Nothing Essay

3302 WordsMay 1, 201214 Pages
84 Handbook of CRM: Achieving Excellence in Customer Management To move from product management to customer management, an organization will want to undertake detailed segmentation and analysis of customers in order to calculate customer profitability, churn or retention, etc. so it can: q q q make different offers to different customers – the essence of CRM monitor the organization’s progress towards this goal identify individual cross-selling and upselling opportunities to maximize customer profitability. While customer-based marketing is a more advanced form of CRM, those businesses that adopt this approach will not be offering the highly individualized customer service and support found on the right-hand side of the matrix. Supermarkets are a good example of companies that have been able to exploit customer-based marketing. Using the information about customer behaviour collected at the checkout via loyalty cards and also video recordings of customers’ movements within stores, they can draw conclusions about store layout, position of products on the shelves, presentation and packaging and so on. They can then alter layout and placement and also mail out tailored offers to individual customers. This information enables them to: q q q alter the mix of products on a shelf on a store-by-store basis to take account of varying socio-demographics identify and develop additional ‘own-label’ products that exactly match the needs and aspirations of customers with high net lifetime value develop and promote new products more effectively. The detailed information that is now being held by supermarkets is shifting the balance of power from the manufacturers of branded products to the supermarket, as they are increasingly able to sell this information to manufacturers. Having reached this position, the most advanced supermarkets such as Tesco have now

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