What Is Customer Dynamics?

DCRM full name (dynamic customer relationship management) dynamic customer relationship management system

DCRM

(Dynamic Customer Relationship Management System)

Right!

DCRM full name (dynamic customer relationship management) dynamic customer relationship management system

Chinese name

DCRM

Foreign name

dynamic customer relationship management

Explanation

Dynamic customer relationship management system

Function

Dynamic management of customer relationships

In the fierce market competition, the competition between enterprises has gradually shifted from product competition, technology competition, and talent competition to cruel competition for customer resources. Every enterprise hopes to grasp more high-quality customers, tap the potential of customers, and truly master one. Set of methods to obtain customers, retain customers, improve customer profitability, enhance customer value and marketing effectiveness, which requires dynamic management of customer relationships. For dynamic customer relationship management, the key is to implement the following aspects:

I. Systematic collection of customer data

To implement customer relationship management, a system of customer information needs to be collected and organized. Therefore, enterprises should establish multi-channel information sources that are convenient for customers to communicate with the enterprise, such as sales centers, telephones, call centers, emails, corporate Web sites, customers Symposium, etc. Customer information to be mastered includes:

Customer background information. Including customer organizations, various forms of communication, and different customer departments (because of the same product, each person or department has different perspectives and judgments on it. Like publishers want to buy computers, journalists hope to feel good, The editor wants to be quiet, the technical department is concerned about the failure rate, the financial department is definitely concerned about the performance-price ratio of the product, etc. Each customer cares about the content differently, so when making a product introduction, we must have a targeted introduction .), Purchasing department, support department, understand the customer's specific maintenance personnel, management and senior customers, installation and use of similar products, customer's business situation, customer's industry basic conditions, etc.

Competitor information. Including the following aspects: product usage, customer satisfaction with their products, names of competitors' sales representatives, characteristics of sales, and the relationship between the sales representative and the customer.

Project data can include the following: the customer's recent purchase plan, what problems to solve through this project, decision makers and influencers, procurement schedule, procurement budget, procurement process, etc.

Client's personal information includes: family status and hometown, graduated university, favorite sports, favorite restaurants and foods, favorite pets, favorite books, last vacation location and plans for next vacation, itinerary, at the institution Role, relationships among colleagues, work goals, personal development plans and aspirations.

Customer upstream and downstream information. For individual consumers, it is mainly decision makers and end users, and for industrial customers, it is mainly suppliers and distributors. Because the role of business customers is complicated, the first step is to classify customers. In terms of levels, customers can be divided into 3 levels: Operation level refers to customers who directly use these devices or directly contact services; management, they may not necessarily use these devices directly, but they are responsible for managing this department. For example, like the director of the editorial department; the decision-making level, during the procurement process, they participate for a short time, but every time they participate, they are making decisions. In terms of functions, customers can be divided into three categories: those who use the department and those who use these equipment and services; those who are responsible for the maintenance or selection of the technology department; and those who are responsible for approving funds. Different types of customers are concerned about different content and have different needs, so in the marketing process, sales staff can only sell products for their different needs, not the same, they should be broken.

System dynamic analysis of customer data

For the collected customer data, classification and systematic analysis are needed. Database-based dynamic analysis and mining are performed. Through the collection and analysis of customer data, large customers are identified, personalized management of large customers is implemented, and service to large customers is provided. Follow up, improve services in a timely manner, and maintain loyalty from key customers. The information to be collected mainly includes: the customer's latest consumption (Recency), consumption frequency (Frequency), and consumption amount (Monetary). The analysis of the "consumption amount" allows the company to understand the cost of each customer's investment in the company's products or services during the cycle. This indicator is the backbone of all indicators. "Consumption frequency" is the number of purchases within a limited period. The most frequently purchased customers are those with the highest satisfaction and loyalty. Combining the analysis of consumption frequency with the amount of consumption can calculate the customer's investment for the company and the profits created for the company; combining the analysis of consumption frequency with the most recent consumption analysis can identify lost customers. By analyzing the "Last Consumption", companies can understand how far away the customer is from the last transaction. The last consumption is an important indicator for maintaining customers. Enterprises should regularly check this information to track customer loyalty and adjust services in time to maintain long-term benign contact with major customers. The systematic analysis of customers requires not only empirical methods, but also effective combination of qualitative research, such as the study of target customers' life patterns, the study of their preferences and needs, and the study of their purchasing potential can be obtained through regression analysis Out, but insight and dynamic analysis are needed to shape scenarios, stimulate potential needs, and more. Third, customer relationship system management Customer relationship management can be divided into customer group management and customer behavior management. The former uses the corresponding indicators developed by various companies to identify group characteristics and find large customers; the latter uses statistical methods (such as regression analysis, Markov process models, etc.) to discover the characteristics of customers' internal behavior and its relationship with external and social behavior . Only after understanding the customer's group characteristics and behavior characteristics can companies achieve "one-on-one" service. In customer service, we must pay attention to the use of various information technology in the E era to provide customers with multiple communication channels, but at the same time, the communication between enterprises and customers cannot be completely replaced by automated machines. At the same time, more friendly and humane Communication methods, such as organizing annual seminars between major customers and enterprises, and arranging senior executives of the enterprise to visit major customers in a planned manner. Of course, the most important thing for customer service is that the company must stand on the customer's standpoint (transposition thinking) to provide them with personalized products and services, and work with customers to improve their performance. The relationship between enterprises and customers is equal, and it is a "win-win" relationship, which reflects a spirit of collaboration based on creating value and develops this relationship into a sustainable relationship. For the systematic management of customer relations:

One is to consolidate customer loyalty.

Customer satisfaction is not equal to customer loyalty. Customer satisfaction is a psychological satisfaction, the attitude that customers show after consumption, and the difference between perceived gains and losses; but customer loyalty is a The behavior of continuous transactions is to promote the occurrence of repeated purchases by customers. The main indicator for measuring customer loyalty is Customer Retention, which is the amount that describes the length of time that the relationship between the business and the customer is maintained; Customer Share, which is the rate at which customers spend their budget on the company. Some data show that customer satisfaction alone is not enough. When a better product supplier appears, with the increase of external temptations and fierce competition, customers may continue to change suppliers. For example, in a consumer product satisfaction survey, 44% of more satisfied customers still change brands frequently. In future marketing practices, customers will need far more value-added than demand for price advantage. For example, they appreciate special warranties, electronic data interchange, priority shipments, advance information communication, customer-specific products and effective maintenance, repair, and upgrade services. Customers are valuable assets of an enterprise. In order to maintain a relationship with them, enterprises often pay huge costs, such as establishing special production bases for some major customers, introducing special production lines, adopting new service systems, and restructuring the enterprise structure. The loss of customers will bring great losses to the enterprise. The survey results of Frederich F.reichheld and w.Earlsasser.Jr's "Zero churn, quality comes from service" published in "Harvard Business Review" show that reducing 5% churn of customers can increase profits by 25% -85%. Therefore, consolidating customer loyalty should be regarded as an important marketing management strategy by enterprises.

The second is to use emotion to maintain. Establish a strong relationship between the company and the customer. This connection has emotional factors in addition to the business side, which makes the customer and the company closely related, including the understanding of customer details, and the establishment of a customer database, such as customer characteristics. , Shopping habits, personal hobbies, style, important date records, etc., as well as specific measures to maintain customer relationships, such as regular communication with major customers, the establishment of convenient purchase channels and payment methods, and use of customer files to vote for them. On the one hand, customer organization. Establish a customer club to provide various special services for customers who become members, such as new product promotion, preferential sales and preferential prices. Through the series of activities of the customer club, strengthen the relationship between customers and enterprises, cultivate customers' loyalty to the enterprise; understand customer needs through the customer's intelligence feedback system; and promote corporate products and services through members. On the other hand, customized marketing. According to the different situations of customer value, design marketing plans with each major customer and provide corresponding products according to their special requirements. Customized marketing is good for building long-term relationships between companies and customers, because products or services are provided on a one-to-one basis. Each customer has different situations, such as different regions, different business strategies, and different sales conditions. The products and services designed according to their specific conditions are not only more targeted, but also make customers feel that he is highly regarded. Attention, he is an important factor in your marketing channel.

Third, it is to increase the cost of customer transfer. In dealing with companies, customers often find that if they want to change brands or suppliers, they are limited by the cost of transfers and the delayed benefits that can only be obtained from current suppliers. This phenomenon is even more apparent in the software industry. Companies are actually providing customers with network software for free and guiding them to use the software they provide. The reason for this is that the time spent by customers in learning will be taken as one This kind of transfer cost. When other choices do not show significant advantages, customers will voluntarily reuse them. Generally speaking, companies establish barriers to transfer, which makes customers feel that the cost of transfer is too high when changing brands and suppliers. The original benefits will be lost because of changing brands or suppliers. This can strengthen customer loyalty. Increasing customer transfer costs can be accomplished by establishing a structural bond between the enterprise and the customer and establishing a learning relationship between the enterprise and the customer. To enhance mutual understanding and connection through the interaction between enterprises and customers. In contact, the two sides understand each other, communicate with each other, learn from each other, and adapt to each other. Both parties spent high time and energy costs in the long process of forming a learning relationship. Once this relationship is formed, customers will find that they have gained greater value from the supplier or the company. Maintaining the original business relationship is easier and cheaper than starting a new business with other suppliers, thus enhancing the Customer reliance on this supplier. Common methods are: use contractual relationships to lock customers; for example, many companies use contracts. The structural relationship between customers and companies makes it difficult for customers to change suppliers. The reason why customers are locked is because the cost of breaking this state To compensation. For example, if a bank provides a certain period of housing mortgage loans to customers, it stipulates that if the customer wants to make changes before the maturity, the customer must pay a penalty, thus establishing a structural barrier. Frequency marketing; hold customers tightly: Encourage customers to repeat purchases. As long as customers continue to repeat purchases or only deal with this company, customers can get rewards, such as offers, additional products and services. Bundle sales; customers who purchase all products from one supplier can enjoy the overall cost discount to achieve a win-win situation for both buyers and sellers. For example, China Telecom Corporation and other telecommunications operators have adopted bundled sales. For example, China Unicom has bundled mobile phones with fixed communications products to promote the advantages of its full service. China Telecom Corporation's bundled sales of local and long-distance services. and many more. These bundled sales have played a practical role in stabilizing customers. Not only can they enable customers to achieve one-stop purchase, that is, to purchase various types of telecommunications services from a telecommunications operator, but because the cost of bundled services is generally lower than The sum of the individual business expense tickets is cheap, which can save customers money. For telecom operators, bundled services mean that more telecom services are sold to users. By meeting more business needs and reducing overall costs, customers are attracted to customers, avoiding price wars.

Fourth, implement differentiated marketing. The company has detailed system customer information, and has a clear grasp of the distribution of customers, consumption volume, consumption characteristics of major customers, and value contribution to the enterprise. In addition, a major contributor to corporate value, a high-end customer, must be clearly and clearly defined, and further segmented according to certain standards. Different market segments have different services and marketing strategies to provide customer differentiated services. To maximize corporate benefits. For example, in order to accurately grasp the needs of key customers, enterprises need to have a deep understanding of key customers and provide quality services. Because companies in the same industry have similar backgrounds on a certain demand, in order to reduce service costs, it is necessary to segment the market and provide professional services by industry. For example, the Hong Kong Telecom Company has further segmented the market by large customers according to different industries, such as trade, manufacturing, finance, transportation, tourism, etc., and has a full-time marketing professional contact with large customers in different industries. Some marketing One person is responsible for two major customers. Over time, these people become "industry experts" who can provide the latest service items, optimal policies and best services to their specialized customers according to the telecommunications needs of different industries. . In short, for the dynamic system management of customer relationships, on the one hand, it is necessary to tap the potential of customers from the system's customer data and analyze customer development trends to stimulate potential purchase needs; on the other hand, it is not only necessary to increase finances in the relationship management process Benefits (such as frequent marketing programs, club membership programs, etc.), but also need to enhance social benefits (individualization and privatization of services) and structural benefits (providing specific equipment or computer networking for it, such as Tetra Pak to Mengniu, Yili for free) Waiting for enterprises to give packaging equipment in order to provide a continuous supply of packaging materials in the future; some products and a specific production line or brand to establish structural benefits, etc.).