Chapter 9 Customer Relationship Management

Slide 9.
Chapter 9
Customer relationship
management
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition Marketing Insights Limited 2015
Slide 9.2
Learning outcomes
Outline different methods of reaching and

acquiring new customers via digital media
Evaluate different buyer behaviour amongst
online customers
Describe techniques for retaining customers
and cross- and up-selling using digital media
communications
Slide 9.3
Management issues
Which digital media should we invest in to reach new

audiences?
What are the practical success factors for using digital
media need to make customer acquisition more
effective?
What technologies can be used to build and maintain
the online relationship?
How do we deliver superior service quality to build
and maintain relationships?
Slide 9.4
What is CRM?
You have a job interview for Centrica

(AA, British Gas, Goldfish) working in the CRM
team www.theaa.co.uk, www.house.co.uk
How would you explain the terms:
CRM
e-CRM
Why does Centrica have a CRM function?
Why is CRM different?
What are benefits of this approach?
Slide 9.5
e-CRM a definition
e-CRM is:
Applying
Internet and other digital technology
(web, email, wireless, iTV, databases)
to
acquire and retain customers
(through a multi-channel buying process
and customer lifecycle)
by
improving customer knowledge, targeting,
service delivery and satisfaction.
Slide 9.6
Marketing applications of CRM
A CRM system supports the following marketing

applications:
Sales force automation (SFA). Sales representatives are
supported in their account management through tools to
arrange and record customer visits.
Customer service management. Representatives in
contact centres respond to customer requests for
information by using an intranet to access databases
containing information on the customer, products and
previous queries.
Managing the sales process. This can be achieved
through e-commerce sites, or in a B2B context by
supporting sales representatives by recording the sales
process (SFA).
Slide 9.7
Marketing applications of CRM

(Continued)
Campaign management. Managing ad, direct

mail, email and other campaigns.
Analysis. Through technologies such as data
warehouses and approaches such as data
mining, which are explained further later in the
chapter, customers characteristics, their
purchase behaviour and campaigns can be
analysed in order to optimise the marketing mix.
Slide 9.8
Figure 9.1 The four classic marketing activities of customer relationship management
Slide 9.9
Figure 9.2 A summary of an effective process of online relationship-building
Slide 9.10
Figure 9.3 ReachActConvertEngage model

Source: Smart Insights (2010) Introducing RACE = A practical framework to improve your digital marketing. Dave Chaffey, 15 July 2010. www.smartinsights.com/blog/digital-marketing-
strategy/race-a-practical-framework-to-improve-your-digital- marketing.
Slide 9.11
A summary of how the Internet can impact on the buying process for a
Figure 9.4
new purchaser
Slide 9.12
A model of the relationship between different aspects of trust and

Figure 9.5
consumer response based on the categories
Source: Bart et al. (2005).
Slide 9.13
Percentage who consider the different information sources as important

Figure 9.6
when researching/considering a product or service
Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004.
Slide 9.14
Measures used for setting campaign objectives or assessing campaign

Figure 9.7
success increasing in sophistication from bottom to top
Slide 9.15
Figure 9.8 An example of effectiveness measures for an online ad campaign
Slide 9.16
Which are the ranking factors affecting

position in Google SERPs?
On-page optimisation
Document meta data
200
Document content
Creation of new pages
Off-page optimisation
Link-building
External links
Links in
+
Backlinks
Inbound links
AND internal links
Behavioural
Popularity of sites from toolbar
Googles search spam filters
Slide 9.17
Which SEO ranking factors

should I focus on?
On page optimisation:
<title> tag = 4.9/5
Keyword frequency and density = 3.7/5
Keyword in headings = <h1> = 3.1, <h2> = 2.8
Keyword in document name = 2.8
Meta name description = 2/5
Meta name keywords = 1/5
Off-page optimisation:
More backlinks (higher PageRank) = 4/5
Link anchor text contains keyword = 4.4/5
Page assessed as a hub = 3.5/5
Page assessed as an authority = 3.5/5
Link velocity (rate at which changes) = 3.5/5
See http://www.seomoz.org/article/search-ranking-factors
http://docs.google.com/Present?docid=dc3qhbxg_1217d9mwjwg3
Slide 9.18
Which factors affect returns

from paid search?
Distribution of daily budget
Amount bid (Max CPC)
* Clickthrough rate
* Creative quality including creative testing
* Campaign structure
* Match types especially negative matches
Use of content network
Time-of-day (day parting)
Landing page quality
Click fraud!
* In Google AdWords, Live Search and Yahoo! Quality Score
especially important
Slide 9.19
Figure 9.9 Stages in producing natural search engine listings
Slide 9.20
Search engine results page showing the two main methods for
Figure 9.10
achieving visibility
Source: Google and the Google logo are registered trademarks of Google Inc., used with permission.
Slide 9.21
Figure 9.12 Aspects of social CRM

Source: Altimeter (2010).
Slide 9.22
Figure 9.13 Online PR categories and activities
Slide 9.23
The affiliate marketing model (note that the tracking software and fee
Figure 9.14
payment may be managed through an independent affiliate network manager)
Slide 9.24
Figure 9.17 Activity segmentation of a site requiring registration
Slide 9.25
Figure 9.18 Different representations of lifetime-value calculation
Slide 9.26
Figure 9.19 An example of an LTV-based segmentation plan
Slide 9.27
Figure 9.21 Customer life cycle segmentation
Slide 9.28
Figure 9.22 RFM analysis
Slide 9.29
Figure 9.23 An overview of the components of CRM technologies

Chapter 9 Customer Relationship Management

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Slide 9.

Outline different methods of reaching and

Which digital media should we invest in to reach new

You have a job interview for Centrica

Marketing applications of CRM

A CRM system supports the following marketing

Marketing applications of CRM

Campaign management. Managing ad, direct

Figure 9.2 A summary of an effective process of online relationship-building

Figure 9.3 ReachActConvertEngage model

A model of the relationship between different aspects of trust and

Percentage who consider the different information sources as important

Measures used for setting campaign objectives or assessing campaign

Figure 9.8 An example of effectiveness measures for an online ad campaign

Which are the ranking factors affecting

Which SEO ranking factors

Which factors affect returns

Figure 9.9 Stages in producing natural search engine listings

Figure 9.12 Aspects of social CRM

Figure 9.13 Online PR categories and activities

Figure 9.17 Activity segmentation of a site requiring registration

Figure 9.18 Different representations of lifetime-value calculation

Figure 9.19 An example of an LTV-based segmentation plan

Figure 9.21 Customer life cycle segmentation

Figure 9.22 RFM analysis

Figure 9.23 An overview of the components of CRM technologies

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