Professional Documents
Culture Documents
Enterprise
Resources Planning
Customer Relationship Management
CRM
Used to maximize the benefits of a
companys customer assets.
Used as a technology and business
discipline.
Seeks to optimize revenue,
profitability, customer satisfaction, and
customer retention.
CRM System
Marketing
Sales
Support / Service
CRM Phases
1.
2.
3.
4.
Technology
Integration
Process
Customer-driven
CRM Applications
Partner relationship management
(PRM)
Employee relationship management
(ERM)
Customer service
Marketing
Customer Data
Sales
Marketing
Service
Account Mgmt
Campaign Mgmt
Service Delivery
Lead Mgmt
Channel Promotions
Mgmt
Customer Satisfaction
Mgmt
Order Mgmt
Events Mgmt
Returns Mgmt
Sales Planning
Market Planning
Service Planning
Field Sales
Marketing Operations
Sales Analytics
Marketing Analytics
Service Analytics
Aspects of CRM
Operational CRM
Includes customer-facing applications
Analytical CRM
Includes applications that analyze
customer data generated by operational
CRM applications
Operational CRM
Analytical CRM
Campaign mgmt
E-marketing
Lead mgmt
Telemarketing
Teleselling
Select the best marketing, service, and sales channels for each
customer group
E-selling
Identify trends in sales cycle length, win rate, and average deal
size
Field sales
Channels
Call center
Web site
Wireless
Field sales
Direct mail
E-mail
Retail store
Partner
Other sources
Legacy systems
Demographic data
Third-party data
Marketing
campaign data
Customer
data
warehouse
Profitable customers
Market segments
Customer profiles
Churn rates
OLAP
Data mining
Other data
analysis tools
(Laudon and Laudon 2006)
Revenue Enhancers
Increase sales
effectiveness
Add new customers at a
higher rate
Offer new
products/services
Provide a better
customer experience
Increase revenue per
customer
Sell more of current
products/services
Haag et al. 2005
Improve customer
Generic strategies
Software-centric implementations
retention
Industry
% Increase in
Customer NPV
Advertising Agency
95
Life Insurance
90
Bank
85
Insurance
84
Car Service
81
Credit Card
75
Laundry
45
Software
35
CRM definition
customer centric approach
Business philosophy which places the
customer at the heart of organisations
processes, activities and culture
IT is the tool to implement this
Why CRM?
Customers dont care about their
suppliers internal difficulties
They want to be able to access
product and services at the least cost
They want a single point of entry
Existing loyalty programmes are a
start but dont go far enough
Variations in the cost of selling to
different customers => CPA
A bit of history
Clear obstacles
Lack of collaboration
Outright conflict between
departmental needs
Fragmentation of existing customer
facing processes
Most unstructured in most firms
Data Issues
As with ERP Bad data quality will be a
problem
Data stewards
Building up to a DQM strategy
Dynamic process of tidying up live data
Metrics
Sales analysis
Returns
Warrant service requests
Calls / complaints
Time to closure
New contacts generation
Sales conversion
Customers retention
Campaign tracking
Pricing strategy changes
Staff buy in
Even more so than for ERP, CRM requires
staff buy in.
One bad experience is enough
Communicate on what is being sought
And have clear performance
measurements
Create programmes to show that it matters
Monitor performance and overall effect
over the long time
Measure returns regularly
Customers
Telephony
Internet
Face-to-Face
Mail
Fax
Customer Interface
Infrastructure
Sales
Marketing
Data Warehousing
Services
Legal
HR
Finance
R&D
Servers
Storage
Back Offices and External
Systems
Business Intelligence
Making sense
Identifying problems
Understanding cause and effect
relationships
Anticipating future changes
EIS / OLAP / dashboards of info
+ datawarehouses and data mining
CTI
Hidden cost => increased in-coming calls
But automation means complete framework for
measuring performance
Counter measures can be derived from findings
Email management provides further automation
The Internet
Better economics
Average cost of banking transaction = 1 / 54
cents with call centre and 13 cents on web
site.
Amongst other
things, this shows
the need for
METRICS
Knowledge management
Tacit knowledge
Explicit knowledge
Sales area dominated by the former
CRM is an attempt to codify knowledge
and store it for easy access
CRM is also an attempt to create new
knowledge
Finally CRM is an attempt to built
knowledge into the business processes of
the firm
Event driven marketing / cross selling / up
selling
Discussion