Business 3 Template

Presenter Name

Customer Relationship Management

(CRM)
Introduction

Contents

Customer focus issues

CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution

A dfinition of marketing

The process of planning and

executing the conception,
pricing, promotion, and
distribution of ideas, goods,
and services to create
exchanges that satisfy
individual and organization
goals.
American Marketing Association

How to define Customers?

CONSUMER

BUSINESS
TO
BUSINESS

CHANNEL
DISTRIBUTOR
FRANCHISEE

INTERNAL
CUSTOMER

1. It costs 6x more to sell to a new customer than to

sell to an existing
2. One dissatisfied customer will tell 8-10 others on
his experience
3. By increasing the customer retention rate by 5%,
profits could increase by by 85%

4. There is 50% chance of making a sale to an

existing customer while only a 15% chance of
selling to a new customer
5. 70% of customers will do business with the
company again if their complaint is successfully
resolved
6. 90% of companies (in 2000) didnt have the
necessary sales and service integration to support
e-commerce
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Customer Loyalty:

Customer Loyalty is a deeply held

commitment to rebuy or repatronize
a preferred product or service
consistently in the future, despite
situational influences and
marketing efforts having the
potential to cause switching
behavior.
Source : Satisfaction: A Behavioral Perspective On The Consumer
Richard L. Oliver Mc Graw-Hill Editions

CRM Definition:

An integrated sales, marketing & service strategy

An approach which effectively manages customer
relationships
A business strategy to select and manage the most
valuable customer relationships. CRM requires a
customer-centric business philosophy and culture to
support effective marketing, sales, and service
processes
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IT definition

Methodologies, software and usually

internet capabilities that help an
organisation manage customer relationships
in an organised manner

10

 Customer Relationship
Management is an enterprise
approach to understanding and
influencing customer behavior
through meaningful communications in
order to improve customer
acquisition, customer retention,
customer loyalty and customer
profitability
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Source
Accelerating Customer Relationships, Ronald S. Swift Prentice Hall - 2001

CRM Functions

The concept of CRM in theory is simple:

Listen to your customers and act on what they are saying to create
a mutually beneficial relationship.
Companies with current implementations of CRM technology
can usually hear their customers; however, because they are
only focusing on the operational and collaborative component
of CRM, they cannot really understand them. They must also
consider analytical CRM to optimize their customer
relationships.
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Operational CRM
MARKETING
AUTOMATION

SALES FORCE
AUTOMATION

CUSTOMER
SERVICE
AND
SELF-SERVICE

designed to get the right mix of the

companys products and services in front of
each customer at the right time

Collaborative tools that enable all parties to

the transaction to interact with one another
Serving existing customer base through
problem resolution systems, workflow
automation and field service dispatch systems
Capabilities that can be directly invoked by
the customer on the internet via PC and
wireless devices
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Analytical CRM

DATA
WAREHOUSE

DATA
MINING

A process of assembling disparate data from all over

the company transforming it to a consistent state for
business decision making and empowering users by
providing them with access to this information from
multiple applications
The process of extracting and presenting new
Knowledge, previously unpredictable, selected from
databases for actionable decisions.
The process of analyzing detailed data, to
extract and present actionable, implicit and
novel information to solve a business problem
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CRM - Stages
1.
2.
3.

Customer Acquisition:
Promotion of products build a relationship first date
Customer Extension:
An established relationship cross-selling & up-selling
Customer Retention:
Adapt to customer requirements requires a complex
understanding of customer needs.
Can an organisation pursue all 3 objectives ?
extremely difficult

16

CRM Business Process with a Customer Focus

Need to have consistent dependable and convenient interactions
with customers in every interaction
Need to efficiently create new delivery channels
Need to capture & analyse large amounts of customer data
Overall attempt to produce a unique/different business experience
for the customer.
CRM is all about changing processes and therefore change
management
What is the companys experience in change? Does it have a
successful track record?
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CRM Technology

CRM and e-CRM

e-CRM : extending CRM through the Web

e-CRM is the customer-facing internet portion
of CRM
e-CRM is a real designation, but it is not a
revolutionary new system or set of processes.
e-CRM is CRM online
CRM is a strategy, the web is a channel
CRM is inherently a multi-channel strategy.
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Traditional CRM

Telemarketing
Direct Mail
B.R.C.
Responses
Trade Shows
Inbound Calls
Press releases
Meetings
Product Demos
Referrals

eCRM

eCRM
E-Mail Blasts
Web
Registration
Online Reply
Instant
Messaging
Online Customer
Service
Web Demos
Video
Conference
Online Prospect
Database
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CRM Challenges

Integrating customer content

All interactions and knowledge about customers must be
synthesised and stored in a way that anyone in the
organization with a need to know can access that
information in real-time and in a way that supports that
current problem.
Currently most organizations cannot do this or are even
close to this
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CRM Challenges

Contact management
The channels that customers use to contact an
organization are increasing Web, call centre, fax,
email, voice message etc.
These technologies must be integrated so that staff
can access the details regardless of channel.
Consistent business rules need to be applied across all
channels of contact
21

CRM Challenges

End-to end business processes

Business processes must be integrated and
consistent eg. sales and service. The service
staff must have access to sales details and
commitments and apply consistent rules of
dealing with the customers.
This requires much more integration between
processes than is current.
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CRM Difficulties

CRM requires major integration of systems which

few companies have
CRM requires turning round existing systems to
store, record and retrieve on a customer-centric basis
CRM requires people to stop thinking about
departmental boundaries and to start thinking about
how as a team the company can help the customer
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CRM Architecture

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Step 1 Determining current abilities

- Do we have a call/contact center?
- What are the capacities of the call/contact center?
- Are customers questions being answered?
-- Why do we have customer complaints? How can
- they be minimized?
- What additional infrastructure do we need?
- What are current costs?
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Step 2 Building capabilities

--

What technologies are in the call/contact

centers and is more technology needed

- Calls are routed based on incoming call

information (e.g. incoming call phone number)
--

Employees are empowered to make and keep

promises to customer
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Step 3 Information utilization

--

Customer information and contact history is

- tracked in a knowledge base and used in future
- contacts
-- Customer information can be linked to contact
- history from all channels
- Customer patterns (e.g. seasonal patterns) are
discovered and used for marketing purposes
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Step 4 Determination of what we do

- Shift from data collection and analysis to strategy
- Enterprise goals revolve around customer
relationships
- Customers receive support based on their value
to the company
- All corporate divisions share the same information
on the customer and focus on customers
relationship with the company
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Step 5 CRM becomes a core competency

- Maintaining customer relationships is a core
competency of the business, ensuring a greater
retention rate
- The focus centers around redefining markets to
position the company as the best of breed in the
industry
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The End

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