University of Cologne Department of Retailing and Customer Management

Transcription

1 University of Cologne Department of Retailing and Customer Management Univ.-Prof. Dr. W. Reinartz Customer Relationship Management (CRM) COURSE DESCRIPTION Customer relationship management (CRM) as a strategy and as a technology has gone through an amazing evolutionary journey. The initial technological approach has been followed by many disappointing initiatives only to see the maturing of the underlying concepts and applications in recent years. Today, CRM refers to a strategy, a set of tactics, and a technology that has become indispensable in the modern economy. This course gives a unified treatment of the strategic and tactical aspects of customer relationship management as we know it today. It stresses developing an understanding of economic customer value as the guiding concept for marketing decisions. As such, firms recognize that not all customers are created equal. Consequently, they need to develop capabilities that allows them attract and retain valuable customers. As a result, customer relationship management will be a complex set of activities that is likely to form the basis for a sustainable and hard to imitate competitive advantage. The discussion will apply both to B2B and to B2C settings. COURSE OBJECTIVES: The mission of the course is to investigate the process, antecedents and consequences of implementing a customer-relationship management strategy. The course will provide students with insight on: What are the theoretical and conceptual foundations of CRM? How can CRM enhance organizational performance? How does CRM force the interaction between corporate strategy, organizational structure, supply chain, and customer facing front end? How are CRM strategies implemented? What is the role of measuring and managing customer satisfaction, customer loyalty, customer profitability, and lifetime value? How does one use some of the basic CRM analytic tools? How do the learnings apply to consumer and to business settings? 1

2 COURSE OVERVIEW Class Date Case study Class 1: Dec. 6 Begin: 2:00 pm Course Introduction Class 2: Dec. 13 Conceptual Basis of CRM Signode Industries Inc. Class 3: Dec. 13 Class 4: Dec. 20 Conceptual Basis of CRM Conceptual Basis of CRM Class 5: Dec. 20 Satisfaction Profit Chain ISS Class 6: Jan. 10 Class 7: Jan. 10 Measuring and Managing Customer Satisfaction Customer Analytics I Class 8: Jan. 17 Customer Analytics II BankInter (for tutorial) Class 9: Jan. 17 Guest Presentation Customer Lifecycle Management at Deutsche Telekom Europe Dr. Carsten Filthuth, Deutsche Telekom AG, Vice President Marketing and Sales Europe Class 10: Jan. 24 Strategic CRM in B-to-C Capital One (UK) Class 11: Jan. 24 Class 12: Jan. 31 Loyalty programs Guest presentation Next Generation Loyalty -Turning Big Data into Smart Data André Pallinger, Payback, Geschäftsleitung Retail, Sales and FMCG Class 13: Jan. 31 CRM in a Multichannel Media Saturn Environment COURSE READINGS The textbook covering most of the aspects discussed in class is: Kumar, V. and Werner Reinartz (2012), Customer Relationship Management Concept, Strategy and Tools, Springer Verlag. Softcover 53,45 e-book 37,42 2

3 Case package The mandatory case package for the course comprises: Harvard Business School Case: Signode Industries, Inc. (A), David May, Gordon Swartz & Rowland T. Moriarty, 1985, PDF-ENG IMD Case: ISS: Driving Profits through Customer Satisfaction, Werner Reinartz and C. Lelong. 2006, Case -Reference no.: Harvard Business School Case: Internet Customer Acquisition Strategy at Bankinter, F. Asis Martinez-Jerez, V.G. Narayanan, Lisa Brem, 2007, PDF- ENG University of Cologne: Media Saturn: You Never Change a Winning Go-tomarket Strategy Do You?, Werner Reinartz and J. Seyfi, 2011, Case -Reference no INSEAD Case: Customer Relationship Management at Capital One (UK), W. Reinartz and U. Wiehr, Condensed version, 2003, Reference no.: (NOTE: this case is part of the course textbook p and NOT sold as part of the course package) Students can either: a) buy the cases directly from the department ( 12,-), WISO Building, 4 th floor or b) purchase the cases directly from Harvard Business Publishing (hbsp.harvard.edu) using their credit card. Please note that the first case (Signode Industries, Inc.) has to be prepared for the first class!! Please note that all cases have to be prepared before the respective class! This is an absolute requirement for taking this course. EXAM February 15, 2017, Examination Regulations (PO) 2007: 5.30pm pm; PO 2015: 4.00pm pm (registration until Feb. 1, 2017) March 28, 2017, Examination Regulations (PO) 2007: 11:30am 12:30pm; PO 2015: 10.00am - noon (registration until March 14, 2017) (Important: no late registration after deadline possible!) 3

4 SESSION AGENDA Class 1: Course Introduction Introduction to the course Show business context changes that lead to CRM adoption Kumar & Reinartz (2012): Chapter 1 Class 2, 3, and 4: Conceptual Basis of CRM Realize how organizations are eventually forced to adopt CRM principles Contrast transactional and relational exchanges Understanding the importance and the value of building relationships to the firm and to the customer Case Signode Industries Inc. by Rowland T. Moriarty Jr., David May, Gordon Swartz, Harvard Business School, # (to be read and prepared before the class!) 1. What is Signode s overall marketing strategy? What are the strengths and weaknesses of Signode s current position? 2. If you were Gary Reed, the president of the Packaging Division, what would you do? 3. How are customers, competitors, and the sales force likely to react to your decision? Further reading suggestions Dwyer, Robert, Paul Shurr and Sejo Oh (1987), Developing Buyer Seller Relationships, Journal of Marketing, 51 (2). Boulding, William, Richard Staelin, Michael Ehret, and Wesley J. Johnston (2005), A Customer Relationship Management Roadmap: What is Known, Potential Pitfalls, and Where to Go, Journal of Marketing, 69 (October), Reinartz, Werner, Manfred Krafft, and Wayne D. Hoyer (2004), The Customer Relationship Management Process: Its Measurement and Impact on Performance, Journal of Marketing Research, 41 (August), Class 5: Satisfaction Profit Chain How do customer satisfaction and customer loyalty lead to better firm performance? 4

5 Case: ISS: Developing a Breakthrough Service Strategy (IMD, M 592) Kumar & Reinartz (2012): Chapter 2 1. What are the strengths and weaknesses of ISS s customer satisfaction system? 2. Which advice would you give to Peter Soltoft? What is the strategic direction in which he should take the Customer Satisfaction program? Why? Further Reading suggestions Reinartz, Werner and V. Kumar (2000), On the Profitability of Long-life Customers in a Noncontractual Setting: An Empirical Investigation and Implications for Marketing, Journal of Marketing, 64(Oct), Kamakura, Wagner A., Vikas Mittal, Fernando De Rosa, and Jose Afonso Mazzo (2002), Assessing the Service-Profit Chain, Marketing Science, 21 (Summer), Reinartz, Werner and V. Kumar (2002), The Mismanagement of Customer Loyalty, Harvard Business Review. July. Class 6: Customer Satisfaction How can customer satisfaction be measured and managed? Further Reading suggestions Reichheld Frederick and W. Earl Sasser (1990), Zero Defections: Quality comes to Service. Harvard Business Review, Sept-Oct. Morgan, Neil A., Eugene W. Anderson, and Vikas Mittal (2005), Understanding Firms Customer Satisfaction Information Usage, Journal of Marketing, 69 (July), Hochmann, Mark (1999) Customer-Satisfaction Measurements: An Answer to Yesterday's Problem? Harvard Business Review. Class 7: Customer Analytics I Discuss traditional marketing metrics Market share Sales growth Provide an overview of primary customer based metrics Acquisition rate Acquisition cost Retention rate Survival rate Lifetime duration P(active) 5

6 Attitudinal loyalty Kumar & Reinartz (2012): Chapter 5 Class 8: Customer Analytics II Show popular customer based metrics Share of category requirement Size of wallet Share of wallet Expected share of wallet Introduce strategic customer based metrics Past customer value RFM value Customer lifetime value Customer equity Kumar & Reinartz (2012): Chapter 6 Class 9: Guest Presentation Dr. Carsten Filthuth, Deutsche Telekom AG, Vice President Marketing and Sales Europe Customer Lifecycle Management at Deutsche Telekom Europe Class 10: Strategic CRM in B-to-C What are the building blocks of a CRM strategy in a consumer environment? Conceptualizing CRM Implementation How can CRM create strategic competitive advantage? Customer Relationship Management at Capital One (UK) (Insead 04/ ) Kumar & Reinartz (2012): Chapter 3 & 4 1. If it is to become more than a concept, CRM needs to be translated into specific activities and processes. Based on the case, what are key CRM activities and processes of Capital One? 2. It is often claimed that CRM can create competitive advantage. Does CRM create competitive advantage for Capital One? If so, how? 6

7 Class 11: Loyalty Programs When and how do loyalty programs work? Kumar & Reinartz (2012): Chapter 10 Class 12: Guest Presentation André Pallinger, Payback, Geschäftsleitung Retail, Sales and FMCG Next Generation Loyalty -Turning Big Data into Smart Data Class 13: CRM in a Multichannel Environment Evolution towards a multichannel environment Challenges of implementing CRM in a multichannel environment Case: Media Saturn: You Never Change a Winning Go-to-market Strategy Do You?, Werner Reinartz and J. Seyfi, 2011, Case -Reference no Kumar & Reinartz (2012): Chapter Discuss the pros and cons of MSH s current decentralized business model. Evaluate the sustainability of MSH s current marketing strategy. 2. Discuss MSH s new business model. What are the strengths (and challenges) of the model? 3. Looking forward, if MSH decides to keep its proven go-to-market strategy - how can this strategy be sustained? 4. If MSH switches to a multi-channel approach, how should this go-to-market strategy be implemented? 7