Download TECH 917-81: Strategic and Analytical Customer Relationship

TECH 917-81: Strategic and Analytical Customer Relationship Management
(Counts for Marketing and Tech major)
Course Schedule and Tentative Outline for Fall 2008
Thursday Evenings, Evanston campus
Kellogg School of Management
Alok Choudhary (Professor)
[email protected]
Synopsis
In the rapidly changing business environment, with global competition and maturing markets, competitive
advantage is extremely important. Furthermore, in most industries product differentiation is no longer a
decisive edge over competition. Thus, there is fierce competition to find, grow and keep loyal and profitable
customers as that is the only way to grow business and profitability. Transforming a product-centric
organization into a customer-centric one to achieve the above objectives is a critical step. This course presents
vision, strategy, operations, technology and organizational for building a customer focused organization based
on customer profitability and relationship management. The course will provide a synergistic perspective on
strategy, organizational transformation, and analytics-enabled relationship management and process changes
that are integral to achieve the objectives of relationship management. This highly interactive class, through
lectures and case studies will provide insights into customer life-cycle management, customer lifetime value
and measuring customer profitability. This framework will be used to describe how executives can make
decisions for marketing strategies and operations using the power of analytical CRM (data mining) and how to
optimize marketing programs to maximize customer value. The program, using real business cases and hands
on experience will present state-of-the-art techniques for acquiring new customers, enhancing value of existing
customers, retaining profitable customers and churn management, and for maximizing customer profitability
both for consumer marketing as well as business marking. Industry leading analytic CRM tools will be learned
and used for activities in managing customer life-cycle. Organizational transformation aspects including
business synchronization, incentive structures, cultural changes and privacy management strategies will be
discussed. Steps and strategies involved in a successful deployment of operational and analytical infrastructure
along with a landscape of key business intelligence technologies will be presented. The following is a list of
several modules and topics.
Note: this is a tentative outline and will be revised as necessary to accommodate recent developments.
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Customer-centric business organization
o Managing customers as assets. Why is it important?
o Steps in organization evolution
Customer life-cycle Management
o Measuring customer lifetime value and profitability
o Customer Relationship management frameworks
CRM Processes and operations
o Analytical CRM for acquisition, retention and churn management
o Customer affinity and customer profitability optimization using analytics driven
recommendations
o Proactive customer service and value enhancement using analytics
o Analytics (data mining) driven decision making for customer marketing
o Strategies and steps in successful deployment of analytics CRM
o Industry landscape and deployment strategies
Managing Channel Relationships in business markets
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o Measuring customer and channel profitability
o Customer Centric Performance (CCP)
Organizational Transformation
o Business synchronization strategies
o Building customer centric business organization and best practices
Class website will be on the Blackboard (BB) site on the Kellogg intranet.
Class will have a hard copy packet and an On-line Packet (OLP) with many additional
readings.
Software Tools: SPPS’s leading industrial strength CRM and data mining toolset, “Clemenetine”
will be used for assignments for Customer Acquisition, Growth, Value Enhancement and Churn
Management.
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Module1: Customer Centric Marketing and Customer Life Cycle. (Week 1-3)
Learning Objectives:
Introduction to CRM
Loyalty Programs
Customer Life Cycle and Life Time Value Concept
Frameworks for CRM
Module2: Analytics for Customer Acquisition, Value Enhancement and Retention (Week 3-7)
Learning Objectives:
• The stages in customer lifecycle: a process-oriented view of CRM
• Process and Analytics for Customer Acquisition campaigns
• CRM Modeling for Cross-Selling and Affinity Identification
• Process and Analytics for Customer Retention and Churn Management
• Personalization and Recommendation Systems
• Data Mining Techniques for Various CRM functions
• Use of Analytics in Decision Making
Module3: Decision Making, Operational Issues and Enterprise Transformations (Week7-10)
Learning Objectives:
• Operational Issues and Practice of CRM
• Organizations Transformations
• Business cases
• Role of Data and Data Warehouse