Plenary 5 of the 18th National PR Congress last 22 to 23 September dealt with Customer Relationship Management. Customer service has now evolved from merely addressing customer queries to maintaining relationships with them. It is not just a matter of acquiring customers, but more importantly, it is about retaining them.
The session underscored the importance of trust-based discussions and sharing mutually-beneficial objectives in customer relationship management. Panelists’ inputs revolved around strategies, obstacles, and imperatives in building customer trust.
Topic Presenter:
Ms. Ichay Bulaong, CRM Head, ABS-CBN
Moderator:
Ms. Angelica Esguerra-Petterson, Executive Director, Australia New Zealand Chamber of Commerce Philippines
Topic Discussants:
Ms. Sandra Puno, Director for Communications, Nestle Philippines
Dr. Francisco Tranquilino, Advisor to the Ethic Committee, Pharmaceutical and Healthcare Association of the Philippines
PR Congress 2011 | Plenary 5 - Have They Come Back for Seconds?
1. Have They Come Back For Seconds?
Trust and Loyalty Through
Customer Relationship Management
23 September 2011
The 18th National PR Congress
Intercontinental Manila
2. Customer Relationship Management
A strategy by which you use your
knowledge of the customer
to manage direct interactions with him/her
for your greater profit and their greater
benefit
Customer intimacy on a mass scale.
3. “The aim of marketing is to know and understand the
customer so well the product or service fits him and
sells itself.”
- Peter Drucker
4. The Value Equation
Marketing spend
and efficiency
Campaign
response rates
Customer Customization of
knowledge and messages, offers Campaign ROI
understanding and services
Customer
retention
Customer
satisfaction
5. CRM Essentials
The Database is the heart of CRM
Differentiate & Dialogue: personalize, segment, customize, and interact
Due Diligence: keep your database clean and compliant
6. CRM Essentials
The Database is the heart of CRM
Differentiate & Dialogue: personalize, segment, customize, and interact
Due-Diligence: keep your database clean and compliant
7. Knowledge is Power
Demographic
Transactional Behavioral
• What is the minimum data you need to know about your customer?
• Every customer contact is an opportunity to know him/her better.
• Optimize, not maximize: A bigger database is not necessarily a better database.
• Data should be accessible and readable.
8. CRM Essentials
The Database is the the heart of CRM
Differentiate & Dialogue: personalize, segment, customize, and interact
Due-Diligence: keep your database clean and compliant
9. Traditional Approach
Jan Feb Mar Apr May
eNewsletter eNewsletter eNewsletter eNewsletter eNewsletter
Promotion Promotion Promotion Promotion
text blast text blast text blast text blast
Advertising, website, promotions
In traditional marketing, every person, regardless of their interest and
lifecycle stage, gets the exact message.
However, not all consumers are created equally.
10. Segmentation by Customer Lifecycle
Inquiry
Trial
Reactivation
Offer
Prospect Second Purchase
Cross / Upsell
Returnee Customer
Targeted message Recognition
based on reason Referral
for lapsing
Lapsed
Loyalist
Customer
11. Segmentation by Value
Low Spenders Mid Spenders High Spenders
P
Customer Spend
Current ARPU Target ARPU
Action: Action: Action:
• Drive major • Drive • Maintain current
increase in spend incremental spend
• Understand increase in spend • Understand
reasons for low • Protect from reasons for high
spend backsliding spend
12. Segmentation by Value and Tenure
ARPU Cut Tenure Cut
0 – 6 months 7 – 12 months 13 – 24 months 24 – 36 months Above 36 months
0 – 100
101 – 200
201 – 300
301 – 400
401 – 500
Low to Medium Value
and Medium Tenure
501 – 600 Medium Value,
601 – 700 Loyal
• Defend
701 – 800
• Reinforce product
801 – 900
Vulnerables • Recognition
superiority
901 – 1,000
Education • Cross/upsell
1,001 – 1,500
Quick,
1,501 – 2,000
reliable
2,001 – 2,500 service
2,501 – 3,000
3,001 – 3,500
3,501 – 4,000 High Value
4,001 – 4,500
4,501 – 5,000 Personalized Service
5,001 – 10,000 Recognition
Above 10,000
13. CRM Essentials
The Database is the the heart of CRM
Differentiate & Dialogue: personalize, segment, customize, and interact
Due-Diligence: keep your database clean and compliant
15. Due Diligence
“Don’t do unto others
what you don’t want
others to do unto you.”
Self-regulate
16. Privacy-Conscious Consumers
Make Profitable Customers
A recent survey finds that, contrary to popular belief,
privacy-conscious consumers can be more valuable
customers than those less concerned with the issue.
“The privacy conscious not only spend more money than
other online users; they are more likely to open permission
messages and to value customized email.
In fact, of the 1,256 U.S. respondents, 30% of those most
worried about privacy say they are more receptive to
permission email. Similarly, 56% report that permission
email relationship quality is significant to their impressions
about firms and their products.”
* Conducted by Executive Summary Consulting for email marketing firm Quris
18. CRM Data Analytics: Looking Forward
Past Future
Data Analysis and Advanced Customer
Delivery Analytics
Reports historical data, a Looking for insights as to
snapshot of what how customers will
happened in the past but behave in the future, for
no insight about the more proactive campaign
future solutions
19. Purchase Propensity Model
Total subscribers in serviceable
areas
Segment B 4x likely to buy
Segment A
Targeted Selling 6x likely to buy
20. Last Words
PR
PR CRM
CRM
Builds trust through Builds trust
reputation and image
building via mass
one on one
communications through use of
customer
information
