FROM TRADITIONAL TO INNOVATIVE MARKETING.

THE CRM AND THE RELATIONSHIP MARKETING

PROF. SIMONETTA PATTUGLIA

ADVANCED MARKETING
A.Y. 2017-2018

2017, Nov. 13th and 15th

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

THE 4 DIMENSIONS

Azioni
ACTIONS

Breve
SHORT Lungo
LONG
termine
TERM termine
TERM

Analisi
ANALYSIS

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

THE TRADITIONAL MARKETING

MARKETING PLAN

Azioni
ACTIONS

Breve
SHORT Lungo
LONG
SELLING PLANNING
termine
TERM termine
TERM

Analisi
ANALYSIS

S.Pattuglia - ADVANCED MARKETING

TARGETING Nov.-Dic. 2017
THE INNOVATIVE MARKETING

Figura 6 – Il marketing innovativo

Co-Marketing

Marketing Mix

Azioni
ACTIONS

Event SHORT
Breve LONG
Lungo Brand
Selling Planning
Management termine
TERM TERM
termine Management

ANALYSIS
Analisi

Targeting

C. R. M.
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
 A contemporary definition
«Marketing is a culture, an organizational function and a set of processes for
creating – communicating – and delivering value with customers and for
interacting in network of relationships in ways that benefit the organization, its
customers and other stakeholders»
Does the current interest in RM/CRM imply that marketing theorists are getting
closer to marketing reality?
The RM/CRM spotlight is on the individual, on the segment of one. It’one-to-one
marketing
But focus is also on groups of like-minded people, «affinity groups». They share a
common interest, they want a relationship with the supplier, its products and
services, and even with each other. They form «communities»
Quality management and Relationship quality
The balance scorecard and the Return on Relationships (ROR)
“Customer Centricity (P.Drucker, 1954)
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017 (Gummesson E., Total Relationship Marketing, 2012)
The “loyalty ladder” (Christopher, Payne and Ballantyne, 2002)

Advocate
Supporter
Client

Customer

Prospect

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

 RM
As RETENTION MARKETING
As ZERO DEFECTION (defect-free relationship)
CUSTOMER MIGRATION is allowed: Is 5 to 10 times as expensive to make a new
customer than to keep an old customer
«Real selling isn’t making sales but making customers»
MASS COMMUNICATION is indirect, impersonal, one-way. At best is information at
worst is barely noise!
To PERSONAL RELATIONSHIP and DIRECT MARKETING (which is undoubtedly a
PUSH strategy)
COLLABORATIVE CRM (due to existence of Call/Contact centers, the customer’s
history is needed)
ANALYTICAL CRM (to do cross/up selling)
GOOD BALANCING BETWEEN IT AND HUMAN CONTACT
PERMISSION MARKETING (Customers have scarce time and do not want to be
disturbed unnecessarily---OPT IN / OPT OUT)
VALUE PROPOSITION IS A PROMISE from the supplier to the customers. The
Customer reciprocates by promising to pay
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
THE CRM AND THE RELATIONSHIP
MARKETING

… skills, technologies,
procedures/processes •Processes
to •Clients
a. Identify •Continuity
b. Attract •Customization
c. Create loyalty
For the best clients and •Trust
generate •Development
sustainable long-term •Sales/Negotiation
profit •Advantage
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
3D Logics

Products
…

Assistance
A Bank case

… the classical matrix Consultance

enriched by a third Credit

dimension Insurances

Savings
Channels products
Availability

Today: Branches PrivateEnterprise Public Venture … Clients

MULTICHANNEL or Promotors Capitalist
OMNICHANNEL Call Center
APPROACH Internet

….

Channels
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
A new service encounter
«The service encounter has moved from the bank
office – the money retail store – to the street, the
telephone, the laptop on your kitchen table, and a
standardized “human” voice. The servicescape has
entered a new climate change»
During service production and delivery the
interaction process offers many touch points which
in turn are marketing and sales opportunities –
points-of-marketing service design and lean
consumption charts

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

What does it emerge?
A new complexity that
the organizations have to
face

The justification to the

uneffectiveness («me
too» approach) Products

Channels
The need to define and

ACTIVITY
manage a correct Info/Commu
balance between Value nication

to the client and

VALUE TO THE
activities (products, CLIENT
services, informationa
and communication)

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

IL CRM – CUSTOMER RELATIONSHIP
MANAGEMENT

The CRM is the instrument

(phylosophy – mindset – processes –
platform – database) to IDENTIFY
AND MANAGE CLIENTS AND
PROCESSES by the means of
strategies that can move from
differientation to focus
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
….
• The «surgical
marketing»
Client: demographics, operations, products/services, (Frankelius,
history, contacts, campaign results, complaints,…
Analysis 1997)
Market intelligence and Data/Web mining • Refined
Customer segmentation following customer value segmentation
• Hyper-
Select or not the clients
competition
• Or Blue
Strategy Push or pull
Ocean
Customer value management Strategy (Kim
and
One to one marketing, customization in the offering Maurbogne
Campaign management, event management, … 2005)?
Activities • Competition+
Commercial initiatives: Cross/up selling, channel switch
on actual clients Collaboration
Developing activities in retention and engagement + regulations
and
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017 institutions
Analytical phase

Objective: Ranking Collecting primary

clients by rating data on single client
On the basis of the
Analysing the
ranking, objective: purchasing
defining the customer behaviour of each
marketing objectives di client
customer Controlling the
results on single
client

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

STEPS IN CREATING A “CUSTOMER INFORMATION FILE”

DEFINING OBJECTIVES AND

SPECIFIC GOALS

DEFINING REQUIRED
INFORMATION

CHOICE OF THE SOURCES

COLLECTING AND DATA WARE

HOUSING ABOUT CLIENTS

DATA ANALYSIS

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DATA USAGE
Nov.-Dic. 2017
ADVANTAGES IN HAVING A “Customer Insight”

MARKETING RESULTS CAN BE MEASURED

CONTENTS OF THE DIFERRENT OFFERINGS CAN BE

TESTED

CUSTOMISING THE OFFFERING

DEVELOPING CROSS AND UPSELLING

MORE EFFECTIVENESS IN BUDGETING

MORE DIFFERENTIATION IN PROMOTIONAL INITIATIVES

INTANGIBLE RESOURCE OF GREAT VALUE

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Nov.-Dic. 2017
Criteria in classifying the clients

Determinants of the difficulties in

Determinants of client importance
managing clients

Sales (purchase) volume Competitiveness

Future potentiality Competitive positioning towards
the client

Customer profitability Numbers of competitors

Image (b2c and b2b) Product complexity

Customer importance for: Customer profile:

• Competitive positioning • Buying behaviour

• Opennes towards new markets • Techinical competencies
• Bettering and developing • Peculiar needs
production competencies
• Bettering and developing
relationships with all clients

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

 COLLECTING and ANALYSING DATA

DEMOGRAPHICS
Age/Gender/Salary/Income
Address
Phone/E mail
Customer profile
……... KEY CUSTOMERS
MARKET MEDIUM CUSTOMERS
Sales SMALL CUSTOMERS
Turnover
Credits NEW CUSTOMERS ACTUAL
Orders
……… ALREADY INVOLVED
BEHAVIOURS NOT SO MUCH INVOLVED PROSPECTS
Product or Service Needs NOT INVOLVED
Satisfactions
Frequency (purchase or usage) UNCERTAIN POTENTIAL
Channels/Media
Results about Campaigns POSSIBLE
….
NOT INTERESTED AT ALL
MANAGING
OPERATIONS
Contacts
Media/Channels
Campaign S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
...
 THE C.R.M.
LEADS TO AN INTELLIGENT OFFER DIFFERENTIATION
JUST TO ARRIVE TO A POSSIBLE
ONE-TO-ONE MARKETING

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

 FROM CRM …..

TRUST
CUSTOMIZATION
SATISFACTION
LOYALTY
PROFITABILITY
……………..

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

RELATIONSHIP MARKETING (Evert Gummesson,
Total Relationship Marketing, Routledge, 2012)

Service-Dominant Logic affects the way RM/CRM is presented

Goods/services integrated and replaced by service and value proposition

The role of Knowledge: in this logic the appliation of specialized skills and K.
through deeds, processes and performances is the fundamental unit of exchanges and
it defines service. K. is the fundamental source of competitive advantage.

Service provision is integration of resources between the parties involved with the
supplier and the customer in its core

The process by which the organizations establish with their clients (potential,
actual, past) continuous relationships (before, during, after the sale) customized
and trustful to better quali-quantitatively the negotiation to reach the reciprocal
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
medium-long term advantage
FROM TRANSACTION TO RELATIONSHIP

PRICE CUSTOMER SATISFACTION

SHORT TERM HORIZON LONG TERM
LOW INTERDIPENDENCE HIGH INTERDIPENDENCE
CLIENT/SUPPLIER
LOW SWITCHING COSTS
ALTI COSTI DI CAMBIAMENTO
LOW LEVEL IN ACTIONS HIGH LEVEL
TOWARDS CLIENTS
FOCUS ON CUSTOMER AND
FOCUS ON PRODUCTS AND PRESALES AS AFTERSALES
SALES
CO-CREATED AND SHARED
TOP DOWN COMMUNICATION
COMMUNICATION, MASS
COMMUNICATION,
ASYMMETRICAL BETWEEN
COMPANY AND CLIENT
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
CRM and RM ….win-win approach, strategy, goal

Customer Customer Company

satisfaction & profitabilty satisfaction
loyalty

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

 ADVANTAGES IN DEVELOPING
RELATIONSHIPS

GROWING
TRUST FROM
THE CLIENT
DEVELOPING GROWING
GROWING
COMMERCIAL CUSTOMER
LOYALTY
RELATIONSHIP SATISFACTION
S
GROWING
PROFITABILITY
FOR THE
COMPANY

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

The “win-win” process towards the customer and
company satisfaction

THE PROFITABILITY
IL PERCORSO PATH
DELLA REDDITIVITA’

Customer Customer Customer Customer Customer Company

Relationship Supply Satisfaction Loyalty Profitability Satisfaction

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017

PROCESS TO DEVELOP RM

PROJECT AND
USAGE OF THE
CUSTOMER
INFORMATION
FILE

MONITORING
CLIENTS
AND
LISTENING PROFILING
ANALYSIS OF
THE RESULTS AND RELATIONAL
DIALOGUE

DEVELOPING
ANALYSIS AND
OPERATIONAL
CHOICE AMONG
ACTIVITIES
ALTERNATIVE
MARKETING
STRATEGIES
S.Pattuglia MIX
- ADVANCED MARKETING Nov.-Dic. 2017
CLIENTS MAP

HIGH
DIFFICULTY NOT KEY KEY CLIENTS
a lto
TO MANAGE Cliente non
CLIENTS AND Cliente chiave
AND
chiave e difficile ma difficile
D iffic o ltà d i

DIFFICULT DIFFICULT
g e s tio n e

NOT KEY KEY CLIENTS

basso

CLIENTS
ClienteBUT
non AND
Cliente chiave
EASY EASY
Chiave ma facile e facile
LOW

LOW
basso HIGH
alto
Importanza
STRATEGIC strategica
IMPORTANCE OF THE CLIENT
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
del cliente
CLIENTS MAP FROM AN ECONOMIC PERSPECTIVE

HIGH

a lto
M a rg in e d i c o n trib u zio n e
POTENTIAL
MARGIN
I Isottosviluppati
desiderabili
UNDERDEVELO I desiderabili
ATTRACTIVE
p o te n zia le PED

NOT
Gli indesiderabili DEVELOPED
Gli sviluppati
basso

LOW ATTRACTIVE

basso
LOW alto
HIGH
Margine
ACTUAL di contribuzione
MARGIN
attuale
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
CLIENTS MAP FROM A STRATEGIC MARKETING PERSPECTIVE

alto
HIGH
ACTUAL
c o n trib u zio n e a ttu a le
MARGIN I desiderabili
Investire Difendere
INVEST DEFEND
M arg in e d i

Ridurre i costi
CUT Contenere
LIMIT
COMMERCIAL
commerciali gli investimenti
ba s s o

LOW INVESTMENT
COSTS

LOW
basso HIGH
alto
Quota
MARKETdi Mercato
SHARE
nel cliente
S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017
10 bonds between the Consumer and
the Supplier
Legal
Financial
Technological Can be controlled by the supplier

Geographic
Time-based
Knowledge-based
Social
Cultural Primarily tied to the personalities of the consumers
Ideological and their perceptions of the customer

Psychological

S.Pattuglia - ADVANCED MARKETING Nov.-Dic. 2017