Stakeholder management

A stakeholder is any person or body that has an interest in the company and can affect or be affected by the business. The primary stakeholders in a company are typically the shareholders, suppliers, customers and employees. Stakeholder management is maintaining good relationships with those people who have the most impact on the business.

Prioritising stakeholders

Some stakeholders have the power to influence your work, others take an interest but have no affect on your role. You may classify the stakeholders in a chart to illustrate what actions to take with them.

High power, highly interested (manage closely) - The most important stakeholders. Fully engage with them, keep them interested in your work and make great efforts to satisfy them. (eg: line management) In my role these people would be my line managers LK/CS and the people in the wider marketing department I work closely with to deliver Email and social. (CRM /social executives DM/GG/LG)

High power, less interested (Keep satisfied) - These stakeholders have a lesser interest in your individual role but have great power in their own right and an overall interest in a project. These stakeholders have the power to advance or block a project. Keep them satisfied but don't engage on a regular basis. (eg: shareholders, marketing directors, head of department)

Low power, highly interested (Keep informed) - These people are helpful with your work but don't have the power to authorise a project. (eg: design colleagues - could give me advice, copywriters - write the copy for my Email designs)

Low power, less interested (Monitor) - The group you'd spend the least time working with. Monitor these stakeholders but don't engage them on a regular basis. (Eg: colleagues in other unrelated departments eg: finance, HR. )

Customer relationship management

At a basic level, a business and customer would engage in a single transaction with no further contact. For example you may use a taxi service in an unfamiliar city out of convenience rather than choice - The customer doesn't care about the who, but about getting to their destination. Both parties are unlikely to meet again. Every businesses however should look for opportunities to build a relationship with a customer. Customer loyalty will increase sales volumes through repeat purchases.

Customer relationship management (CRM) refers to the principles and practices that a business follows when communicating with its customers and the technology used to manage these practices. CRM aims to improve the customer's experience with the business and encourage repeat custom. CRM is mostly concerned with existing customers and retaining them. "CRM includes all aspects in which a company interacts with customers, but more commonly refers to the technology used to manage these relationships." (Jobber p.319) - CRM technologies include (but not exclusive to) a company's website, social media and direct Email marketing.

A happy customer is more likely to subscribe to a mailing list, interact and even champion with the brand on social media. Ultimately they will spend more and also recommend the business to others. "Customers will repeatedly return to to the same supplier if they are satisfied with the products and experience" (Jobber P.17) A business therefore should commit to developing a mutually rewarding relationship with the customer.

Some examples of how to build a relationship with a customer

Loyalty stamps: A taxi service may develop a relationship with its local audience by offering a tailored service, loyalty 'stamps' that earn you a discounted ride and provide an app so you can edit your journey and track your driver (also find out about him/her which makes the service feel more human). These are all techniques the leading local taxi service provide in my area use which put them above the competition.
Many stores offer a loyalty card and a web portal where a customer can manage and spend their points totals. This encourages repeat transactions and the business in return gets customer shopping data. - Clubcard, Nectar Card, Morrisons More are all examples.

A simple way for a coffee shop to attract returning customers, free coffee!

Wilko CRM strategy

wilko doesn't have a loyalty card strategy and simply aim to build relationships with customers through great customer service. The CRM executives I work closely with at wilko aim to create positive experiences for customers who interact with the business through these channels, either for help with their product or just to comment on a post saying how much they like those cushions. Facebook user may tag their friends who then follow the social media account so their Email database and social media engagement grows with returning & prospective customers.

After a purchase, wilko also send behavioural Emails seeking a review of the product/transaction to determine if the customer's needs have been met. This can form the start of a relationship with a first time customer. wilko also offer the chance to win a £100 gift card as an incentive. Email marketing is a low-cost but effective way to reach a large amount of customers. wilko has over 700000 engaged customers on it's database. It's also a great option for businesses without the budget for TV, radio and press advertising.

At wilko I work with the CRM executives to design Email campaigns. The CRM executive first creates the brief, and I produce the creative. The CRM executive then tests, signs off and launches the campaign and later shares the results with us. The CRM executive's aim is grow and nourish the email database, increase the open & click through rate of marketing Emails and ultimately the conversion rate. On their social channels the aim is to build emotional connections with the audience with cosy looking home scenes and a friendly, down-to-earth tone. which invites prospective customers to comment and chat.

As mentioned elsewhere, wilko want to be the brand "you'd want to have a cup of tea with."

Tesco - Every bit of data helps...

A loyalty card is one of the best ways to encourage repeat custom in a supermarket. In large towns like Doncaster there is strong competition with Tesco, Asda, Sainsburys and Aldi & Lidl all fighting for your custom.

Tesco's clubcard will give you a point for every £1 spent online, in store, on petrol or on it's services such as Tesco mobile. These points can be traded for discount vouchers in store, or even put towards fun days out and 'experiences' with Tesco's partners. (Eg: Alton Towers tickets) . Tesco will also lure you in with additional discount vouchers and 'Clubcard only' prices in its stores which can save you up to 25% off your shopping. This type of loyalty is driven by price and its promotions trigger repeat purchase behaviour.

What's in it for them?

Registering for a clubcard means Tesco know your personal details such as age, gender and location and can build a profile of you and your shopping habits. Tesco know your shopping pattern (whether you go for a 'big shop' or frequent several times a week) and know through your purchases your favourite brands, if you are a smoker or a vegan and/or have children for example so they can tempt you with discount vouchers of your favourite items. They also have valuable data of others that fit your profile which will help inform the business of their audience needs. Tesco, through it's clubcard scheme understands what brands are its biggest sellers, in what locations and who buys them.

K3 -The principles of stakeholder management and customer relationship management (CRM), both internal and external, to facilitate effective cross functional relationships

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