Lecture Slides 11 10 08
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Lecture Slides 11 10 08 Lecture Slides 11 10 08 Presentation Transcript

  • ITM 309 Customer Relationship Management Dr. Frederick Rodammer Michigan State University Eli Broad College of Business [email_address] November 10, 2008
  • Today’s Learning Objectives
    • Understand the CRM technologies used by sales departments, customer service departments, and marketing departments
    • Discuss Ritz-Carlton Case
    • Identify the primary forces driving the explosive growth of customer relationship management
    • Summarize the best practices for implementing customer relationship management systems
    • Compare CRM, SRM, PRM, and ERM
  • CLOSING CASE THREE Ritz-Carlton
    • What are the two different types of CRM and how has the Ritz-Carlton used them to become a world-class customer-service business?
    • Explain ERM and describe how the Ritz-Carlton could use it to increase efficiency in its business.
  • Customer Relationship Management: Definition The use of information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a company’s customers
  • Operational and Analytical CRM
    • Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
    • Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers
  • USING IT TO DRIVE ANALYTICAL CRM
    • Analytical CRM information examples
      • Give customers more of what they want
      • Value their time
      • Overdeliver
      • Contact frequently
      • Generate a trustworthy mailing list
      • Follow up
  • Using IT to Drive Operational CRM
  • Marketing and Operational CRM
    • Three marketing operational CRM technologies:
      • List generator – compiles customer information from a variety of sources and segment the information for different marketing campaigns
      • Campaign management system – guides users through marketing campaigns
      • Cross-selling and up-selling
        • Cross-selling – selling additional products or services
        • Up-selling – increasing the value of the sale
  • CRM EXPLOSIVE GROWTH
    • CRM Business Drivers
  • CRM SUCCESS FACTORS
    • CRM success factors include:
      • Clearly communicate the CRM strategy
      • Define information needs and flows
      • Build an integrated view of the customer
      • Implement in iterations
      • Scalability for organizational growth
  • CRM Failures
    • Lack of understanding and preparation
    • Rely on CRM to solve business problem without first developing the business process changes and change management programs that are required
    • CRM projects implemented without the participation of the business stakeholders involved
  • CURRENT TRENDS: SRM, PRM, AND ERM
    • Current trends include:
      • Supplier relationship management (SRM) – focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection
      • Partner relationship management (PRM) – focuses on keeping vendors satisfied by managing alliance partner and reseller relationship that provide customers with the optimal sales channel
      • Employee relationship management (ERM) – provides employees with a subset of CRM applications available through a Web browser
  • FUTURE CRM TRENDS
    • CRM future trends include:
      • CRM applications will change from employee-only tools to tools used by suppliers, partners, and even customers
      • CRM will continue to be a major strategic focus for companies
      • CRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customers
      • CRM suites will incorporate PRM and SRM modules
  • ITM 309 Homework
    • Assignment #5 due November 19-20
    • Read Baltzan - Chapter 10