Excel at CRM

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Customer data represent a valuable asset for organisations that are interested in implementing a customer intimacy strategy.

However, it must be noted that this value relies on the customer’s permission: to what extent will the customer allow the supplier to get to know him or her better?

Personal Data

• refers to data, whether true or not, about an individual who can be identified from that data.
• or from that data and other information to which the organisation has or is likely to have access.

Customisation

• Customisation affects production systems
• Hence the solution of mass customisation and mass individualisation started in 1990s.

Customisation

• Instead of the customer choosing one product variant, each customer provides unique information so that the product may be tailored to his or her specific needs.

4 Approaches

• Cosmetic
• Transparent
• Collaborative
• Adaptive

Cosmetic

• by making a simple adjustment in the product’s exterior. It requires no further adaptation of the product itself.

Transparent

• when the company adapts the product but not the representation, it is practising transparent customisation.

Collaborative

• when the product and its representation is adapted.

Adaptive

• neither the product nor the representation is adapted. This is applicable in companies with customers who are looking for a product that serves different purposes under different circumstances.

Individualisation Pricing Policy via Ecommerce

Ecommerce stimulates experimentation with other pricing models and the Internet brings pricing models within reach, which was previously not the case.

This allows precision pricing policy, in which the price is adjusted to that which individual customers or segments are prepared to pay at a certain point in time.

Risks with Precision-Pricing

• With pay-per-view pricing, for example, the supplier must be prepared for a considerable drop in turnover. .
• With pay-per-view pricing, for example, the supplier must be prepared for a considerable drop in turnover
• Customer sensitivity will increase.

Relationship Policy

Considerations

• How do we develop a high quality customer database with customers with whom it is worthwhile developing a relationship?
• How do we develop a mutually profitable relationship with these customers?

By Segment

• It is good practice to build a framework on the basis of financial arguments, within which the relationship policy may be determined for each segment.
• A distinction is often made between A, B, C and D or gold, silver and bronze customers and is utilised quite widely.

Loyalty Programmes

• In order to further develop the commitment of their customers, various companies also implement loyalty programmes.
• The success of the programme lies in providing customers with specific rewards. The intention is to reward loyal, frequent buyers more often.

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