MKT 445 Exam 2
Salesforce automation benefits
efficiency and effectiveness (picture in notes) Benefits top management, sales managers and salespeople.
hybrid offering (Output based (asset efficiency services) AES)
offered to achieve productivity gains from assets invested by customers - equipment utilization (Apple education classes)
Web metrics goal 2: increase customer engagement (repeat visitors)
shows how compelling and useful the site is for audience
Web metrics goal 1: increase traffic to site (keywords)
which terms people are searching for when they find your site. This tells you what people are looking for and that you should build your content around the keyword
Web metrics goal 3: improve conversion (rate) - (conversion rate)
(avg. is 2%) - Percent of people who completed a desired action on that page (completing a purchase, filling out a contact form, viewing a certain page on the site, trial signups, download software) - Ultimate measure of success - Low rate—attracting the wrong kind of visitor, site is not effective at closing - Also tells if something is broken on the site (look at over-time data) - Compare different landing pages - Why is conversion rate a great KPI/place to start? 1] You are hard core focusing on Outcomes, that's pretty serious. 2] You are going to force the conversation about Objectives, without that you don't have conversion rate!
Web metrics goal 2: increase customer engagement (bounce rate)
(avg. is 70%) - Percentage of people that leave your web site after viewing that page (relatively fast/immediately) - Users didn't find what they were looking for - Bounce rate of 0 percent is not possible - Every lost visitor is a lost opportunity - Figure out why people are leaving and try to add the right content and navigation on your site - Compare performance of different landing pages
social CRM
- Addresses how companies need to adapt to the social customer - Companies know they are no longer in control of the relationship - instead, customers are driving the conversation - What should be the company's response to this lack of control? -> Facilitate collaborative experiences and dialogue that customers value Questions for the manager: - What do customers value in a social platform? - What triggers a customer to seek out a brand or company on social media? - What should make a customer not want to interact with the firm?
benefits of social CRM
- Better customer engagement - Rapid, viral distribution of content that may reach beyond what could be done in traditional channels - Mine data for brand monitoring and customer insights (Research) - Contribute to innovations for improved services, products and customer experiences (Product development) - Revenue from social commerce (Cold Stone Creamery) (Sales)
What are ways to reduce risk of shifting from goods to services?
- Identify the most profitable product/service combinations that use current skills and capabilities - Build a first class service organization. (If not/unable to, partner with a service-cultured company that has key resources, capabilities and competencies) - Focus on high value customers - Understand relative value propositions well - Blueprint according to customer specifications - Create a service-savvy and market savvy sales force - Create appropriate data infrastructure that can enhance success potential. Data on customers, products and usage
KAM implementation step 2: design elements of the program (Who does it?)
- Include top management, key account team, key account managers (Key account managers are the main point of contact for the key account) - Senior level/top management involvement: show commitment to key accounts - Managers: remain the main point of contact for the key account - Team: bring broader set of skills and resources by including members from various functions and backgrounds
k-nearest neighbor model
- Is one of the simplest machine learning algorithms - Scores sentences rather than words or phrases - It evaluates the similarity between the new case (test sentence) and available cases (training sentences) and puts the new case into the category (positive, negative,) that is most similar to the available categories
bag of words model: improvements
- N-grams: consider multiple words and phrases - Stemming: process of removing a part of a word, or reducing a word to its stem or root... identify the base word (Likes, liked, likely, liking → like) - Stop words: get rid of useless words - Wordnet: what words are adjectives, more important in sentiment classifier
KAM implementation step 2: design elements of the program (How formulized is it?)
- Successful KAM practices low degree of formalization - A high degree of formalization leads to bureaucracy and a lack of flexibility in responding to the different needs of heterogeneous key accounts, which is rather unfavorable for establishing effective buyer-seller relationships.
KAM implementation step 2: design elements of the program (What is done?)
- Suppliers can offer special benefits (activities) for key accounts - Intensity and proactiveness of these activities distinguish them from those offered to an average account (special pricing, product customization, information sharing, etc.) -- Intensity designates the extent to which additional activities get performed for the most important customers -- Proactiveness refers to the extent to which the supplier initiates the activities - proactive KAM shows the buyer that the supplier is willing to invest in the relationship, which should deepen trust in the key account and strengthen the buyer-seller relationship
what are the steps of KAM implementation?
1. selection of key accounts 2. design elements of the KAM program 3. advancement of the KAM program
social CRM objectives
1: generate richer data on customers - Combine everything you already know about each customer, prospect and lead with new information based on their social media activity. 2: maximize customer engagement How? Use the richer customer data to improve customers' experience with the company on social media - Shift focus from sales to relationship building conversations - Improving customer experiences will drive engagement and ultimately sales.
key account management (KAM)
A strategic approach with the objective of ensuring long term and sustainable business developments with strategically important customers It involves "performance of additional activities and/or design of special personnel directed at these customers" KAM refers to the performance of additional activities and/or dedication of special personnel to a company's most important customers
goods to services shift: advantages & disadvantages
Advantages - Increased buyer loyalty and lifetime value - Leverage of resources and knowledge Disadvantages - Capability risk: capacity in manpower, expertise, money - Financial risk - Market risk *** A successful shift includes reducing the three disadvantages ***
bag of words model (lexicon based approach)
BOW model is a way of representing text data when modeling text with machine learning algorithms It involves... - A vocabulary of known words - A measure of the occurrence of these words within a document Any information about the order or structure of words is discarded. It is only concerned with whether known words occur in the document
Break even value
Breakeven = net profit from a marketing promotion equals the cost associated with conducting the promotion Breakeven Value (BE) = unit cost price / unit net profit BE computes the minimum response rates required in order to offset the promotional costsinvolved and thereby not incur any losses
Social CRM strategy: integrated approach
CRM dimension - Identify high value customers - Use social media information to gain richer understanding of these customers - Identify key value requirements Social media dimension - Previous stage: identified the social channel that is relevant at each stage of the customer journey - Present the needed information AND ENGAGE with customers in these social channels
Web metrics goal 3: improve conversion (rate) (average order value - AOV)
Conversion Rate could be through the roof and yet revenue could be down, your first clues for this will be in AOV. Vice versa conversion rate could be down but if you have done a good job of acquisition (relevant traffic) then AOV will save your butt when your boss yells at you AOV by source - Which campaigns yield higher AOV? - Which traffic sources/keywords yield higher AOV?
purpose of web metrics
Depends on the goal... - increase traffic to site - manage customer flow through the site (increase conversion probability) - improve customer engagement with the site
Web metrics goal 1: increase traffic to site (share of search)
If there are 100 searches every day for a product category, how many would your site receive?
KAM implementation step 3: advancement of the program
Key -> continuous learning Outcome -> key fulfillment 2 aspects are optimization and improvement
Web metrics goal 3: improve conversion (rate) (days/visits to purchase)
Life rarely is about one night stands. People don't behave that way. We like to take our time. They measure the true customer behavior on your website, how long it takes someone to complete an Outcome on your website. "Purchase" - by core acquisition strategy
machine learning techniques
Machine learning techniques are used to automatically find the valuable underlying patterns within complex data that we would otherwise struggle to discover. The hidden patterns and knowledge about a problem can be used to predict future events and perform all kinds of complex decision making. Based on a Two Step Process... Training Step - Model learns to use a certain input with a corresponding output based on test samples used for training Test Step - where prediction occurs
Web metrics goal 1: increase traffic to site (types of traffic)
Organic: depends on SEO (search engine optimization) effectiveness Referring sites: is a function of your networking ability; Use this information for finding other companies or blogs that you might consider forging a stronger relationship with (make it formal) Direct: function of brand name (awareness and strength). Someone knows the website and directly goes to it.
types of hybrid offerings
Oriented towards suppliers good - Input based (product lifecycle services) PLC - Output based (asset efficiency services) AES Oriented towards customers process - Input based (process support services) PSS - Output based (process delegation services) PDS
KAM implementation step 1: selection of key accounts (selection criteria)
Quantitative criteria - Sales volume - Market share - revenues/contribution/profit (some "rules" as prime criteria for key accounts) - 5 Key accounts must generate 50-60% of the sales volume. - The Pareto rule identifies key accounts as those 20% of customers that account for 80% of sales volume. - Key accounts are the top 10 customers. Qualitative criteria - Image of key account - Reference potential of key account - Technology potential and know-how of key account - Interorganizational and cultural fit
Web metrics goal 1: increase traffic to site (visitors)
Represents the size of the audience that you are reaching More a reflection of off-site marketing campaigns, and not of the website itself
Web metrics goal 1: increase traffic to site (optimization)
SEO is the process of improving the quality and quantity of traffic to a website or web page from search engines SEO targets unpaid traffic (organic) rather than direct or paid traffic SEO considers how search engines work, the computer programmed algorithms that dictate search engine behavior, what people search for, the actual search terms or keywords typed into search engines, and which search engines are preferred by the targeted audience
KAM implementation step 3: advancement of the program (optimization)
Step 1: current situation - conduct thorough analysis of your teams key account approach and service levels Step 2: customer experience - comprehensive analysis of key customers - Satisfaction levels and service gaps - Identify areas for improvement
KAM implementation step 3: advancement of the program (improvement)
Step 3: continuous improvement - - Combine data from steps 1 and 2 - Apply industry best practices - Provide detailed recommendations on customer values, service levels, and go-to-market strategies
Web metrics goal 1: increase traffic to site (search vs ads)
Target users across two main networks, the search network and the display network - The search network: refers to pay per click advertising, in which advertisers bid on keywords that are relevant to their business and have a chance to display their advertisements to users who enter those keywords into Google as part of a search query. Also known as paid search - The display network: offers advertisers the option of placing visual banner style advertisements on websites that are part of the display network.
KAM implementation step 2: design elements of the program (With what is it done?)
The esprit de corps of the selling center and access to (non) marketing and (non)sales resources represent important assets for building strong, long-lasting buyer-seller relationships
Web metrics goal 2: increase customer engagement (time spent & page views)
The more engaging and useful the website, the more time people tend spend on the website and more pages they go to on the site
sentiment analysis - text analysis
The process of determining whether customers' feelings are positive, negative or neutral. It's also known as opinion mining, deriving the opinion or attitude of a speaker. A common use case for this technology is to discover how people feel about a particular topic.
Salesforce automation
The term SFA refers to any information technology applied to a sales situation with the goal of supporting the sales function For example, electronic data interchange, databases, Internet, spreadsheets, sales forecasting tools, inventory management systems, contact management programs, e-mail programs, graphics and presentation software, laptops, cellular phones, and fax machines
hybrid offering (Output based (process delegation services) PDS)
These services perform processes on behalf of the customers - UPS
hybrid offering (Input based (product lifecycle services) PLC)
They facilitate the customer's access to the supplier's good and ensure its proper functioning throughout its lifecycle - maintenance contracts/warranty
hybrid offering (Input based (process support services) PSS)
They help customers improve their own business processes, tailored to their specific contexts and needs - CRM implementation at dealers site
traditional vs social CRM
Traditional CRM focuses on channels such as corporate websites, call centers, direct mail, brick and mortar locations - Information flow: firm → customer With social CRM, the focus is on the social channel in which the customer has the power to influence others - Information flow: customer → customer
KAM implementation step 1: selection of key accounts (selection process)
Understand customers (white space analysis) - What is happening in the key account organization? - What critical resource/market issues are impacting the customer? - What is their market strategy? - What initiatives are they considering to execute their strategy? Leads to identification of new value propositions
Web metrics goal 2: increase customer engagement (exit pages)
User visits multiple pages and then leaves your site Natural to have a high exit rate for the order receipt page Other pages - signals that there is a problem Find out why they are exiting
KAM implementation step 2: design elements of the program (4 questions)
What is done? - activities (external) Who does it? - actors (internal) With what is it done? - resources (internal) How formulized is it? - formulization (internal)
Web metrics goal 2: increase customer engagement (top 10 pages)
What pages your visitors think are the most important on the site What they think are useful and engaging, which headlines work Identify pages to focus on for improving the site and which pages will have the most impact if you make changes
hybrid offerings
a combination of "one or more goods and one or more services, creating more customer benefits than if the good and service were available separately" Examples (IPod + ITunes, Best Buy Geek Squad)