DCM

The customer enters into a relationship to get a good product or service at a fair price. The customer is looking for reliability and does not want to have to think or do too much.

Example: A loyal customer remains loyal to a toothpaste brand.

The customer wants to work with the company as a valued and reliable partner to solve problems in the long term.

Example: A customer of a food delivery service makes a number of sensible suggestions for improving the service, and the company takes up the ideas.

The customer wants to experiment with a new identity. He expects the company to provide excitement, to fuel his passion with every interaction, and not to encourage him to think or rationally consider his purchase.

Example: A customer of a watch manufacturer enjoys ever new models with dazzling designs - and buys them.

The customer is looking for intimacy and emotional support. He wants honest two-way communication and expects the company not to reveal personal information or exploit his vulnerability. Example: A retail customer expects to be informed in advance about operational or price changes or other important business decisions, and the customer offers loyalty and understanding in return.

The customer is looking for a lasting interaction, but does not want a close or emotional relationship. He expects the company not to make demands or restrict his freedom to interact with others.

Example: A beer lover wants to choose from a wide selection of beers for different occasions and resists efforts by individual brands to win his loyalty.

The customer enters into this type of relationship to strengthen his self-esteem. He demands that the company listen to him, anticipate all his needs, fulfill all his wishes, and ask no questions.

Example: An online retail customer breaks off your relationship after a discussion that signaled disrespect.

the customer 

management

relationship object

1. Measurability
§ Does the organization/company have the necessary customer data – for all customers? § Can each individual customer be assigned to a segment?
§ How often are updates to the segmentation necessary – how costly are the updates?

2. Accessibility
§ Are the segments homogeneous in themselves, but different in relation to the other segments? § Can suitable and differentiated measures be developed to address each segment?

3. Substance
§ Does the potential of the segment (sales, profit...) justify the allocation of resources?
§ Is an increase in customer equity to be expected as a result of differentiated segment handling?

4. Ability to act

§  Does the organization/company have the necessary resources and capabilities to process the emerging segments in a differentiated manner?

§  Is the segment handling compatible with the corporate, business unit and marketing strategy?

NPS = Promotors (9, 10) - Detracors (0 bis 6)

the NPS normally needs to be positive

The following NPS assumptions have subsequently been criticized or refuted by empirical studies:

• Relationship between company growth and NPS:
  “Neither customer satisfaction nor retention help firms achieve growth but growth is driven by word of mouth (Reichheld 2003)”

• Empirical studies show a weak correlation between company growth and NPS score (e.g. Godes and Mayzlin 2004), especially when viewed over a longer period of time (Study with longitudinal design: Keiningham et al. (2007)).

• Relationship between loyalty and NPS:
  Empirical studies show that the NPS alone does not provide sufficient evidence of loyalty; the additional measurement of "commitment" is important (www.trustmarkcfi.ch)

repurchase rate

customer loyalty (NPS or in years)

churn rate

upselling rate

cross selling rate

win back rate

Customer portfolio strategy

phase-related strategies (Customer acquisition, expansion of the customre relationship, customer recovery, termination of the relationship)

differentiated strategies

• The CRM maturity assessment focuses on the evaluation of CRM initiatives.

• §  All proposed disciplines and knowledge areas are necessary to support CRM.

• §  The CRM maturity assessment focuses on assessing maturity in terms of dimensions; how well a dimension is addressed in a CRM program. It evaluates the varying levels of methodological knowledge and application.

• §  The CRM maturity assessment identifies knowledge and methodological gaps within an organization that subsequently need to be analyzed in more detail.

• §  A specific maturity level across all disciplines and dimensions is a necessary prerequisite for a successful CRM.

• §  This means that an insufficient level or lack of maturity with respect to a specific discipline and a specific dimension jeopardizes the success of CRM.

Vision

Strategy

Metrics

customer experience

processes

information

technology

Customer (perceived) value is a customer’s perceived preference for and evaluation of those product or service attributes, attribute performances, and consequences arising from use that facilitate (or block) achieving the customer’s goals and purposes in use situations (Woodruff 1997).

or:

"Customer (net) benefit describes the degree of goal achievement that a customer attributes to a provider's service.” (Wachter 2006, S. 22)

desired intended goal/consequences through "usage of customer" <--> product/sevice/relationship features

Enduring and situation-independent convictions, basic values that are shaped by culture/society and determine our behavior (characterize the living environment without reference to the product/service).

Social/psychological consequences arising from the use of the product/service (link the product/service world with the customer's life world).

Rational-functional consequences, which often arise from the technical, functional properties of the product/service (refer to the product, the service, but are formulated by the customer).

Characteristics are design dimensions from company's point of view.

Customer satisfaction:

• Cognitive-affective comparison: expected and received performance
• Relevant in the post-purchase phase
• Current customers

Customer net benefit

• Cognitive-affective comparison: effort/output ratio in relation to intended goal achievement
• Relevant in all phases of the buying process
• Current and potential customers

1)  is a relative construct (comparison with competitors) and therefore changes with the market development.

2)  is individually different (= function of value elements and weights)

3)   changes over the customer life cycle

4)  is oriented to the individual transaction and to the entire relationship

5)  arises from the sum of functional and emotional stimuli as a holistic "experience”

6)  often also includes elements that cannot be influenced by the company (what happends in store?)

• Customer experiences cannot (yet) be defined comprehensively, but can only be described in terms of characteristics: 

- involving the customer,

- memorable,
- emotional

- perceptions of direct and indirect company contacts from the customer's point of view.

• Experience quality is defined as the perceived excellence or superiority of the holistic encounter (Lemke et al. 2010)

Customer satisfaction:

• cognitive
• expectation
• expected perfomance
• low activation
• low recall

Customer enthusiasm

• affective
• surprise
• extraordinary performance
• high activation
• high recall

A customer journey outlines the process by which a customer connects with a company from start to finish in the course of a purchase.

In this process, all contact points (so-called "touchpoints") that occur online and offline are recorded in phases. It is crucial that the division into different channels or media steps into the background, as the customer does not consciously make this division either.

The aim of the model is not only to reveal the sequence of a customer's touchpoints, but also to identify potentials and synergies and to find out which channels can be used for which purposes

• Touchpoints are points of contact between the customer and the company.

  (Hafner/Winters 2010).

• Touchpoints are related to communication channels, but they must be defined separately. Touchpoints can often be grouped or assigned to a communication channel, but this is not always possible. It is important to understand that "online" is not just one channel but is divided into

  a variety of touchpoints.

• represent the target group.

• ideally result from clustering.

• are fictitious persons who embody representative users of products or services.

• are represented as persons with interests, passions, feelings, habits, and concerns.

• pursue goals, have preferences and expectations.

• have a name, face, function, career and private life.

• enrich anonymous target group descriptions with a tangible personality.

number of personas depends on how many target groups are being needed

—> look into data
—> segmentation (clustering) of the personas and create groups
the groups should be homogenous, they should differ with other groups but not differ within the group

• In principle, "ignoring" a touchpoint is legitimate when

  • there are no customers at the touchpoint.

  • customers do not expect any input from the company there.

  • No talks about the company's performance take place.

• "Ignore" is the only exclusivity strategy in the IMPACt principle.

• However, "ignoring" is not always possible.

• Monitoring is the minimum standard of interaction management

• Basically, if you can't measure it, you can't control/manage it.

• Monitoring can be done alone or in combination with other options (Participate, Activate, Control).

• Participation on a platform with a lot of traffic that does not belong to the company itself.

• Acceptance of the rules that govern the platform.

• Advertising opportunities targeted at a large population or specific target group for a fee.

• In the digital sphere: especially public social networks (Facebook, Twitter, Snapchat, Youtube, Instagram, TiKTok etc.)

• In the analogue/classical sector, e.g. sponsoring in culture or sports

• Communication is analogous to a party where you are not the host, but you are invited.

• Choose the party carefully in advance!

• Have a look around!

• Observe dialogue and record tonality.

• Make presence known. Say "hello".

• Offer interesting content! Pictures, Films, Links

• Stay authentic. People communicate here!

• Assumption of the "host function" by the company.

• Setting up your own rules is possible and makes sense.

• Social elements (rating, commenting, recommending) are important.

• Usually crowdsourcing, recommendation/recommender system or self-service community

• Increased advertising effort is important to activate customers (i.e. bring them to the platform)!

• Content: What content do you want to talk about with your customers?

• Context: When and how do your customers use your content?

• Connectivity: what makes your customers comment and rate content and contribute content?

• Continuity: How sustainable is your content and the connectivity of your platform?

• Collaboration: What benefit categories do you want to achieve through collaboration with my clients?

• Recommendations, • crowd-sourcing,
• self-service