Crm Case

05/03/2012 Fashion Communication 2

Data Base marketing

→ Data coding

→ Data mining

→ Extracting info when used for; communicating, marketing, information

- CRM = Intrinsic relationship, brand equity, top-of-mind → to drive more $

- Permission marketing = High response rate

- Frequency marketing

- 1. Cheap, cost effective, 2. Convenience 24/7, 3. Easy, 4. Highly personalized, 5. Speed, 6. Easy to measure

"Enhance customer loyalty"

"Building customer loyalty"

Extra mining: storing data/collecting data

→ Info customers} → PRIORITIZE!

→ Purchasing pattern} → PRIORITIZE!

→ History} → PRIORITIZE!

Strategic

→ Lifetime VALUE ANALYSIS

How much revenue do they generate from you?

- Revenue} → Calculating your profit

- Cost you retain} → Calculating your profit

Grouping people → Clustering → Subset your target consumer

= PROFIT

Login - Identification/Allow personalization

Protect - Security

Cookies - Web page, - Web Chain (not more than 3 clicks)

Surveys → Using every opportunity of engagement to collect data.

Why is permission marketing more cost effective?

- Only target those that will respond

- Reinforce commitment during engagement

- Measure dropout rate.

- Most effective when personalized

1. Chance to win (money to be made) highest %

2. Opt-in rates are high when consumer finds them randomly

3. Asking them to opt-in

4. Actual customers have a significant rate to opt-in

5. Through recommendation (word-of-mouth)

Loyalty programmes

- Content quality

- Interface (entertainment)

- Tangible dollar savings

- Intangible