1. Customer relationship management

2. Learning outcomes
Outline different methods of acquiring customers via electronic media
Evaluate different buyer behaviour amongst online customers
Describe techniques for retaining customers and cross- and up-selling using new media.

3. Management issues
What are the practical success factors 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?

4. 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?

5. 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

6. 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)

7. 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 optimize the marketing mix

8. Figure 9.1 The four classic marketing activities of customer relationship management

9. Figure 9.2 A summary of an effective process of online relationship building

10. Figure 9.3 A summary of how the Internet can impact on the buying process for a new purchaser

11. Figure 9.4 A model of the relationship between different aspects of trust and consumer response based on the categories of Bart et al. (2005)

12. Figure 9.5 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

13. Figure 9.6 Online and offline communications techniques for e-commerce

14. Figure 9.7 Measures used for setting campaign objectives or assessing campaign success increasing in sophistication from bottom to top

15. Figure 9.8 An example of effectiveness measures for an online ad campaign

16. Which are the ranking factors affecting position In Google SERPs?
On-page optimization
Document meta data
Document content
Creation of new pages
Off-page optimization
Link-building
External links
‘Links In’
‘Backlinks’
‘Inbound links’
AND Internal links
Behavioural
Popularity of sites from toolbar
Google’s search spam filters
How many search ranking factors?
Today is all about practical tips with examples. No theory – assuming you know – if not, see this slide.
Which sectors represented. 16

17. Which SEO ranking factors should I focus on?
On page optimization:
<title> tag = 4.9/5
Keyword frequency and density = 3.7/5
Keyword in headings = <h1> = 3.1, <h2> = 2.8
Keyword in document name = 2.8
Meta name description = 2/5
Meta name keywords = 1/5
Off-page optimization:
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

18. 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

19. Figure 9.9 Search engine results page showing the two main methods for achieving visibility Source: Screenshot reprinted by permission of Google, Inc

20. Figure 9.10 Stages in producing natural search engine listings

21. Figure 9.11 Online PR categories and activities

22. Figure The affiliate marketing model (note that the tracking software and fee payment may be managed through an independent affiliate network manager)

23. Figure response figures Source: Provided by SmartFOCUS Digital ( an service provider that send s to UK and European organizations such as publishers and retailers

24. Figure 9.14 TopTable (www.toptable.co.uk)

25. Figure Schematic of the relationship between satisfaction and loyalty Source: Adapted and reprinted by permission of Harvard Business Review from graph on p. 167 from ‘Putting the service-profit chain to work,’ by Heskett, J., Jones, T., Loveman, G., Sasser, W. and Schlesinger, E., in Harvard Business Review, March–April Copyright © 1994 by the Harvard Business School Publishing Corporation, all rights reserved

26. Figure UTalkMarketing example of a professional online community Source: the UK’s leading community website for client side marketers

27. Figure 9.17 Activity segmentation of a site requiring registration

28. Figure 9.18 Different representations of lifetime value calculation

29. Figure 9.19 An example of an LTV-based segmentation plan

30. Figure 9.20 Customer lifecycle segmentation

31. Figure RFM analysis

32. Figure 9.22 An overview of the components of CRM technologies