Session 6: Customer Relationship Management

Part One.

Try using Claritas Prizm <http://www.claritas.com/MyBestSegments/Default.jsp> to view examples of demographic and psychographic information for people living in the same area. Note that psychographic refers to lifestyle and behavior.
Choose any of the 3 segmentation schemes by choosing from the drop-down list.

You can try searching for the following zip codes:
10012 - New York, NY
07306 - Jersey City, NJ

Part Two.

An important part of CRM is the collection of customer information. Here are some examples of customer information collected for a bank's CRM data warehouse.

• Customer or Household Identification (name, phone, address, title, company name)
• Rating (size, value level, or profitability contribution)
• Background (demographic, lifestyle characteristics)
• Communication Record (contact with company, participation in marketing programs, types of information or services required, channels of contact, requests for information, complaint frequency or recency)
• Purchase Behavior (recency, frequency, monetary value)
• Credit-worthiness
• Performance Ratings or Credit Scoring, and History (performance evaluation, loyalty, and likelihood to refer the company to others)
• Customer Survey Data Collection

Part Three.
Here's an online Customer Lifetime Value Modeling tool that you can try out. Note that this example predicts CLTV for the whole company instead of for a particular customer or market segment.

http://hbsp.harvard.edu/multimedia/flashtools/cltv/index.html

Session 5: Examples of Social Media and Mobile Marketing

Social Media Marketing from New Digital Noise
Note that most of these marketing campaigns integrate multiple techniques (e.g. traditional + online + mobile).

Island Shangri-la Social Networking Page
What's the difference between the content on the social media site (Facebook) and the hotel's web site ?

2011 Hong Kong Marketing Smartphone Apps Awards
What factors do the winners have in common ?

Corporate social media policies
The firm must educate its employees on what they can and cannot do on social media sites. If employees are not educated, they may post unsuitable content which can harm the firm's reputation (airline example, pizza delivery example).

Session 5: Digital Marketing Part 2 - Review Questions

1. Describe three major benefits and opportunities of social media marketing compared to traditional marketing.
2. Identify and discuss the risks associated with social media marketing.
3. Explain how online reputation management and corporate social media policies can minimize the risks of social media marketing.

Session 4: Digital Marketing Part I - Review Questions

1. What is the purpose of digital marketing ?
2. What are the advantages and disadvantages of digital marketing ?
3. Identify and compare the strengths/weaknesses of the two major forms of search marketing. How can companies get involved in these two types of search marketing ? How much does it cost ?
4. Why is spam such a big problem ? What are some methods to control spam ?
5. What issues must be considered by a firm that wants to get into display or interactive advertising ? How can they find suitable web sites to place their display ads on ?
6. What is the purpose of calculating and evaluating online marketing metrics ?
   
7. Give examples of metrics relevant to each of the following: e-mail, web site, interactive display advertising, online shopping.

Session 4: Digital Marketing (Part 1)

We'll try the following tools in class:

Google Keywords Tool
Helps you search for keyword ideas by entering a keyword related to your business or service. For example, type "coffee beans" into the tool and see what other suggestions it can give you.

Google Traffic Estimator for an Online Ad
Estimates how many people will see your ad and click on it. For example, type coffee beans into the word or phrase, 1.00 into the Max CPC (Cost-per-click) and set daily budget to 10.00. Set Location and Language to ALL (this means your ad will appear in all searches for that keyword).

Google Ad Planner
Identifies websites your target customers are likely to visit and where you can advertise. Since your targets are younger customers with disposable income, you can try searching for www.openrice.com, www.baby-kingdom.com and www.discuss.com.hk to see whether your ads can reach your target audience on these sites.

Session 3: Demo of Geographic Information System (GIS)

Geographic Information Systems (GIS) take the data from your database and shows it to you on a map. It can do this when some of the fields in your database tables have locational information, such as addresses or country codes, which allow the data to be referenced on a map.

The Hong Kong government provides online maps with demographic information on the entire population, as well as district-by-district.


GIS can make it easier for you to see patterns that are related to a geographical location. For example, which districts in Hong Kong have the highest monthly income ? Which districts have the largest number of people in a household ? This can help businesses decide where to open new customer service centers, new store branches, or assign salespeople.