CUSTOMER RELATIONSHIP
MANAGEMENT – CRM
MKT 405: Distribution Management
M Wahidul Islam
Summer 2014
Planning,
Forecasting
& Budgeting
Warehousing
and Logistics
Channel
Information
Systems
Sales Force
Management
Elements of
Distribution
Management
Distribution
Channels
Product
Pricing and
Promotion
Product
Visibility
CUSTOMER RELATIONSHIP MANAGEMENT – CRM
 Traditionally
the word CRM is used to
refer to relationship management with End
Customers
 Objective

of CRM
Build End Customer Loyalty
 Loyal
customer refers to someone,
Who is most likely to make repeat purchases
 Who will resist the activities of competitors
attempting to attract patronage

CUSTOMER RELATIONSHIP MANAGEMENT –
CRM
 Applying
the concept of the CRM to
Distribution Channel
 CRM

Objective
Channel Partner Loyalty
THE CRM PROCESS
Collect Customer
Data
Implementations
Analyze
Develop CRM
Programs
COLLECTING CUSTOMER DATA
 Foundation
 Customer
for subsequent CRM activities
Data Warehouse
Numerical Data
 Intangible / Qualitative Data

Numerical Data
• Transactions / sales data
• Market share
• Company investment
Intangible / Qualitative Data
• Preferences
• Attitude towards the
company
• Responses to marketing
activity
DEVELOP CRM PROGRAM
ANALYZING CUSTOMER DATA

Data Mining


Technique used to identify patterns in data, typically
patterns that the on mere observation may not
reveal.
Market Basket Analysis

Specific type of Data analysis that focuses on the
composition of the shopping basket, or bundle of
products purchased by a household during a single
shopping occasion.


Analyzing the composition of the retailers order pattern
Identifying Market Segments

Segment channel members based on need / profile /
location
The Objective is to Identifying Best Customers
ANALYZING CUSTOMER DATA
IDENTIFYING BEST CUSTOMERS
Lifetime Value
 Contribution to company’s overall profit over
the entire relationship
 Customer Pyramid
 80 – 20 rule
 Example: Platinum > Gold > Iron > Lead
 RFM Analysis
 Recency, frequency, monetary

How recent they have made a purchase?
 How frequent they make purchases?
 How much they bought?

Frequent
Shopper
Program
Community
Customer
Retention
(Loyalty)
Special
Customer
Service
Personalization
The Objective is to convert a good customer into
the BEST CUSTOMER
REFERENCES
 Chapter
11 – Customer Relationship
Management

Levy M. and Weitz B. A.(2004) Retailing Management
(5thEdition)New York: McGraw- Hill Companies, Inc.
END