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Back to Basics -

malcolm
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Back to Basics -

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    1. Back to Basics -?? ?? ???? ?? ?? ? ?? 2004. 1. 29. ? ?? (sangyoublee@naver.com)

    2. 2 CRM ???

    3. 3 ?? ?? ?? ?? ??? ??

    4. 4 Definition of CRM CRM is a customer centric business strategy focused on maximizing customer value by acquiring, growing and loyalizing the profitable customers.

    5. 5 Customer Centric CRM is a customer centric business strategy, not a technology Identify the customers you want to attract and retain, and understand their needs CRM ???? ??? ??? ???? ???? ??. ???? ??? ?? ??? ???? ??? ???, ???, ??? ?? ??? ??? ??. ??? ????? ??? ????? ????? ??? ?? ??? ??? ?? ??? ??? ??? ?? ? ? ?? ( Doug Sacks, Wal-Mart CRM ?? ????) A company cannot afford to be "truly customer centric" to all of its customers (Craig Morrison, NCR Consultant)

    6. 6 Maximize Customer Value All customers are NOT created equal Retail Bank? 50%? Profitable?? ?? ???? ??? 10% ??? ??? 100%??? ??? ???? ?? Different customers have different values Treat them differently

    7. 7 Customer Value Acquisition Value + Retention Value + Add-on Selling Value Invest on front-end(Acquisition) and Return on back-end (Retention & Add-on selling) Gevalia Coffee ?? (Introductory Offer: Free Coffee Maker)

    8. 8 Loyalizing the profitable customers CRM? ?? ??? ??? ??? ????? ??? ??? ??? ?? ??? Profitable customer? ???? ? ???? Loyal Customer? ??? ???. (Don Peppers) Loyal Customer? ?? ?? ???? 3??? 10? Profitable??

    9. 9 How to maximize ROI "Half the money I spend on advertising is wasted; the trouble is I don't know which half." -- John Wanamaker, the pioneer of department store ?? ??? ?? ROI? ??? ??? ??? ??? ?? ??? ??? ??? ???? ??? ?? ?? ???? ????. Garth Hallberg, Worldwide director at O & M Two Principles Focus on who to generate profits & Know who not to spend on(Where) Do not invest, until you have to(When)

    10. 10 Profit = ?? ???? Profit? ?? Simple Profit Matrix Customers have different values

    11. 11 OgilvyOnes Study Packaged Good Profit Matrix Net Profit $80 MM ??? ?? ??? $88 MM High Profit Segment? ?? ??? ????? ??

    12. 12 OgilvyOnes Study Adapt Strategy and Resource Allocation

    13. 13 Campbells Study 4%? ????? Sales Volume? 15% ?? ??? ??? ??? ? 10%? ???? ?? 65%? ??? ???? Unprofitable Group? ???? 1$? 35 cent Return (65cent ??) 33?? ??? ??? ??? 20? ?? ?? 60%? ????? ?? ???? ??? 63% ??? ??? ??? ??? 95%? ??

    14. 14 Implications Have to evaluate marketing-expenditure efficiency Have to identify waste factors Have to invest on the most valuable consumers Do not invest on unprofitable consumers

    15. 15 Profit Discriminator Profit Variable is a far greater discriminator between customers that demographics, geographic, psychographics, lifestyle and desired benefits.( Garth Hallberg, Worldwide director at O & M) ????? ?? Demographics? Geographic ??? ???? ????? ?? ??? ?? Individual Profitability? ??? ??? ??. (David Norton, Senior Vice President of Harrahs Entertainment) Types of Profit variable

    16. 16 Marketing Allowable Marketing Allowable =Net Revenue COGS(Cost of Good Sold) Fulfillment Cost Overhead Acquisition ? Retention ???? ??? ? ?? ?? Segment? Profit ?? ? ?? Marketing Allowable ?? ? Maximize return on Marketing expense Marketing Allowable? ?? ?? ??

    17. 17 ?? ?? ?? ??? ?? Marketing Allowable For CRM

    18. 18 ?? ?? ?? ??? ?? Customer Life Cycle Management based on MKT allowable

    19. 19 ??? ??? ????? ???? ? ?? ???? ? Customer has a Life Cycle ???? ??(Average Customer)? ??. ??? ???? ??(Normal Behavior), ? ??? ?? Verizon: ???? ??? ??? 500?? ???? Harrahs: Medium??? 1??? ??? ??? ???? ?? Timing to spend

    20. 20 ?? ???? ??? ??. Wait for a sign. ???? ??? ??? ????? ?? ?? Stage? ???? ???? ? ??? ? ??? ???? ??? ? ???? Customer Life Cycle Management

    21. 21 Customer Life Cycle Management Life Cycle???? ??? ??? Accelerating or terminating relationship ?? ROI? ???? ??? ???? Encourage a customer who is likely to turn into a best customer Reverse a customer defection before it happens Leave a customer, who is not accelerating or terminating relationship, alone

    22. 22 Time Elapsed Metrics tool ?? One of the easiest way of using Moment of change for anti-defecting campaign Definition Customer activity events?? ?? ?? Customer activity: making a purchase, calling the help desk or visiting a web site Yves Roche Anti-Defection Campaign ??

    23. 23 Anti-defecting campaign? action plan Promotion ?? ? ?? ?? ??? ?? 3??? 4?? ?? ?? Time lapsed??? Negative? ???? ?? ?? ( ??? ??? ?? ?? ??) ? Defection? ?? ?? ??? Relatively High Involvement ? High response rate ?? ??: 180? ??? 4?? ??? ?? ?? ?? ? Moment of Change (Normal? ???? ??? ??) ?? ?? ?? ?? ?? ?? ??? ?? Test ? Control Group ??? Frozen File ?? ????? ?? ???? ?? ?? Test group? control Group? ?? ???? ????? ??? ? Anti-Defection Campaign

    24. 24 Anti-defecting campaign? ?? Campaign ROI Anti-Defection Campaign

    25. 25 Anti-Defection Campaign

    26. 26 Test Plan Test? ?? ?? ????? ?? ??? ??? ??? ??? ?? ??? ?? ?? ?? ?? ????? ??? Strategic Barriers ?? ???? Impact? ?? ?? Increase RR and Customer Value, Decrease CPO(Cost Per Order) ???? ?? (??? ??, Offer, ???) Interwest? Reference Book ??? ??? Biz process? ?? ????? ?? ???? Test ? ??? ??? ??? ??? ?? ?? ?? ??? Test? ?? Test ? ?? ??? ?? ?? ? Business Impact? ?? ?? ?? Creative ???? ?? ? ????? ????? ?? ??? ???

    27. 27 Strategic and Tactical Solutions

    28. 28 Test Metrics Example

    29. 29 ?? Customer Centric Strategy? ?? ?? Different Customers have different values Treat them differently ?? ?? ??? ?? ??? ?? ? ??? ?? ??? ? ??? ?? ??? ??? ?? ?? ?? ?? ?? ??? ??? ?? ?? ? ??? ??, ??? ??? ? ??(At the point of maximum impact)? ?? ?? ??? ???? ??

    30. 30 Check Lists Do you know whom the most valuable customers or prospects are for your company? Do you know the effects and efficiency of your marketing activities? Do you know how to identify loyalists? Do you know how much you can spend on a customer? Do you know how to acquire, reach and persuade the most valuable prospects and customers? Do you know which media plan works best for each loyalty group? Do you know how your marketing efforts are moving customers along the Loyalty Ladder? Do you have a strategy and a process to make your customer profitable? Do you have a matrix of CRM measurements?

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