand customer trust and commit to the brand advantage against competitor in industry company profitablity word of mouth, positive referrals increased wallet share lower operating cost

2. 3 pillars of CRM

2.1. create and deliver value to targeted customers at a profit

2.2. Focus on acquisition and retention of customers

2.3. adopt information technology

3. What is CRM

3.1. Why use CRM

3.1.1. CRM is to help companies deliver quality service by catering to customer needs and increase company's profitability

3.2. what are the benefits of CRM

3.2.1. Cost effective

3.2.2. better knowledge of customers

3.2.3. Enhanced efficiency

3.2.4. Positive customer experience

3.2.5. Sustainable competitive advantage

4. 3 perspectives of CRM

4.1. Strategic CRM

4.1.1. Customer profile is collected to access their needs and wants

4.1.2. cater to their specific needs, improve customer relationship

4.1.3. create long-term relationship and develop loyal customer

4.1.4. The data could be collected through survey or cookie on websites

4.1.5. track customer behaviour

4.2. Operational CRM

4.2.1. Use technology to integrate it into business to improve customer experience Marketing Automation(MA) Digital marketing via emails, social media, text, SMS, digital advertising Sales Force Automation(SFA) Self service kiosk Service Automation(SA) 24/7 customer service using bots track customer issues and questions

4.3. Analytical CRM

4.3.1. analyze patterns and prediction of customer purchase pattern

4.3.2. market analysis, e.g. competitor, customer attitude towards brands

5. Francis Buttle's CRM model

5.1. Primary Stages

5.1.1. customer portfolio analysis To determine priority group and make decision in the best interest of growing company profitability

5.1.2. customer intimacy provide personalized experience to give closure between business and customers

5.1.3. network development CRM processes aligned across various departments of the organisation

5.1.4. value proposition developlent Provide value to loyal customer to keep them within the loop of the company, having advantage against competition

5.1.5. Managing customer life cycle Strategies and tools to acquire, develop ad retain customers

5.2. Supporting conditions

5.2.1. leadership and culture Leadership position to give direction on CRM among the organisation

5.2.2. data and information technology sharing important data and information to keep people updated

5.2.3. people Empower and motivate employee to develop a positive working environment

5.2.4. Processes Processes need to be in sync for be succesful

6. Customer portfolio management(CPM)

6.1. What is CPM

6.1.1. CPM analyses customer profile and segment customers, provide clear understanding of audience for company

6.1.2. CPM help company determine priorities of target segment, determine customer acquisition, development, retain and elimination

6.2. Basic disciplines of CPM

6.2.1. Market segmentation what is segmentation divide and split broad group to segments Taking hair clip product as an example Market segmentation process Identify categorization of business identify segmentation variables analyze market using these variables assess value of the market segments select market segment to serve

6.2.2. sales forecasting offer realistic future value of customer

6.2.3. activity based costing offer realistic view of customer profitability

6.2.4. costomer lifetime value net margins earned from the relationship with customer Calculation for customer lifetime value

6.2.5. Data mining determine patterns and relationship from customer data

7. Value proposition

7.1. Delivering value to customer

7.1.1. benefits of delivering value to customer Customers are less likely to switch brand gain customer loyalty competitive edge against competitor

7.2. value creation strategies

7.2.1. product leadership uses innovation to improve product and services Adopt self service kiosk to improve service drive through order delivery Mobile app

7.2.2. operational excellence Adopts lean management to provide efficiency and low prices to customers.

7.2.3. customer intimacy personalized product to appeal to masses menu are different in different regions Hong Kong McDonald serves porridge in their morning menu Singapore has McSpicy

7.3. Using MacDonald as a brand

8. customer experience

8.1. Customer experience of purchasing journey

8.1.1. customer journey map a customer journey experiences, including steps, identify pain points, touchpoints and department it allow company to identify pain points so company can improve areas that are lacking walk-in subway, go to queue section, choose bread, choose ingredients, choose set go to payment counter, take away or eat in store

8.1.2. customer perception of value “Value is the customer’s perception of the balance between benefits received from a product or service and the costs incurred to experience those benefits” To create positive value, organisations must ensure that the overall benefits gained by customers always outweigh the potential costs

8.1.3. components of costs monetary subway offers students meals to help affordability time food are oven ready so it usually take only 10min to have the meal ready to consume psychic financial risk performance risk physical risk social risk psychological risk

8.2. taking subway as an example