Professional Documents
Culture Documents
(Code : BM 301)
MBA(2008-10) Term 3
S. Suresh
Session 1 to 4
INTRODUCTION
CRM Definition 1 the automation of horizontally integrated business processes involving front office customer contact points (marketing, sales, service and support) via multiple, interconnected delivery channels.
CRM Definition 2 a process that addresses all aspects of identifying customers, creating customer knowledge, building customer relationships, and shaping their perceptions of the organisation and its products
CRM Definition 3 Building and sustaining customer and infrastructure relationships. It is the integration of customers in the companys design, development, manufacturing and sales processes. All employees need to be in the business of building CRM
Communication 4.9
Contents
Strategy and organisation of CRM (I) CRM Marketing aspects (II) Analytical CRM (III) Operational CRM (IV) CRM Systems and their implementation (V)
Commitment
Loyalty
Loyalty is a deeply held commitment to rebuy or repatronise a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behaviour.
Value disciplines
Customer intimacy Leading edge Performance of market leaders
Minimum expectation
People
Social competencies: the capacity for empathy; the ability to create congruence; the ability to use an unconditionally positive approach to the other person.
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Session 5 to 8
High costs are associated with owning data, and Gartner believes that having bad data can increase these costs by a factor of 10 when one considers costs arising from bad business decisions and poor CRM based on such data.
Gartner Research, Customer Data Quality and Integration: The Foundation of Succesful CRM, 26 November 2001
Figure 5.3 The use of different sources of information to create a complete customer profile
Privacy
The right of objection and the various channels of communication Addressed e-mail: opt-out Telephone (voice): opt-out Fax: opt-in Automatic telephone calls without human intervention opt-in Unaddressed e-mail opt-out E-mail: customers soft-opt-in prospects opt-in
opt-out: right to block by data subject him/herself opt-in: prior permission needed from data subject to send messages
Figure 6.3 Use of the channels by various consumer types in different phases of the relationship
Source: Peelen et al (2000).
Channel management
Advice
High Advice
High Margins
Face Face
Lower Advice
Medium Margins
Call
Commodities
Low Margins
Click
Margins
Subtly moving the client to the most efficient and most effective channel combination.
Figure 7.3 How far is the individual customer order integrated in the supply chain?
Source: Lampel and Mintzberg (1996).
Figure 8.2 Relationship planning: communication and service profile per segment
Source: Bgel (2002).
Club programme
Subscribe; increasing involvement; providing information and eventually discounts and service; cognitive processes; Fox Kids
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Session 9 to 14
ANALYTICAL CRM
Identification
Term Definition Measurement 95% x
Accessibility Percentage of customers identified in call centre in less than 30 seconds Complete Percentage of customers with complete file Correct NA, phone, e-mail transaction history Data quality call centre
Identification
Term
call center call center strategy/objectives strategy/objectivesin Accessibility % customers identified Costs to correct mistakes Costs to correct mistakes
% customers with complete file Customer satisfaction Customer satisfaction NA, phone, e-mail call center < 30 sec
Employee satisfaction and Employee satisfaction and transaction history retention retention Missed turnover Missed turnover
Datamining
The automated discovery of interesting, nonobvious patterns hidden in a database that have a high potential for contributing to the bottom line versus The discovery of knowledge in databases.
Datamining techniques
Neural networks Evolutionary computation Association rules Decision trees Case-based reasoning
Choose one card and concentrate hard on that Card. Please do not click on the card! I will try to read your mind ... When you have memorized your card, go to the next screen. Click on the mouse ...
Whisper the name of your card. Please do this. It is important. Click on the mouse when you are ready
I have read your mind. I left out the card that you selected.
RFM analysis
Recency Frequency Monetary value
Cross-selling
Definition of cross-selling Cross-selling over time Customer buys more than one of the same product during a contact (two life insurance policies) Customer buys two or more different products during a contact (home contents and liability insurance policies) Customer buys a second or third product at a later time
Cross-selling
Definition of cross-selling (contd) Cross-selling within product category Upgrade of the same product (deep selling) Customer buys another product within the same category Customer buys product from another category Within the household (not account number)
Cross-selling
Figure 12.5 Contribution to turnover made by customers purchasing one or more insurance products in the past year
External validity
The reality content of the experimental situation;and the degree of representativeness of the random sample, the stimuli and the response variables.
Learning organisation
Know-... Know-how: a specific skill or procedure Know-who: the ability to point out an individual who can aid in the execution of a specific task Know-what: structured patterns and knowledge Know-why: a deeper insight into the underlying reasons and motives Know-when: a feeling for timing and rhythm Know-where: a feeling for location
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Session 15 to 17
Organisational CRM
Contact satisfaction
Agents are evaluated on the basis of the following aspects: The result of the conversation: is the customer satisfied? The use of guidelines. Telephone conduct. Executing cross- and up-sell activities. Structure and content of the conversation. Attitude towards the customer. Providing the correct information.
Accountable
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Session 18 to 20
Table 19.1 Satisfaction among companies with CRM results (in percentages)
Source : Berger (2002).
Figure 19.3 Relevance of CRM projects in the context of an operational excellence strategy
CRM Roadmap
Phase 1 Operations Focus Process orientation Strategy It should work Operational excellence Organization Undifferentiated (orientation) market approach Phase 2 Sales Marketing optimisation More smart marketing/sales Phase 3 Relations Partnership building Selective mutually beneficial relations
Customer Defining data and knowledge managing for data quality Identification, communication and transaction history Metrics Focus on efficiency, reliability, market share
Process definitions
External validation
Number of days
14
42 - 56
70 - 90
Unit delivered 1
Mailing 1 2
Office education 6
Decision point
Unpack card
Decision point
Mailing 2 4
Decision point
DSS
Capabilities
The future
Building and sustaining customer and infrastructure relationships. It is the integration of customers in the companys design, development, manufacturing and sales processes All employees need to be in the business of building CRM
Real-time marketing Real-time marketing
New processes New processes
The future . . . ?
Open, equal access Real-time information Specialist information Convenient access Information portability Logistics transparency Pricing transparency Fair, global pricing The ability to set prices Choice of distribution channels Control over their information
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