INTEGRATING PROCESSES TO BUILD RELATIONSHIPS

Introduction - Facts to Know and Understand

Cost is 6 times more to sell to a new customer than an

existing one. A typical dissatisfied customer will tell ten people about his experience. (Poor customer service) Company can increase profits 85% by increasing customer retention 5%. Chances of selling to a new customer are 15%, to an existing customer 50%. 70% of complaining customers will continue to be customers if problem is quickly resolved.

Why Customer Relationship Management?

Customers want excellent service want it now!
(The timely delivery of excellent service is customer relationship management)

Understand customers from a multifaceted

perspective:
Who are they? What do they do? What do they like?

Major Issues Increased competition, Globalization, The growing cost of customer acquisition, High customer turnover

Why Customer Relationship Management?

Effective management of customer relationships is a

source of competitive differentiation Today any advantage based on a companys product or service innovation is short lived. Instead, continuously creating new value propositions for customers is key to survival in an increasingly dynamic market.

Why Customer Relationship Management?

CRM is one of the highest growth software markets
Executives must ask whether their companies existing

CRM infrastructures support doing business in the eworld. CRM is moving from a sales productivity tool to a technology-enabled e-relationship strategy. To keep your best customers - create new delivery channels, capture large amounts of customers data, and tie it together to provide customers with a unique experience.

Defining Customer Relationship Management

An integrated sales, marketing and service strategy

Combination of biz processes & technology that

seeks to understand a companys customers from a multifaceted perspective Goals of business framework: CRM
use existing relationships to grow revenue use integrated information for excellent service introduce more repeatable sales processes and

procedures create new value and instill loyalty Implement a more proactive solution strategy

Managing Customer Life Cycle : 3 phases of CRM

Acquire
Differentiation

* Innovation
* Convenience

Retain
Adaptability * Listening * New Products

Enhance
Bundling
* Reduce Cost * Customer Service

Managing Customer Life Cycle : 3 phases of CRM

Acquiring new customers
Enhancing the profitability of existing customers Retaining profitable customers for life, master one of

the 3

CRM ..
Any application or initiative designed to help an organization optimize interactions with customers, suppliers, or prospects via one or more touch points for the purpose of acquiring, retaining customers and enhancing the profitability.
e-CRM is the application of CRM to an e-

business strategy

Personalization/customization of customers

experiences and interactions with the e-business

How? Track and Analyze Data

Employ tracking devices

Personalize each visitors experience Find trends in customer use Measure effectiveness of a Web site over time ID cards

An ID card enables information to be sent to a Web site such as your IP address, your browser, or your operating system
Click-through ads enable visitors to view a service or product by clicking the ad Advertisers can learn what sites generate sales

Click-through banner advertisements

Tracking: Web Bugs

Web Bugs
A type of image file embedded in an image on the screen Site owners allow companies, especially advertising

companies, to hide these information-collecting programs on various parts of their sites Every time a user requests a page with a Web bug on it, the Web bug sends a request to the Web bugs companys server, which then tracks where the user goes on the Web.

Tracking: Log-File Analysis

When visiting a site, you are submitting a request and this is recorded in a log file
Log files consist of data generated by site visits,

including each visitors location, IP address, time of visit, frequency of visits, etc. Log-file analysis organizes and summarizes the information contained in the log files

Can be used to determine the number of unique visitors Can show the Web-site traffic effects of changing a Web site or advertising campaign

E.g. WebTrends.com

Tracking: Data Mining

Data mining (building on a data warehouse)
Uses algorithms and statistical tools to find patterns in

data gathered from customer visits Costly and time consuming to go through large amounts of data manually Use data-mining to analyze trends within their companies or in the marketplace Uncovered patterns can improve CRM and marketing campaigns Discover a need for new or improved services or products by studying the patterns of customers purchases

Data Patterns
Associations- Correlations
Sequences- Link between one event to later events Classifications- Specific group of items

Clusters- Sub group of data items

Forecasts- Extrapolation of trends

Tracking: Customer Registration

Customer registration
Requiring visitors to fill out a form with personal

information that is then used to create a profile Only works when it will provide a benefit to the customer When customers log on using usernames and passwords, their actions can be tracked and stored in a database Require only minimum information Need to give customers an incentive to register

Tracking: Cookies
Cookie
A text file stored by a Web site on an individuals

personal computer that allows a site to track the actions of a customer Information collected is intended to be an anonymous account of log-on times, the length of stay at the site, purchases made on the site, the site previously visited, the site visited next Does not interact with other information stored on the system Can only be read by the host that sets them on a persons computer

Personalization
Uses information from tracking, mining and data analysis to customize a persons interactions with a companys products, services, Web site and employees
Establish relationships that improve each time visitors return to site Customers may enjoy individual attention and become more loyal, e.g.
http://www.moneycontrol.com

Contact Centers
Traditional call centers house customer-service representatives e-contact center
Purpose is the sameto provide a personal customer

service experience Allow customers with Internet access to contact customer service representatives through e-mail, online text chatting or real-time voice communications

Integration of all customer service functions

 Can change the culture of customer service

E-Contact Centers

representatives:
More technically knowledgeable to handle all forms

of contact Provide a highly personalized experience that satisfies customers

New forms of contact can decrease costs Outsource contact center services
May be appropriate if a company cannot afford to

implement a contact center due to the costs of equipment, office space, service representatives and technical support.

Frequently Asked Questions (FAQs)

A Frequently Asked Questions (FAQ) section on the

site
Will help customers find answers to some of their

questions Frees up time to handle questions that can not be answered without human interaction

Typically accompanied by phone numbers, e-mail

addresses, and a search engine

E-Marketing Management E-mail Marketing: Alerts, E-Newsletter Management E-Surveying: Progressive Profiling Management Viral Marketing: Tell-a-Friend Management Web Design: Registration, Subscription, VIP Management Online Community / E-Suggestion Box / Blog Management E-Commerce: Memberships, Event Registration Management Affiliate Management: Sponsorship Management (Boston Symphony) Reporting / Analysis: Profiles, Behaviors

TRADITIONAL FORM OF CRM

The existing CRM solution are not capable enough to satisfy and retaining customers and also there is no integrated tool which connect the Central sales management, regional sales office, customers care, sales, sales distribution, regional sales team in effective manner. A 360 view requires the automation to bring together all the data concerning a customer. This implies that organizations have to change the form :

TRADITIONAL CRM EMERGING SOLUTION Mass production

Product focus Product focus

Customer focus

1way communication

Interactive communication Real time responses

Response time

EMERGING IMAPCT OF E-COMMERCE ON CRM

In a fast changing internet world there are very clear trends that are emerging : Speed: people expect service at fast speed Increase of global market place: more more people , communities across the globe are able to build relationships. Around the clock availability expansion of partners : internet offers the ability for the organizations and people alike to partner with suppliers and customers alike across the globe.

EMERGING IMAPCT OF E-COMMERCE ON CRM

In global market place the channels of marketing

are already causing an impact on the buying behavior of individuals as well as organizations alike. Some of the trends are : 1. VERTICAL E-MARKET PLACE :industry specific market place such as being formed by auto giants where organized buyers and sellers can meet, list, negotiate, make orders and track delivery. 2. BUY SITE AND SELL SITE: where consumers and organization are alike can buy or sell online through online shopping mart concept.

What is e-CRM ?
In simplest terms e-crm provides company to conduct interactive, personalized and relevant communications across the globe with their customers by utilizing the traditional and electronic channels both. It adheres to permission based practices, respecting individual's preferences regarding how and whether they wish to communicate with you and it focuses on the understanding how the economics of the customers relationships affects the business.

What is e-CRM ?
e- CRM is the electronic based version of CRM. The user of the e- CRM solution uses the sources of the internet to increase the relationship with the customer. web based CRM can easily handle the relationships between Central sales management, regional sales office, customers care, sales, sales distribution, regional sales team.

Why employ e-CRM ?

To optimize the value of the interactive relationships Enable the business to extends its personalized reach in the

hand of customers Co-ordinating marketing initiatives across the all customers channels Leverage the customer`s information for more effective emarketing and e-business Focus the business on improving the customers relationship and earning a greater share of each customer`s business through consistent measurement, assessment and actionable customer strategy.

KEY FEATURES OF e-CRM

Regardless of an company objectives e-CRM solution must posses certain key characteristics. It must be:
driven by a DATA WAREHOUSE Focused on the consistent metrics to asses customers actions across the channels Structured to identify a customer profitability or profit potential

KEY FEATURES OF e-CRM

To determine the effective allocation decisions accordingly,

so that most profitable customers could be indentified and retained and the resource could be invested in the relationships, which are more profitable.

E-CRM architecture
The primary input to this module are mainly from the e-CRM assessment and strategy alignment modules. during this stage the company will try and develop a connected enterprise architecture(CEA) within the context of the companies' own customers relationship management strategy. The following is set of technical e-CRM capabilities and applications that collectively and ideally comprise a full e-CRM solutions : Customers analytic soft wares Data mining soft wares Campaign management soft wares Business simulation A real time decision engines

E-CRM architecture
Customer analytic software : predicts ,measures and interprets the

customers behavior allowing companies to understands the effectiveness of e-CRM efforts across both inbound and outbound channels. Most importantly, customers analysis should integrate with customers communication software to enable the company to transform customer findings into ROI- producing initiatives. Data mining software :it builds the predictive models to identify customers most likely to perform a particular behaviors such as purchase an upgrade or churn from the company. Modeling must be tightly integrated with the campaign management software to keep the pace with the multiple campaign running daily or- weekly.

E-CRM architecture
Campaign management soft wares : leverages the data wares

house to plan and execute multiple, highly targeted campaigns overtimes, using triggers that respond timed events and customers behavior. Campaign management software test various offers against controls groups, capture promotion history for each customers and prospect and produces output virtually any online or offline customers touch point channel. Business simulation : it is used with conjunction with campaign management software optimize offer, messaging and channel delivery prior to the execution of campaigns and compare planned cost and ROI projection with actual cost.

 A real time decision engine : coordinate and

synchronizes communications across various customers touch point systems. It contains the business intelligence to determine and communicate the most appropriate message ,offer, and channel delivery in real time and support two way dialogue with the customers

MOBILE CRM
One subset of Electronic CRM is Mobile CRM (mCRM). This is defined as services that aim at nurturing customer relationships, acquiring or maintaining customers, support marketing, sales or services processes, and use wireless networks as the medium of delivery to the customers. However, since communication is the central aspect of customer relations activities, many opt for the following definition of m-CRM:

MOBILE CRM
communication, either one-way or interactive, which is related to sales, marketing and customer service activities conducted through mobile medium for the purpose of building and maintaining customer relationships between a company and its customer(s)

MOBILE CRM
E-CRM allows customers to access company services from more and more places, since the Internet access points are increasing by the day. M-CRM however, takes this one step further and allows customers or managers to access the systems for instance from a mobile phone or PDA with internet access, resulting in high flexibility.

MOBILE CRM
An example of a company that implemented m-CRM

is Finn-air, who made it possible for their customers to check in for their flights by SMS. Since m-CRM is not able to provide a complete range of customer relationship activities it should be integrated in the complete CRM system.

Next Generation CRM

Infrastructure must integrate Customer Content Customer Contact information End to End Biz Process Extended enterprise partners

Next generation trends

The multi Channel Integrated experience Rise of the call center as a multipurpose customer contact point Listening Portals CRM portals (Sales Force Apps and hosted apps

Road map to Managers

Involve top managers Define a vision of integrated CRM Establish the CRM strategy and specify its objectives Understand the customer Review cultural changes that will need to occur Develop a biz case Evaluated current readiness Anticipate organizational changes

CRM key Benefits

Deeper understanding of customers
Increased selling and marketing opportunities Identifying the most profitable customers

Easy to sell
Faster response to customer inquiries Increased efficiency through automation Effective customer feed back Valuable information for decision making

Increase in Productivity of Sales, Services and CRM Teams. Save Effort And Increase Efficiency Through Automation. Act and Sound Professional Save Money Design Your Faster Response Processes To Customer Inquiries. Identifying the most profitable customers. Receiving customer feedback that leads to new and improved products or services. Consider the One-to-One Marketing For Your Business. Have a Holistic and 360 View Approach Streamlined sales and marketing processes Added cross-selling and up-selling opportunities Improved customer service, loyalty, and retention Increased call center efficiency Higher close rates Better customer profiling and targeting Reduced expenses Increased market share Higher overall profitability