crm in retail industry...

CRM in Retail Industryการบรหิารความสัมพันธกับลูกคา

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Sundae Solutions

Mr. Navik NumsiangManaging Director | Sundae SolutionsManaging Director | Sundae Solutions

re·tailre tailnoun \’rē-,tāl\

all activities involved in selling, renting, and providing goods and services to ultimate customers for personal, family or household use.p y

In the channel of distribution, retailing is where the customer meets the product It is through retailing that exchange occursthe product. It is through retailing that exchange occurs.

Utilities provided by retailers create value for customers. p yTime, place, possession, and form utilities are offered by most retailers.

challengeschallengesnoun

a summons that is often threatening, provocative, stimulating, or inciting; specifically : a summons to a duel to answer an affrontg p y

P bl f b i k dProblem for bricks and mortar retail sectors in actuallyactually

identifying the customers

Difficulty in yassembly a

360 viewf thof the

customer

Shoppers having high expectations for in-store servicespp g g p

Retail sector grows in hi ti tisophistication

Internet & Social Media

Facing the toughestFacing the toughest economic conditionsInstinctive reaction to cut all strategic projects andstrategic projects and wait until things improve

findingsfindingsnoun

the result of a judicial examination or inquiry

Findings by Retail TouchPoints and The Aberdeen Group, 2008

Best-in-class retailer are bringing to loyalty programs with the sophistication

and diverse multichannel approach.

Member Information acquisitions:

45% of retailers register customers via45% of retailers register customers viasales associate in the store

41% at POS41% Online


loyalty program objectivesTop two objectives toward loyalty program objectives:

Lifetime Customer Value (57%)( )Competitive Advantage (39%)


46%of retailers did not measure promotion46%of retailers did not measure promotion among their customer base at all.


Real time customer data is

14% | in use now & 23% will be a priority over the next year


conceptualconceptualadjective \kən-’sep-chə-wəl, -chü-əl, kän-, -chəl, -shwəl\

Of, relating to, or consisting of concepts <conceptual thinking>

What is CRM?

CRM is a business strategy designed to

optimise profitability, revenueprofitability, revenue

and customer satisfaction

Gartner

Management Tools & Trends 2010 by Bain & Co.

CRMC t l F k f R t ilCRM Conceptual Framework for RetailCustomer ‐centric CRM Strategy, a Pyramid Framework

CRM Conceptual Framework for RetailpBest Practices of Customer Segmentation –CLV Approach

CRM Conceptual Framework for RetailpBest Practices of Customer Segmentation – RFM Approach

111 222 333

121 212 323

131 232 313131 232 313

112 211 332

113 213 331

122 231 321

123 233 322

132 221 312

133 223 311

TechnologyTechnologynoun \tek-’nä-lə-jē\

The practical application of knowledge especially in a particular area

CRM Technology Framework for RetailCustomer datadrivenclose loopCRMApplicationArchitectureCustomer‐data driven close‐loop CRM Application Architecture

CRMT h l F k f R t ilCRM Technology Framework for RetailCRM Technology Strategy and IDIC Methodology

Customer Classification

CRMT h l F k f R t ilCRM Technology Framework for RetailReference Retail CRM Solution Components

NewNewadjective \’nü

Having recently come into existence

M lti Ch l CRMMulti‐Channel CRM

Email Marketing and CRM

What’sGood about EmailMarketing?What s Good about Email Marketing?

Highly targeted

Immediate

MeasurableMeasurable

Reach

Cost Effective

E-mail is NOTE-mail is NOT dead

But social network

iusage is growinggrowing quickly

ROI of Digital

Channels

E il M k tEmail Market

gave the mostgave the most

returns onreturns on

investment

Mobile CRMMobile CRM

A Consumer’s Always‐on Companiony p

Where Smartphone Is Used?

93% 87%

93%

On-the-go

Home

Where Smartphone Is Used?

73%

77%

87%

Restaurant

In a store

On the go

87% 66%

72%

At a social gathering/ function

Work

87%53%

54%

Doctor's Office

Café or coffee shop

77%32%

50%

Library

Airport

77% 29%School

Source: TheMobileMoment Study, April 2011

70%70%Use smartphone while shopping in-storeUse smartphone while shopping in store


Smartphones Are an Integral Part of a Multi-channel Purchase Process


Data In, Data OutThe key to good data is getting the data in the system. Staff are ymore likely to input data on mobile devices at the point ofmobile devices at the point of entry. In real-time.

Mash up to CRMMash-up to CRM

Mash‐ups to CRM A mash‐up is a web application that combines data from more th i t i lthan one source into a single integrated view.

Content used in mash‐ups is typically sourced from a third party via a Widget or API (webparty via a Widget or API (web service).

Minimized application data management

Reduced development effort

Make CRM SMARTER

Most Popular Mash‐upp p

Mash‐ups to CRM Dashboardp

Social CRM

Web 2.0 provoked an expansion of the R in the CRMexpansion of the R in the CRM acronym

C / CCompany / CustomerCompany / PartnerCompany / CompetitorCompany / CompanyCustomer / PartnerCustomer / Competitor/ pCustomer / CustomerPartner / Competitor

Evolution of the CRM landscapepCRM 1.0 CRM 2.0

CustomerCustomer

Customer Customer

Customer CustomerCustomer Customer

Competitor Supplier / PartnerCompetitor Supplier / Partner

Customer Custome

CustomerCustomerCustomerCustomer

Your company

Customer Customer

Your company

Customer CustomerCustomer Customer

Focus on individual relationship (company to customer, company to partner, etc.)

Limited view of the customer and his community preferences habits etc

•Focus on collaborative relationship (engaging a more complex relationship network)

•Multiple connections allow better understanding of the customer and his communitypreferences, habits, etc.

Targeted messages generate value

customer and his community

•Conversation generates value

Evolution of Customer Touch Points

• Blogs • Microblogs

CRM 1.0 CRM 2.0

• Phone • PhoneF

g

• RSS• Wikis

• Podcast

• Price comparison website

• Fax• Email• Service• Letters

P l t t

• Fax• Email• Service• Letters• Personal contact +

Wikis• Social Networks

• Widgets• Video sharing

• Personal contact• Company’s website• SMS• Instant Messenger• Chat

• Personal contact• Company’s website• SMS• Instant Messenger• Chat

+• Forums

• Photo sharing

• Auction website

• Chat• Media

Chat• Media

• Social Bookmarking • Wish lists

• Reviews and ratings in retail sites

• Slides sharing

Single view of the customer based on the interactions •Single view of the customer is far more complex to achieve.

• Social Bookmarking

Single view of the customer based on the interactions history, customer profile data residing in the company’s base and data integration with internal systems

Company owns the data but it is limited to previous interactions

Besides internal information, the company must rely on external information such as customer profiles in social networks and his behavior when participating in a community.

•Customer and other web 2 0 sites own part of the precious datainteractions •Customer and other web 2.0 sites own part of the precious data

Evolution of Organizational MindsetgCRM 1.0 CRM 2.0

!!

!

!InteractionConversationContributionTransaction

FeedbackFeedback

Employee Customer Employees Customers

Innovation comes from one specialized source within the company (innovation group)

F tli l i t t t d f

•Innovation is gathered from all employees as they are closely connected to the final customer and to each other via internal web 2.0 tools. Customers are in the center of the innovation

Frontline employees communicate targeted messages for transactional operations

cycle.

•Frontline and non frontline employees engage conversations including new customers in the context and rerouting conversations New set of employee skills neededconversations. New set of employee skills needed.

Social CRM Process

Wrap Upap UpTurn challenges into strategic competitive advantage andadvantage and enhance their long‐term viability and profitabilityprofitability

Visit the Our Sundae Ecosystem atwww sundae co thwww.sundae.co.th

Facebook.com/SundaeSolutions

SundaeSolutions

YouTube.com/SundaeSolutions

Thank You for CominggSundae Solutions Co., Ltd.

T l 0 2634 8899Tel. 0 2634 8899

Email: [email protected]

Website: www.sundae.co.th

crm in retail industry...

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