Module 3 Building Customer Relationships

Module 3

Building Customer
Relationships

Module 3 Objectives

•
Examine the customer experience, interface,
and relationship.

•
Analyze the conditions when a company
should include an Internet marketing
component as part of the overall marketing
plan.


“Target information to targeted audiences”


MKT 430 E
-
Marketing Strategies

Online Awareness

How do people get and stay on your site?


3 Stages of Online Awareness

1.
Online Visibility

2.
Online Believability

3.
Online Longevity

Online Visibility

How could you get people to

come to your site?

Search Engine Marketing

How does it work?

Search Engine Optimization

•
Search Engine Submission
–

Webiste listed
on websites

•
Search Engine Optimization is altering your
site for it will rank well for particular terms.

•
List your site with Search Engines

•
Purchase Paid Placement



Building Believability

•
Build credibility with visitors

–
Design a content
-
filled site

–
Graphical attractive site

–
Easy to navigate site

–
Responsive site


Website Value Ad

•
www.harrydavid.com

•
www.proflowers.com

•
www.expedia.com

Online Longevity

•
Build a long lasting relationship with the
customer.


“Relationship Marketing”

Collecting Data

•
Transactional Database

•
Compiled Database

•
Propietary Database

Transactional Database


Magic Kingdom

April 2007

May 2008

March 2009


Animal
Kingdom

April 2007

Hollywood
Studios

May 2008

Blizzard
Beach

March 2009

Spring 2010

??

Compiled Database

•
Baby born May 2009

Proprietary Database

Customer
Profile

Marketing

Customer
Service

Product
Development

Order Dept


•
Products

•
Address

•
Shipping Info

•
Credit Card Info

•
Products

•
Contact Info


•
Products

•
Ordering Problems

•
Technical Problems

•
Technical Problems

•
Product Enhancements

Measuring Web Traffic

•
Unique hits
–

one person, one visit

•
Number of hyperlinks

•
Hourly, Daily Visits


Customer Relationship Marketing

•
Relationship marketing is using data you
collect to customize and personalize your
message to target markets in order to build
a lasting relationship.


•
A CRM system keeps track of customer
information, sales, market trends,
marketing effectiveness and
responsiveness.


Pareto Principle


“80% of your business comes from 20% of
your customers”


•
Recognizing High Value Customers

•
Know your customers one
-
to
-
one basis


Airline Example

Infrequent Flyer

Loyal Program
Member

Value
-

$

Value
-

$$

Also Purchase Hotel
–

10 times/year

5 year customer
-

20 flights per year

Value
-

$$$$

Value
-

$$$$$

Inn at the Park B & B

www.innpark.com

•
What attract to site?

•
What data?

•
What value ad’s


Stages of the Customer Lifecycle


Customer relationship marketing offers many

opportunities to interact at each stage of the

customer lifecycle.



Stages of the Customer Lifecycle



1.
Acquisition

2.
Conversion

3.
Retention

4.
Loyalty


Retention

Conversion

Loalty

Acquisition

Conversion

Retention

Loyalty

Stage 1
-

Acquisition

•
Gather qualified leads


How do you gather leads?

Stage 1
-

Acquisition

Build trust with customers by:

•
Guarantees, product return policies, legal
contracts

•
Product reviews, third party endorsements
provide some evidence.



Stage 2
-

Conversion

•
Move customers to commitment or
purchase

•
Start collecting data and building customer
profile

Stage 3
-

Retention

•
Sent personalize messages to deepen
customer relationship

•
Offer “value” in website

•
One
-
click ordering

•
Manage accounts

•
After sale support

Stage 4
–

Identify Value
Customers

•
Identify frequent customers.

•
Reward them!!!

Loyalty Programs

•
Keep people eager to earn points

•
Reward often to reinforce rewards

Email Marketing

•
How do companies collect/add names to
their database?

Email Messages

•
Used for Promotions/Advertising

•
Surveys

•
Customer Service

•
Customer Relationships

Bed & Breakfast

How can we create a CRM program for Bed & Breakfast?

Neahtawanta Inn
–

Traverse City, MI

http://www.neahtawantainn.com/