CRM

1. Unit 2
o CRM Marketing Initiatives: Cross-Selling and Up-Selling,
o Customer Retention, Behaviour Prediction, Customer Profitability and Value Modeling, Channel
Optimization, Personalization and Event-Based Marketing
o CRM and Customer Service: Call Center and Customer Care: Call Routing, Contact Center Sales-Support,
Web Based Self Service, Customer Satisfaction Measurement, Call-Scripting, Cyber Agents and Workforce
Management
o CRM and Data Management: Types of Data: Reference Data, Transactional Data, Warehouse Data and
Business View Data, Identifying Data Quality Issues, Planning and Getting Information Quality, Using
Tools to Manage Data, Types of Data Analysis: Online Analytical Processing (OLAP), Clickstream
Analysis, Personalisation and Collaborative Filtering, Data Reporting

2. Cross Selling
oCross-selling identifies products that satisfy additional, complementary needs that are unfulfilled by the original item.
oFor example, a comb could be cross-sold to a customer purchasing a blow dryer. Oftentimes, cross-selling points users to
products they would have purchased anyways; by showing them at the right time, a store ensures they make the sale.
oCross-selling is prevalent in every type of commerce, including banks and insurance agencies.
o Credit cards are cross-sold to people registering a savings account, while life insurance is commonly suggested to
customers buying car coverage.
oIn ecommerce, cross-selling is often utilized on product pages, during the checkout process, and in lifecycle campaigns.
o It is a highly-effective tactic for generating repeat purchases, demonstrating the breadth of a catalog to customers.
o Cross-selling can alert users to products they didn't previously know you offered, further earning their confidence as the
best retailer to satisfy a particular need.

3. Up Selling
oA sales strategy where the seller will provide opportunities to purchase related products or services, often for the sole
purpose of making a larger sale.
o A popular example of upselling happens when a fast-food customer orders a hamburger, and they are asked by their
cashier "Do you want fries with that?", in an attempt to get them to purchase more food.
o Other examples of products that are upsold are warranties on electronics purchases, and the purchase of a carwash after
you purchased gas at the gas station.
o
when you order a pizza over the phone, Cheesy crust, extra toppings, and she even to sell me an extra bottle of drink!

4. Brand switching
oMore and more brands and products are being launched every day.
o In E commerce, every day marks the launch of new and unique products, several of them being launched because they
failed through traditional distribution channels.
oAt such times, the customer gives very less time and attention to your brand. You have to attract the customer within
seconds. Thus, your brand building starts much before the customer enters the final buying stage.
oEqually important is the fact, that at the buying stage, the customer can switch brands easily. Instead of deciding to go
ahead with your brand, he can decide to finalise a competitor’s productor their brand.

5. Reasons for Brand Switching
oValue for money :The first and foremost condition which comes to mind when a customer is buying a product is value for money.
If the customer is buying a Levi’s jeans and it is costly, then he will still go for it if he can afford it. But the same customer will not
go for a lower cost jean which is unbranded. This is because Levi’s jeans are clearly a status symbol also.
oMarketing mix:A very basic concept but one on which a complete company can be built. Many companies have erred in
their marketing mix by either keeping the price very high, or by having an inferior product, or by not reaching the proper
distribution channel.
oImproper service – There have been many times that I myself have switched brands because the service given to me was
pathetic. Although the brand might be giving good service in the market, losing more than 10 % of your customers to a
competition brand because of service reasons is an alarming situation
oOutdated technology :We saw the crash of Nokia in the last decade. So many customers switched brands in the start, and the
movement got so solid that Nokia could not keep up. But why was action not taken right at the start? Was the introduction
of Android thought of as a wave that will eventually play its part and die?
oMarketing communications :The popularity of Vodafone is because of the popularity of the ZooZoo’s. We don’t buy Vodafone
because we love the Zoozoo’s. But we know that Vodafone is a brand which takes business seriously. We know that they went out
of their way to connect to the customers. And in the end, Airtel and other telecom brands might be wondering where their
customers went and why? (Even though they were giving good service)
oBrand fatigue: when customers want to try something new in the market, they do brand switching and try out a new brand. Such
customers are highly likely to return to your brand again and hence they are not going to cause a huge dent in your bottomline. For
example – Instead of Dove, you try out a new shampoo or soap. However, looking at the next TVC, you immediately decide that
you loved Dove better, and then you switch back to Dove.

6. Customer Retention
oCustomer retention is the ability of a business to retain customers. It is both a measure of customer loyalty and the
capacity of the business to keep customers satisfied by good service and quality of the product sold.
oThe best customer for any business is the returning one.
oIt shows that the customer is happy with both the service and the product but there are other benefits too.
oA returning customer is cheaper to the business, as they will need to spend less on advertising or inducements such as
price cutting and giveaways.
o A happy customer will also tell other potential customers of a product and service; doing a job of marketing for the store.

7. Need for Customer Retention
Getting new customer is expensive
Loyal customers refer others
Satisfied customers are loyal customers
Repeat customers spend more
Loyal customers are less price sensitive
Cross selling and up selling opportunities

9. Customer Profitability and Value Modelling
oCustomer profitability is to know the revenue and cost for each customer.
o To turn CRM data into customer profitability model, a company must switch from activity based
cost accounting to customer based cost accounting. This means allocating costs by customer.
oA customer value model (CVM) is a data-driven representation of the worth, in monetary terms,
of what a company is doing or could do for its customers. ... Customer value is defined
as Value = Benefits - Price. Thus, customer benefits are quantified in a CVM - product features
and capabilities are translated into dollars.

10. Personalisation
oPersonalisation is rooted in understanding and fulfilling the needs of your customers.
oThat might mean knowing where they are and when, and include purchase or behavioural data. Alternatively, it might just
be focused on knowing whether or not they have consumed a single piece of content.
o Whatever insights you are able to glean from your customers, you need to be able to interpret it. If you do, it can be
incredibly powerful in understanding who they are and what they want.
oIt also enables you to demonstrate to them that you have listened to their needs and are acting upon them, within the
parameters that will excite them most.
oYou have to fully understand what your customers’ intentions are, analyse past behaviour and then predict what they want
before they request it, or if nothing else, from the moment they interact with you.

11. Event Based Marketing
oEvent based marketing is a digital marketing technique where customers receive personalised communications based on
their behaviour, or lack of. It relies on the measuring of implicit and explicit interactions between the user and the product
(a website or app).
oThe key word here is ‘event’. An event is a record of a single instance of behaviour taking place on a website or app. It’s
tied to a user’s identity and useful information (attributes) can be stored inside it.
oThis practice is sometimes referred to as trigger marketing, event tracking, event driven marketing or event streaming.
The sheer power and potential of this new type of marketing is driving massive advances in the way digital marketers,
growth hackers and product marketers work.
oFor example, when a customer calls a bank and ask about the on-going interest rate on car loan,this indicates that the
customer is interested in taking car loan.in such a case the bank may use EBM marketing strategy and call will be
transferred to the loan dept. to get the query solved.

12. Call Center Customer Care
oCustomer satisfaction and loyalty have become key objectives for
organizations as they recognize that long term customers cost less to
service and are more likely to spend more with the organization.
oThe call center is the place where many of these objectives are
carried out one contact at a time.

13. Functions of Call Centre
oWider customer base
oEconomical
oSpecified services
oEasy access to customers
oGeographically accessibility
oAvoid overhead charges

15. Components of call
centers
Location
Customer
Technology
Process
People
Finance and
business
managemen
t

16. Call Routing
oCall routing is a call management procedure wherein a call is sent to
a specific queue after being qualified by the telephony system.
o Any number of reasons can cause a call to be routed to a queue: call
volume, time of day, language preference of the caller, or specific
department requested, among others.

17. Types of Call Routing
oLeast Occupied Routing: least occupied routing means that calls get routed to the agents that have been least utilized
throughout the day. A simple setup that focuses on efficiently utilizing every agents’ work time. Least occupied routing is
simple and easy to implement, but it does not offer optimal efficiency for larger call centers.
oPerformance-Based Routing: in performance-based routing, the calls are routed to the agent that has demonstrated the
most competence in the area required to assist the incoming caller. Using historical data and metrics, calls can be routed
to the agent who has demonstrated the ability to perform best on that type of call.
oSkills-Based Routing: skills-based routing routes the calls to the agent with the most applicable skill set, which
improves efficiency and customer experience
oLocation-Based Routing: location-based routing routes incoming calls based on the customer’s location. Location-based
routing can utilize caller id, GPS positioning, and signal triangulation to determine the location of the customer, or service
provider, which is then accordingly routed. Location-based routing allows for varying degrees of complexity to be
implemented with this type of routing, which makes it a flexible routing choice.
oService-Level Routing & Dynamic-Based Routing: service-level routing is a type of dynamic-based routing. Dynamic-
based routing uses skills-based routing but also implements expected and predicted wait times into its platform to
increase customer satisfaction and service level thresholds. Service-level routing, implemented with dynamic-based
routing, utilizes reserve agents when queue times reach sub-optimal levels to preserve the service level.

18. oValue Based Routing: value-based routing goes beyond cost and quality and focuses on a value or revenue-based
routing. For example, a customer calling into a call center shortly before their contract is up is recognized as someone
who might not continue their subscription to the company’s services. The call would then be routed to a retention team to
ensure that the customer stays with the company.
oData-Directed Routing: data-directed routing uses a customer’s information to route the call to an agent that can best
assist that customer. This data can be utilized in a number of ways. For example, a calling customer might be unaware of
a different problem with his or her account; by routing the call to an agent that can assist that customer with their call and
the additional issue, the call center is able to provide a better customer service experience for the caller.
oOutbound Routing: outbound routing focuses on a different set of metrics. Instead of utilizing traditional metrics such
as average call length or average handling time, outbound routing uses metrics like Net Promoter Score to track how
many of its customers recommend the company’s services to others. Outbound routing focuses on increasing customer
recommendations through techniques such as text updates and outbound calls to inform customers of their account
statuses.

19. Web self-service is a type of electronic
support (e-support) that allows customers and
employees to access information and perform
routine tasks over the Internet, without
requiring any interaction with a representative
of an enterprise.
Web self-service is widely used in customer
relationship management (CRM) and
employee relationship management (ERM).

20. Customer Satisfaction Measurement
oCustomer satisfaction is difficult to measure due to several reasons.
o Counting on customer satisfaction owing to their feedback is not the case because most people
prefer keeping quiet when satisfied.
oSome people see no need of contacting the service provider while others seek to pass their
complaints.
oRequirements for customer satisfaction are not only unique but difficult to quantify.
o Setting standards and improving employee relationships with customers is central strategy of
measuring customer satisfaction and ensuring that success is determined.

21. Reasons to measure Customer Satisfaction
oGain a better understanding of your customers' needs and expectations. ...
oReduce direct and indirect costs related to customer dissatisfaction. ...
oRespond to the challenges of customer acquisition. ...
oBoosting your company's brand image. ...
oImprove the effectiveness of your steps for constant improvement

22. Call Scripting
Sometimes referred to as call scripts or coldcalling scripts –
refers to a prescribed set of talking points that are commonly
used by telemarketers and inside sales reps when speaking to
prospects.

23. Benefits of Call Scripting
oAvoid human error. ...
oPromote consistency. ...
oIncrease agent confidence. ...
oReduce training time. ...
oIncrease customer satisfaction & call center performance. ...
oMaintain compliance. ...
oIntegrate your systems. ...
oUse real customer interactions to craft a quality script.

24. Cyber Agents
The vision for the cyberagent is to go from providing information to
actually making decision based on a combination of the customers
request, heterogeneous and detailed information about the customer
and complex rules-based logic to guide the cyberagent in making
recommendations
Answers basic questions and guides a customer for making a purchase
or checking an order

25. Workforce Management
oForecasting the workload and required staff
oInvolvement of employees into the scheduling process
oManagement of working times and accounts
oAnalysis and monitoring of the entire process

26. CRM and Data Management
Data refers to the information that serves as a
helpful tool that enables companies to identify
consumer trends, understand their
behavior,communicate,create loyalty etc.

27. Types of Data
Reference Data: It is the data that is shared
by a number of systems
Transactional Data: it describes the business
events such as time,place,payment methods
that are used at point of sale
Warehouse Data: they are huge repositories
of customer related data accepted from
various databases

28. Data Quality Issues
o Customer data deterioration: Details of customer may be inaccurate our
outdated.
oSource data quality: Data from various sources is integrated to get holistic view
of customer needs
oLack of trust: Customers need to have full trust in the company that their data
will not be misused only then they will furnish their data.
oUntrained staff: Unable to handle huge data and its application.

29. Types of Data Analysis
Online Analytical Processing
Relational OLAP
Multidimensional
OLAP
Hybrid OLAP

30. Clickstream Analysis
oOn a Web site, clickstream analysis (also called clickstream analytics) is the
process of collecting, analyzing and reporting aggregate data about which pages a
website visitor visits -- and in what order.
oThe path the visitor takes though a website is called the clickstream.

31. Levels of Clickstream Analysis
Traffic analysis: it operates at the server level by collecting
click stream data related to the path the user takes when
navigating through the site
E-commerce analysis: it is used to keep track of what pages
the user lingers on, what the user puts in or takes out of their
shopping cart, and what items the user purchases

32. Challenges of Tracking with Click Stream Data
oIdentifying the visitors origin:
oIdentifying the session
oIdentifying the visitors
oProxy servers

33. Personalization
oPersonalization is a approach that helps to bringing, staying and returning visitors.
oPersonalization can determine the page layout, the look and feel of the portal and even which
information users receive and how they receive it.
oPersonalization at the administrator level: setting the design of the portal structure for
different users.
oPersonalization at the user level: users can personalize their content within the control limits set
by the administrator
oAutomatic personalization: predictive technology allows for automatic personalization based
on user type, user location, connection bandwidth and the type of event being handled

34. Collaborative Filtering
Collaborative Filtering is a method of making automatic predictions (filtering)
about the interests of a user by collecting preferences or taste information from
many users (collaborating).
Collaborative filtering systems usually take two steps:
Look for users who share the same rating patterns with the active user.
Use the ratings from those like-minded users to calculate a prediction for the
active user

35. Types of Collaborative Filtering
Active
filtering
Passive
filtering
Item based
filtering