14 September 2013

Customer Relationship Management

Customer Relationship management

Introduction & Concepts

Customer Relationship management

Learning Objectives
1. Traditional Marketing vs. RM 2. Evolution and Growth of CRM 3. Importance of CRM 4. Some definitions of CRM; Our

Introduction & Concepts

definition 5. Several common misunderstandings about CRM 6. Four major perspectives on CRM: strategic, operational, analytical and collaborative

N.Karami; CRM

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Customer Relationship Management

Traditional Marketing vs. Relationship Marketing

Failure of Traditional Marketing

Customer Relationship management

Introduction & Concepts

T Traditional diti l marketing k ti h has f failed il d i in th that t customers t have been put last, not first. This inherent lack of customer focus on behalf of organizations led many consumers to conclude that organizations generally over-promise and under-deliver .

Traditional Marketing

Relationship Marketing

The Transition of Relationship Marketing

Customer Relationship management

Introduction & Concepts

N.Karami; CRM

14 September 2013

Customer Relationship Management

The Rise of CRM

Customer Relationship management

Introduction & Concepts

The shift in business focus from transactional marketing to relationship marketing The realization that customers are a business asset and not simply i l a commercial i l audience di The transition in structuring organizations, on a strategic basis, from functions to processes The recognition of the benefits of using information proactively rather than solely reactively The g greater utilization of technology gy in managing g g and maximizing the value of information The acceptance of the need for trade-off between delivering and extracting customer value The development of one-to-one marketing approaches.

Customer Relationship management

Evolution and Growth of CRM

1st generation >1990 Call Center Management Customer Service Support Sales force Automation Integrated customer facing Front-end( marketing, sales, service) 2nd generation >1996 3rd generation >2002

Introduction & Concepts

Strategic CRM

Campaign Management S Scope: Service function Sales function Goals: Improve service operations Increase sales efficiency

ERP Integration Customer analytics Complete p Web integration g Entire organization

Marketing function Service function Sales function Reduce cost of interaction Improve customer experience Increase customer retention

Cost reduction & Revenue growth Competitive Advantage

N.Karami; CRM

14 September 2013

Customer Relationship Management

Customer Relationship management

Why Customers?
There is only one boss-the customer. And he can fire everybody y y in the company p y from the chairman on down, simply by spending his money somewhere else.

Introduction & Concepts

Sam Walton; Founder, Wal-Mart

Individual, differentiable customer relationships will be the ultimate software of businesses in the 1:1 future. All your products are ephemeral. Only your customers are real.
Don Peppers & Martha Rogers; The One-To-One Future

Why Customers?
Continued

Customer Relationship management

Introduction & Concepts

Your most unhappy customers are your greatest source of learning.

Bill Gates

In the 1980s, we saw in every individual a customer In the 1990s and beyond customer. beyond, we ought to see in every customer an individual.
Jack Welch, CEO, General Electric

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14 September 2013

Customer Relationship Management

Our Customers
Suspect Prospect
First-time Customers

Customer Relationship management

Introduction & Concepts

Disqualified

Ex-customers

Repeat Customers

Clients Advocates Members

Partners

The Importance of CRM

Customer Relationship management

Introduction & Concepts

If a company loses 10% of its inventory to Theft, - swift action would be taken to stop the loss,

But
If a company loses 10% of its customers, - no one might even notice it, - not many things could be done to stop it! 80/20 rule 20% of the customers contribute 80% of the revenue

N.Karami; CRM

14 September 2013

Customer Relationship Management

CRM Definition

Customer Relationship management

Introduction & Concepts

It is a comprehensive set of processes and technologies for managing the relationships with potential and current customers and business partners across marketing, sales, and service regardless of the communication channel.
Brent Frei, President and CEO, Onyx Software

Customer Relationship Management is the commitment of the company to place the customer t experience i at t the th center t of f its it priorities i iti and to ensure that incentive systems, processes, and information resources leverage the relationship by enhancing the experience.
Peter Keen, Chairman, Keen Innovations

CRM Definition
Continued

Customer Relationship management

Introduction & Concepts

The management approach that involves identifying, g developing p g and maintaining g successful attracting, customer relationships over time in order to increase retention of profitable customers.
Bradshaw & Brash

CRM is a disciplined business strategy to create and sustain long-term, profitable customer relationships.
Robert Thompson, Thompson President, President Front Line Sol Solutions, tions Inc Inc.

Customer Relationship Management (CRM) is a business strategy to select and manage customers to optimize long-term value.
CRMGuru.com

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14 September 2013

Customer Relationship Management

CRM Definition
Continued

Customer Relationship management

Introduction & Concepts

CRM relates to strategy, managing the dual-creation or value value, the intelligent use of data and technology technology, the acquisition of customer knowledge and the diffusion of this knowledge to the appropriate stakeholders, the development of appropriate (longterm) relationships with specific customers and/or customer groups, and the integration of processes across the many areas of the firm and across the network of firms that collaborate to generate customer value Payne, 2006

Other Definitions of CRM

A Methodology A Strategy A C Concept t A System
Automation of BP

Customer Relationship management

Introduction & Concepts

growing business by effectively managing the relationship with future, past, and present customers achieving business goals by defining objectives, implementing a plan, and then measuring results via a system the infrastructure that enables the delineation of and increase in customer value, and the correct means by which to motivate valuable customers to remain loyal software, hardware, process, and workflow Marketing, Sales, Support, etc.

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14 September 2013

Customer Relationship Management

Our Definition

Customer Relationship management

Introduction & Concepts

CRM = Customer Relationship Management Attracting, Attracting developing and maintaining successful customer relationships over time A strategy for identifying, satisfying, retaining and maximizing the value of a companys best customers All processes and technologies that organizations use to identify, select, acquire, develop, retain, and better serve customers

360 360 View of the Customer

Customer Relationship management

Introduction & Concepts

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Customer Relationship Management

What CRM is Not

CRM Click stream analysis

Customer Relationship management

Introduction & Concepts

CRM is NOT watching the customer behind his back and g what he does in his browser recording CRM is NOT grouping a bunch of customers together and assuming their wants and needs are the same for every member of the group CRM is NOT statistical models that help to develop marketing strategy CRM is NOT a DB application that records all customer information

CRM Clustering

CRM Statistical model

CRM Database applications

What CRM is Not

Continued CRM Sales management

Customer Relationship management

Introduction & Concepts

CRM is NOT part of the human resources issues i involving l i salespeople l l CRM is NOT managing contacts means of customers CRM is NOT a tool for agent assessment which allows the call centre to provide a better service CRM is NOT a technology to access customers through different channels

CRM Contact management

CRM Audio call recording

CRM Voice over IP (VoIP)

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14 September 2013

Customer Relationship Management

Customer Relationship management

Three Types of CRM Technology (1 (1 )

Introduction & Concepts

Customer Relationship management

Three Types of CRM Technology (2 (2 )

Introduction & Concepts

Source: Improving customer interaction with customer knowledge management ; Adrian Buren

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14 September 2013

Customer Relationship Management

Operational CRM: Touching the Customer

Customer Relationship management

Introduction & Concepts

Means supporting the so-called "front office business processes, which include customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to employees responsible, information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference.

Benefits of Operational CRM

Delivers personalized and efficient marketing, sales, and service through multi-channel collaboration Sales people and service engineers can access complete history of all customer interaction with your company, regardless of the touch point Enables a 360-degree view of your customer while you are

Three Areas in Operational CRM

Customer Relationship management

Introduction & Concepts

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14 September 2013

Customer Relationship Management

Analytical CRM: Understanding the Customer

Customer Relationship management

Introduction & Concepts

An essential part of many CRM implementations. Customer perspective - delivers better, more timely, personalized customized solutions. Company C perspective ti - enables bl cross-selling lli and d up-selling lli programs, and more effective customer retention and acquisition. Data gathered within operational CRM are analyzed to segment customers or to identify cross- and up-selling potential Data collection and analysis is viewed as a continuing and iterative process Analytical CRM is inextricably tied to a Data Warehouse architecture, hit t and d use analytical l ti l applications li ti t to l leverage optimized functionality for analysis and reporting

Ad-Hoc Query Reporting OLAP Data Mining

Analytical CRM Can Provide

Customer Segmentation Groupings
dividing customers into those most and least likely to repurchase a product which customers lead to the most profit over time the ability to market to individual customers based on the data collected about them

Customer Relationship management

Introduction & Concepts

Event Monitoring
for example, when a customer reaches a certain dollar volume of purchases how likely is a customer or customer category that bought one product to buy a similar one for example, comparing various product development plans in terms of likely future success, given the customer knowledge base

What-if Scenarios

Profitability Analysis

Personalization

Predictive Modeling

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14 September 2013

Customer Relationship Management

Collaborative CRM

Customer Relationship management

Introduction & Concepts

Facilitates interactions with customers through all channels (personal, letter, fax, phone, web, email) and supports coordination of employee teams and channels. A solution that brings People People, Processes and Data together so companies can better serve and retain their customers. The data/activities can be structured, unstructured, conversational, and/or transactional in nature. Benefits of Collaborative CRM

Enables web collaboration to reduce customer service costs Enables efficient productive customer interactions across all communications channels Integrates view of the customer while interaction at the transaction level Integrates call centers enabling multi-channel personal customer interaction

THANK YOU For LISTENING Customer Relationship Management SESSION ONE Presented by N.Karami

N.Karami; CRM