CRM and Customer Analytics - Appunti

Loyalty marketing and CRM and customer analytics

Prof Marco Ieva

Lesson 1: What does CRM stand for?

CRM: Customer Relationship Management (customer non consumer). CRM is a strategic approach to maximize the lifetime value of customers.

Acquisition

Acquire a new client, try to target/attract people that have never bought from us. An example of acquisition strategies: offering a non-paid service to acquire new clients, for example, Netflix offers one month free to attract new clients to try their services.

Cross-selling

When a company offers another product that they produce.

Up-selling

When a company wants a higher level of services of products.

Retention

Keeping your customers.

Win Back

Reactivating a customer that has left the company with a "come back" offer; when there is a contract, we use win-back strategies.

Reactivation

A term used in a non-contractual setting.

Customer termination

It is legal, but not done very often; customer termination means making a customer leave you.

Lesson 2: Testimonianza Ekiss – Business Game

Lesson 3: CRM main goals and processes

Acquisition

• Acquiring new customers, subjects that have never been customers. Industries and companies might have different definitions of "acquiring a customer".
• Acquisition vs Retention: Data limitation (customer history), data quality (external vs internal), more difficult, higher costs.
• Why you need to do acquisition? Customers will always churn (customer turnover), start-ups (no customers), entering new segments, and when retention is not possible = expensive products that are bought one time only (wedding service), retention not desirable/an option.

Sales funnel

If you target 100 prospects, you might end up with a very small number of customers. Subjects who are not your customers might be on a different level depending on the interaction with the company:

• Suspects: All the potential customers who are not our current customers. You might not target all the suspects.
• Prospects: Potential customers who are somehow reachable from the company (advertising, email marketing). They are selected as potential customers of interest. 10% of these prospects become leads. You should start with a high number of prospects.
• Leads: Those prospects who have shown some interest or engagement with the company (downloaded a coupon, visited the website). The target of the company is to convert these leads into customers. 10% of the leads can become customers.
• Customers: Lookalike: In Italian language is a "sosia", you want to find customers that are similar to you, subjects that are similar to your current customers.

Lesson 4: Excel Practice

File gdp.csv: Shift + CTRL + round down (freccia giù): seleziona tutto. Dati – Testo in colonna – Delimitato – Virgola – Generale – Fine. Quando in Excel vediamo questo simbolo basta espandere la cella e Excel fará apparire il numero completo. Importante separare decimale, migliaia ecc. Andare in file – opzioni – impostazioni avanzate – separatore decimale (inserire il punto) – separatore migliaia (inserire virgola) – importante chiudere e riaprire il file. Successivamente selezionare colonna A attraverso i tasti shift + ctrl + freccia giù. Poi andare su Dati – testo in colonna – delimitato – virgola – generale – fine. Filtro: seleziona tutto e schiaccia su filtro, strumento molto utile per la ricerca veloce, Excel permette di usare più filtri contemporaneamente.

È possibile creare una nuova colonna attraverso il tasto destro del mouse + inserisci. Se vogliamo che tutte le scritte siano tutte maiuscole usiamo - MAIUSC (selezionando le righe che si vogliono riprodurre e renderle maiuscole) – per farlo in tutta la colonna fare doppio clic. È possibile annullare gli spazi in Excel attraverso – ANNULLA.SPAZI (selezionando la cela) e facendo poi doppio clic.

Ieva database pack: possiamo ordinare le colonne andando su Filtro – Ordina. Usando la funzione STRINGA.ESTRAI creiamo una nuova colonna dopo abbiamo solo i valori 1, 2 relativi allo snack dolce e allo snack salato, aggiungendo +0 Excel rileva che si tratta di una funzione matematica e sposta il numero sulla destra della colonna. Creiamo una nuova colonna nominandola dummy con la funzione SE apparirá lo zero se l’anno non è uguale a 2000, mentre 1 quando l’anno sará uguale a 2000.

Lesson 5: Cross-selling/Up-selling

Cross-selling means selling additional items that differ from those a customer has purchased or has expressed an interest in buying previously. Up-selling focuses on upgrading or improving the conditions of previously acquired products to keep customers consuming (migrating a customer from a standard room to a superior room).

Retention

Make sure that a customer continues to purchase goods or services from the company. Retention could be also related to service usage if the service is not paid (ex: email case). Retaining a customer does not necessarily mean making them loyal!

What is churn?

Churn is a customer who has left the company. The other side of the coin: customer churn is when a customer leaves the company. Subscription versus non-subscription based.

Retention example: Amazon Prime. Retention example: Starbucks rewards (*rewards: recompense). Look LUISAVIAROMA Loyalty program sul sito web.

Win-back/Re-activation

• Identification of profitable customers that have been lost.
• Deployment of "reasonable" actions to take back these customers.

Win back or re-activation example: In this example, we can see that the company is asking you to come back and then offers a coupon. Esselunga presents the STAR-WARS EVENT (An important example on Brand Loyalty). Esselunga launches a short collection which is basically a marketing activity and customers receive a gift based on Star-Wars, depending on how much they spend. This event is important for increasing purchase amounts and acquiring new customers, especially if you promote through mass media TV, etc. This might bring new customers to your company.

Focus on retail analytics for loyalty programs

Lesson 6: The same scheme – let's deepen it

55% of customers cannot be reached by any means. How can we increase activity and the number of cardholders that can be contacted?

• Increase offers that are valid only for cardholders
• Employ staff to promote the loyalty program in stores
• Train the store associates to remind customers of the loyalty card and to persuade customers to subscribe to the loyalty program
• Develop targeted communications and incentives to persuade customers to update their profile and their demographic and contact information

Excel Practice

Ieva database pack: &