Retail Chap 7 - CUSTOMER RELATIONSHIP MANAGEMENT PROCESS
The document discusses customer service and customer relationship management. It defines customer service, explains why it is important, and describes various types of retail customer service. It then discusses the customer relationship management process, including collecting customer data, analyzing the data, developing CRM programs, and implementing the programs.
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Retail Chap 7 - CUSTOMER RELATIONSHIP MANAGEMENT PROCESS
The document discusses customer service and customer relationship management. It defines customer service, explains why it is important, and describes various types of retail customer service. It then discusses the customer relationship management process, including collecting customer data, analyzing the data, developing CRM programs, and implementing the programs.
We take content rights seriously. If you suspect this is your content, claim it here.
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7.
1 customer service What is Customer Service
• Retail customer service is the help
and assistance provided to a shopper in a store. • It’s the one-on-one that the assistant has with the customer that adds to the overall shopping experience. • And when done right, retail customer service will lead to happier and more satisfied shoppers. Why Customer service is important • It adds value to your product or service • It increases customer Retention and Recurring revenue • Results in positive reviews and brand image • It boosts your employee's morale and reduces turnover Costs • It adds value to your brand • Builds customer trust and loyalty • Sets you apart from your competition • Makes it easy for customers to do business with you. • Encourages word-of-mouth marketing. various types retail customer service
a.Accepting multiple forms of payments, such as
cash, check, or credit card. b.Offering delivery services. c.Making recommendations or providing demonstrations, such as offering recipes, cooking classes, or product samples. d.Allowing exchanges or returns. e.Allowing special orders. f. Providing customer loyalty programs. 7.2 CUSTOMER RELATIONSHIP MANAGEMENT PROCESS CUSTOMER RELATIONSHIP MANAGEMENT PROCESS Organize the customer relationship management process a. Collecting customer data b. Analyzing customer data and identifying target customers c. Developing customer relationship management programs d. Implementing customer relationship management programs CUSTOMER RELATIONSHIP MANAGEMENT PROCESS 1. Collecting Customers Data • The first step in a CRM process involves generating customer attention through specific marketing efforts. Creating a customer relationship depends on connecting with a consumer using traditional or digital marketing campaigns. FOUR INFORMATION Transactions Customer Contact THAT SHOULD BE INCLUDE IN CUSTOMER DATABASE Customer Descriptive preferences information Transactions.
• Ideally, the customer database should contain the following
information: • Transactions. A complete history of the purchases made by the customer, are: • the purchase date • the SKUs purchased • the price paid • the amount of profit and • The effectiveness of special promotion or marketing activity Customer Contact • A record of the interactions that the customer has had with the retailer.
• Type of record that should be included in the retailer’s website are :
• inquiries made through in-store kiosks • - comments made on blogs and Facebook pages • - merchandise returns, • - telephone calls made to the retailer’s call center • -plus information about contacts initiated by the retailer, such as catalogs and e-mails sent to the customer. Customer preferences • customer likes info are about : favorite colors, favorite brands, favorite fabrics, and favorite flavors, and apparel sizes. Descriptive information
• Descriptive information . Demographic and
psychographic data describing the customer that can be used in developing market segments. • Demographic and psychographic data such as: Demographic characteristics: age, gender, marital status, household composition • It is relatively easy for retailers to construct a database for customers using non store channels because these customers must provide their contact information, name and address, so that the purchases can be sent to them. • It is also easy to keep track of purchases made by customers patronizing warehouse clubs because they need to present their membership cards when they make a purchase. Five approaches that store- based retailers use to collect data: a) ask customers for identifying information, b) connect Internet and store purchasing data, c) offer frequent-shopper programs, d) use biometrics to identify customers, and e) place RFID chips on merchandise. 2. Analyzing Customer Data And Identifying Target Customer • Analyze the customer database and convert the data into information that will help retailers develop programs for building customer loyalty. • Use Data Mining – technique used to identify patterns in data 3) Developing customer relationship management programs • The collection and analysis of data about customer attitudes, preferences, and shopping behaviors enables retailers to target information and promotions and provide greater value to their customers. These are to gain customers retention. • However, many customers are concerned that retailers violate their privacy when they collect detailed personal information. Even if customers trust a retailer, they are concerned that the data may not be secure and/or may be sold to other businesses. 4. Implementing Customer Relationship Management Programs • Offer Frequent-Shopper Programs Frequent-shopper programs , also called loyalty programs , are programs that identify and provide rewards to customers who patronize a retailer. • These customer retention strategies include loyalty programs, referral programs, personalized emails, special offers, and future improvements. • A customer retention program puts in place various strategies to improve customer experiences, enhance customer engagement, build customer loyalty, encourage customers to make repeat purchases