Information Systems: Week 3

eCRM

• Firms use CRM systems help manage relationships with customers.
• CRM systems provide info coordinate business processes deal customer sales, marketing + service optimise revenue.
• Info helps firms identify, attract + retain most profitable customers.

Customer Examples

• Telephone sales
• Web sales
• Retail store sales

Service Examples

• Call centre data
• Web self-service data
• Wireless data

The 4 classic Marketing activities of CRM

Customer Extension 

• Cross-selling + Up-selling
• Optimise service quality

Customer Retention

• Understand individual needs
• Relevant offers continued usage online services

Customer Selection

• Who do we target?
• What is their value?

Customer Aquisition 

• Target right segments
• Minimise aquisition costs

Stage 1: Customer Acquisition: Includes promotion + other incentives to:

• Acquire completely new customers
• Entice exisitng customers move internet
• Techniques: Obtaining customer email address

Stage 2: Customer Retention

• Goals: One-time customers = repeat customers + Keep customers in on-line channel long possible.
• Techniques: Personalisation (Helps create 'stickiness' + increases switching costs).

Stage 3: Customer Extension 

• Concerned with maximising lifetime value customer.
• Techniques: Personalised communications used encourage repeat cross-selling + up-selling.