1 / 25

Information Systems

Retailing Strategy. Retail Market Strategy. Financial Strategy. Site Location. Customer Relationship Management “customer-centric retailing”. Retail Locations. Organizational Structure and HR Management. Information Systems. Customer Relationship Management.

cora-grant
Télécharger la présentation

Information Systems

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Retailing Strategy Retail Market Strategy Financial Strategy Site Location Customer RelationshipManagement“customer-centric retailing” Retail Locations Organizational Structure and HR Management Information Systems

  2. Customer Relationship Management A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a retailer’s most valuable customers. What is loyalty? Liking a retailer? Frequently shopping a retailer?

  3. A Loyal Customer . . . • Is committed to purchasing merchandise and services from a retailer • Resists efforts of competitors to attract the loyal customer • Has an emotional attachment to retailer • Personal attention • Memorable positive experiences • Brand building communications programs

  4. AnalyzeCustomer Data& IdentifyTarget Customers Learning ImplementCRMPrograms DevelopCRMPrograms Action CRM Process CollectCustomerData

  5. What Customer Data to Collect? • Data Mining – technique used to identify patterns in data • Market Basket Analysis • Identifying Market Segments • Identifying Best Customers

  6. Collecting Customer Data • Types of Information in the Customer Database • Approaches for Collecting Information • Privacy Concerns

  7. Information About EachCustomer in the Database • History of purchases • Purchase date, price paid, SKUs bought, whether or not the purchase was stimulated by a promotion • Customer contacts by retailer (touch points) • Visits to web site, inquires to call center, direct mail sent to customer • Customer preferences • Descriptive information about customer • Customer’s responses to promotions

  8. Approaches for Collecting Customer Information Need to have information connected with a specific customer identifier • Ask for identifying information • Telephone number • Name and address • Use frequent shopper cards • Link checking account number and/or third party credit cards to customer

  9. The Customer Purchase Cycle How the customer relates to the retailer: Uncover a need/ problem Discover where problem can be solved Visit stores Purchase product/ services Consume product/ services Customer “Lock-in” The Key: • Consistent execution of your “promise” Builds trust. • Customer trust that your store will always deliver  Loyalty. • BUT, your store’s “promise” is only as strong as your weakest link.

  10. A relationship is more than good customer service. Though that is vital… Efficient, simple, 360°, constant, unobtrusive, consistent with store “promise” It is more than intelligent one-off interactions. Though these are valuable… Every time you interact with a customer a loyalty contact is being made Relationships are longer term and broad-based. They create loyal advocates… You design, configure and promote products specifically for me You understand my past behavior - and you reward me for it You consult me on my needs - but you also pre-empt and surprise me You respect my permission - and you develop it, given my preferences Relationship What is a customer centric relationship? CustomerContact RightPerson RightMessage RightMedia RightTime Lifetime of Value MyProducts MyBehavior MyNeeds MyPermission understoodand rewarded consulted but pre-empted respected anddeveloped specific to me, ever-changing

  11. Retailer CRM problems in retailing How the customer relates to the retailer: Uncover a need/ problem Discover where problem can be solved Visit stores Purchase product/ services Consume product/ services Customer How retailers try to match the customer’s purchase cycle: Customer & Business Analysis Marketing Programs/ Campaigns/ Offers Store Operations/ Execution Selling Process Delivery, Setup, Installation Scheduling Customer Service Process But here are the problems: Difficult to manage customer data Time consuming, non-targeted campaigns Inconsistent Execution at Stores Disjointed or “single visit” selling process Inconsistent field service process Cost-center mentality

  12. Effective Segmentation Marketing Setting Goals CustomerExperience Agents of Change in Management Sales Measuring Progress Business Processes Implementation Planning Service Rewarding Results Right Skill Sets & Mindsets Vendors, etc. Right Technology Successful Customer Centric Strategies: 4 Key Elements CRM Strategy Components Consistency Across Functions Execution Performance Monitoring

  13. Customer Segmentation CRM Strategy Components • Enables an organization to understand: • Which customers / segments are most profitable • How to most effectively market to, sell to, and provide service to these customers • With this knowledge, a company can determine which segments will drive the greatest returns • Segmentation begins with the development of the customer profile: • Demographics • Purchasing history • Customer Life Cycle information • Key Questions: • Who do we want to target, and why? • What’s the value of “owning” this segment? • What data do we have? Quality? Expenses & benefits to improve? Effective Segmentation CustomerExperience Business Processes Right Skill Sets & Mindsets Right Technology

  14. “Maximizing the Customer Experience” • It is the total of the interactions a customer has with a company’s products • It starts the moment a customer thinks of your product • It does not end until the customer is completely satisfied with it Source: “The Customer Experience,” Net Company, Fall 1999.

  15. How smoothly do you solve your customers’ problems? How well do you meet customer needs? How quickly do you anticipate what they’ll want next? Maximizing the Customer ExperienceAddresses 3 Questions Source: “The Customer Experience,” Net Company, Fall 1999.

  16. Maximizing the Customer Experience CRM Strategy Components • Customer Experience: Maximize the customer experience during the buying process • Capabilities: Use the right capabilities (people, process, and technology) to maximize the use of customer information • Understanding Customer Value Segmentation: Give each segment what they want • Financial Value: Understanding the financial value of executing the strategy successfully. It’s not an expense; it’s an investment • Key Questions: • How and where do my key segments interact with my brand? • Effectiveness/ efficiency of driving to different channels? Effective Segmentation CustomerExperience Business Processes Right Skill Sets & Mindsets Right Technology

  17. Well Defined Business Processes • Automating an ill-defined or inefficient business process will only accelerate the pace at which an organization achieves poor results • A CRM strategy must focus on designing processes based on customers’ perceptions & needs • Processes can include: • Marketing Campaign Designs • Store Layout • Pricing Strategy • Sales-floor Service Training • Order Management • Service Tracking • Returns Management • Each of these processes needs to be coordinated with the other processes CRM Strategy Components Effective Segmentation CustomerExperience Business Processes Right Skill Sets & Mindsets Right Technology

  18. Skills & new mindsets CRM Strategy Components • A customer centric strategy will changes the dynamics of how people interact and how a company makes decisions • Managing this change is critical when implementing a customer centric strategy • The change management required entails the realigning of skill sets and mindsets • Example: Teaching selling skills without changing attitudes will lead to poor prospect-to-buyer conversion rates—& will not maximize the customer experience • To support the culture change required, many companies have found it necessary to: • Realign their reward systems • Reconfigure its compensation schemes Effective Segmentation CustomerExperience Business Processes Right Skill Sets & Mindsets Right Technology

  19. Right Technology CRM Strategy Components • The right technology is the final linchpin in a CRM strategy • Enables an organization to track every customer interaction, regardless of where, when, or how the interaction occurs • The right technology will satisfy the following criteria: • Consolidated customer data source • Company & industry-specific functionality • Network availability & support • Scalable • Support for all devices (networked computers, handhelds, cash registers) Effective Segmentation CustomerExperience Business Processes Right Skill Sets & Mindsets Right Technology

  20. Metrics linked to rewards canstimulate change

  21. Retailers’ Use of Frequent Shopper Programs

  22. Elements in EffectiveFrequent Shopper Programs • Tier Based on Customer Value • Offer Choices of Rewards • Non-monetary incentives • Reward all Transactions • Transparent and Simple

  23. Retailer Personalization

  24. Converting Good Customersto Best Customers • Cross-selling • Add-on selling

  25. Implementing CRM Programs • Need systems, databases • Close coordination between departments – marketing, MIS, store operations, HR • Shift in orientation + Product Centric Customer Centric

More Related