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Unformatted text preview: • Prerequisites for implementing CRM: o Teamwork and processes – relationship marketing requires teams to be more formal than informal and that they include the customer. Processes should also be changed to focus on the customer. o Support at executive level o Excellent customer service o Technology to gain customer knowledge and insight • Ways in which technology contributes to building relationships with customers: o Enhancing customer care and service – e.g. using the internet to make reservations in hotels o Identifying the best customers – customers’ info is easily accessible on computer, so it could be used by marketers to determine the best people with whom to do business o Establishing the best product o Enhancing capabilities – e.g. providing computing and data warehousing o Managing cost value of relationship o Performing a control function – e.g. helping in tactical and strategic control o Customising products – e.g. helping the customer to make an input in the design of the product o Customising communication and interaction – the internet makes interaction between marketers and customers easy • CRM strategies: analysing the customers’ life time value (LTV) / future profitability and projected duration of their relationships, the organisation can categorise customers as: o Short-term customers: Butterflies: Good fit between company’s offerings and customer’s needs & High profit potential Strangers: Little fit between company’s offerings and customer’s needs & Lowest profit potential o Long-term customers: True friends: Good fit between company’s offerings and customer’s needs & Highest profit potential 28 Barnacles: Limited fit between company’s offerings and customer’s needs & Low profit potential Study unit 17 – The value of e-commerce in customer behaviour • Paradigm shifts in using e-commerce: o Disintermediation and reintermediation – using internet as transaction tool, it is possible to put the ability to buy inside the customer’s home or office. o Personalisation and customisation – providing customers with value is about meeting individual needs. o Shopping on demand o Customers as co-producers – customers can become involved in designing and customising the products they buy. o Blurring between customer and business markets o Power shift to customers – move from supplier-push to consumer-pull. o Automation of consumption – e.g. online grocery shopping • Features that affect online customer behaviour: o Online shopping, isolation and integration o Abbreviated attention span o Instant gratification o Monitors o Dependence on shopping agents o Information overload 29...
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- Winter '08
- Marketing, Study Unit, South African