1. I know what
you bought last
summer.
Customer loyalty
at retail
Dr. Stefan Winkler
Invited talk @ TU Braunschweig wi2
Braunschweig, 1/15/2010

2. CRM in a nutshell
 CRM is the sum of activities of a
company that contribute to customer
acquisition, advertising, sales and
2 customer support.
 CRM aims at a long term customer
retention while tapping the full potential
of every individual customer.
Dr. Stefan Winkler Braunschweig, 1/15/2010

3. We call it social media CRM
2.0 ...or so
 Customer approach yesterday:
Our products are the best!
3  Customer approach today:
You are the best! Let‘s be friends!
//bit.ly/Q00eh (Mashable)
Dr. Stefan Winkler Braunschweig, 1/15/2010

4. 2.0 was yesterday: Nike 6.0
 Open and personal presentation of the
company
4  Choice ofcommunication channel is up
to the customer
//bit.ly/31oW0i (Blog)
//bit.ly/7iGS6h (Twitter)
//bit.ly/5mYNN7 (YouTube)
//bit.ly/6sUL4M (flickr)
Dr. Stefan Winkler Braunschweig, 1/15/2010

5. Christmas trees out!
Customers in!
 Variety of
individual activities substitute or
complement traditional advertising
campaigns
5
//bit.ly/4uNx (IKEA Knut)
//bit.ly/7JnCFJ (Commercial)
Dr. Stefan Winkler Braunschweig, 1/15/2010

6. If everybody is doing it...
 How much does it cost to join?
 How much does it cost not to join?
6
If we want do it as well...
?
Dr. Stefan Winkler Braunschweig, 1/15/2010

7. CRM cannot be done in 11
steps! Q.E.D.
 SEI Information Technology: Seven critical
steps to a successful CRM solution
(bit.ly/7ArF7q)
7  Gartner: Eight Steps to Implementing a
Successful CRM Project
(bit.ly/86yZxc)
 Kyle LaMalfa: Nine principles of excellence
in CRM
(bit.ly/7DPFa8)
 Information Management: Ten steps to CRM
success
(bit.ly/80P8uj)
 Ann Bednarz: Twelve steps to CRM success
(bit.ly/5RJTrd)
Dr. Stefan Winkler Braunschweig, 1/15/2010

8. Every start is ‘the goal’
#thinkaboutit #telluswhatyouthink
 What are the goals ofthe introduction of
8 a customer loyalty program?
 Which criteria can be used to determine
the success of the program?
 How can the criteria be measured?
Dr. Stefan Winkler Braunschweig, 1/15/2010

9. First things first
 Operational CRM:
Automation of customer processes which
support sales and customer service
9
 Collaborative CRM:
Target group specific approach of
customers with the ability to directly
interact
 Analytical CRM:
Analysis of customer data to identify
characteristics, behaviors and potentials
of customer segments
Dr. Stefan Winkler Braunschweig, 1/15/2010

10. CRM at retail
 Punch cards  Starbucks for free?
(bit.ly/6emyXB)
10  Savings cards  Who’s gonna pay the bill?
(bit.ly/4Ag3Pz)
 Reward programs  Happy and not so
happy digits
(bit.ly/63rW)
 Online-Profile  „Social Media CRM 2.0“?
Dr. Stefan Winkler Braunschweig, 15.01.2010

11. Data explosion at retail
 Point-of-sale and market basket
information
11  Shipment-tracking information
 Customer online profiles
//bit.ly/4uGvLi (NY Times)  Census data
 Customer data syndication
 Social media profiles
Dr. Stefan Winkler Braunschweig, 15.01.2010

12. The seal on the runway
 The customer directly influences marketing
and merchandising.
12  Data is collected at the stores, online and
through mobile services.
//bit.ly/8C8jbL (iRunway)
//bit.ly/4GEhvH (Community)
Dr. Stefan Winkler Braunschweig, 15.01.2010

13. Frequently made mistakes
 #1: All customers are treated alike.
 #2: Customer segmentation is only based
13 on frequency.
 #3: Customer attention is decreasing
while interaction and the number of
loyalty programs are rising.
 #4: Reward programs fail to generate
incremental business.
Dr. Stefan Winkler Braunschweig, 1/15/2010

14. RFM analysis
 Recency: Who made the most recent
purchases?
14  Frequency: Who made the most frequent
purchases?
 Monetary value: Who spent most?
//bit.ly/6Y3JgJ (RFM Case Study)
R F M
most recent most frequent most valuable
... ... ...
... ... ...
least recent least frequent least valuable
Dr. Stefan Winkler Braunschweig, 15.01.2010

15. Watch out! How to approach
customers?
#thinkaboutit #telluswhatyouthink
 Which customer segments should be
15 addressed?
 What kind ofrewards will motivate
customers to make additional purchases?
Dr. Stefan Winkler Braunschweig, 1/15/2010

16. Dr. Stefan Winkler
Blog: swinkler.info
Twitter: follow_swinkler
Xing: xing.swinkler.info
LinkedIn: linkedin.swinkler.info