JAIPUR NATIONAL UNIVERSITY SCHOOL OF BUSINESS AND MANAGEMENT CUSTOMER RELATIONSHIP MANAGEMENT [ASSIGNMENT]SUBMITTED TO: SUBMITTED BY:MRS. MENKA SAROLIA MS. CHARU SHARMAFACULTY, JNU MBA IV-B
CRM: A BRIEFINTRODUCTIONTill recently, most marketers focused on traditional modes of marketing to segment and acquire fewcustomers from its target segments, using the tools and techniques developed for mass marketing inthe in the industrial era, as a way to engender growth. In the present competitive era, this is provingto be highly ineffective. Today, there is a different approach to business that involves relationshipmarketing, customer retention and cross-selling, leading to customer extension, which is a far cryfrom the traditional segmentation model. The relative and marked emergence of CRM as a businessstrategy has radically transformed the way organisations operates. There has been a shift in businessfocus from transactional to relationship marketing where the customer is at the centre of all thebusiness activity and organisations are now desperately trying to restructure their processes aroundthe needs of their strategically significant customers. The critical driver of such a seismic shifttowards customer orientation is the realisation that customers are a business asset when managedeffectively can derive continuous and sustainable economic value for an organisation over theirlifetime.The dynamics of the business ecosystem have changed the way in which companies do businessboth in relationship management and the streamlining of their operations. Relationship marketing isemerging as the core marketing activity for business operating in fiercely competitive environments.On an average, businesses spend six times more to acquire new customers than to keep them.Therefore, many firms are now paying more attention to their relationships with existing customersto retain them and increase their share of customer’s purchases. The practice of relationshipmarketing also has the potential to improve marketing productivity through improved marketingefficiencies and effectiveness.Retaining and developing customers has long been a critical success factor for businesses. In thatsense, Customer Relationship Management is not new, previously falling under the guise ofcustomer satisfaction. Worldwide, service organisations have been pioneers in developing customerretention strategies. Banks have relationship managers for select customers, airlines have frequentflyer programs to reward loyal customers, credit card companies offer redeemable bonus points forincreased card usage, telecom service operators provide customised services to their heavy users,and hotels have customised services for their regular guests. It is, however, with the rapid rise ofnew entrants into the market place and increased competition that companies in other sectors haverecognised the business potential within a captured base.BENEFITS OF CRMThe benefits of customer relationship management are considered abound. It allows organisationsnot only to retain customers, but enables more effective marketing, creates intelligent opportunitiesfor cross selling and opens up the possibility of rapid introduction of new brands and products. To beable to deliver these benefits, organisations must be able to customise their product offering,
optimise price, integrate products and services and deliver the service as promised and demandedby the customer base.Keeping the customer happy is obviously one way of ensuring that they stay with the organisation.However, by maintaining an overall relationship with the customer, companies are able to unlockthe potential of their customer base and maximise the contribution to their business. Whilst thevalue of customer relationship management has been identified by organisations, the fullimplications and benefits are yet to be. Those responsible for delivery are the most informed aboutthese strategic benefits yet the transformation is a long-drawn-out process.The strategic benefits of customer relationship management allow companies to reduce the cost ofcustomer acquisition and give established players the ability to react like a new market entrant, thevery people they are battling against. Ironically these are increased and the potential of customerscan be capitalised through cross-selling of other products and services. It is important to understandthe key benefits of CRM for most companies. These benefits generally fall into three categories: costsavings, revenue enhancements and strategic impact. Based on successful CRM implementations,the following benefits seem reasonable:Increased sales revenues- increased sales results from spending more time with customers, whichresults from spending less time chasing, needed information (i.e., productivity improvement).Increased win rates- win rates improve since company can withdraw from unlikely or bad dealsearlier on in the sales process.Increased margins- increased margins resulting from knowing customers better, providing a value-sell, and discounting prices.Improved customer satisfaction ratings- this increase occurs since customers find the company to bemore responsive and better in touch with their specific needs.Decreased general sales and marketing administrative costs- this decrease occurs since the companyhas specified its target segment customers, it knows their needs better, and thus it is not wastingmoney and time, for example, on mailing information to all customers in all existing and potentialtarget segments.FUTURE TRENDS IN CRM It is not suddenly that the business manager have realized that the customer is supreme or the needto render personalized service. However, it was not possible to address the preference of a massivegroup of widely dispersed individuals. Neither the tools nor the technology were available. Thesmart business managers did the next best thing, which was to conduct a market research andclassify the market into broad segments with different preferences. The product managers would(and still do) then position their products catering broadly to these segments.The information systems have evolved tremendously over the last three decades and so have thecommunication systems, as shown in Figure 2. While ERP, the management mantra of the nineties,
offered the means to optimize resource planning at the enterprise level encompassing every area ofthe enterprise on a real time basis, there was still no means of connecting to the customer. Thecustomer had just too many locations.The commercial penetration of Internet into the homes changed everything. It provided the meansto take the integrated enterprises information system to the customers living room. He could buy,sell or bank sitting there, while uniquely identifying himself.This has led to the evolution of CRM, which uses the Net to integrate the customer contract pointsdirectly with the enterprise. It provides the means to interact with every customer individually(thereby interacting with million or even billions of customers). The interactions over a period oftime create a history that is available to the field sales/support personnel at the touch of a button.DOING BUSINESS IN THE CRM ERACRM has revolutionized the way the business is transacted. Customization and personalization havebeen radically redefined. There was a time when companies could do business by making a range ofproducts, and the customers could choose from the available product range. Now the customerdemands Merawala ............. And the companies have to gear themselves to deliver the Mera walaproducts to the customers.CRM is the great enabler that makes it possible to achieve this level of customization in a costeffective manner. Right from highly focused marketing to the transaction and after sales support,CRM provides a cost effective, easily accessible and cost effective interface.By enabling direct customer interaction, CRM has changed every sphere of activity. Products musthave modular designs that can be easily customized. Even warehouses are changing from being juststorehouses to those having the facility for Assemble to Order. Customization increases the productvariety multi-fold since it may not be either economical or feasible to store a huge variety. Intelligentwarehouse, as they are popularly known stock the knocked down modules and assemble them onthe receipt of order.If fuel efficiency was the selling proposition for automobiles in the seventies, sportiness in theeighties and safety in the nineties, customization is the selling proposition of the new millennium.The e-sales concept is increasingly becoming significant in volumes for most American and Europeanmanufacturers. The interactive e-Store front of the manufacturer permits the customer to configure
his own automobile in respect of the kind of upholstery, music system, accessories, etc., that heprefers.The customer preferences which were captured through the earlier interaction automatically creatework orders and the customized product is delivered. Even though the product is highly customized,there is hardly any additional cost involved. More companies are focusing their growth strategiesaround direct sales through the Net.MOST AFFECTED INDUSTRIESTravel and transportation industry has been almost revolutionized by CRM. For them, CRM makesthe difference between being in business or out of it. Financial services, insurance, investmentbanking, education and utilities are the other large scale adopters of CRM in the services sector.The concept of retailing has been redefined with CRM Product industries are using it for marketingas well as after sales support. Increasing number of product manufacturers are able to retail directly,thanks to CRM.WHY SHOULD YOU ADOPT CRM?CEOs are realizing those who are not able to come up with effective CRM strategies risk being edgedout of business. Customer is the king and the business strategies must be built for ensuring customerloyalty. It costs six times more to create a new customer than to retain an old one. Increased sales revenues o Sales reps spend more time on productive calls and less on chasing information and dry calls. o Ability to penetrate and support wider geographical area. o Sales transactions 24hours, 7 days a week. Increased responsiveness Ability to respond to changing customer preferences in real time. Reduced leftover stocks, reduced business risk and zero budget planning. Increased win rates o Ability to concentrate resources on likely customers.
o Availability of customer preference data. Increased margins o Improved value-sell and reduced price-sell. o Opportunity for cross-sell and up sell. Reduced cost o Improved customer satisfaction ratings. o Personalized customer service. o 24x7 service support. o Customized products. o Improved information availability. Decreased costs o Decreased low value work for sales reps. o No duplication of effort due to shared schema. o Focused campaigns reduce wastage of resources. o Reduced communication costs.CURRENT TRENDS IN CRMAs CRM matures, distinct trends are emerging: Hosted solution: enterprises are increasingly showing interest in buying a hosted solution from the ASPs. This trend is likely to increase as the enterprises would prefer to concentrate on their core businesses and let the ASPs provide updated solutions. Integrated solution: there is an increasing trend to integrate the CRM activities with the supply chain, manufacturing and B2B market-places. This trend is likely to increase. Evolution of marketing and branding services: internet marketing and branding is a different paradigm with a different set of rules. With the convergence of marketing and CRM, professionals providing specialized services are fast emerging. Data warehouses: even as enterprises rush to warehouse their own data captured at interaction points, data has become a commodity. It can be bought, sold, shared and leased. There are companies whose only business is trading in data transactions.
CRM IN INDIASoftware is to India what oil is to Gulf. It is therefore no surprise that Indian companies, too, arejumping into the CRM bandwagon to seize a chunk of the global market, both products as well asservices.With its vast talent pool, India is fast becoming an important development base of major CRMcompanies. This trend is likely to increase in the future. Call centres, catering primarily to theAmerican and European markets are coming up in and around the metros. With the easing ofinfrastructure constraints, India is likely to emerge as a significant player in this segment.Adoption of CRM companies by Indian companies is at an infancy stage. The CRM enabledcompanies include Modi Xerox, Tata Telecom, TVS Electronics, HP India, Tata Infotech, CarrierRefrigeration, Tata Teleservices, Satyam, Infoway, Planet M, and Epicentre Technologies, amongmany others.India even has a CRM Foundation in New Delhi, founded with the purpose of assessing andimproving CRM practices, Founding members include Tata Telecom, Escotel, Modi Xerox, GlobalGroupware, AC Nielsen, Carrier Aircon, and Motorola India, among others.CRITICAL SUCCESS FACTORSA CRM solution is not a stand- alone solution that could be implemented in isolation to theenterprise information system. It marks a shift of focus from product centric planning to customercentric planning. A prudent CRM strategy is essential for a successful adoption of CRM. Some of thecritical success factors that must be evaluated are: 1. Identify the mission, objectives and goals: Technology has radically changed the business environment. A detailed business strategy analysis lays the foundation for engineering an information system for the enterprise that will fulfill the current and the future needs of the organization. 2. Identify and prioritize what functions need to be automated: A CRM automation audit shall help create a roadmap to complete automation. There may be processes that are inefficient and automating them without re-engineering is not a desirable solution. 3. Gain Top Management support and unequivocal commitment:
No CRM strategy can ever succeed unless the top management is totally committed to its success. 4. Employ technology smartly: Technological obsolescence is a real threat. A long term vision and prudent planning is a must. As a thumb rule, look for open architectures, scalability, and integration into existing systems, reliability, and support, etc. Evaluate options and take and informed decision. Keep in mind that it may be too expensive to reverse this decision. 5. Involve users early: Involve the likely users early in the process. They know their needs best and can best help define the new system, for they are best aware of the old one. It is important to make then participate in the process and own the solution. 6. Prototype the solution: Deploy the solution on a smaller scale and test all the functions, instead of jumping to the big leap. 7. Training: The paramount importance of training cannot be over emphasized. This is one of the single most prevalent reasons for failures/incomplete success. A smart manager would realize that training costs more than the combined hardware /software cost over the solution lifecycle. 8. Allocate responsibility: It is important to ensure maximum uptime and reliability of the system so that the users may not lose faith. Make on department/person responsible for the CRM system. 9. Cross department management team: Form a committee with people from sales, marketing and service department apart from the information systems department to monitor the CRM project. 10. Keep the employees motivated: Technology usually breeds fear and insecurity. It is desirable to sell to system internally before implementing it to avoid non co-operation/resistance.Enterprises manager are more obsessed with the product. However, experience shows that even thebest product fails to meet the desired end goals if the implementation is improper or the traininginadequate. Rushing to implement a CRM system without a prudent evaluation and audit usuallyresults in failure. The choice of an experienced and able consultancy organization is usually verycritical.
THE ROAD AHEADTechnology has been a major driving factor for CRM and is bringing about radical changes. Thedevelopments in several technological areas are likely to have a major impact on CRM. Some of theareas are listed below: 1. Biometric sensing: passwords continue to be the least user friendly and the most un-secure link in the CRM chain. However, advancement in biometrics will soon make it possible to make a foolproof recognition through voice, live fingerprint or image. The system would automatically identify (and not just verify) the user. People Soft has already announced that it is working on voice recognition. 2. M-Commerce: There has been an enormous advancement in this area. Rapid developments in the mobile computing and date access devices are likely to be a major growth area for CRM. The global marketplace is all set to shrink to a palmtop, digital signatures and secured identification technologies. 3. Integration with B2B market-places: Many argue that online market – places will drive sales in the coming decades and branding will no longer be important. Even if such a postulation is far-fetched, there can be little doubt that enterprises will integrate the CRM solutions with B2B market places.CUSTOMER RELATIONSHIP MANAGEMENT"Customer Relationship Management (CRM) is a comprehensive approach which provides seamlessintegration of every area of business that touches the customer – namely marketing, sales, customerservice and field support – through the integration of people, process and technology, takingadvantage of the revolutionary impact of the Internet."According to another definition, CRM is an information industry term for methodologies, software,and usually Internet capabilities that help an enterprise manages customer relationships in anorganized way. For example, and enterprise might build a database about its customers thatdescribes relationships in sufficient detail so that management, salespeople, people providingservice, and perhaps the customer directly can access information, match customer needs with
product plan and offerings, remind customers of service requirements, know what other products acustomer had purchased, and so forth.According to an industry view, CRM has the following utilities: Helping and enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns with clear goals and objectives, and generate quality leads for the sales team. Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices). Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service. Providing employees with the information and process necessary to know their customers, understand their needs, and effectively build relationships between the company, its customer base, and distribution partners.CRM also refers to solutions and strategies for managing businesses relationships with customers.(Hence the term, customer relationship management). With the advent of web retailing, companieshave found it hard to develop relationship with customers since the e-commerce interface is soimpersonal. After all, wont a customer miss the firm handshake and sparkling smile of thesalesperson who just sold him the most expensive computer system in the store? Well, whether ornot he misses the personal experience of the retail store, the goal of CRM is to give a customer thatfeeling when he buys products over the Internet. When it comes to CRM, customer service is thenumber one priority. Sure, all companies seem to make that claim, but when online businessescreate CRM models, it really is the case.According to Mike Maoz, Research Director of CRM for the Gartner Group, CRM is a strategy bywhich companies optimize profitability through enhanced customer satisfaction. "CRM is a businessstrategy, not a technology," says Maoz. "It involves process, technology and people issues. All threetogether really captures what CRM is." Notice the words "customer satisfaction." One keycomponent of this definition is the current trend toward a customer-driven enterprise, in which thecustomer owns control of the communication and the interaction process. This new movement willchallenge all three components of CRM – processes, technology and people – as these are currentlygeared to "enable people within the organization to interact with customers, rather than enabling
customers to interact with us," says Maoz. What this means is that CRM urges organizations toreinvent the way they work with their customers. It also indicates that the definition of CRM wouldcontinue to evolve and new channels, objectives and tools would continue to shape the future ofCRM as there is an addition in the process, technology and people issues surrounding CRM.The manner in which a customer deals with an organization has changed dramatically with time.Initially the organization was small scale, centreed locally and delivered products and services tocustomers that were known personally. Customer centricity has returned! Technology has steppedin to this chasm and CRM, if implemented correctly, has allowed early adopting organizations toserve customers to a standard previously unattainable and to manage their relationship much moreeffectively.RATIONALE OF CRMAll companies are facing massive challenges in todays highly competitive market and strive toacquire the maximum possible market share in an overcrowded market. The following are thethreats that compel a company to design implement CRM solutions. The nature of competition which is now global. The rate of change is accelerating out of control. Margins are being eroded. Customers are more demanding and becoming less loyal. Customer churn is increasing. Product life-cycles are shrinking. Industry barriers are collapsing enabling major brands to enter new markets. The Internet is transforming the business landscape.CRITICAL ISSUES IN CRM Internal focus: For a CRM package to be successful, the design, implementation, and feedback should be restricted to the needs of a particular organization. Every organization requires CRM strategy.
Function organization design: Every department, function and operation pertaining to a business should be studied properly and should be provided on the basis of commonalities so as to combine together alike functions and to achieve integration of processes. Command and control culture: A proper flow-chart and control mechanism must be set-up in order to implement and plug-in the loopholes at an appropriate time. Customer Data: The centre of focus of any CRM solution is customers. The customer data should be an integral part of the solution and should be secured and reliable enough to handle the sensitive nature of the data.CRM TOOLS Strategic CRM: A comprehensive implementation that provides seamless coordination between all customer-facing functions by integrating people, process and technology to maximize relationships with all customers. Here, we discuss a few terms related to strategic CRM : i. Business Case: Borrowed from business school terminology to document the strategy, goals, metrics, and resources needed for CRM implementations. ii. Customer Knowledge: Companies should strive to develop a complete picture of the customer by actively gathering, organizing, and analyzing customer data. iii. Customer Loyalty: Companies strive to create brand-loyalty between their customers and a particular company or brand. iv. Customer Retention: The value derived from a particular market segment. CRM strives to increase sales by retaining valuable consumers and by retaining a secure customer base to counteract competitor activity. v. Customer Satisfaction: Are the customer happy? Measurement systems should be put in place to measure customer satisfaction. vi. Direction: What companies hope to accomplish by implementing CRM and which components will be needed at each level to achieve the implementation. vii. Leadership: A champion in senior management who will advocate for the CRM implementation in its various stages over a number of years. viii. Master Plan: The overall guiding methodology and metrics for a CRM implementation from start to finish.
ix. Metrics or Measurement: Benchmarks set by a company to measure the success or failure of a project or a web site. x. People: The most difficult component of CRM to get right. Users who do not understand the CRM implementation, or have not been properly trained can substantially harm a CRM implementation. People will be the ultimate judges of the success of the CRM implementation. xi. Process: An automated system. It is important to review all customer management systems prior to automating their processes, as inappropriate processing will only speed up a flawed system. xii. Return on Investment (ROI): A calculation of how much money well be saved or earned as the result of an investment in a CRM solution, ROI calculations should be used in developing a business case for a given proposal; factors in investments of both time and capital should be included while calculating ROI. xiii. Strategy: Investigating, implementing, measuring, and maintaining the CRM solution should all be factored into the company’s overall business strategy. xiv. Success: How can one measure the ROI of a CRM implementation? Pre-determined metrics for a CRM project must include measurements of increased profit, deceased spending, and increased market share etc. xv. Technology: Web-based applications, portal offering, agent technology, n-tiered architectures, and other emerging technologies impact new business functionality. xvi. Top Management: Business intelligence includes extensive reporting to senior managers on the success and internal adoption of the CRM implementation. It is essential to keep senior managers informed and involved in the fight to sustain the CRM implementation across the enterprise.xvii. Trends: New and noteworthy direction affecting employees, process, and technology issues.xviii. Vision: A broad and comprehensive game plan for company’s future that takes into account both the business goals of a company and the technology projects needed to support a company’s long range planning.Technology and Implementation: One knows that the company needs a CRM software package, but how does one implementit and what technology will you need? When properly implemented, CRM breaks throughthe traditional boundaries separating sales, marketing, service, IT and other functional areas,
An overall, flexible enterprise architecture plan is required to enable seamless integration ofCRM systems, as well as the alignment of “e” and traditional channels into hybrid technologysystems. i. Enterprise Architecture and Applications: The plans, methods, and tools aimed at consolidating and coordinating computer application across an enterprise. An enterprise (or company) typically has existing legacy application and databases that stay in use while adding or migrating new applications using internet, e-commerce, intranet, and other new technologies. ii. CRM-induced culture change: After companies implement a Customer Relationship Management system, they often feel the effects of what is called CRM-induced culture change resulting from the influence of CRM on behavior patterns across an organization. iii. Migration management: Successfully migrating the use of one operating environment to another operating environment. iv. Knowledge-based utilization : An expert knowledge management system containing a collection of facts and rules needed for problem solving v. Application Service Providers: (ASPs) are outsourcing specialists for software application that offer enterprises access to applications and related services over the Internet. This is an alternative model to loading software in personal computers or on enterprise servers. Designed to minimize the headache of buying, installing, managing, and maintaining the software. vi. Connectivity: Internet Service Providers (ISPs) that offer businesses connections to the Internet. vii. Application Service: Three-tier integration application tying together graphical user interface (GUI) servers, application (business logic) servers, and the database.viii. System Integrators: Integrates an organization’s old “legacy” systems, or connects them to new net markets. Also known as EAI (Enterprise Application Integration)Providers, integration architects, and data integrators. ix. Back-end Integration: Application integration with IT back-end chains –inventory management, accounting, shipping, etc. x. Planning and investigating: Just getting started? The first stage involves research, business case writing, metrics setting, etc. This section contains articles and research papers regarding vendor’s solutions and the methodology.
xi. Implementing and Deployment: After choosing an appropriate solution (s), this information helps in planning the implementation and deployment strategies. xii. Change Management: Implementing and deploying a solution does not automatically ensure ROI. This stage of project management is very critical to the success of overall CRM game plan.xiii. Maintaining and Upgrading: The Internet has enabled maintaining and upgrading CRM applications much easier. But one shouldn’t upgrade every point release- basically it is here where one learns to identify things worth doing.Mobile Business for the Enterprise:Mobile technology and Field Force Automation (FFA) are integral components of any newCRM implementation. Mobile technology allows field sales, support and service personnel toaccess critical customer and company information, send and retrieve data, and interactwitch colleagues and customers. New applications will give birth to innovative customer-facing sales and service channels. Mobile wireless devices connecting CRM and FFAapplication ensure that information is always up-to-date and available to mobile workers. i. Delivery Technology: Transmission technologies that enable the sending of data to and from mobile phones, fax machines and/or IP addresses. Examples of data delivery technologies include Edge (Enhanced Data GSM Environment), GPRS (General packet Radio Services), and SMS ( Short Message Service ). ii. Display Technology: Enables your wireless device to show text, graphics and images. Currently, most display technologies hold less than 100 characters total. iii. Field Force Automation (FFA): Automating tasks and delivering content to employees who are in the field visiting customers. iv. Input Technology and Devices: Operations, programs, and devices that transfer data to or from mobile devices including voice recognition, touch screen, handwriting recognition, traditional keyboard , and a mouse. v. Mobile Commerce: The buying or selling from a mobile device i.e. buying and selling stocks from your mobile phone. vi. Mobile Enterprise: Making the Intranet, CRM solution, etc. available to mobile employees. vii. Mobile Operating System: An operating system specifically for mobile devices.viii. Standards: Specifications for a set of communication protocol.
ix. Wide Area Network (WAN): A network of connected devices that are geographically dispersed. x. WAP and WML: Wireless application protocol and wireless markup language, these are syntax used to program content for wireless phones using languages that allow the text portions of Web pages to be presented. xi. Wireless Application Service Provider: ASPs specifically designed for wireless devices. WASPs allow customer access to the service from a variety of wireless devices. xii. Wireless Devices: Devices that use electromagnetic waves (rather than wires) to carry a signal.xiii. XML and Voice XML: otherwise known as Extensible Markup Language. Syntax to deliver all types of voice content to devices.Sales & Marketing:Sales is a multi-channel selling system that relies on a combination of field sales, retail,partners, call centres and electronic channels. The goal is to make the customer the focus ofsales efforts by integrating customer needs into channel and product strategies viaforecasting, push support, up-selling, personalization;; and by embedding service intoproducts using networked sensors, microprocessor intelligence and wireless communication.The five skills of Relationship Management are : positioning, hunting, coaching, leading, andfarming. i. Enterprise Relationship Management (ERM): Often used interchangeably with CRM, this term is often used by Enterprise Resource Planning or "ERP" software vendors such as SAP, Baan, Oracle and People Soft. ii. E-Sales : Revenue generating functions of an Internet strategy. iii. Lead Qualification: Automation that pre-qualifies leads according to pre-established business rules before they are entered into a system. iv. Operational CRM: The "Operational" components of a CRM Strategy include Sales Automation, Call Center Automation, Channel Automation, and Proposal Generation. v. Partner Relationship Management (PRM): Third party sales channel automation capabilities such as Lead Distribution, Web based wholesale merchandising
(catalogs, product configuration, order management), promotions and discounts, collaboration and planning, measurement, billing, product returns, etc. vi. Repeat Business: The ongoing and recurring revenue stream generated by an existing customer base over time.vii. Sales Force Automation (SFA): Basic Sales Automation capabilities including Contact, Account, Opportunity, Activity Management, Proposal Generators, etc. a. Marketing consists of corporate branding, customer acquisition, customer retention and customer loyalty programs. Marketing now involves blending online and off-line media channels, and leveraging Internet - acquired customer information with marketing automation to drive the B2C and B2B selling processes. This is the age of the "Customer," going beyond traditional sales campaigns to identify, profile, and engage in an ongoing interactive dialogue with customers through your web assets.viii. Analytical CRM: The analytical components of a CRM strategy include data marts, decision support tools and customer behaviour modeling, and analytical tools. The customer data that is captured within the "operational" components of a CRM system is stored, retrieved and analyzed for performance management and results measurement. ix. Customer Profiling and Segmentation: Used to describe all activities and system capabilities that capture large amounts of customers information in order to do a more effective job of "segmenting", or dividing, the customer base. The customer base is first segmented by the value they represent to an organization, and then by the needs they may have for specified products / services. x. E-Marketing Automation: An umbrella term including campaign management, customer analytics and closed loop marketing" that track the effectiveness of various marketing programs and campaigns. xi. Lead Qualification: A term used to describe certain marketing and sales automation capabilities that pre-qualify sales leads as they are entered into a system governed by pre established business rules defined by the organization.xii. Personalization: Personalization and Content Management enable you to target and tailor communications. Personalization includes all aspects of making the customer interaction a unique and beneficial experience, wherever the interaction takes place.
Business Intelligence:(BI) is the intersection of the needs of the business and the available information necessaryto make the best business decisions. BI information sources include the internet, theextranet, the internet, On-Line Transaction Processing systems (OLTP), Operational DataStores (ODS), Data Warehouses (DW), Data Marts (DM), Analytical Applications (AA), datamining applications, statistical analysis applications, predictive modeling applications,reporting systems, and data islands (isolated sets of data such as spread sheets, desktopdatabases, etc.) i. Analytical processing and Analytics: Using data to produce a research and analysis of a business case. Analytics are frequently used to support or disapproved management decisions. ii. Customer Intelligence Systems: Provides companies with information about the purchasing preferences of their customers. These systems are used to identify potential customers and retain existing customers, as well as to determine which products and services should be promoted to various segments of the customer population. iii. Customer scoring: Tools used for the continuous monitoring of account data and customer behaviour. iv. Data Cleansing: The process by which "dirty" or corrupt data is removed or corrected. v. Data Marts: a specialized smaller version of a data warehouse. A data mart is typically created by a department to address a business function. vi. Data Mining: A technique using software tools geared for users who typically do not know exactly what to search for ; but are looking for particular patterns or trends. Data mining is the analysis of data for relationships that have not previously been discovered. vii. Data Warehouse: A central repository for all or significant parts of the data that have been collected by an enterprises various business systems. Data warehouses can be used as repositories for consistent historical data that can be easily accessed and manipulated for decision support.viii. Dimension: A table used in a star scheme to store descriptive, hierarchical and metric information about an aspect of the business. Examples include product, customer, geography, and time.
ix. DTEAMM (Design, Transformation, Extract, Access, Monitoring and Management): A transformation engine based, client server computer application that provides for most aspects of data warehouse and data mart system design, construction, utilization, monitoring and management. x. Filtering and House Holding: The process of eliminating data based on selection criteria and a methodology of consolidating names and addresses. xi. Information Database: A database containing corporate information for analysis purposes such as customer phone numbers, credit info, etc. xii. Legamart: A non-architected repository of data gathered from operational data and other sources (data mart) that business users rely upon. xiii. Meta Data: Simply put they are data dictionaries and repositories. Meta data names and describes data that is modeled, migrated from sources data, captured and stored in the data warehouse and accessed by users. xiv. ODS (Operational Data Store): A database designed for queries on transactional data. ODSs are also commonly used to populate data warehouses and data marts. Common sources of the data include legacy systems that contain current or near term data. xv. OLAP (On-line Analytical Processing): Processing that supports the analysis of business trends and projections. xvi. OLTP (On-Line Transaction Processing): Daily business operations such as order entry.xvii. OODBs (Object Oriented Data Bases): A database that allows the storage and retrieval of multiple data types.xviii. Operational Data: Supports the modeling and creation of data as objects. xix. Operational System or Database: A term used interchangeably with legacy systems; Operational Systems are an information or transaction processing system used to store data that is important to a business on a day-to-day basis, including administrative, employee, financial and other data.Customer Contact Center: The customer contract centre integrates customer touch-points and provides servicethrough one multi-channel gateway. The customer contract centre, whether it is a help desk,a call centre, or on-line support via e-mail or chat, is how your customers experience your
organization. Customers leave the customer dontract centre experience with either positiveor negative feelings towards your company. i. Call Center and Help Desk: The department that handles customer inquiries typically via telephone, fax, or e-mail. ii. Customer Interactive Center (ICICI): Help desks and support environments that are highly interactive. CIC leverages technology, human resources and methodologies to create raving fans while utilizing Service and Support for outstanding customer satisfaction. iii. Customer Retention: Process that identify, prioritize, and improve areas of performance that have the greatest impact on customer loyalty. Keep as many customers as possible, keep them satisfied, keep them loyal, and keep them for life. Measuring their performance over time and against competitors, how they drive customer feedback through the organization to build lasting customer relationships. iv. Customer Support: Provides timely, expert support to resolve customer problems and queries sent by e-mail, phon, fax, or in person. v. Service system: A sophisticated scripted online help system and / or a knowledge base of technical notes and previously offered customer solutions, Service is a Customer Service Center management system that allows customers to find solution on their own. vi. Live Support / Service: Customer service representatives who answer customer questions via the telephone in real time. vii. On-line Support / Service: On line support from an internal help desk, allows businesses of any size to dramatically improve customer service by providing employees access to problem resolution information through Intranets. An external help desk allows customers to access customer service information through the Web. Both systems enable companies to resolve problems faster, leading to improved service and greater overall customer satisfaction.viii. State - of -the-service technology: An e-Service plan.E-CRM:e-CRM is not simply electronic CRM. E-CRM is customer management for e-Businesses thatmust confront the complexity of managing sophisticated customers and business partners in
a variety of media including: online and offline media, personal contact, and moreautomated and electronic forms of communication. i. E-commerce: Sales and services via the Internet. Sometimes confused with e- business that is an umbrella term for a total presence on the Web including the e- commerce (shopping) component. ii. Channel Automation Software: Modules or platforms that empower the channel, by enabling the channel to engage in Web-based commerce. These solutions enable manufacturers to coordinate and manage the sale of products and solutions across multi-channel sales and distribution channels. As a result, customers are able to transparently navigate a multi-tired selling process, gaining the value-add of both manufacturers and channel partners. iii. Collaborative Commerce Software: Software that aggregates fragmented buyers and / or sellers to increase a markers efficiencies beyond the exchange of goods. C- commerce moves beyond that level of support to enable multiple enterprises to work together online within a dynamic trading community. iv. On-line Storefront: Websites on which companies sell products or services via the Internet. v. Multichannel Customer Management: The integration of electronic interactions including e-mail, self-service, collaboration, Voice-over-IP (VoIP) with voice interactions in a seamless manner delivering a universal queue for all interactions, and fronting the interaction engine with a desktop CRM application. vi. E-service: An umbrella term for services delivered over the internet. Includes e- commerce transaction services for handling online orders, application hosting by application service providers (APSs) as well as any processing capability that is obtainable on the Web. vii. E-mail Response Management: An application that uses agents to read and respond to e-mail messages. Includes an e-mail response library containing a series of standard texts to deal with common issues.viii. Guided Selling and Buying: Leveraging traditional applications for configuring and cataloging - with layers of dynamic, customer-friendly capabilities - to guide customers through the process of selecting a product. Organizations use guided selection functionality to accomplish multiple objectives, which vary depending on the nature of the company, customer, and product.
ix. Product Configuration: The ability to self-configure a product or service over the Internet. Complex configuration solutions typically allow product managers to create business - based rules such as "If package A is chosen, then it should include components 1, 2 or 3". A salesperson or channel partner would use this consistent interface to begin a sale but customize it with specific products and pricing preferences. x. Order Management: Online order management is much more than simply a solution for automating the online order-taking process, vendors are extending order management functionality and tightly integrating with other sell-side functional areas. The online order management system must not only simplify the process of taking orders on a Web site and feeding the back-end systems, but also must track the entire order life cycle. Information housed in the order management system is incredibly valuable to supply chain partners, customers, and resellers. As a result, integration - both external and internal - is essential to fully realizing the benefits of an online order management system. xi. Electronic Agents: Agent programs search the Internet gathering information youre interested in and bring (or push it) to your desktop. Also known as "bots" or "push technology".xii. Catalog Management: Software applications that normalize product data from multiple vendors for easy comparison. Includes information about data sets, files, databases and the devices on which each data set or file is stored.xiii. Content Management: Refers to the printed word online, including documentation, information pages and data that describe items offered in online catalogs or marketplaces.xiv. E-Customer: Business or consumers who goes through the online customer transaction process. An E-Customer implementation can be direct to the end- customer or incorporate distribution channels such as resellers or distributors.xv. Fulfillment software: Executes tasks such as bill of materials, order management, shipping management, returns and status tracking.xvi. Self –service: Customer facing applications that allow customers and partners to access information, track shipments and solve problems by themselves.