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Collaborative Consumer Relationship Management

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Collaborative Consumer Relationship Management Building Differentiation through Mass Customization / Relationship Marketing – PowerPoint PPT presentation

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Title: Collaborative Consumer Relationship Management


1
Collaborative Consumer Relationship Management
  • Building Differentiation
  • through
  • Mass Customization / Relationship Marketing

2
Many markets experience deflation in grocery
prices......
  • Absolute change in real grocery prices, 1993-2001
  • Constant money

Source WEFA (National Statistics Institutes and
OECD)
3
Collaborative CRM answers key business
questions....
  • HOW to improve shopper and consumer
    understanding, and translate it into winning
    market strategies
  • HOW to move from mass marketing into mass
    customisation into relationship marketing and
    WHY.
  • HOW to differentiate beyond Price

4
Recognizing that CRM strategy is only one of
several possible business differentiation
strategies...
5
Manufacturer-Retailer Relationship types (based
on Consumer Relationship types)
6
Example TescoWalking away from your competition.
7
Affluence
Based on deeper shopper and consumer
understanding......
Upmarket 24
Finer Foods 18 Foodies who are time poor, money
rich and choose everyday luxury items
Healthy 18 Organic shoppers, fruit and
vegetables weight watchers etc
Mid-market 53
Convenience 9 People on the go who havent time
or inclination for scratch cooking
Traditional 17 Traditional housecraft with time
to buy and prepare ingredients
Mainstream 22 Family type meals Popular
brands Kids products
Price Sensitive 16 Cost conscious customers who
tend to buy cheapest on display
Cost conscious 23
Age
8
Why should Collaborative CRM become a priority
for ECR Europe ?
Definition of Collaborative CRM by ECR
Europe Collaborative CRM is an integrated
ECR demand management strategy, which helps
manufacturers and retailers to jointly recognise
and value consumers / shoppers individual
needs, and tailor their offers to them.  
 
9
Doesnt Collaborative CRM compete with Category
Management ?
Phase 1 Up-front strategy phase, performed across
all categories, allowing a retailer to
effectively manage all (200) of its categories.
Phase 2 Development of the category plan.
Phase 4 On going tracking and review of the
implemented category plan by retailers and
suppliers ensures that the jointly agreed targets
are being met. Automation of this phase will
truly bring the process into a day to day
environment .
Phase 3 This phase focuses on in store
implementation. Additional implementation
guidelines are included within the planning phase
thereby increasing the likelihood of
implementation success.
10
ECR Europe Collaborative CRM ROADMAP
STRATEGIC ALIGNMENT -Scope -Methodologies -Stak
eholders -Choices on resources -Rules for
collaboration
ASSESSMENT -the business challenge -state of
capability -state of mind on cooperation With
trade partners
CRM ENABLING COMPONENTS Organization Communicat
ion channels Data Systems
COLLABORATIVE BUSINESS PROCESS SEGMENTATION SH
OPPER KNOWLEDGE BUILDING OBJECTIVE SETTING AND
KPIs JOINT BUSINESS PLANNING IMPLEMENTATION MONIT
OR LEARN/IMPROVE
11
The deliverables
  • Increased Store AND Brand Loyalty through
    increased Consumer Satisfaction
  • Less waste and more effectiveness of marketing
    and promotion spending through more targeted
    marketing programs
  • - today more than 70 of promotion spending
    delivers less than 20 of
  • promotional volume uplift
  • Improved margin mix, reflecting the place of
    price in the hierarchy of needs for different
    shopper segments.

sustainable profitable growth through shopper
focused differentiation
12
Why should Collaborative CRM become a priority
for ECR Europe ?
  • Our FMCG industry needs to re-gain consumers
    share of wallet (life)
  • Collaborative CRM is a key demand strategy to
    facilitate value added market differentiation,
    and therefor FMCG growth.
  • To break away from current confusion around CRM,
    ECR Europe needs to steer codification and
    harmonisation of CRM process, data
    definitions,and tools across our industry.
  • Currently available tools and data are not used
    appropriately by lack of insight on how to use
    them to create value. (loyalty card data, shopper
    and consumer research, coupon systems, direct
    mail ) ECR Europe to facilitate
    development/sharing of Best Practices
  • To drive business acceptance and ownership of
    CRM out of hands of consultants and I.T.
    providers.
  • The Business cases for Berlin demonstrate growth
    results from 15 up to 200 on total store to
    category level.

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