Recent Changes

Communities - Strong online communities can create Network effects. I don't know if supermarkets have online forums. Perhaps 'Your Asda' is an example. An interesting (and irrelevant) example is the OcUK Forums LINK
Both of the above encourage consumers to continue using a site and now switch to a competitors.
and Wang
Slide designs:
Slide 1: Old versus New CRM including direct marketing
Slide 2: Website design

{Emerging Virtual Models for Global e-commerce - world wide retailing in the e-grocery.pdf}
{Virtual store layout an experimental comparison in.pdf}
economic downturn: http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=12902&Title=Supermarkets_get_most_out_of_loyalty_schemes_in_downturnFromhttp://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=12902&Title=Supermarkets_get_most_out_of_loyalty_schemes_in_downturn
From Textbook (Farhoomand):
E-CRM aims 'to create deeper and long-term relationships with new and existing customers' (p.293).
Move to build customer centric businesses as focus on customer interactions has intensified.
Another aspect in this exchange is the firm gathering customer details to profile and use in targeted marketing.
Overall objective of gaining loyalty to avoid customers switching to rivals.
Information is transformed into competitive intelligence.
Can integrate information from customer base and supply chain (allows total visibility through supply chain).
Move within companies to customers previously being looked after by sales and marketing to now being looked after by the enterprise as a whole. Success rates in E-CRM vary widely. Have any of our supermarkets failed???
Examples:
Tesco: clubcard
Ocado/Waitrose: online recipe guidance
Asda: printable e-vouchers
Why use CRM? Why try and keep customers and create relationships? (p.298)
Cheap growth option.
Incremental investments to generate immediate cash flow.
React quickly to customer needs and behaviour as one step ahead.
Customers can now switch to alternatives easier because of i) greater control over searching and acquiring decision making material e.g. google, and ii) customer can interact with the medium e.g. reviews on my supermarket and other critical websites where consumers/spectators can make their voices heard.
'It costs 6 times more to sell to a new customer than it does to an existing one'.
The odds of selling a product to a new customer are 15%. The odds of selling to an existing customer is 50%.
70% of complaining customers will do business with a firm again if it quickly takes care of a service snag. This shows the importance of building up good relationships with customers through CRM.
CRM impacts bottom line performance and employee & customer retention (p.299).
Anticipate needs and use info to personalise relationships.
CRM must be a balance between value to shareholders and value to customers.
CRM is more useful in industries which have: i) high fixed costs, ii) multiple products and/or services, iii) high flow of customers with low dollar transactions. Does this fit a supermarket? Maybe.
Benefits of E-CRM:
'e-business architecture and internet technologies' are helping to forge deeper customer relationships (p.294).
'a company can re-orient its entire business towards the customer by basing enterprise management on customer interactions' (p.294).
'Mutually satisfactory relationships make it possible for customers to avoid significant transaction costs switching supplier' (p.295)
Efficiency benefits of E-CRM:
Marketing efficiency - Supermarkets can segment and target individual consumers to maximise value. Leads to a fall in 'expense to revenue' relationships.
Back-end efficiency - Automated processes such as e-commerce e.g. Tesco.com allow reduction in staff count. Also shorter sales-cycle time.
Service centre efficiency - More customer information to solve problems quicker when customers call the supermarket's call centre. This will lower customer management costs.
CRM can be seen to be a 'lifetime value cornerstone' (p.294). There are 2 steps used: i) attract the customer and ii) build the relationship with the customer.
Tesco
Very little retention techniques used other than price promise.
It could be argued that the 4Ps of marketing are irrelevant as relationship marketing has taken over as e-business has grown. Relationship management is closely linked to business marketing and quality management.
Transactions ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------>---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------> Relationships
Kotler describes this: move from short-term transactions to long-term relationships. Moving 'from a marketing mix focus to a relationship focus'.
Web services benefits:
As part of E-CRM customer experience is improved and Web CRM strategies are used. Move toward web based services (p.296). It brings all departments together into one system allowing them to work together and the customer to receive all information through one location: the company's e-commerce page.
CRM Strategy (p.301)
Bonding stage
Personalisation stage
Empowerment stage
Customer loyalty achieved
Retention strategy (p.303)
The focus during customer retention shifts to 'locking in' customer with strong customer information and a strong brand or differentiated service.
it is important to remember that customers are 'rented' not 'acquired'. But the tool in the textbook still says they are acquired to this statement is just hypocritical.
CRM application provides consolidated information to enable a firm to extract more revenue per customer.
From Textbook (Jelassi):
4 elements in E-CRM (p.216):
Customer selection
Customer acquisition
Customer retention
Customer extension
{http://www.211answers.com/images/crm_model.jpg}
This is the website bit where we talk about how websites achieve retention!
How to achieve customer retention:
Personalisation - design of website to meet consumer needs. Creates 'stickiness'. If the customer wants to move to a competitor and begin using their online service then they will incur switching costs (Transaction Cost Theory).
Communities - Strong online communities can create Network effects. I don't know if supermarkets have online forums. Perhaps 'Your Asda' is an example. An interesting (and irrelevant) example is the OcUK Forums LINK
Both of the above encourage consumers to continue using a site and now switch to a competitors.
To do: Add notes from journals from Xue et al and Wang

Very little retention techniques used other than price promise.
It could be argued that the 4Ps of marketing are irrelevant as relationship marketing has taken over as e-business has grown. Relationship management is closely linked to business marketing and quality management.
Transactions ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------> Relationships

{Emerging Virtual Models for Global e-commerce - world wide retailing in the e-grocery.pdf}
{Virtual store layout an experimental comparison in.pdf}
economic downturn: http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=12902&Title=Supermarkets_get_most_out_of_loyalty_schemes_in_downturnhttp://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=12902&Title=Supermarkets_get_most_out_of_loyalty_schemes_in_downturnFrom Textbook (Farhoomand):
E-CRM aims 'to create deeper and long-term relationships with new and existing customers' (p.293).
Move to build customer centric businesses as focus on customer interactions has intensified.
Another aspect in this exchange is the firm gathering customer details to profile and use in targeted marketing.
Overall objective of gaining loyalty to avoid customers switching to rivals.
Examples:
Tesco: clubcard
Ocado/Waitrose: online recipe guidance
Asda: printable e-vouchers
Benefits of E-CRM:
'e-business architecture and internet technologies' are helping to forge deeper customer relationships (p.294).
'a company can re-orient its entire business towards the customer by basing enterprise management on customer interactions' (p.294).
CRM can be seen to be a 'lifetime value cornerstone' (p.294). There are 2 steps used: i) attract the customer and ii) build the relationship with the customer.
Tesco
Ocado/Waitrose
Asda
Step One
Promise of saving money, 'every little helps'.
Opportunity for customers to make savings using clubcard.
Good food at a reasonable price. Easy online shopping experience.
Vouchers gained when using the Waitrose Credit Card.
Products as very low prices (lower than Tesco often, apparently).
Step Two
Continued clubcard offers the more the consumer shops. Targeted offers which match the consumers buying patterns.
Moving more services into stores such as pharmacies, opticians and now pregancy check-up service!
The more you shop the more vouchers you get!
Allowed to use quick checkout in store to make shopping experiences better.
Match Tesco prices to deliver consistent price value on essential goods (not branded).
Easy recipe and order ingredients service is unique and offers potential lock-in.
Continued low prices and e-vouchers.
Very little retention techniques used other than price promise.
It could be argued that the 4Ps of marketing are irrelevant as relationship marketing has taken over as e-business has grown. Relationship management is closely linked to business marketing and quality management.

AR2: A further discount incentive is used in order to encourage continued usage to shop after the first shop after a break.
Now lets go green.... for Asda. Little bit on website layout... essentially they have this thing that means they can run live trials of differing website layouts. They think it reduces 'exists' by 19%. (I don't know what an exist is, but am working on the basis it is exts mis-spelt :P) Source: http://www.customer-strategy.co.uk/home/-/asset_publisher/oh2E/content/asda-takes-guesswork-out-of-online-plans;jsessionid=2B3DCC9D2C08A8B31F9207965BFC23FF?redirect=%2Fhome
Oca-oca-oca-do, oca-do, oca-do..... ocado on the ii-phone, iii-phone http://econsultancy.com/blog/4195-ocado-launches-iphone-shopping-app
{Emerging Virtual Models for Global e-commerce - world wide retailing in the e-grocery.pdf}
{Virtual store layout an experimental comparison in.pdf}

{Emerging Virtual Models for Global e-commerce - world wide retailing in the e-grocery.pdf}
{Virtual store layout an experimental comparison in.pdf}
Information on customer retention in the economic downturn: http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=12902&Title=Supermarkets_get_most_out_of_loyalty_schemes_in_downturn

Capabilities and complementing
to create a SCA.
2nd in SEO listings
Argue that they have a service
focus?
Reasons for outsourcing?
3rd in SEO listings
Wharehouse distribution.
F2
Customer Retention