CRM In B2B markets

Characteristics of business markets

• Market structure and demand

• Nature of buying unit

• Types of decisions and decision processes

• Major types of buying situations

• Participants in business buying process

• Business buying process

Market structure and demand

• Less buyers

• geographically concentrated

• Derived demands

• Fluctuating demands

Nature of buying unit

• Purchasing agents

• Technical experts

• Management and business markets expert

• Well trained sales person

Types of decisions and decision processes

• Complex decision making

• Formal

• Buying process influenced by 4ps and

Major types of buying situations

• Straight re-buy

• Modified re-buy

• New task situation

• Systems buying

Participants in business buying process

• Users

• Influencers

• Buyers

• Deciders

• Gatekeepers

Business buying process

• Problem recognition• General need description• Product specification• Supplier search• Proposal solicitation• Supplier selection• Order routine specification• Performance review

Importance of CRM in B2B markets

• Focusing and building strong relationship with customers

• Generating high level of satisfaction in every interaction

• Anticipation of customer need and responding to it.• Creation of value perception for the customer• Customers : lifetime value and strategic importance• Technology: flow of information

Key account management

• Key account: as a customer in a B2B market identified by a selling firm of strategic importance.

• Using KAM for customer segmentation– Profitability– Characteristics of key accounts– Growth in profits as compared to growth in sales– Cost of servicing each customer vis-à-vis his/her contribution

• Customer retention strategy– Retention is a strategy that involves building customer loyalty and achieving

higher levels of customer satisfaction– Marketing(customer service, branding, public relations) vs purchase (SCM,

EDI)

• KAM as growth and development strategy(pre, early, mid, partnership, synergistic, uncoupling)

Customer value management in business markets

• Understanding value– Crafting marketing strategy– Understanding firms as customers

• Creating value– Managing market offerings– New offering realisation– Business channel management

• Delivering value– Gaining customers– Sustaining reseller partnerships– Sustaining customer relationships