PDF CRM

[Pages:3]CRM

Mission and Goals

As a whole, Netflix needs to better capture who their existing and potential customers are. While names and email addresses are a good start, there is much more to the puzzle than just these standard demographics. The CRM tool should be creating a comprehensive profile of each customer ? both existing and potential. For the existing customers, the CRM should be listening on social media platforms to better understand how the brand Netflix is regarded. Social listening could help identify if a customer is thinking of switching to a competitor's product. In addition to listening on social media, the CRM should capture any behavioral or preference data. How engaged is a Netflix customer with the site? Low engagement could mean that they are not happy with the service, they are looking at other competitors, etc.

KPI for an existing customer would include:

Netflix should identify at least one social media account for each customer within six months Customers should increase engagement with the Netflix brand by 10% within one year (whether

it means more visits to the website, more streaming of videos online) Netflix should respond to at least 25% of negative social media complaints within three months

to help improve brand reputation Netflix should clean the data of its existing customer basis to reduce redundancy and errors by

5% within 3 months

For potential customers, Netflix can market its product better ? either through direct mail, landing pages, social media campaigns, viral marketing, etc. The key here is that every tactic must be tracked and measured so that ROI can be captured. Tactics can then be measured to determine which had the most bang for its buck. Campaigns should also be segmenting its audience appropriately. A propensity model should be created so that messages align to a specific audience segment (Childs).

KPIs for potential customers would include:

Attain a 40% conversion rate for landing pages within 6 months Capture 10,000 new customers via social media campaign within 9 months

Business Vision and Incentives

The strategic vision for the CRM is to better understand its customer ? whether it be predicting how they will react to certain business changes or to capture potential customers via new marketing efforts. Netflix will update their existing CRM to better inform its decisions around customers. With an updated CRM, Netflix could predict how a certain segment might react to a free DVD rental vs. how another segment might react to a free video game rental. Gamers would like the video rental promotion, while movie goers would like the DVD rental promotion. If customers are happy, they will remain loyal and stay with Netflix. For potential customers, Netflix needs to be top of mind, so heavily promoting the brand will be key to attaining new customers.

To change the existing CRM, Netflix will need to evaluate how the business goals and objectives can get translated into the CRM. There is existing customer data, but the next step is to build upon that. Can any of the email addresses be connected to a social media account? Will another system need to be added as another layer on the CRM? There are many products out that could enhance CRMs, so Netflix has the option to buy versus build.

The CRM will be successful if Marketing and IS collaborate well. Marketing will be able to inform IS about their strategies and KPIs and IS can tactically plan how to achieve this. In addition to Marketing, Sales will also play a critical role in the CRM. If the CRM is teaching you more about the customer, then Sales needs to retain existing customers and also capture new leads.

As incentives, the organization could provide financial rewards to teams or departments who share their knowledge or who help to attain any one of the CRM KPIs.

IS Strategy

For the CRM to succeed, IS will need to develop a propensity modeling system, as well as a way to connect analytical data to a customer's record in the CRM. Website analytics (for behavioral tracking), social media mentions, direct mail responses, etc. will need to be captured in the CRM so that each tactic can be evaluated to see how successful it was. Overtime, trends can be found for which tactics worked well for different audience types. If a customer's trends change drastically in a few months time, the CRM should flag this information and decisions should be built in to help respond to the changes. For example, if a customer stops streaming movies, they might receive an email saying "Did you forget your login information?" or "[Insert Movie Here] was just released and thought you might be interested". The CRM needs to measure the customer's engagement and find ways to keep the customer engaged with the product. More engagement could mean higher loyalty to the Netflix brand.

The IS Strategy is to move towards automation. If emails can be sent automatically for a specific rule, then Netflix is acting more efficiently. At the same time, an automatic email from a rule keeps the customer at the forefront and allows Netflix to reach out to them more quickly. Speed is key.

Value Network

Netflix's CRM system will require maintenance updates, so it is key that IS stays abreast of system changes and notes any potential conflicts or concerns. Additionally, a sophisticated CRM could be layering on many other applications to capture and retrieve data. It is critical that someone evaluates and monitors the integrations of these components.

With an updated CRM, the departments most effected would likely be Marketing & Sales. Streamlined processes and automated systems will lead both departments towards better customer engagement, conversions, and retention. Staff will need to be trained on how to use the CRM. IS will also need to be closely entwined in the process so that if there are infrastructure updates, operational issues, etc., they can respond to those challenges effectively.

Staff should be realigned so there is a main administrator for the CRM with several data managers reporting to the admin. Each set of managers may have very specialized roles within the CRM ? some might be data cleaners, social media experts, direct mail experts, engagement experts, etc. Weekly meetings with the managers and admin will help keep everyone informed of issues or success stories.

Childs, G. (n.d.). What is ... a propensity model? - Brand Republic News.Advertising, media, marketing and PR news & jobs - Brand Republic. Retrieved May 11, 2013, from

Capturing psychographics, demographics, behavioral/preference data

Propensity Model:

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