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Customer Relationship Management

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BA_EM 02
ELECTRONIC MARKETING
Pavel Kotyza, VЕ FS, 8. 10. 2013
Agenda
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Marketing Concept of IT CRM (IS) as a relationship
marketing tool
Architecture of the communication system
 (EDI,
API, internet, cloud based)
CRM
Warm-up questions
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What is CRM?
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Is CRM new or not?
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What is in opposite of Relationship Marketing?
CRM
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Customer Relationship Management
Relationship marketing is a strategy designed to
foster customer loyalty, interaction and long-term
engagement.
This customer relationship management (CRM)
approach focuses more on customer retention
than customer acquisition.
Marketing Concept of IT CRM (IS) as a
relationship marketing tool
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Relationship marketing is designed to develop strong
connections with customers by providing them with
information directly suited to their needs and interests
and by promoting open communication.
This approach often results in increased word-ofmouth activity, repeat business and a willingness on
the customer’s part to provide information to the
organization.
Marketing Concept of IT CRM (IS) as a
relationship marketing tool
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Relationship marketing contrasts with transactional
marketing.
An approach that focuses on increasing the number
of individual sales. Most organizations combine
elements of both relationship and transaction
marketing strategies.
What CRMs are there?
http://crm-software-review.toptenreviews.com/
Short introduction to IT CRM planning
пЃЉ
https://www.youtube.com/watch?v=Evt_uB4tZk0
What parameters are useful?
Revenue
point of
view
• COA
• CTR
• ROI
Product
point of
view
• Demographic using
product
• Seasonal purchases
Customer point of
view
•
•
•
•
Contact
Socio/demographic
Payment methods
History of purchase,
search, browsing
What parameters are useful?
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From Customer point of view
 Contact
What parameters are useful?
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From Customer point of view
 Socio/demographic
What parameters are useful?
п‚Ё
From Customer point of view
 Payment
methods
What parameters are useful?
п‚Ё
From Customer point of view
 History
of purchase, search, browsing
What parameters are useful?
п‚Ё
From Product point of view
 Seasonal
purchases
What parameters are useful?
п‚Ё
From Revenue point of view
 COA
What parameters are useful?
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From Revenue point of view
 CTR
What parameters are useful?
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From Revenue point of view
 ROI
ARCHITECTURE OF THE
COMMUNICATION SYSTEM
Architecture of the communication system
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EDI
API
Internet, cloud based
EDI
Electronic data interchange
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EDI provides a technical basis for commercial
"conversations" between two entities, either internal or
external.
EDI constitutes the entire electronic data interchange
paradigm, including the transmission, message flow,
document format, and software used to interpret the
documents.
EDI standards describe the rigorous format of electronic
documents.
EDI
"Removing unnecessary process tasks benefits
the whole supply chain, allowing improved
performance and cost management."
10 steps to Electronic data interchange
Step 1: Develop the organisational structure
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Your first action is to ensure that you have access to the correct skills. Develop EDI
coordinators and teams that will drive the program through your organization
Step 2: Undertake a strategic review
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The business areas that benefit most from EDI deployment vary by organization. A strategic
review identifies where EDI has greatest potential in your business
Step 3: Conduct in-depth analysis
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An accurate analysis of costs and projected payback when implementing EDI is essential.
Step 4: Develop a business-focused EDI solution
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Selecting the correct EDI solution for your business requires an in-depth understanding of both
the technical and business issues – for you and your trading partners.
Step 5: Select the correct EDI network provider (VAN)
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Most organisations find using an EDI provider makes the best business and financial sense.
Selecting the correct provider for your business is imperative.
10 steps to Electronic data interchange
Step 6: Integrate EDI with the business
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How an EDI system is designed and developed depends on the amount of custom work
required and the amount of internal systems with which data are shared.
Step 7: Integrate data across the business
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Most applications impose their own data structures. The data from internal/external systems
need to be analyzed in order to ensure they translate into your EDI system.
Step 8: Undertake data mapping
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To ensure the smooth flow of information between internal applications and trading partners,
documents need to be mapped to allow effective data transmission.
Step 9: Establish a pilot project
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Before your EDI system goes live within your entire trading community, it is important to select
a small number of partners to test the system in �near live’ conditions.
Step 10: Roll out EDI to trading partners
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The last action is to implement EDI across your trading partners. This should be achieved in a
staged manner that reflects your current business priorities.
API
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Application programming interface
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Server-side
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A server-side web API is a programmatic interface to a defined
request-response message system, typically expressed in JSON or
XML, which is exposed via the web—most commonly by means of an
HTTP-based web server.
Mashups are web applications which combine the use of multiple such
web APIs.
Client-side

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There are a number of client-sides web APIs that have been
developed (mostly targeting standardized JavaScript bindings to
functionality within a web browser).
The Mozilla Foundation created their WebAPI specification which is
designed to help replace native mobile applications with HTML5
applications.
Java 4-ever
https://www.youtube.com/watch?v=RnqAXuLZlaE
Internet, cloud based
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How do you e.g. authenticate today?
Google, Facebook, Twitter, LinkedIN, OpenID
THANK YOU
Next Week:
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B2B and B2C e-business and e-procurement typology
Effective data mining as a source of relevant data
about customer needs
Recommended reading:
 Sun
Tzu – Art of War
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