MGT 3230 Chapter Notes - Chapter 14: Personalization, Addon, Internal Communications
Chapter 14: Building Customer Loyalty
5 CUSTOMER SERVICE CHARACTERISTICS
Reliability - Accuracy of billing, meeting promised delivery dates
Assurance (trust) - Guarantees and warranties, return policy
Tangibility - Appearance of store, salespeople
Empathy - Personalized service, receipts of notes and e-mails, recognition by name
Responsiveness - Returning calls and e-mails, giving prompt service
CUSTOMER LOYALTY
• Committed to purchasing merchandise and services from a retailer
• Resist efforts of competitors to attract the loyal customer
• Emotional attachment to retailer
• Personal attention
• Memorable positive experiences
• Brand building communications programs
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.
Share of the Wallet
• The percentage of total purchases made by a customer in a store.
OVERVIEW OF THE CRM PROCESS
• Collecting customer data
• Analyzing the customer data & identify target customers
• Developing CRM programs
• Implementing CRM programs
find more resources at oneclass.com
find more resources at oneclass.com
COLLECTING CUSTOMER DATA (CUSTOMER DATA BASE)
What we are collecting:
• Transactions
• Customer contacts by retailer (touch points)
• Customer preferences
• Descriptive information about customer
• Customer’s responses to promotionS
COLLECTING CUSTOMER DATA (IDENTIFYING INFORMATION)
Need to connect contacts with a specific customer identifier.
• Ask for identifying information:
o Telephone number, name, and address.
• Offer & encourage use of frequent shopper cards.
o Offer co-branded third party credit cards- Scotia Scene Visa, Walmart
MasterCard, RBC Shoppers Optimum MasterCard.
COLLECTING CUSTOMER DATA (PRIVACY AND CRM PROGRAMS)
Control over-collection:
• Do customers know what information is being collected?
• Do customers feel they can decide on the amount and type of information collected by
retailers?
Control over-use:
• Do customers know how the information will be used by the retailer?
• Will the retailer share the information with third parties?
ANALYZING CUSTOMER DATA
Data Mining:
• Technique used to identify patterns in data
found in data warehouses, typically patterns
that the analyst is unaware of prior to searching through the data.
ANALYZING CUSTOMER DATA (MARKET BASKET ANALYSIS)
Market Basket Analysis:
data analysis that focuses on the composition of the basket, or bundle, of products purchased
during a single shopping occasion
Uses:
• In store placement of merchandise
• Joint promotions
ANALYZING CUSTOMER DATA (IDENTIFYING BEST CUTOMERS)
• Estimating Customer Lifetime Value (LTV)
• Customer Pyramid
o 80/20 rule (80% SALES FROM 20% CUSTOMERS)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Reliability - accuracy of billing, meeting promised delivery dates. Assurance (trust) - guarantees and warranties, return policy. Empathy - personalized service, receipts of notes and e-mails, recognition by name. Responsiveness - returning calls and e-mails, giving prompt service. Customer loyalty: committed to purchasing merchandise and services from a retailer, resist efforts of competitors to attract the loyal customer, emotional attachment to retailer, personal attention, memorable positive experiences, brand building communications programs. A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a retailer"s most valuable customers. Share of the wallet: the percentage of total purchases made by a customer in a store. Overview of the crm process: collecting customer data, analyzing the customer data & identify target customers, developing crm programs. What we are collecting: transactions, customer contacts by retailer (touch points, customer preferences, descriptive information about customer, customer"s responses to promotions.
