CRM Notes PDF

UNIT 0 (CRM Definition) - What is CRM? - A philosophy to drive satisfaction to consumers in every single interaction. - Nurturing long-term relationships with customers over forming new but temporary ones. - Keeping promises in a mutually beneficial service relationship...

UNIT 0 (CRM Definition) - What is CRM? - A philosophy to drive satisfaction to consumers in every single interaction. - Nurturing long-term relationships with customers over forming new but temporary ones. - Keeping promises in a mutually beneficial service relationship - Making realistic promises and enabling the delivery of those promises - For a relationship to exist gotta be mutually helpful. - Trust, empathy, honesty, collaboration - Build a brand = build meaning - “Brands play a fundamental role in how we live our lives…they help us “label” the meanings with which we most identify” - It costs the same to DEFINE a big brand - “It costs the same energy and investment to do something very good as it does to justify doing something average” - Good brand meaning: - it is the basis of everything you do and say - IT IS REFLECTED ACROSS ALL BUSINESS DECISIONS, NOT ONLY COMMUNICATION - GENERATES FUTURE DEMAND - Advertising - ATL (Above The Line) = Broadly targeted advertising campaigns designed to build brand awareness and reach a large audience.  - TV, Billboards, Radio, Newspapers, Magazines - BTL (Below The Line) = Targeted promotional activities focused on specific groups or individuals to drive direct engagement and conversion. - Direct mail, Email campaigns, In-store displays, Event sponsorships - Media - Glass Box Brands = very transparent (either you make yourself transparent or they will make you transparent) - Black Box Brands = in the past → not really transparent - People would not care if 3 in 4 brands disappeared tomorrow - Only 1 in 5 brands are perceived as a “brand that brings value to customers lifes” - Journey to the soul of the company, to its original reason → Contemporizing its relevance → Turning it into your “collective compass” - This process is about rediscovering the heart of the company (its mission and values), making it relevant in today’s world, and using it as a shared guide for everyone in the organization to stay aligned and focused. It’s a strategy for maintaining authenticity while staying competitive and connected to stakeholders. - Mark Twain: “The two most importante days in your life are the day you are born and the day you find out why.” - A familiar surprise = What companies and their CEOs didn't know they already knew about themselves Unit 1 (Changes in the world) - VUCA (before) - a framework used to describe and manage challenging and dynamic environments - Volatility - changes big and small are becoming more unpredictable - Uncertainty - more difficult to anticipate events or predict how they’ll unfold - Complexity - Ambiguity - BANI (today) - Brittle - replaces volatility (A brittle system usually looks very stable, but becomes porous and breaks over time, mostly unexpectedly) - Anxious - It involves fear that something significant can break away at any time. - Non-linear - addition to complexity (Big efforts might show no effect or small decisions have a massive impact)  - Incomprehensible - - The Golden Circle - Best companies go from inside out → Customers don't buy what you do, but why you do it - Customers - More demanding customers - they care more about the why? → why does the company exist? - They have more power than ever - They care more about safety, quality, and clarity of information - Market - Blur line between products and services - Rise of niche businesses targeting customers with specific needs - Supply higher than demand - Diverse business units within organizations - Globalization, homogenous products, technology - Retailers - Specialization, E-commerce, New brands - Customer centricity, Employee centricity - Distribution - reduction of the number of steps in the value chain - Companies are diversifying their businesses → creating different more specialized brands within the same company - Changemaker - A person who desires change in the world and makes that change happen by gathering knowledge and resources. - Ambition greater than resources - Want to generate prosperity - High commitment - Purpose = impact UNIT 2 (Digital Marketing) - Influencing a specific audience with maximum levels of effectiveness and efficiency - Every business needs to research its audience first  - Custumer-centric → What are their motivations, interests, and channels they visit? How many can we reach? → the need to understand them - Buyer persona - semi-fictional representation of an ideal customer based on market research and real customer data. - Demographics, Interests, influencers, channels, expectations - Can’t find buyer persona? Adapt plan to the digital market - Digital Marketing Plan - Research (buyer persona, relevancy of product, competition) - Strategy (conversion funnel, branding/performance, outbound/inbound) - Media - Data - Transaction - Awareness → potential audience discovers our message/brand/product - Interest → part of the people show interest in our… → they turn into prospects - Decision-making → Part of the prospects make their decision of buying our product/service → they turn into clients - Relationship building → Some of the clients buy again and recommend our products/service → they turn into fans - Customer funnel - AWARENESS = TOFU (top of the funnel) → people who don’t know the brand → spreading awareness and selling the brand - CONSIDERATION = MOFU (middle of the funnel) → people who already know the brand → selling performance of the brand - RELATIONSHIP BUILDING = BOFU (bottom of the funnel) → people who already know the brand and want to build a relationship → customer loyalty → they buy again - Branding X Performance - Branding → spreading awareness (just showing the brand) - purpose-driven info → medium-term results - Performance → showing offers and price - metrics-driven and acquisition → short-term results - Outbound X Inbound - Outbound → push marketing (interruptive, aggressive) → requires action - Inbound → pull marketing (naturally attractive and interesting for consumers) → people get interested and want to know more on their own - Do not approach the whole funnel at the same time. It's key to understand the stage of the funnel where your business is and prioritize your funnel across phases. - Media - Owned - content in your own channels - Web, E-commerce, blog, mobile, social media profiles, newsletters, podcasts, brand signs - Earned - SEO (improving website visibility on search engines), ASO (optimizing app visibility and discoverability in app stores), Social Media, Blog Marketing, Influencers, WOM (world of mouth), donations, celebrity endorsement - Paid - SEM, social media ads, display ads, influencers, e-mail marketing, billboards - SEM X Display Advertisement  - SEM → SEM (Search Engine Marketing) is a digital marketing strategy focused on promoting websites by increasing their visibility on search engine results pages (SERPs) through paid advertising, such as pay-per-click (PPC) ads. - Mature markets, known products, culture of consumption → Active searching from our audience - PPC → a model of digital advertising where the advertiser pays a fee each time one of their ads is clicked. - Display ads → emerging markets, visual products, high competition on SEM → audience that is potentially interested - Visual ads (images, banners, videos) shown on websites, apps, or social media. - Digital media mix - Buyer persona profile - strategy to approach the consumer funnel - objectives, timing and budget - Less is more → Focus your effort and investment on affinity media or media that delivers a better efficiency/result ratio - Data - Objectives - determine the ultimate gol of our Marketing plan - SMART - Specific Measurable Attainable (Achievable) Relevant Time-bound - Metrics - quantify the degree of achievement of the results in our digital media - KPIs - track performance and efficacy of our strategies UNIT 3 (Building relationships with customers) - Branding = Building meaning (relationship) - A relationship is based on Previous experiences and future expectations - Brand Purpose - Relevant (meaningful) = focused on people/social tensions - Legitimate = rooted in brand truths - Differentiator = appropriable within the category - Coherent = demonstrated in everything the brand does and says - Linked to the business = long-term impact and growth - What is loyalty? - "The success of a firm depends largely on its capability to attract consumers towards its brands. ​ - Loyalty marketing is an approach to marketing, based on strategic management, in which a company focuses on growing and retaining existing customers through incentives.​ - Brand Equity - The value of a brand based on consumer perceptions and experiences. - Loyalty = Strategic asset and key source of brand equity. - The value of the customer - Client Differentiation ○ Purchasing habits: How much they buy (e.g., client pyramid: AAA, A, B, C, inactive). ○ Potential purchase: Companies with higher potential value. ○ Profitability: Early payments improve cash flow. Lower demand for aggressive discounts = higher margins. ○ Frequency and tenure: Regularity and length of being a client. ○ Competitive activity: Number of other companies they buy from. ○ Satisfaction and influence: Level of satisfaction and potential to drive influence. - Example: Emirates Skywards Program - Tiered membership: Blue, Silver, Gold, Platinum. - Cash+Miles initiative: Combines cash with miles for flight redemptions, reducing ticket costs and increasing flexibility. - Accessible to all members with as little as 2,000 miles. - The potency of 80/20 is that 20 percent of a group is responsible for 80 percent of the sales. - Even a small improvement in customer retention can double profits in your company.​ - Tactics for Growth 1. Increase Customer Spend (Upselling): ○ Example: In a restaurant, a waiter suggests adding more items (e.g., croquetas), leading to a quick increase in spending per customer. 2. Expand Customer Base: ○ Segment a new buyer persona: Identify new target demographics or audiences. Requires optimized sales efforts or new marketing campaigns. 3. Cross-Selling: ○ Definition: Selling additional products or services to current customers. ○ Requirements: Methodology and training for the sales team. Attractive promotions for customers. Adequate time and technical skills for execution. ○ Impact: Increases product portfolio and sales but adds marginal costs. 4. Encourage More Frequent Purchases: ○ Strategy: Create a sense of urgency or need earlier in the customer’s lifecycle. 5. Extend Service Duration: ○ Longer service periods enhance opportunities for: Cross-selling. Selling higher quantities of products. - CRM = A management philosophy emphasizes achieving company goals by meeting customers' explicit and implicit needs. CRM involves strategies, practices, and technologies to analyze customer interactions, improve service, boost retention, and drive sales growth to ensure business survival. UNIT 4 (Strategic Target) - Target audience - Buyer Persona: Use official data sources (e.g., INE) to determine the absolute number of people with potential interest in the product or service. - Digital Behavior Studies: Analyze user behavior through platforms like IAB, Hootsuite, or Global Web Index to understand how the target audience interacts online. - Digital Platforms: Identify the approximate number of users from social networks who match the desired profile. - Maximum Goals: Combine this data to set realistic user acquisition goals that align with business objectives and budget constraints. - INE = Instituto Nacional de Estadística, which is the National Statistics Institute of Spain. It is a government agency responsible for collecting and analyzing statistical data related to the country’s population, economy, and society. INE provides official data that businesses and researchers often use for market analysis, demographic studies, and strategic planning. - Sector studies - Kantar = researches companies every year - how useful is the brand for customers (functionality) - what is the meaning of the brand (brand meaning) - The Global Web Index (GWI) is a platform that provides data on digital consumer behavior, offering insights into trends like social media, e-commerce, and mobile usage. It helps businesses and researchers understand global consumer preferences and behavior. - Epsilon's Retail Panel is a tool used to track and analyze consumer shopping behavior across various retail channels. It collects data from a diverse group of shoppers to provide insights into purchase trends, preferences, and habits. This information helps retailers and marketers optimize strategies, target customers more effectively, and improve sales performance. UNIT 5 (Customer satisfaction) - The best way to keep your clients satisfied is to constantly deliver more than what they pay for - Customer satisfaction is a measure of how people feel when interacting with your brand. It can be influenced by any number of factors, such as:​ - perceived product quality​ - perceived product value​ - convenience​ - customer expectations​ - communication​ - complaint handling - Net promoter score (NPS) is a widely used market research metric that typically takes the form of a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or a service to a friend or colleague. - Perceived quality is how customers perceive a product's quality, which may differ from its actual, objective quality. - Influence on Purchase Intentions: Perceived quality directly affects purchase intentions, and indirectly through overall satisfaction. - Perceived Value: A customer's perception of a product's worth, often in comparison to competitors, determined by the price they're willing to pay. - customer benefit X customer cost - Function of Benefit and Cost: Perceived value is influenced by the benefits a product offers relative to its cost. - Convenience: The quality or state of being available, easy to use, useful, or helpful. ​Anything that saves or simplifies work, adds to one's ease or comfort, etc.​ - Complaint handling is important - Customer expectations = subjective and emotional → based on personality, needs, competence, own circumstances,...  - what can be controlled: our team members​, comms​, pricing​, past experiences​, product/service quality, tangible elements - How to Create a Positive Customer Perception: 1. Respond to Feedback: Act on customer feedback to show you care. 2. Know Your Audience: Tailor your approach to meet your target audience's needs. 3. Reward Customer-Centric Behavior: Build a culture where employees prioritize customer satisfaction. 4. Support a Positive Company Culture: Happy employees create better customer experiences. - Customer funnel: - a tool used to understand the process of converting leads into customers. It visualizes how marketers attract a wide audience at the top of the funnel and gradually nurture and qualify leads through different stages, narrowing down to potential customers ready to make a purchase. The funnel typically includes stages such as awareness, interest, consideration, and decision. - Customer Corridor: - View your company from the customer’s perspective to identify what matters to them. This helps pinpoint areas for improvement at both transactional and relational levels. - Customer Journey (path to purchase): The entire series of interactions (touchpoints) a customer has with your brand, before, during, and after a purchase. - refers to the path of interactions an individual has with your brand, product and/or services. It describes both direct interactions such as contacting a customer service team, to indirect interactions such as hearing about a brand at an event.​ - Touchpoints: Moments when a customer interacts with your brand. Ensuring a positive experience at each touchpoint is essential for customer satisfaction and loyalty. - ZMOT (Zero Moment of Truth): The moment when a customer forms or changes their impression of your brand or product, often before making a purchase. - Old Marketing Model: - Stimulus: External triggers like advertisements or promotions that capture the consumer’s attention and spark interest in a product. - First Moment of Truth (FMOT): The critical decision-making point at the shelf or point of purchase where the consumer chooses whether to buy. - Second Moment of Truth (SMOT): The consumer’s experience with the product after purchase, shaping their satisfaction, loyalty, or disappointment. - New Marketing Model - The Zero Moment of Truth (ZMOT), introduced by Google, adds a crucial step to the traditional model, focusing on how consumers research products before purchase: - Zero Moment of Truth (ZMOT): The phase where consumers actively seek information online—through reviews, social media, and search engines—to evaluate products before deciding. - This occurs before the First Moment of Truth (FMOT) at the shelf, as digital access influences decisions early on. - ZMOT reflects the shift in consumer behavior where research and recommendations are key in shaping preferences and purchase intent. - Stimulus: The starting point where consumers are exposed to marketing efforts like ads. - Zero Moment of Truth (ZMOT): The consumer researches and evaluates products online before the point of purchase. - First Moment of Truth (FMOT): The decision-making process at the shelf or purchase point. - Second Moment of Truth (SMOT): The consumer's experience with the product post-purchase. - Ultimate Moment of Truth (UMOT): Consumers share their experiences (positive or negative), influencing the ZMOT of others, creating a feedback loop that impacts future decisions. UNIT 6 (Human Quality & Emotional Intelligence) - Emotional Intelligence (EQ)  - Emotional Intelligence (EI): The ability to understand, manage, and use emotions effectively in oneself and in interactions with others. - Beyond IQ: EI focuses on the role of emotions in personal success and interpersonal relationships, surpassing intellectual abilities alone. - Key Skills: High EI individuals excel in handling social complexities, making thoughtful decisions, and building strong personal and professional relationships. - Groundbreaking Work: Daniel Goleman’s book on EI redefines what it means to be smart. - Self-awareness: Recognizing and understanding your own emotions and their impact on thoughts and behavior, enabling accurate self-assessment and confidence. - Self-management: The ability to regulate emotions, handle stress, adapt to change, and maintain a positive outlook in challenging situations. - Social awareness: Understanding others' emotions, needs, and concerns, often through empathy and reading non-verbal cues to navigate social dynamics. - Relationship management: Building and maintaining healthy relationships, communicating effectively, inspiring others, and excelling in teamwork and conflict resolution. - Why is EQ important? - Change → navigating change - Helps adapt to new circumstances, manage stress, remain resilient - Change is constant and requires adaptation. - Success depends on knowledge, skills, and the right attitude. - Proactivity and willingness enhance the impact of knowledge and skills. - Emotional intelligence, empathy, flexibility, and responsibility drive team excellence. - Success in a changing environment relies on the motivation and proactivity of each team member. - Embrace change rather than fear it, especially for teams like sales. - 80% of qualities are associated to attitudes (proactivity, positivism) while 20% are skills (knowledge, experiences, technical skills) - 6 attitudes towards professional development - Excellence & Quality → providing more than expected - Service orientation & Customer Satisfaction → knowing the expectations of customers → generating promoters - Focus (Pomodoro technique) - Establish a list of what's needed and prioritize it. (Check boxing exercise) - Focus on one thing and do not stop it until finish it. - Commit to expected results to be achieved - Ask yourself: why am I in the organization? what are the expected results to be achieved? - Creativity → constant mind training, tracking continuous imporovement - Cooperation → ability to work well in teams - not criticizing a person but and idea, be reasonable and kind - Ownership → We are the only ones responsible for our situation and our ability to change it. - Attitudes shape how we handle situations and are influenced by our self-concept. - To improve attitudes, work on self-acceptance and bridging the gap between self-image and ideal self-image. - Boosting self-esteem increases self-confidence, which improves work attitude and expectations. - Managers should help employees build self-motivation and confidence to project it to clients. - Self-awareness - Improving self-awareness can boost both career and life. - Understanding yourself and how others see you is key to success and strong relationships. - Growth mindset - Abilities can be developed through dedication and hard work, fostering learning, resilience, and achievement. - What does not allow us to improve? - Remaining set in our old habits - Showing low levels of proactivity to change - Our team: - Ensure they wish the consequences of the change - Ensure they make a commitment to change their behaviour - Remind them to be mindful of the importance to set objectives - Emotional intelligence in business - Research shows that IQ and efficacy at work impact less than 25% of skill development; 85% of the abilities needed for success come from emotional skills, not just technical ones. - EQ determines the ability to learn a sum of abilities: - Self-consciousness - Autoregulation of emotions - Motivation - Empathy - Social skills - Emotional competence - Emotional competence = personal competence + social competence - The level of emotional competence shows how far we have managed to translate our emotional intelligence towards our professional field. - High emotional intelligence doesn't guarantee effective use in the professional field. - Soft Skills  UNIT 7 (Excellence in the Sales Process) - Consultative selling - A sales approach where the salesperson acts as an advisor, focusing on understanding the customer's needs and offering tailored solutions to build trust and long-term relationships. - Consultative Selling: Focuses on building relationships, understanding customer needs, and offering tailored solutions. - 70% asking questions + 30% listening - - Transactional Selling: Focuses on quick, one-time sales with less emphasis on customer needs or long-term relationships. - Phases of consultative selling 1. Prep selling session → no improvisation, stay updated (VUCA)  - Technical → own products, portfolio, competition, culture of the organization - Customer → ABC current clients, different types of future clients - Mental → positive attitude 2. Into or first contact - be mindful of your image, materials - understand client psychology - prep to capture their attention - positive body language and good manners, smile - building relationship based on trust → need info about customers problem, current satisfaction with his problem, his critical needs - a client before buying is afraid of wasting his resources (money, time) and he is wishing to win (with his product/service). - Three steps of the intro phase 1. Personal info 2. Company info 3. Open questions 3. How to have an effective session - Learn how to classify the customer - Know their buying style - Know the power of suggestion - New creative selling techniques - Prep your slides 4. Negotiation (moment of truth) - client shows interest but has objections - aiming for the best alternative for both sides → win-win situation (otherwise there won’t be success in long-term) 5. Follow up - To ensure the level of satisfaction → making a consistent effort to build relationship UNIT 8 (Customer Value vs. Customer Effort) - - Value offered to clients should be in line or above their expectations - Value equation → leadership board’s responsibility - Five different tools to drive a differentiated value proposition: - Brand & product - Added services - Pricing - Reduce/avoid unpleasant elements - Reduce/avoid insecurities - Homogeneous products → buyers treat products of all firms in the industry as identical - Brands drive trust and the concepts they communicate aim to be in line with people's motivations, that's why they turn so attractive - Investing in branding also drives differentiation elements in people's minds. - the ability to influence behaviour - How to add value to non-unique products? - Personalized customer service - Treats - Fast customer service - Competent team - Approach your client nicely - Forget about the word “impossible” - Be clear on the frictions with the customer across the path to purchase. - Customer friction = any step in the customer experience that impedes the customer from buying the product - - Set high standards of service - Foresee clients needs - Extend opening hours - Be quick in providing the service - Work towards filling in those waiting moments - Easy parking apps. - High level of comfort when dealing with clients - Home delivery with no additional cost at any time - No min. quantities. - Insecurities diminish the expected value. - Instead, clients strongly value aspects such as trial and return policy. - Compensations when value is not in line with expectations - The key is to learn to diminish those insecurities while offering the highest possible level of trust - Lego story - Imagination is the key - Never give up - Get the best from every situation