Customers who are extremely satisfied are 6 times more likely to repurchase products
3 revenue streams associated with each customer: base spending amount, growth spending amount as they continue using the service/stay in market, referrals. (breakeven acquisition cost occurs after 1 year)
Mass media: cr was owned by intermediary in a channel of distribution
B2B market: customer info stored in field sales force… multiple and confusing customer contact points existed
Transactional marketing: center around products and single economic exchanges (goal is in getting mkt share…product focused)
CLV becomes key metric: it incorporates both revenue and cost to serve customers, customer/employee satisfaction, and loyalty.
CRM consultants Don Peppers: info driven: every step in process adding to customer database is essential to drive CRM strategy and programs: Identify customers, differentiate them, interact with them, customize some aspects of organization’s dealings (tailored communications/specialized offers).
Sales force automation: cost efficient: tools like call reporting and checking order, direct mail sales, telemarketing (follow up qualified sales leads), mgt tools like sales forecasting and reporting.
Yellow Transportation: track shipment status and personalize pages (specify shipping time and pick up address)
Visitors on a site enters information for registration: email address and name… profile info (useful for targeting and sending personalized email campaigns which would in turn generate higher response)
CRM process
Targeting: identify valuable customers and send direct marketing communication abt goods and service
Personalization: create specialized content for customers with a known profile
Customization: creation of new content, service, product based on needs and wants of individual customers
Anonymous profiles: created without knowledge of prospective customer (click stream data) gathered from cookies
–cookie: small text file that stores information and data about user activity
Identified profiles: collected data explicitly provided by known prospect (register)
Rule based personalization: base on known characteristics weather.com)… static
User controlled personalization: user choose content displayed… instantaneous
Info-driven personalization: use complex model to assign dynamic content