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CRM for Retail Customers

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Carlos Torres

on 9 October 2014

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Transcript of CRM for Retail Customers

Business @ the speed of thought
“A manufacturer or retailer that responds to changes in sales in hours instead of weeks is no longer at heart a product company, but a service company that has a product offering”
1.- Respond to change quickly
2.- Understand their prime mission – satisfy their customers’s needs and wants

"(CRM) is a system for managing a company's interactions with current and future customers" - Wikipedia



"All the tools, technologies and procedures to manage, improve, or facilitate sales, support and related interactions with customers, prospects, and business partners throughout the enterprise” - Sweeney Group



"Marketing Philosofy based on putting the customer first."
Collection and analysis of information designed for sales and Marketing decision support to understand and support existing and potential customers needs. - APICS

CRM Technologies


"Everyone who can influence the customer experience is provided with critical information about the customer"


DATA WAREHOUSE
Technology

Rewards based upon using the technology channels (Cost reduction on price)
By preferred Channel
Preferred Contact Channel (Internet vs Retail)
(Value proposition - In store Assistance)

Service - minded customers - Call centers

By customer experience
- Treated as if they were all the same..
* Same level of service
* Same fees, same charges

More and more companies are treating customers differently based on the differences in the customers contributions to the bottom line.
By customer Value
Stages a new product goes through from beginning to end.

Development
Align product / service development with what customers actually want – Data gathering – Test – Key customer in crafting phase.

Introduction
Sales are low and additional cost for distribution making this stage a time of negative flow – CRM focused on supporting promotional (advertising)

Growth
(Rapid revenue growth, customers beging seeking it, Distribution may be expanded at this point, During this stage competitors may enter the market, Promotional cost increase to sustain market value) Inventory market levels, avoid Stockouts or delays that could lead customer switching brands

Maturity
Most profitable, Sales continue to increase but slow..
Competition will result in decreased market share and or prices, similar products from competitors – promotional cost increase

Decline
Sales begin to decline, product outdated, customer taste change, Customer care is critical in this stage.. Migrate to the newest product.


CRM – Product Life Cycle

How the product and service got into the hands of the customer

Now days.. the contact channel strategy - most cost effective and customer preferred channel is used to distribute product and services.

OEM's - T1's
1.- Research

2.- Creation of RFQ's (Request for proposals)

3.- Review of proposals & contracts

4.- Risk Exposure = Cost vs Reliability



"The potential value of Life time customers has driven the shift toward customer-focused organization"

Evolving relationship

"Turning (One time customers) to Customers for life"
Goal of CRM

What should be consider in first Instance...

What has driven the change to a customer focused business environment?


CRM

* Not the core competence

* Expertise from some companies on CRM Activities
(Technology, training)

* Add value, identify trends, anticipate problems


Role of Information in CRM

It helps the B2B company to save strong and long-lasting relationships with the customer.



Niche – Customization
CRM Strategies for Specific Customer Segments
CRM Strategies for Specific Customer Types

CRM Strategy Components

1.- Easy to do business

2.- Add Value (integrating products and information so that customers feel more educated during and after the decision-making process

3.- Innovative

4.- Contact Points from the customer perspective


Customer Focused Business


* Single transactions vs Sustained relationships


* Lifetime customers lower TOTAL Marketing cost


* Easy to satisfy


* Increased revenue and profit opportunities

Life time customer

Easy to Shop – Easy to gather information
Customer habits

** Each of these links connects the suppliers to their users; therefore, no matter where you are located... You will always have a customer to manage.

** CRM Helps to create and maintain demand for the products and services being produced.




CRM Definition

Customer Relationship Management
1.- Understand what customers want

2.- S
upport existing and potential customers needs

3.- Increase customer expectations

"Customer is harder and more expensive to win and keep"
The shift to a customer-focused way of doing business
(Retooling of all the business processes that touch on the relationship with the customer)
Identify each individual in the organization who can affect these critical relationships.

Develop capacity:
1.- Improve experience tailored to their needs
2.- Allow an organization to address the various types of customers it serves at different stages in their particular life cycle.
Culture
Organization
TECHNOLOGY
PROCESSES
Behaviors
BEHAVIORS
"Relationship evolution (attention to price)Down and recognition of product & service Value..
Then a dependency"



Lic. Carlos Yonadab Torres Serrano, CSCP
Email: carlos.torres@europartners.com.mx



Strategic decision based upon competitors
(Blue and Red Ocean)

UVP = Unique Value proposition / Service, Trust, Reliability
Based upon customer performance, analysis, profitable customers
Past: Product / Service (no customer need identified) technology based upon Marketing and time efforts to create the need.

Now: Customer need - Product design
Market research, audience Segmentation, identifying the right promotional message and contact channel for the various segments.

“Churn”
The processes of customers changing their buying preference because they find better and/or cheaper products and services elsewhere
Win-Back Customers
Loyal Customers
Less vulnerable

Particular customers needs, or reactions to previous offers.

Good opportunity for cross-selling/up selling

Communication should be made ASAP!
New segmentation…
Based upon customers actual buying behaviors...
Old segmentation.. Based upon
- Inexpensive, moderate, designer
- Children, adolescents, adults

"Pareto Principle (small % of customer base provides a significantly higher percentage of revenues"

Differences between CRM for B2B and B2C




B2B and B2C marketing operates differently, they cannot use the same software.
B2B (Business-to-business)
“Understand its own customers better”
B2B companies have smaller contact databases than B2C
The amount of sales in B2B is relatively small

In B2B there is less figure propositions, but in some cases they cost a lot more than B2C item
Relationships in B2B environment are built over a longer time
Involve further IT solutions
B2B look for complementary core competences
NYC - Know your customer! Needs, requirements, trends, seasonality...
Knowledge of the customer’s business requirements
Continuous Improvement
How you help your customers be better off…
How the customer’s business operates, what its limitations and concerns are, how the product or service fits into the customer’s business, what requirements may be part of the purchasing process.

"Get closer than ever to your customers.
So close that you tell them what they need well before they realize it themselves".

- Steve Jobs (Apple)
Extensive training of sales and service representatives

Great attention paid to profiling customer needs
Avoiding problem or remedying them quickly,

Periodic analysis of account data to identify areas for improvement.

Sources of customer information:
Sales / Services representatives

Purchased data
VOC- Voice of the customer




CRM Process depends on data

Customer needs, concerns, what they’re not interested in, competitors
Distribution Points (Retailers, internet, Wholesalers)
VMI - Vendor managed Inventory
More useful in acquiring new customers than in managing relationships with existing customers
“Give voice to things that a business would not normally hear”
Hear Straight from it’s customers insight more able to anticipate desired products or services - Flexi Group
(Direct discussions, surveys, focus groups) Directed or non-directed
Establish clear performance expectations

Outsourcing the CRM

Risk?
Geographical proximity, work styles and communication
Unsatisfactory performance can undo the CRM strategy
Measure, be accountable and responsible

Be prepared
Exit strategy (Plan B)
Prospective Customers
Vulnerable Customer
Further steps may be required
Collection & analysis of customer data
- Transaction records

- Purchase frequency

- Volume how purchased are financed.
Helpful Tips
Salesforce Success Story
Full transcript