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From CRM to FRM: Applying CRM in the Football Industry

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Shruti Parmar

on 11 August 2014

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Transcript of From CRM to FRM: Applying CRM in the Football Industry

Some Belief...
CRM VS FRM
LIFE CYCLE FOR FOOTBALL FANS
CRM MODEL
Segmentation on special nature of its customers
Supporters/fans were split by differing
values to their club
loyalty
psychological and physical needs
geodemographic characteristics
Why CRM failed in most football clubs
It originated as an IT Solution with little bit of direct and database marketing added in.
It concentrated more on transaction marketing at the expense of relationship marketing: dialogue, trust and mutual respect.
Relationship marketing was seen very superficial & its implementation was unsuccessful because the firm perceived it as a strategic option to be tested than a "belief" to shape of the future.

FROM CRM TO FRM: APPLYING CRM IN FOOTBALL INDUSTRY
- Shruti Saraf

It is a strategy used to understand customer needs and behaviours in order to develop a stronger relationship with them.
FRM was developed from the learning of success and failures on conventional CRM.
FRM is a unique way to build and love your fans.
But, CRM was misunderstood as a technology and had low customer based vision.
FRM delivers profitability while ensuring client partner expectation in revenue generation and customer expectation.
Loyalty levels in football industry are much greater than in conventional industries.
Relationship building approach helps in supporter retention.
For fan transactions marketing is considered profitable.
The aim/purpose of the CRM software was not clear.
Confusion about to use CRM tools to target customers and directly selling them VS a two way dialogue with them, give up market power to them and maintain long term commitments.
Aligning the CRM channels so that customers view were obtained was a difficult work.
Why CRM failed in
football clubs?
Segmentation on fans characteristics
The temporary fan
The local fan
The devoted fan
Fanatical fan
Dysfunctional fan
CRM MODEL
Segmentation on team winning vs entertainment provided
CASE STUDY
The author was offered the oppurtunity of being a part of the implementation of a new ticketing system leading to development of CRM.
Along with first hand information in Albion FC, questionnaires were sent to 92 other FCs, of which 25 responded.
Questions were asked on ability to undertake CRM activities, 9 out of 25 FCs did not have CRM.
Why CRM failed in
Albion FC
The IT Manager and Ticket Office Manager working under Finance Director to implement CRM.
Lack of consideration of either supporter or employee needs and interests.
No customer service measure was given hence employees were not clear on the level of service to be given to customers.
Very little communication between management and staff.
Staffs were not given formal training on CRM.
Why CRM failed in
Albion FC
The employees were not consulted, advised or involved in any project issue or policy decisions.
Fans were regularly frustrated at the lack of consistency between what was communicated by the club and what was told by ticket office staff.
The vital data collected through fan telephone calls were not fed in the back office department.
No clarity on what information was to be collected by the ticketing system to built data.
Why CRM failed in Albion FC?
Lack of consideration on type of data required and its useage lead to disastrous results.
Since, proper information was not provided 10% of the data was incorrect and duplicate.
Fans were left without tickets as they were not processed, it lead to bad publicity.
Focus was so high on the system CRM that the non-system aspect was overlooked.
The internet manager was not involved in the booking channel that created many problems.
RESULTS OF THE CASE
The CRM system could not get implemented in 10 weeks.
The club lost its reputation especially within fan base.
Incorrect information about loyalty programmes were spreading amongst the fans.
Fans were making regular complains in websites, local newspapers and phone calls.
Scopes in the football
industry
The football industry has a progressive attitude towards CRM.
Most of them find CRM strategies worthwhile and have implemented it.
It is now possible to maintain contacts with fans and not difficult anymore.
Challenges in the football Industry
Fans have more leisure choices and are more discerning in terms of customer expectation.
Due to the emotional nature of the game, it has to be understood that supporters needs to be recognized as fans.
Fans have different levels of loyalty that needs to be understood.
Don't allow the project to be hijacked by Finance/IT.
Concentrate on "people's issues"
Communicate with the staffs throughout the process.
Formal training in CRM is a must as they are the face to the customers.
Communicate changes with customers.
Possible Solutions of the
Case Study
CRM is about managing relationship with
SHAREHOLDERS
DISTRIBUTORS & SUPPLIERS
EMPLOYEES
COMMUNITY
END USERS
DEALERS
WHAT CUSTOMER WANTS?
WHAT IS CRM?
Listening to customers and seeing their perspective
Providing reliable excellent service
Installing IT to make sure that the service strategy happens
Ability to recover on the fly when you make a mistake
Delivering service above and beyond the expected
Listening to employee perspective and developing teamwork
Having management that lead by example
Competitors and their CRM strategies
FRM MODEL
STRATEGIC VISION AND LEADERSHIP
FAN-CENTRIC APPROACH & INTEGRATED AND HOLISTIC
UNDERSTANDING FAN NEEDS, DATABASE MARKETING & LIFE TIME VALUE
FAN LOYALTY STRATEGY
APPROPRIATE TECHNOLOGY
THANK YOU!
Full transcript