CUSTOMER RELATIONSHIP MANAGEMENT – CRMMKT 405: Distribution Management

M Wahidul Islam

Summer 2014

Elements of Distribution Managemen

t

Planning, Forecasting

& Budgeting

Sales Force Managemen

t

Product Pricing and Promotion

Product Visibility

Distribution Channels

Channel Information

Systems

Warehousing and

Logistics

CUSTOMER RELATIONSHIP MANAGEMENT – CRM

Traditionally the word CRM is used to refer to relationship management with End Customers

Objective of CRMBuild End Customer Loyalty

Loyal customer refers to someone,Who is most likely to make repeat

purchasesWho will resist the activities of

competitors attempting to attract patronage

CUSTOMER RELATIONSHIP MANAGEMENT – CRM

Applying the concept of the CRM to Distribution Channel

CRM ObjectiveChannel Partner Loyalty

THE CRM PROCESS

Collect Customer

Data

Analyze

Develop CRM

Programs

Implementations

COLLECTING CUSTOMER DATA

Foundation for subsequent CRM activities

Customer Data WarehouseNumerical DataIntangible / Qualitative Data

Numerical Data

•Transactions / sales data•Market share•Company investment

Intangible / Qualitative Data•Preferences•Attitude towards the company•Responses to marketing activity

DEVELOP CRM PROGRAMANALYZING CUSTOMER DATA

Data Mining Technique used to identify patterns in data,

typically patterns that the on mere observation may not reveal.

Market Basket Analysis Specific type of Data analysis that focuses on the

composition of the shopping basket, or bundle of products purchased by a household during a single shopping occasion. Analyzing the composition of the retailers order

pattern

Identifying Market Segments Segment channel members based on need /

profile / location

The Objective is to Identifying Best Customers

ANALYZING CUSTOMER DATAIDENTIFYING BEST CUSTOMERS

Lifetime ValueContribution to company’s overall profit

over the entire relationship Customer Pyramid

80 – 20 ruleExample: Platinum > Gold > Iron > Lead

RFM AnalysisRecency, frequency, monetary

How recent they have made a purchase? How frequent they make purchases? How much they bought?

Customer Retention(Loyalty)

The Objective is to convert a good customer into the BEST CUSTOMER

REFERENCES

Chapter 11 – Customer Relationship Management Levy M. and Weitz B. A.(2004) Retailing Management

(5thEdition)New York: McGraw- Hill Companies, Inc.

END