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CHAPTER 1 Introduction to CRM

Introduction to CRM Who is customer? How do we define CRM? characteristics that CRM system Objectives of CRM: Advantages of CRM:

Define Customer
4 types of customers: Paying Client :They give money to the company & company gives them products and/or services. Employee :Company gives them a paycheck and benefits and bonuses and they give (hopefully) productive work in return to the company.

Supplier/Vendor :-They give products and/or services to the company & company give them money. Partner: They give lead, sales, added value services to the company & company give them the same and/or percentages of a sale they help make.

Definition of CRM
CRM 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.

1.Track and report every interaction with a customer, 2.Measure the performance of the business 3.Facilitate the working processes 4.Collecting data about the service requests,

Objectives of CRM:
1.To create a consistent customer experience 2.Collective consciousness expected

Advantages of CRM:
1.Provide better customer service. 2.Make call centers more efficient 3.Cross sell products more effectively 4.Help sales staff close deals faster
5.Simplify marketing and sales processes 6.Discover new customers and Increase customer revenues

CRM Technology
CRM technology mandates that all interactions between the customer and the company are recorded and stored in a central information database, which can be shared with anyone in the company who contributes to processing the customer's transaction.

Types of CRM Technology

Operational CRM Analytical CRM Collaborative CRM

Operational CRM:
Operational CRM is the customer-facing applications of CRM sales force automation(SFA) enterprise marketing automation (EMA) and front-office suites that encompass all of this simultaneously.

Analytical CRM
Analytical CRM is the capture, storage, extraction, processing, interpretation, and reporting of customer data to a user It analysis customer's data for following purpose:
a)Design and execution of targeted marketing to optimize marketing. b)provide tools in predicting the probabilities customer detection . c)Design and execution of specific customer.

Collaborative CRM
The collaborative CRM reaches across customer touch point communication center partner relationship management (PRM) application customer interaction center (CIC). Web or email, voice applications

CRM Technology Components

CRM Engine Front-Office Solutions Enterprise Application Integrations (EAIs) for CRM CRM in the Back Office

CRM Engine
This is customer data repository. like data mart, the data warehouse is the one where all the data on customer is captured and stored. such as your name, address, telephone number, birth date etc. and sophisticated information

Front-Office Solutions
These are applications that run on the top of the customer data warehouse.-Like SFA,EMA and service and support customer interaction To take decision of what is to be done? or What next is to be done with the customer? eg. self-service for the customer.

Enterprise Application Integration (EAIs) for CRM

This is known as middle ware between BackOffice and Front-Office. EAIs provide the messaging services and data
mapping services that allow one system to communicate with other systems

CRM in the Back Office

Analytical tool are known as Back Office of the CRM. The analytical algorithms are working in background with respect to Data in repository

What is a customer LifeCycle? It is simply the behavior of a customer with your company over time of life. Customers begin a relationship with you, either decide to continue this relationship, or end it. Total loss or profit estimated to result from an ongoing business relationship with a customer over the life of relationship.

Chapter 15: Customer Relationship Management (CRM)

A Relationship Life Cycle Model

High cooperation Low competition

Prerelationship stage

Development stage

Maturity stage

Decline stage

Low cooperation High competition Time

(Wilkinson and Young, 1997)

Customer Life Cycles

Business: size or maturity of the business

Customer Lifetime Value(CLV)

Most models to calculate CLV apply to the contractual or customer retention situation. These models involves some inputs-----

Churn rate:The percentage of customers who end their relationship with a company in a given period. One minus the churn rate is the retention rate.

Discount rate:The cost of capital used to discount future revenue from a customer Retention cost:The amount of money a company has to spend in a given period to retain an existing customer

Period:The unit of time into which a customer relationship is divided for analysis. A year is the most commonly used period. Periodic Revenue:The amount of revenue collected from a customer in the period. Profit Margin:Profit as a percentage of revenue. Depending on circumstances this may be reflected as a percentage of gross or net profit.

Customer Interaction
Customer Interaction is a critical component of CRMespecially the online 4 Stages for Customer Interaction--1.Initiation 2.Integration 3.Intelligence 4.Value Creation

1.Initiation:Active Management welcome customer by staring with work 2.Integration:Main goal is to achieve operation excellence. 3.Intelligence :By conducting and accessing performance of customer to find out level of further relationship Understand long-term strategies goal. 4.Value Creation:find opportunity to derive innovations,gain recommendation for new ideas

Thank You.

Attacks on Passwords
 Try all possible passwords

exhaustive or brute force attack Users do not likely select a password uncommon, hard to spell or pronounce, very long Password generally is meaningful to the user

 Try many probable passwords

 Try passwords likely for the user

Attacks on Passwords (cont)

 Search for the system list of passwords

Finding a plain text system password list Get the password directly from the user.

 Ask the user

Password Selection Criteria

       Use characters other than just A-Z Choose long passwords Avoid actual names or words Choose an unlikely password Change the password regularly Dont write it down Dont tell anyone else

The Authentication Process

 Intentionally slow

This makes exhaustive attack infeasible some who continuously fails to login may not be an authorized user. System disconnect a user after three to five failed logins

 identify intruder from the normal user

 D. Denning, P. Denning, Certification of Programs for Secure Information Flow, CommACM, V20 N7, Jul 1977, pp. 504-513  J. Linn, Practical Authentication for Distributed Computing, Proc IEEE symp Security & Privacy, IEEE Comp Soc Press 1990, pp. 31-40  C. P. Pfleeger, Security in Computing, Prentice Hall, NJ, 1996