1. 11/26/2017
MKTG 403: Customer Relationship Management & Data Analytics
Course Overview

2. The Evolution of Marketing
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The Evolution of Marketing
‘Good old days’
Customer Orientation
Mom and Pop
Mass market
Product Orientation
Product Organization
Customer Centric
Customer Orientation
Customer Organization
Large Segments
Niche Segments
Perspective
Orientation
Organization
Market Orientation
Market Organization
Customer-centric marketing emphasizes understanding and satisfying the needs, wants and resources of individual consumers and customers

3. Product-Centric vs. Customer-Centric Marketing
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Product Focus
Transactions
Acquiring Customers
Product Profitability
Trial & Error
Customer Focus
“Relationships”
Retaining Customers
Customer Profitability
Test, Measure & Refine

4. Historical Perspective
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Historical Perspective
Information Technology and Analytical Power
Customer Relationship Management
Enterprise Resource Planning
Business Process Redesign
Increase Business Value
Financial Management
1970’s ’s ’s ’s
Source: Quaero

5. 11/26/2017
What is CRM?
“CRM is at the core of any customer-focused business strategy and includes the people, processes, and technology questions associated with marketing, sales, and service.
In today's hyper-competitive world, organizations looking to implement successful CRM strategies need to focus on a common view of the customer using integrated information systems.”
(Source: RealMarket.com )

6. (Repeat Business Over Time)
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Customers Are Key
Acquire, Grow, Retain, Expand
Acquire New
Customer
Growth & Expansion
(Repeat Business Over Time)
Leads &
Prospecting
(New Business)
Get Customer
To Do More
Business
Customer
Buys Goods
Or Services
Retention
(Repeat Business)
Acquisition
(Initial Business)
Keep or Lose
Customer
Defection & Attrition
(Lost Business)
© , CRMSolutions

7. What are the Components of CRM?
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What are the Components of CRM?
Goals and Objectives
Strategic CRM
Strategic CRM
Analytical CRM
Day-to-Day Implementation
Operational CRM
Analytical CRM
Customer Intelligence

8. 11/26/2017
Strategic CRM
Strategic CRM is the process of:
Selecting which individual customers we want to serve & which portfolio of customers we want to have
Determining what type of relationship we want to develop with each of our customers
Shaping the interactions between the company and these customers
With the goal of optimizing the current and future value of our portfolio of customers for the company (customer lifetime value, share of the wallet)
It involves attracting, retaining and developing our target customers

9. Analytical CRM What tools do we need to achieve our objectives?
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Analytical CRM
What tools do we need to achieve our objectives?
Customer Metrics
Databases
Analytical techniques

10. Operational CRM How do we plan for it at the operational level?
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Operational CRM
How do we plan for it at the operational level?
Organizational considerations
Employees training and motivation

11. Marketing Mix (The 4 P’s)
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Pre-Requisite #1: MKTG 201
Situation Analysis
Identifying
Value
Customers
Company
Competition
Context
Marketing
Strategy
Market
Segmentation
Target
Market
Selection
Product
Positioning
Delivering
Value
Marketing Mix (The 4 P’s)
Product
Place
Promotion
Capturing
Value
Pricing
Customer Acquisition
Customer Retention
Sustaining
Value
Profits / Market Value

12. 11/26/2017
Pre-Requisite #2: QMBU 301
Statistical techniques in business data analysis
Decision making under uncertainty
Concept of loss functions, decision trees, Bayes' Rule
Correlation analysis, simple and multiple regression analysis (variable selection, model building, residual analysis); exponential smoothing methods; autoregressive (AR), moving average (MA), and ARMA models
Extensive use of computer-based computational tools and business applications

13. Course Evaluation & Expectations
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Course Evaluation & Expectations

14. Class Attendance is 10% of your grade
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Class Attendance is 10% of your grade
I expect you to attend every class …
You may not be able to make it to every class … but you are responsible for everything discussed in class
You loose all your participation points if you miss 10 classes or more

15. Course Participation is 10% of your grade
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Course Participation is 10% of your grade
III - Four (4) readings that I would assign for preparation and class discussion can help you gain up to 4 participation points
Readings would be made available with discussion questions
prepare readings outside of class
participate
I- Participation in class discussions and course activities (4 points)
II- Group case study (2 points)
contribution to the group work
 “Team Evaluation Form” at the end of the syllabus
If you don’t attend classes, you can’t hope to make these points

16. Honor Code: Academic Honesty and Trust are Key
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Honor Code: Academic Honesty and Trust are Key
I expect you to scrupulously abide by the Honor Code
In-class exam
Group case assignment
Individual assignments

17. Course Structure – Part I
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Course Structure – Part I
A – Strategic CRM
Importance and value of Long Term Relationships
B – CRM Metrics
Marketing Metrics & Customer Based Metrics for CRM
C – Implementing CRM
Collecting & Organizing Data for CRM
In Class Exam (30%) + Group Case (20%)

18. Course Structure - Part II
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Course Structure - Part II
D – Data Analytics
Analyzing Data for CRM
Heavy “hands-on” flavor”: you will analyze datasets using statistical analysis programs
– RFM Analysis
– Regression & Logistic Analysis
– Lift Charts
2 Individual Assignments (30%)