Managing information technology (IT) for one-to-one customer interaction

Group Members 1. Miss Aroonlod Udomphol 112879 2. Mr. Mir Dost Brohi 112858 3. Mr. Nattawut Kreangkraileard 112845 4. Mr. Guillaume Battault 114261 5. Miss Myat Noe Oo 113042

AGENDA
1. One to One customer interaction
-

Introduction
Perspectives of customer interaction Key IT elements for customer interaction

Examples of successful IT-enabled customer interaction

An integrated framework for IT-assisted customer interaction

2. Roadmap for success

3. Case study: FOOD BY PHONE

Introduction

Contd

What is the search of organizations in increasingly tight markets?

What paradigms can enable organizations in the way through achieving the competitive advantage?
How can organizations succeed with the help of paradigms?

Up to what extent MIS and Marketing are useful for IT's impact on customer sales and services?
What does it require to the organizations to improve Marketing efforts?

Customer Information System (CIS)

Perspectives of Customer Interaction

 John,

William, and Joobin explore one-to-one customer interaction from 2 perspectives: marketing and IT.

Marketing

and IT need to work together with a high level of coordination to produce a seamless process of interaction.

Marketing

professionals are interested in the application of IT for establishing effective one-to-one customer interactivity with the purpose of increasing customer satisfaction.

 Information systems

professionals are responsible for designing an effective information infrastructure that will provide marketing professionals with the foundation for taking advantage of interactive applications.

Marketing professional in

the 1990s have discovered there is a fine line between customer sales and service (Effective customer service typically leads to a higher volume of sales.)

To be successful in one to one customer interaction need 4 key elements

1.

Business process analysis:

Identification of profitable customers Need to re-engineer process to accommodate this interaction.

2.

Integration and redesign customer data across organization: because 1-1 require a narrow focus on each customer

Collect and access of non-transactional customer information (suggestions, Complaints, preferences.) Collect and access of transactional customer information (product purchase, Quantity purchased.)

To be successful in 1 to 1 customer interaction need 4 key elements

3.

IT-enabled customer interaction (facilitate interaction):

1)
2)

Automated methods: internet, electronic kiosks, and computer/ telephone integration. Manual methods: person to person, telephone. (need IT-assistant to be effective.)

4.

Accessibility/transmission of organizational information: Access and distribute customers data from interactive communication;
1) 2)

Internal: used for decision support, External: directly at the customer.

Key IT Elements For Customer Interaction

Successful Customer Interaction result in 4 Dimensions

Business Process Analysis [A]

IT-enabled Customer Interaction [C]

Successful Customer Interaction Integration and redesign of Customer Data [B] Accessibility/Transmission of Organizational Information [D]

Business Process Analysis [A]

Analysis and re-engineering of the current Business Process by 3 steps:
Customer Interaction : how, when, where information is conducted and recorded Identify the points the points of interaction in order to record useful

information

Customer Support : methods used (hot line, in-store help desk, web-support) Identify useful methods, train employees to use the customers information to be more successful in their task Decision Support : organize and distribute the information to improve quality of the decision Identify Business Metrics, information required at the Managerial level in order to take effective decisions.

Integration and redesign of Customer Data [B]

When redesign customer data:

Need to integrate customer data across the organisation

1) 2)

A complete redesign of the existing data schema Extend customer data to include non-transactional data (e.g e-mails documents, phone conversation records, preferences)

Expend the customer profile

1)

Create a single view of the customer information (e.g from one window see all financial, customer service, marketing, communication records of a customer by integrating data and different IT systems) Keep records of suggestions, complains and comments from the customer. This information makes customer interaction powerful

2)

IT-enabled Customer Interaction [C]

IT-assisted interaction : use of IT to enhance the relationship between the service provider and the customer, examples:
McDonald: in

Europe, order from a Kiosk in the restaurant and pay. You then just need to pick up you order. subscribe on a kiosk in the store the IKEA club and get all the privileges of it. English: remind you of your next class by sms.

IKEA:

Wall Street

IT-enabled Customer Interaction [C]

Automated interaction: pass the control of the interaction to the customer.

Examples:

Food-by-phone: order and payment directly through their website or on your mobile phone

Dell: build up yourself your computer on their website and get delivered at home

Accessibility/Transmission of Organizational Information [D]

Internal distribution of the information:

-Enhance customer and decision support

External distribution of the information: -Distribute back the information to the customer in order to improve interaction and consequently customer service.

IT solution to support 1-2-1 Customer solution: -The use of a client software which control access to database.

-allows different departments to share data, and to find information from a common and unique source

Examples of successful IT-enabled customer interaction

Levi Strauss
1.

Levi Strauss, product oriented ; apparel company Initiated a marketing effort that offers customized jeans for women. Customers try on sample jeans and provide measurement information which requires them to provide a valid profile of the dimensions.

Information is directed to an automated fabric-cutting machine where jeans are custom made.

Customer order with profile is stored in Levi Strauss for future orders for particular customers.

Levi Strauss

Upon receiving adequate information Levi Strauss is capable enough to support female customers in improved way.

Received feedback perhaps helps them to decide how to interact with this targeted group or at large.

Better results can only be acquired if sales, manufacturing and distribution have a same look at the customer information.

However, availability and transmission of organizational information is essential for

the interaction process to be effective for both, the customers and Levi Strauss

Ritz-Carlton
Ritz-Carlton, service oriented ; Hotel
Builds a database of customer profiles that allow its employees to anticipate customer preferences and increase customer satisfaction.

2)

This profile consists of customer suggestions, preferences, and complaints. The information originates from two sources ; the customer and hotel employees.

Ritz-Carlton

Guest preference pad hotel employees record information from customers by face to face

interaction or observation.

Be placed kiosk in the hotel lobby where the customer could either type or verbally record their comments and suggestions.

Use computer/telephone integration when a customer orders room service and the customer's preferences.

Customer profile information distribute within the hotel in order to identify the trend of customer and also link to the other Ritz Carlton hotels to accommodate customers base on favorite previous visits.

An integrated framework for IT-assisted customer interaction

Obvious interrelationships that are necessary for an organization to realize the benefits of one to one customer interaction.

If an organization develops an integrated view of the customer , it will fail to be successful if it fails to modify its business procedures or provide customers with an effective interactive interface.

Organization need to focus on the external transmission of customer information via interactive user interface technology.

For Levi Strauss And Ritz-Carlton

They observed that IT was somewhat of a spectator sport during most BPR projects, but procedures are organized around the process (eg. Customer system) when changes involved customer information. Levi Strauss focused on the integration of customer information while addressing customer information redesign issues. Ritz-Carlton focused on the redesign of customer data while creating an integrated view of their customer information Both considered a number of different possibilities for interactive user interfaces.

If these interfaces that are not working in coordination with the other key IT elements o Organizations ability may be severely impacted.

If the organization has not restructured its business process o Customer interaction may lose some of its effectiveness.

If the customer data profile is not integrated or dissemination of organization information is limited o the customer or employee may not be able to access or retrieve the necessary information required for effective interaction .

Integrated Framework for organizational customer interaction

Previous discussion mentions the fact that these IT elements need to be tightly integrated . The success of either element is highly dependent on the effectiveness of the other element.

While each of these key IT elements has obvious advantages , it is the relationship among these elements that provides an organization with the potential to effectively interact with its customers.

As customer interaction strategies continue to grow, the use of IT as an enabling factor will increased and subsequently. Therefore , IT has on one to one interaction.

Roadmap For Success

Steps for implementing KM, e-business, or CRM requires a plan for successful result.

Phase I: Evaluation and Strategic Allignment STEP 1 Strategic Alignment

Company should have a long-term strategy, clear vision, & intent to translate them into short- term and achievable wins.
Barriers to KCRM implementation:
1)

Customers loyalty is determined by:

1)

The environment is defended by an interpretation barriers. The context by expression barrier. Strategy by specification barrier. Technology by implementation barrier. Gaps: 1) strategic

Your knowledge of their needs

2)
2) 3) 4)

Anticipation of future requirements and

Superior communication

3)

Three

2) Knowledge

3) Relationship Gaps.

Contd STEP 2 Audit and Analysis

Determine the present state of businesss relationship and knowledge assets. Classify customer groups based on perceived lifetime value. use information differently to interact and deliver customized value packages to different customers. Analyze audit outcomes to determine KCRM strategic imperatives.

Phase II: Infrastructural Development and Deployment. STEP 3 Designing the Team

This step is concerned with the process of assembling a boundaryspanning team for KCRM implementation. A company must

Understand the implementation team design

Balance conflicting requirement

Understand tasks and expertise involved on implementing KCRM Balance managerial and technical composition

Avoid common team formation pitfalls

Contd STEP 4 Blueprinting the Technology

Technology need to be well-built, maintained, integrated with business processes with future adaptability in mind.
this stage a company must:

At

Understand the design challenges of creating a KCRM technology blueprint.

Compare requirements against KCRM objectives. Have a look at examples of customer knowledge systems used in B2C, C2C and B2B ebusinesses Decide whether build or buy.

Contd STEP 5 Development and Results-Driven Deployment

Implementation of

a customer knowledge strategy depends on detailed breakdown of the vision into the discrete steps that are accompanied by milestones that act as makers for operational zing the vision.
Common problems in the deployment phase:

over engineering.
communication and coordination process of cumulative characteristics and

Poor Lack

Ignored

human issues

Phase III: Leadership, Change Management, Measurement & Refinement. STEP 6 Leadership, Change Management and Culture.

Technology can bring the horse to water but to make him drink.
At this stage companies must understand

role of corporate culture and leadership. Championing roles and goals To recognize rewards for knowledge sharing and building the relationships

Contd STEP 7 Evaluation, Measurement and Refinement

Measure, and evaluate short-term, and long-term objectives. (If fail, why?)

Example tools:
1) 2) 3)

Benchmarking: measure, compare to the organization that do it better Quality function deployment: understand customer needs. Balanced scorecards: measure company 4 dimensions;

Financial Customer The Business Process/Internal Operations The Learning and Growth

Case Study: FOOD BY PHONE

FOOD BY PHONEs Background

Food by Phone was established in 1998 by Marc Hagelauer and Rungrudee Suwannake as a high end restaurant delivery service. Food by Phone offers a service to restaurants by providing an alternative sales channel as well as a service to customers by bringing to them the food that they could only get by braving the terrible Bangkok traffic. In order to maintain the highest quality of service, all the telephone operators speak fluent English, all the messengers are fully trained to a keep a high standard at all times, and our packaging is all specifically designed and microwavable. All of us at Food by Phone take pride in offering the highest quality service available at a reasonable price.

Registration Process

E-Wallet

Restaurant Index

Ordering process: Imperial China

2
4

Business Process Analysis

Customer Interaction all day long, by phone, website or mobile phone application

Customer Support methods used hot-line, website help desk

Decision Support track orders and customer satisfaction

Integration and redesign of Customer Data

When redesign customer data:
1) 2)

Need to integrate customer data across the organisation Through website and by questions of phone operators, acquire relevant customer data Keep track of all communication out of ordering process (e-marketing emails...)

1) 2)

Expend the customer profile

Create a single view of the customer information : orders, payement, satisfaction Attached to customers profile the results of his surveys, comments in order to determine his overall satisfaction and consequently adapt service.

IT-enabled Customer Interaction

Foodbyphone.com Mobile phone application

Accessibility/Transmission of Organizational Information

Transmit orders to the restaurant Send Deliverymen to pick up the food to restaurant and delivery to customers (ops) Finance to check the payment Marketing to use data to communicate with the customer efficiently Management to measure performance of different departments and take appropriate action easily

Thank you