Slide 9.1 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Chapter 9 Customer relationship management

Slide 9.2 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Learning outcomes Outline different methods of reaching and acquiring new customers via digital media Evaluate different buyer behaviour amongst online customers Describe techniques for retaining customers and cross- and up-selling using digital media communications

Slide 9.3 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Management issues Which digital media should we invest in to reach new audiences? What are the practical success factors for using digital media need to make customer acquisition more effective? What technologies can be used to build and maintain the online relationship? How do we deliver superior service quality to build and maintain relationships?

Slide 9.4 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 What is CRM? You have a job interview for Centrica (AA, British Gas, Goldfish) working in the CRM team How would you explain the terms: –CRM –e-CRM Why does Centrica have a CRM function? –Why is CRM different? –What are benefits of this approach?

Slide 9.5 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 e-CRM – a definition e-CRM is: Applying… Internet and other digital technology… (web, , wireless, iTV, databases) to… acquire and retain customers (through a multi-channel buying process and customer lifecycle) by… improving customer knowledge, targeting, service delivery and satisfaction.

Slide 9.6 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Marketing applications of CRM A CRM system supports the following marketing applications: –Sales force automation (SFA). Sales representatives are supported in their account management through tools to arrange and record customer visits. –Customer service management. Representatives in contact centres respond to customer requests for information by using an intranet to access databases containing information on the customer, products and previous queries. –Managing the sales process. This can be achieved through e-commerce sites, or in a B2B context by supporting sales representatives by recording the sales process (SFA).

Slide 9.7 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Marketing applications of CRM (Continued) Campaign management. Managing ad, direct mail, and other campaigns. Analysis. Through technologies such as data warehouses and approaches such as data mining, which are explained further later in the chapter, customers characteristics, their purchase behaviour and campaigns can be analysed in order to optimise the marketing mix.

Slide 9.8 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.1 The four classic marketing activities of customer relationship management

Slide 9.9 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.2 A summary of an effective process of online relationship-building

Slide 9.10 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.3 Reach–Act–Convert–Engage model Source: Smart Insights (2010) Introducing RACE = A practical framework to improve your digital marketing. Dave Chaffey, 15 July ​ marketing- ​ strategy/race ‑ a ‑ practical- ​ framework ‑ to ‑ improve- ​ your- ​ digital- ​ marketing.

Slide 9.11 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.4 A summary of how the Internet can impact on the buying process for a new purchaser

Slide 9.12 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.5 A model of the relationship between different aspects of trust and consumer response based on the categories Source: Bart et al. (2005).

Slide 9.13 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.6 Percentage who consider the different information sources as important when researching/considering a product or service Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004.

Slide 9.14 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.7 Measures used for setting campaign objectives or assessing campaign success increasing in sophistication from bottom to top

Slide 9.15 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.8 An example of effectiveness measures for an online ad campaign

Slide 9.16 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Which are the ranking factors affecting position in Google SERPs? − On-page optimisation –Document meta data –Document content –Creation of new pages Off-page optimisation –Link-building External links ‘Links in’ ‘Backlinks’ ‘Inbound links’ AND internal links Behavioural –Popularity of sites from toolbar Google’s search spam filters

Slide 9.17 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Which SEO ranking factors should I focus on? On page optimisation: – tag = 4.9/5 –Keyword frequency and density = 3.7/5 –Keyword in headings = = 3.1, = 2.8 –Keyword in document name = 2.8 –Meta name description = 2/5 –Meta name keywords = 1/5 Off-page optimisation: –More backlinks (higher PageRank) = 4/5 –Link anchor text contains keyword = 4.4/5 –Page assessed as a hub = 3.5/5 –Page assessed as an authority = 3.5/5 –Link velocity (rate at which changes) = 3.5/5 See

Slide 9.18 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Which factors affect returns from paid search? Distribution of daily budget Amount bid (Max CPC) * Clickthrough rate * Creative quality including creative testing * Campaign structure * Match types especially negative matches Use of content network Time-of-day (day parting) Landing page quality Click fraud! * In Google AdWords, Live Search and Yahoo! Quality Score especially important

Slide 9.19 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.9 Stages in producing natural search engine listings

Slide 9.20 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.10 Search engine results page showing the two main methods for achieving visibility Source: Google and the Google logo are registered trademarks of Google Inc., used with permission.

Slide 9.21 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.12 Aspects of social CRM Source: Altimeter (2010).

Slide 9.22 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.13 Online PR categories and activities

Slide 9.23 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.14 The affiliate marketing model (note that the tracking software and fee payment may be managed through an independent affiliate network manager)

Slide 9.24 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.17 Activity segmentation of a site requiring registration

Slide 9.25 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.18 Different representations of lifetime-value calculation

Slide 9.26 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.19 An example of an LTV-based segmentation plan

Slide 9.27 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.21 Customer life cycle segmentation

Slide 9.28 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.22 RFM analysis

Slide 9.29 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 9.23 An overview of the components of CRM technologies