1. Customer
Relationship
Management
MT 115
©2012 LHST sarl

2. CUSTOMER RELATIONSHIP
MANAGEMENT
• Is the process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
• Think of multi-channel service
delivery, the ways in which customers
can interact with a business
• Three components:
1. Sales force automation
2. Customer service and support
3. Marketing campaign management
and analysis
©2012 LHST sarl

3. Course Agenda
Séance Sujet Intervenant
04/06/2012 Introduction L. SCHLENKER
13:00 à 16:15
04/06/2012 Les aspects méthodologiques R. RISSOAN
16:30 à 19:45
05/06/2012 Application et étude de cas J.L. KALALA/ C. TANTUCCI
13:00 à 16:15
05/06/2012 Le CRM 2.0 L. SCHLENKER
16:30 à 19:45
06/06/2012 Préparation des livrables du L. SCHLENKER
16:30 à 19:45 cours
Les objectifs du module MT115 sont d’aider les élèves à explorer les enjeux et les
opportunités actuels en entreprise liés à la gestion de la relation client.
©2012 LHST sarl

4. Evalutation
MT 115
©2012 LHST sarl

5. Assessment
Grading Scale
The marks in this module will be based upon
contributions in four areas :
• Participation: 40 possible points based on
the quality of each individual student’s on-
liine and in-class participation
• Video Case Study: 60 possible points
based on the number and quality of the
thematic spaces.
Management isn’t about doing things,
its about getting things done
http://mt115.socialgo.com/
©2012 LHST sarl

6. Participation - Curation
• Choose a topic for Scope.It
• Communicate your topic, the
members of your group, and
the URL to
chaireet@em-lyon.com by
June 5th, 2012
http://www.scoop.it/t/mobile-business
• Curate and make it your own
(title, link, analysis)
• Participate in the discussion!
• Evaluation : le 25/06/2012 sarl
©2012 LHST

7. Videocast
In your five minute videocast, incorporate testimony,
pictures, give us your perspective on how SCRM
impacts business practice. Your case study should
shed light on the following points:
– How did the organization define the business
problem?
– What skills and knowledge were they targeting to
develop?
– How did technology provide a vision of how to
improve organizational effectiveness?
– Which metrics were used to measure success?
Maximum group size : 2
Evaluation : le 25/06/2012
©2012 LHST sarl

8. Why study CRM?
• “Today’s businesses compete with
multi-product offerings that are
often assembled or simply
outsourced.
• The product/service offer is
created and delivered by networks,
alliances and partnerships of many
kinds.
• Sustainable competitive advantage
depends upon nuturing long-term
relationships with internal and
external customers
©2012 LHST sarl

9. THE KE Y QUE S TION
Employees Stockholders
How can customer relationship
management
organizational performance?
Clients Partners
CRM helps us understand the motivations, experience and objectives of the
internal and external clients of the organization
©2012 LHST sarl

10. The objectives of an IS
Actionnaires
 Actifs
 Demandes en temps
Employées réel Société
 Mobilité  Compétition
 ...
 Valorisation des tâches  “made in” “made by”
 ...  ...
L’organisation
Clients Partenaires
 Fidélité ?  Peu de barrières d’entrée
 Vrai coûts  Acquisitions, OPA
 ...  ...
Objectives Problem IS Information Internet
©2012 LHST sarl

11. The Cost of Retaining a Customer
“Winning back a lost customer can cost
up to 50-100 times as much as
keeping a current one satisfied.”
Rob Yanker, Partner, McKinsey & Company
• Loss current revenues that the business relationship created.
• Loss of the jobs that the clients provide.
• Loss of reputation.
• Loss of of future business.
Sherif Kamel
©2012 LHST sarl

12. Marketing vs CRM
Traditional Marketing CRM
Goal: Expand customer base, increase Goal: Establish a profitable, long-term,
market share by mass marketing one-to-one relationship with customers;
understanding their needs, preferences,
expectations
Product oriented view Customer oriented view
Mass marketing / mass production Mass customization, one-to-one
marketing
Standardization of customer needs Customer-supplier relationship
Transactional relationship Relational approach
©2012 LHST sarl

13. THE A NS WE R
(at leas t in part)
Focus Improve Knowledge Leverage Mesure
Organization Processes Explicit Transactions Efficency
Networks Relationships Emerging Interactions Effectiveness
Social CRM Participation Embedded Innovation Engagement
©2012 LHST sarl

14. Organizational
Stuctures
MT 115
©2012 LHST sarl

15. ORGA NIS A TIONA L S TRUC TURE ?
L. SCHLENKER ©2012 LHST sarl

16. TE C HNOLOGIC A L INFRA S TRUC TURE S ?
L. SCHLENKER ©2012 LHST sarl

17. B US INE S S PROC E S S E S ?
L. SCHLENKER ©2012 LHST sarl

18. HUMA N C OMPE TE NC IE S ?
Technicity
Method Reflection
Action Imagination
Cooperation
John Holland
L. SCHLENKER ©2012 LHST sarl

19. Information Systems are a question of
perspective
• The financial perspective
(entreprise resource planning)
• The logistics perspective
(supply chain management)
• The client perspective(client
relationship management)
• The community
perspective(social media)
Objectives Problem IS Information Internet
©2012 LHST sarl

20. DIFFERENT SIDES OF THE COIN
ERP SCM CRM
History MRP Total Quality Client contact
Management systems
Measure Quantitative Quantitative Qualitative
Static Dynamic
Perimeters Inside a firm Between firms Between firms
and clients
Cost e700 000 e100 000 e50 000
Hardware/software
ROI 5 to 7 years 1 to 3 years 6 months to 1
year
©2012 LHST sarl

21. Key Tools
MT 115
©2012 LHST sarl

22. Functional Coverage
Process Identification Differentiation Interaction Customization
Goal · Identify · Evaluate ·Build a continuing · Fulfill customer
individual customer value relationship needs
customer and needs · Generate profit
Traditional · Not done · Clustering · Call Center · Sales
Mass · Services
Marketing
CRM · Customer · Individual level · Call center · Sales automation
profiling analysis management · Marketing
· Auto response process automation
system
Information · Cookies · Data mining · Web application · ERP
technologies · Web site · Organizational · Wireless · E-Commerce
personalization learning communication
©2012 LHST sarl

23. Positioning CRM vs Traditional Marketing
Traditional Marketing CRM
Goal: Expand customer Goal: Establish a profitable,
base, increase market long-term, one-to-one
share by mass marketing relationship with customers;
understanding their needs,
preferences, expectations
Product oriented view Customer oriented view
Mass marketing / mass Mass customization, one-to-
production one marketing
Standardization of Customer-supplier
customer needs relationship
Transactional relationship Relational approach
©2012 LHST sarl

24. CRM Activities
•Cross-Selling- Additional products are sold as the result
of an initial purchase
•Event-Based Marketing- Offering individual promotions
tied to specific events to offer the right products &
services to customers at the right time.
•Mass personalization- understanding customers, their
behaviors, and their preferences allows firms to customize
communications aimed at specific groups of customers..
•Predicting Customer Behaviors- Behaviors can be
predicted and firms forecast likelihood of customers’
purchases.
•Profiling Customers- Grouping customers in a variety of
ways to create more specialized communications about
their products.
•Relationship marketing or permission marketing-
customers select the type and time of communication.
©2012 LHST sarl

25. CRM Tools
Automated Sales Force Tools- Used for
documenting and communicating field activities
– Sales Activity
– Sales Territory Management
– Lead Management
– Knowledge Management
Call Centers
Call center systems can now categorize all calls,
determine average resolution time, and forecast future
and improve the overall productivity of the staff,
increasing customer satisfaction levels.
Informational Scripting
Scripts to successfully guide service representatives
through many types of customer problems. They do
not allow for much “out-of-the-box” thinking.
©2012 LHST sarl

26. CRM Technologies
• Phone calls, E-mails,
• SMS, WAP services
• Cookies : used for
authenticating, tracking, and
maintaining specific information
about users
• Loyalty cards
• CRM software- “Front office”
solutions
©2012 LHST sarl

27. Market Share
• Salesforce.com - is the most popular cloud-
based CRM software globally , claiming
14.8% of the entire CRM software market.
• Microsoft Dynamics CRM - Analysts expect
the total revenue from Dynamics CRM and
ERP to reach $2.5 billion by the end of
2018.
• SAP - has over 30,000 customers and over 2
million users. They also have 12,000
partners to assist them.
Marketshare of the French CRM market • SugarCRM - SugarCRM is the leading
Copyright PAC 2011
provider of open-source CRM software.
The company has more than 7,000
customers and over half a million users
around the globe.
©2012 LHST sarl

28. Key Metrics
MT 115
©2012 LHST sarl

29. Organizational Benefits
• Reduction of Marketing
Cost
• Timely Data
• Increased Revenue
• Increased Market Share
• Improved Service
©2012 LHST sarl

30. Customer Benefits
• Order Tracking
• Availability Checks
• Web-based Customer
Self Service
• Service and Claims
Management
©2012 LHST sarl

31. Size/Share of Wallet
J
• Size of wallet = ∑S
j =1
j Sj = Sales to focal customer by firm j
Sj
• Individual share of wallet % = J
∑S
j =1
j
• Share and size of wallet should be analyzed together...
©2012 LHST sarl

32. Customer Value Metrics:
Transition Matrix
• Shows expected share of wallet from multiple brands
• Depicts consumer’s willingness to buy over time
• Transition probability from B to A, than from A to C:
10%*20% = 2%
Brand A Brand B Brand C
Brand A 60% 30% 20%
Brand B 10% 80% 15%
Brand C 20% 15% 70%
32
©2012 LHST sarl

33. Some CRM
Application Providers
Oracle
• Interaction Center- integrates with service, sales, contracts, and marketing
applications.
• Oracle Sales- processes across all sales and customer interaction
channels.
• Oracle Marketing -provides automation and tools for the entire marketing
process.
Siebel Systems
• Call Center- improve agent productivity by providing critical customer
information.
• Siebel Sales- the means to focus on the right deals at the right time.
• Siebel Marketing- optimizes targeting and improves response rates with
robust segmentation capabilities.
©2012 LHST sarl

34. Current Challenges in CRM
New Privacy Regulations- Rules and
laws regarding invasion of privacy are
springing up. Solution: develop a
privacy policy and post it on their Web
site.
Application Service Providers (ASPs)-
Fifty 50 percent of all CRM programs
are now designed and maintained for
clients by ASPs.
Adapting CRM for global uses is
increasing-New Markets out side of
traditional industrialized countries
require adaptation to local needs,
language, and culture
©2012 LHST sarl