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

á
ðhat Is One-to-One
Marketing?
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One-to-One Marketing
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eBusiness Key Concepts
ë eBusiness
The strategy of how to automate old business
models with the aid of technology to maximize
customer value
ë eCommerce
The process of buying and selling over digital
media
ë eCRM (eCustomer Relationship Management)
The process of building, sustaining, and improving
eBusiness relationships with existing and potential
customers through digital media
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ð  Customer Relationship

ð AT Redesign Business
Processes (Outside-In)

Oð Applying Technology
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Customer Relationships ave
Become the top priority for CEOs ðorldwide
m. 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,m994 Executive issues Survey;
A.T. Keamey,m997 CEO Global Business Study

Figure m:Top Executive Priorities Ranked By Percent Citing Issue As åCritically Important
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ºownsizing
Strategically outsourcing non-value added actives
Business Process Reengineering

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M arvard Business Review


MMForum 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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Customer
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Share of Market

 
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Reached
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Customer ( | 
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 Share of Customer

  
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Customers
Share of Market
Reached
¢  # ^
ë Treat different customers differently
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The more effort customer invests,the grater


their stake in making relationship work.
Going to a competitor = Reinventing the relationship
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Identify ºifferentiate Interact Customize


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-Identities -Actual -Needs 0|
-Contact info (current profits) -Value -Product
-Transactions -Strategic -Preferences -Service
-Interactions (potential value) -Behaviors -ºelivery
-Give the right -Bundles
people access 5||
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
¢ |  oð        || 
: obtain more and better information about a
greater number of your customers^ and use it to
build relationships
5|22 ||2|22|
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- Business objectives
- Complaints
- Choice of communication channel
- abits and preferences
||| 226(4
- Potential value
- Lifecycle stage
Source:Insight Technology Group,m998
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ðhere is it? ðho has access?
ðho manages it ? ðho owns it?

Sales Marketing Operations Internet

Customer Collections Other Call


Service ºepartment Providers Center
O#    | 
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 åthe customer is when
the åcustomer is an enterprise
åOne 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 ðeb
Center Force
ºifferentiate
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
£ 8|||
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First Second Third Fourth Fifth


Tier Tier Tier Tier Tier
Tiering by strategic value
Use  | to determine
Customer]s |  

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
ºifferentiate them by their NEEºS
ðhat the customer needs, not what you
want to sell
Some needs are apparent through
transactional records
ow to think about NEEºS
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Interact o Interaction strategy
||||  ||| | || |^
 |  ||
|
- From expensive sales people to call center ^ to the even less
expensive ðeb site
- Identify all contact points
åðe 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)
(ºis)Satisfaction
Risk of defection
Complaints
Makes you smarter about the customer
each time
elps build barriers to exit
Touch point integration
Integration of all customer contact
points is becoming increasingly
important as customer information
migrates to the ðeb

^ Beyond the Phone


Interaction Using Call Centers
Measuring the efficiency of call centers:
old 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
ðhat are the implications when you
off load support the web? ow
does the call center change Review the metrics list o which metrics are
efficient vs. effective?
ðhich 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
- igh efficiency
- Based on individual customer
preferences
ow 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 åfits
Mass customization musts
m. ºemonstration 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 EAS to be a customer
6. Anticipating needs
7. ºelivering
Presentation topics
ðhy are companies moving to CRM?
ðhat]s n it for you?
mtom Principles and best practices
Other challenges
Infrastructure
Change hurts ^
m. Start small
2. Expand gradually, culture changes
take time
3. ºon]t forget about training
4. old people accountable for the right
things
5. Measure and reward the right things!
Sales
-| |

- Sales forces automation
8|||
Spend the right time and effort on different
activities.
-| 
never asking the same thing
 |
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
mtom web site
|:|| 
- Identify and remember visitors
- ºifferentiate visitors on each visit
- ºoes this fast!
- Tracks and interprets click streams
- Remembers all this!
- Customizes based on individual
preferences
Top 5 Reasons CRM Efforts Fail
from the ome 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 o 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.
m. The company has processes buy they are bad
processes ( like any automation, CRM tools make
good things better and bad things worse faster).