Consumer Behaviour

By Aditi Thapar
Lecturer Marketing
Rayat & Bahra
 Customer relationship
management
• Management process of acquiring
customers by understanding its
requirement , retaining customers
by fulfilling their requirement more
than their expectation and
attracting new customers through
customer specific strategies
Significance – Business Point of
view
• Reduce customer recruitment cost
• Generation of more and more loyal
customers
• Expansion of customer base
• Reduction in promotional expenses
• Benifiting customer selectivity
approach
• Increase in nukmber of profitable
customer
• Easy introduction of new product
 Why do org. loose their
customer
• Price related issues
• Product related issues
• Service related issues
• Benefits related issues
• Competitors
• Personal reasons
 Other aspects
• Front office operations — Direct interaction with
customers, e.g. face to face meetings, phone calls,
e-mail, online services etc.
• Back office operations — Operations that ultimately
affect the activities of the front office (e.g., billing,
maintenance, planning, marketing, advertising,
finance, manufacturing, etc.)
• Business relationships — Interaction with other
companies and partners, such as suppliers/vendors
and retail outlets/distributors, industry networks
(lobbying groups, trade associations). This external
network supports front and back office activities.
• Analysis — Key CRM data can be analyzed in order to
plan target-marketing campaigns, conceive
business strategies, and judge the success of CRM
activities (e.g., market share, number and types of
customers, revenue, profitability
 Operational CRM
• Managing campaigns
• Enterprise Marketing Automation
• Sales Force Automation
• Sales Management System

 Analytical CRM
• Designing and executing targeted
marketing campaigns
• Designing and executing campaigns,
e.g. customer acquisition,
cross-selling, up-selling, addon-selling
• Analyzing customer behavior in order to
make decisions relating to products
and services (e.g. pricing,
product development)
• Management information system (e.g.
financial forecasting and customer
profitability analysis)
 Sales Intelligence CRM
• Sales Intelligence CRM is similar to
Analytical CRM, but is intended as a more
direct sales tool. Features include alerts
sent to sales staff regarding:
• Cross-selling/Up-selling/Switch-selling
opportunities
• Customer drift
• Sales performance
• Customer trends
• Customer margins
• Customer alignment

 Campaign Management
• Campaign management combines
elements of Operational and
Analytical CRM. Campaign
management functions include:
• Target groups formed from the client
base according to selected criteria
• Sending campaign-related material
(e.g. on special offers) to selected
recipients using various channels (e.g.
e-mail, telephone, SMS, post)
• Tracking, storing, and analyzing
campaign statistics, including tracking
responses and analyzing trends
 Consumer buying decision
in retailing
 
• * Initiator - The person who first suggests
the idea of buying the product or service.
* Influences - The person whose view or
advise influences the decision.
* Decider - The Person who decides on
any component of a buying decision.
Whether to buy, what to buy, how to buy
or where to buy.
* Buyer - The person who makes the
actual purchase.
* User - The person consumes or uses the
product or service.
 CRM process
• Establishing CRM goals
• Educating other departments
• Assembling customer information
• Designing the data model
• Vendor study
• Selecting the CRM solution
• Establishing authority & responsibility
• Pilot projects
• Communication with customers through direct mail , electronic
• mail etc
• Customer surveys
• Customer satisfaction program
• Collection of customer information
• Provision of customer information to employees
• Usage of customer information in the business activities
• Feedback
• Analyze
• Documenting a new process
• Implementing final methodology
•  
 Developing and
implementing crm process
Consumer Modelling

A simplified representation of
a complex system
 Importance
• Development of theories
• Understand complex relationship
• Framework for discussion and
research work