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OHT 6.1 Learning objectives • Assess the relevance of the concepts of relationship, direct and database marketing marketing on the Internet; • evaluate the potential of the Internet to support oneto-one marketing and the range of techniques and systems available to support dialogue with the customer over the Internet; • assess the characteristics required of tools to implement one-to-one marketing. Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.2 Questions for marketers • How can the Internet be used to support the different stages of the customer lifecycle? • How do I implement permission marketing? • What do personalisation and mass customisation mean and how should I apply them in my marketing? Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.3 Elements of CRM Figure 6.1 Linkages between customer relationship management and related marketing approaches Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.4 Differences between relational and transactional marketing Transactional paradigm Relational paradigm Market segment Individual customer Transaction duration Lifetime Margin Lifetime value Market share Most valued customers and customer share Dialogue and tailored communications Empowered clients Mass market broadcast Passive consumers Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.5 CRM applications 1. 2. 3. 4. 5. Sales force automation Customer service management Managing the sales process Campaign management Analysis Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.6 CRM data • Personal and profile data – Contact details – Preferences • Transaction data – Sales history • Communications data – Campaign history – Research / Feedback / Support queries – Contact reports (B2B) Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.7 CRM aims and focus Figure 6.2 The relationship between the customer acquisition, retention and extension phases of the customer lifecycle and loyalty and customer value Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.8 CRM resource Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.9 5Is • Identification – can the customer be recognised for different channel contacts? • Individualisation – can communications and products be tailored? • Interaction – are communications two-way? • Integration – is there a 360 degree view of the customer? • Integrity – is the relationship built on trust? Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.10 Permission marketing • Key concepts – Not interruption marketing – Not SPAM – Requires opt-in (online to e-mail) – Opt-out – Learning about the customer – Initial and continued relationship is based on incentives Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.11 Mass customisation and personalisation Figure 6.4 Options for mass customisation and personalisation using the Internet Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.12 Online relationship building Figure 6.5 A summary of an effective process of online relationship building Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.13 Example – Virgin Megastores Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.14 Example – Silicon Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.15 Example – Clearly Business Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.16 IDIC Figure 6.7 The elements of the IDIC framework Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 6.17 e-CRM tools • • • • • • Database Data mining Personalisation systems Outbound e-mail Inbound e-mail management Virtual communities Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003