eCRM:

1 to 1 Marketing
 One-to-One Marketing

One-to-One Marketing
An individualized marketing method that
utilizes customer information to build
long-term, personalized, and profitable
relationships with each customer.

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 What Is One-to-One
Marketing?
One-to-One
One-to-One With
WithaaGoal
Goal of…
of…
Marketing
Marketing is...
is...

Individualized
Individualized Strong
Strong Relationships
Relationships

Information-Intensive
Information-Intensive Customer
Customer loyalty
loyalty

Long-Term
Long-Term Oriented
Oriented Profitability
Profitability

Personalized
Personalized Cost
Cost Reduction
Reduction
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 One-to-One Marketing
Focuses
Focuseson
onShare
Shareof
ofCustomer
Customer
One-to-One
One-to-One Develops
Marketing DevelopsCustomers
Customers
Marketing
Finds
FindsProducts
Productsfor
forCustomers
Customers

Focuses
Focuseson
onShare
Shareof
of Market
Market
Mass
Mass Develops
Marketing DevelopsProducts
Products
Marketing
Finds
FindsCustomers
Customersfor
forProducts
Products
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Presentation topics

Why are companies moving to CRM ?

What’s in it for you?
1 to 1principles and best practices
Other challenges
eBusiness Key Concepts
 eBusiness
 The strategy of how to automate old business
models with the aid of technology to maximize
customer value
 eCommerce
 The process of buying and selling over digital media
 eCRM (eCustomer Relationship Management)
 The process of building, sustaining, and improving
eBusiness relationships with existing and potential
customers through digital media
eBusiness Processes

WHY Customer Relationship

WHAT Redesign Business

Processes (Outside-In)

HOW Applying Technology

 CRM has become the #1 priority for
CEOs …
Customer Relationships Have
Become the top priority for CEOs Worldwide
1. Relationship with Customers
2. Cost Competitiveness
3. Effective Use of Information Technology
4. Managing Change
5. Shareholder Value
6. Revenue Growth
7. Industry Restructuring
8. Globalization
9. Value-Added Supplier Relationships
Source:A.T. Keamey,1994 Executive issues Survey;
A.T. Keamey,1997 CEO Global Business Study

Figure 1:Top Executive Priorities Ranked By Percent Citing Issue As “Critically Important”
Why the shift in focus to CRM?

Most companies have already attained

operating efficiencies and optimum
productivity through past efforts of :
 Downsizing
 Strategically outsourcing non-value added actives
 Business Process Reengineering

Products in many industries have become

commoditized forcing companies to sacrifice
margins for sales volume
Presentation topics

Why are companies moving to CRM ?

What’s in it for you?
1 to 1 principles and best practices
Other challenges
Where do you go from here?
 And oh, check these numbers…

Cutting customer defections by just 5% has

the effect of boosting profit between 25% and
85%.*
Today ,the average business is losing between
15-35% of its customers annually**
69% of these defections are due to a poor
sales or service interaction with the
customer**

*Harvard Business Review

**Forum Corporation
 The 80/20 Principle

80 / 20 Principle
A principle holding that
20 percent of all customers generate
80 percent of the demand.

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Other reasons why you need 1 to 1

Increase customer loyalty

Get more business per customer
Become less dependent on price
Increase customer satisfaction
Save time
Speed up your sales cycle
Our Objectives
 1. Get customers
 2. Keep customers
 3. Grow customers

The only difference is how firms do this

 Share of market vs. share of customer

Customer
Needs Satisfied
Share of Market

Mass Marketing

Customers
Reached
 Share of market vs. share of customer
The longer the bar,
Customer The higher unit
Needs Satisfied Margins will be
1 Share of Customer

to
Mass Marketing
1

Share of Market
Customers
Reached
In four words …
 Treat different customers differently
A lasting competitive advantage
The only true competitive advantage
comes from the understanding you
have of your customer that your
competitors don’t.

This information has to come from

the customer.

The more effort customer invests,the grater

their stake in making relationship work.
Going to a competitor = Reinventing the relationship
Presentation topics

Why are companies moving to CRM ?

What’s in it for you?
1to1 principles and best practices
Other challenges
 Summary of 1to1 strategies

Identify Differentiate Interact Customize

Customer: Value: Learn more: Customer Need
-Identities -Actual -Needs Set:
-Contact info (current profits) -Value -Product
-Transactions -Strategic -Preferences -Service
-Interactions (potential value) -Behaviors -Delivery
-Give the right -Bundles
people access Needs:
when they -Individual
need it -Segment

One view of the All customers are Never make a Use your
customer: not created equal customer tell us knowledge about
Integrated the same thing customers to
customer data twice customize
Identify–What information do you
need?
Goal: obtain more and better information about a
greater number of your customers… and use it to
build relationships
Name, rank, serial number, phone, fax, email
History,transactions
Customer needs
- Business objectives
- Complaints
- Choice of communication channel
- Habits and preferences
Revenues, profitability, LTV
- Potential value
- Lifecycle stage
Source:Insight Technology Group,1998
 Where is the customer data?
Where is it? Who has access?
Who manages it ? Who owns it?

Sales Marketing Operations Internet

Customer Collections Other Call

Service Department Providers Center
How do you manage it ?
Make sure individuals are recognized at
all contact points
Link customer interactions over time,
across all divisions
Give the right people access to this info
at the right times
Figure out who “the customer” is when
the “customer” is an enterprise
 “One Customer” view is key
Integrate customer information across the value chain

Customer A
Customer A
Customer A
Customer A

Customer A

Call Sales
Marketing The Web
Center Force
Differentiate
Customers have different values to the
enterprise
 Actual value
 Strategic value=share of customer,not market

Customers have different needs from

the enterprise
Tiering by actual value
First: Determine
Actual Customer LTV

First Second Third Fourth Fifth

Tier Tier Tier Tier Tier
Tiering by strategic value
Use dialogue to determine
Customer’s potential

First Second Third Fourth Fifth

Tier Tier Tier Tier Tier
Naming the tiers
Keep These Customers

Grow These Customers

Actual
Strategic
Servicing Costs

Fire Them?
Basis of customer differentiation
 Differentiate them by their NEEDS
 What the customer needs, not what you
want to sell
 Some needs are apparent through
transactional records
How to think about NEEDS
Initial learning about product
Marking initial contact
Decision in what to buy–style, design, information
Decision in how to configure
Preferences – color, size, shapes, added services
Pricing, billing, financing
Pick-up, delivery
Usage – purpose, frequency, nature, patterns
Errors, complaints
Next purchase
 Interact – Interaction strategy
Goal:Generate more customer feedback less expensively … and
use it as a competitive advantage
- From expensive sales people to call center … to the even less
expensive Web site
- Identify all contact points
“We identified all guest contact points, and the employees

most likely to be involved. It was eye-opening. No one

realized how many opportunities we were missing.”
Patrick Kennedy, GuestNet CEO
- Generate feedback, not just messages
- Engage your customers in an ongoing dialogue that enables
you to learn more and more about their particular needs,
priorities, and interests …
Benefits of Interaction
Uncovers
 Needs (so you can sell more)
 (Dis)Satisfaction
 Risk of defection
 Complaints
Makes you smarter about the customer
each time
Helps build barriers to exit
Touch point integration
Integration of all customer contact
points is becoming increasingly
important as customer information
migrates to the Web

… Beyond the Phone

 Interaction Using Call Centers
Measuring the efficiency of call centers:
 Hold times and call abandonment rates
Measuring their effectiveness:
 Ratio of complaints handled on first call
 Percentage of inquiries generating leads
 Share-of-customer data gathered
What are the implications when you
off load support the web? How
does the call center change Review the metrics list – which metrics are
efficient vs. effective?
Which ones support Learning Relationships?
Customize
 Reward customers for collaborating with
you by tailoring whatever you possibly
can for them: service, fees, billing,
delivery, terms, product…
- Low cost
- High efficiency
- Based on individual customer
preferences
How mass customization works
 Production and service delivery
processes are modularized
 Component elements or services are
mass produced
 Configuration is digitally controlled
 Finer granularity of modules leads to
larger number of possible “fits”
Mass customization musts
1. Demonstration that you know the customer
(pre-filled out forms)
2. Remembering transactions, history
3. Remembering specific preferences
4. Using knowledge to deliver individual
satisfaction
5. Making it EASY to be a customer
6. Anticipating needs
7. Delivering
Presentation topics
Why are companies moving to CRM?
What’s n it for you?
1to1 Principles and best practices
Other challenges
Infrastructure
Change hurts …
1. Start small
2. Expand gradually, culture changes
take time
3. Don’t forget about training
4. Hold people accountable for the right
things
5. Measure and reward the right things!
Sales
Identify and track the right information
 - Sales forces automation
Differentiate
 Spend the right time and effort on different
activities.
Interact
 never asking the same thing
Customize
 Change behavior based on feedback
Call center
Move from cost center to profit center
Sell more to customers
Support for complicate products
Ancillary services (Increase loyalty)
Pre-qualify leads
Low-cost market research
Improve Complaint discovery and tracking
Practices
1to1 web site
Requirements:
- Identify and remember visitors
- Differentiate visitors on each visit
- Does this fast!
- Tracks and interprets click streams
- Remembers all this!
- Customizes based on individual
preferences
Top 5 Reasons CRM Efforts Fail
from the Home office in silicon valley

5. There isn’t a wealth of experience in this area. No one

has got it down to a science.
4. The inability to really effectively implement strategy –
even if you have the right strategy, process, and rules
coding.
3. The company thinks they understand strategy and
process well, but really don’t.
2. No strategy, tactics, business rules or processes in
place.
1. The company has processes buy they are bad
processes ( like any automation, CRM tools make good
things better and bad things worse faster).