DISSERTATION-Project Overview


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• An Indian context integrated Strategic conceptual and theoretical frame work for CRM Implementation in Indian companies

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  • 01/20/10
  • 01/20/10
  • 01/20/10
  • 01/20/10
  • 01/20/10
  • 01/20/10
  • 01/20/10
  • DISSERTATION-Project Overview

    1. 1. CRM: Designing and Building Intelligent End-to-End Solutions –An Indian context Integrated Strategic Approach Dissertation - Presentation Senthilnathan . S 08 PG(J) 066 PGP-JAN 08-10
    2. 3. R L Logic Creativity First Q again . Who are our customers?
    3. 4. <ul><li>CRM (Customer Relationship Management) are the concepts used by organizations to manage their relationships with customers. This includes </li></ul><ul><li>Capturing Leads </li></ul><ul><li>Storage and analysis of the customers, vendors and partners </li></ul><ul><li>Internal information (organizational) </li></ul>
    4. 5. CUSTOMER Self-definition Empathy Involving & Collaborating Responding & Interacting 1 2 4 3 Outward Inward 3 – R’s Responsiveness Reliability relationship Vision & Mission Customer Market Business envt. Strategy, Plans Business model, Revenue Model Kernel for CRM
    5. 6. CRM Components <ul><li>CRM’s can be broken down into three key components </li></ul>Enhance Company Relationship with Customer Interaction With Customers (email, letters, phone, meetings, fax etc)
    6. 7. A Typical CRM consists of 3 Sub Modules
    7. 8. <ul><li>The research was exploratory in nature and adopted a two-stage process. During the first stage, 50 managers of service firms operating in India were surveyed through respondent administered questionnaires. These managers belonged to the following three categories: </li></ul><ul><li>Hospitality Industry encompassing hotels and restaurants </li></ul><ul><li>Information technology and Telecom industry which included software firms and telecom providers </li></ul><ul><li>Financial Services included commercial banks and mutual funds </li></ul>The current research was aimed at determining the approach being adopted by businesses in India for relationship marketing. Research Objectives
    8. 9. <ul><li>The survey focused on the quality and the customer centric processes, technology selection, employee empowerment, and customer knowledge strategy to gauge the status of CRM practices in these firms. </li></ul><ul><li>In the second stage, managers of select firms in each category of services were </li></ul><ul><li>interviewed to understand the relationship marketing practices adopted by them. </li></ul><ul><li>These interviews explored the following issues: </li></ul><ul><li>1. What are the various CRM initiatives undertaken by the firm? </li></ul><ul><li>2. How do they develop these programs? </li></ul><ul><li>3. How do they measure the effectiveness of these programs? </li></ul><ul><li>4. How successful are these programs in retaining customers? </li></ul>
    9. 10. <ul><li>(a) The relationship initiatives undertaken by firms have been directed towards customer retention. The initiatives were mostly membership /privilege schemes with gradations based on frequency and value of usage / purchase. </li></ul><ul><li>(b) Most of them also indicated that these schemes were table stakes i.e. they cannot survive in the business without these schemes if everyone else offers them. But the race is always to differentiate on the basis of convenience for customers . </li></ul><ul><li>(c) The source and reasons for adopting these programs were found to be diverse - frontline initiatives, adaptation of successful programs in parent organisations abroad especially for the multinational firms, or copying competitor‘s offerings . Pioneers in the industry like one of the multinational bank, which introduced the concept of relationship manager, adopted the practices of their parent organisation. </li></ul><ul><li>(d) A common finding, across sectors, was the absence of measures for determining the effectiveness of these programs . Managers were convinced that these retention programs had long-term benefits but they were still grappling with metrics which would indicate that the investments were paying off. </li></ul><ul><li>(e) In several cases, there was a lack of coordination across functional departments . Although managers admitted that cooperation and coordination were crucial, they accepted that many a times, only marketing and customer service ended up as the 'program champions'. This had impact on the success of the overall program. </li></ul><ul><li>(f) The managers of firms who have been successful in relationship management reported strong top management support for their initiatives as well as complete employee involvement cutting across departmental boundaries . </li></ul>
    10. 11. <ul><li>Top 50 Proven Ideas for CRM Success </li></ul><ul><li>When CRM works, C-level execs make smarter decisions because they have a 360-degree view of corporate performance ; </li></ul><ul><li>salespeople increase their proficiency and close more deals ; marketers create more targeted campaigns with better insight into their effectiveness; and employees--especially CSRs --become more productive and efficient. </li></ul><ul><li>50 ideas - The sales, marketing, customer service, and company-wide ideas are color coded to show where they best fit in the organization. </li></ul>
    11. 12. <ul><li>A strategy defined around producing value to fulfill business needs </li></ul><ul><li>A collaborative value chain of all institutions and processes needed to fulfill business needs </li></ul><ul><li>A set of measurements that reflects how successful (or unsuccessful) the collaborative value chain has been in fulfilling customer‘s needs and the ability to adjust the processes to improve the rate of success </li></ul><ul><li>A system that provides insight into customers so that improvements can be made </li></ul><ul><li>Access to all the services customer need for news, information, purchases, business, delivery, and on to infinity, from wherever customer are in whatever circumstances </li></ul>
    12. 14. 1 2 3 4 5 Strong dissatisfaction so – so Strong satisfaction Possibility of Loyalist (expectation < experience) Defectors Mercenaries (Expensive to Acquire, Quick to Depart) Hostages Terrorists Who’ve had Bad Experiences with the Company & The Company didn’t respond to them. Competitors’ discounts offering or benefits Source :Keki R. Bhote, “Beyond Customer Satisfaction to Customer Loyalty”, 1996 Proliferation of Loyalists (10~50%)
    13. 15. survey of CS about Cars, Almost 90% of answers are satisfied. Repurchase rate of same brand car company is below 30%. <ul><li>Hard for finding rule of relationship between CS and customer break away. </li></ul><ul><li>CS does not guarantee repurchase of customers </li></ul><ul><li>Customer loyalty is needed. </li></ul>
    14. 16. Step #1 Issue Discovery Step #2 Value Identification Step #3 Needs Differentiation Step #4 Customization Customer Segmentation Customer DB analysis/ Define marketing issues Customer investigation/analysis Customer’s needs finding / customer value segmentation Product/service, channel, reward strategy
    15. 18. External Internal Customer Subscribers/Customers/ End users Employees Divisions/Managers Suppliers/ channels CRM CEM Customer Experience Management - CEM
    16. 20. 1. Awareness 3. Identification 4. Selection 2. Information 7. Logistics 5. Negotiation 6. Contract 8. Delivery 9. Acceptance 10. $ Collection 12. Care & Support 14. Community 11. Use 13. Repair Acquisition Service Operations
    17. 21. 1. Awareness 3. Identification 4. Selection 2. Information 7. Logistics 5. Negotiation 6. Contract 8. Delivery 9. Acceptance 10. $ Collection 12. Care & Support 14. Community 11. Use 13. Repair <ul><li>A Customer becomes aware of a need </li></ul><ul><li>Customer gathers information regarding filling need </li></ul><ul><li>Customer identifies potential options and sources to satisfy need </li></ul><ul><li>Customer selects product(s), service(s), provider(s) to satisfy need requirements </li></ul><ul><li>Customer negotiates all aspects of acquiring product or service </li></ul><ul><li>Customer legally commits to product purchase and specifications </li></ul><ul><li>Customer establishes criteria for receipt </li></ul><ul><li>Product or service is delivered to customer </li></ul><ul><li>Customer accepts or rejects product/service </li></ul><ul><li>Customer pays for product and/or services </li></ul><ul><li>Customer uses product </li></ul><ul><li>Customer cares for product, learns about product </li></ul><ul><li>Customer fixes, repairs, product </li></ul><ul><li>Customer participates in “word of mouth” product/service community </li></ul>
    18. 22. Direct Mail Web Outbound Telemarketing eMail Banner Ads Portals Web Direct Mail CCM VRU Direct TV 3G Personalization eMail Web Coupon CCM VRU DTV Aggregators Web Personalization Direct Sales CCM Loyalty Continuity Automated Service eMail CCM Web Chat Service Auto. Collaborators Service Automation Fulfillment Form Sharing Web CCM Chat VoIP Fulfillment Web CCM Partners Fulfillment Web eLogistics Fulfillment eLogistics eMail S. Alerts CCM eCollection Lock Box eBilling CCM CCM eMail Self Help Knowledgebase Chat Direct Mail Continuity eNewsletter Web CCM eCRM Portal 14 Stages of Customer Experience 1. Awareness 3. Identification 4. Selection 2. Information 7. Logistics 5. Negotiation 6. Contract 8. Delivery 9. Acceptance 10. $ Collection 12. Care & Support 14. Community 11. Use 13. Repair Web Contracts Usage tracking CCM eLogistics Return Processing
    19. 23. Target Acquire Onboard Serve Grow Retain Customer Engagement Customer Lifecycle Personalize the experience a customer has with you over time
    20. 24. <ul><li>Target: Deliver the right message at the right time to the right channel </li></ul><ul><li>Phase 1: Recognize: </li></ul><ul><li>Brand management </li></ul><ul><li>Content Targeting </li></ul><ul><li>Customer Segmentation </li></ul><ul><li>Phase 2: Anticipate </li></ul><ul><li>Email marketing </li></ul><ul><li>Site marketing </li></ul><ul><li>Geo targeting </li></ul><ul><li>Phase 3: Engage </li></ul><ul><li>A/B Testing </li></ul><ul><li>Predictive offers </li></ul><ul><li>Mobile Marketing </li></ul>Customer Engagement Customer Lifecycle Target Acquire Onboard Serve Grow Retain Personalize the experience a customer has with you over time
    21. 25. <ul><li>Acquire: Persuade the customer that you will meet and exceed needs </li></ul><ul><li>Phase 1: Recognize: </li></ul><ul><li>Offer Management </li></ul><ul><li>Persuasive content architecture </li></ul><ul><li>Phase 2: Anticipate </li></ul><ul><li>Community </li></ul><ul><li>Recommendations </li></ul><ul><li>*Scenario management </li></ul><ul><li>Rich media </li></ul><ul><li>Phase 3: Engage </li></ul><ul><li>*Behavioral Targeting </li></ul><ul><li>Instant Messaging </li></ul>Target Acquire Onboard Serve Grow Retain Personalize the experience a customer has with you over time Customer Engagement Customer Lifecycle
    22. 26. <ul><li>Onboard: Convert prospects into customers </li></ul><ul><li>Phase 1: Recognize: </li></ul><ul><li>*Commerce </li></ul><ul><li>*Merchandising </li></ul><ul><li>Phase 2: Anticipate </li></ul><ul><li>*Product configurations </li></ul><ul><li>*Rich Visualization </li></ul><ul><li>Phase 3: Engage </li></ul><ul><li>Guided Selling </li></ul><ul><li>Contract Management </li></ul>Target Acquire Onboard Serve Grow Retain Personalize the experience a customer has with you over time Customer Engagement Customer Lifecycle
    23. 27. <ul><li>Serve: Allow customers to self serve in a collaborative environment </li></ul><ul><li>Phase 1: Recognize: </li></ul><ul><li>Account Management </li></ul><ul><li>Customer Feedback </li></ul><ul><li>Ratings </li></ul><ul><li>Phase 2: Anticipate </li></ul><ul><li>Issue resolution </li></ul><ul><li>Real time alerts </li></ul><ul><li>Phase 3: Engage </li></ul><ul><li>Click to call </li></ul><ul><li>Innovation management </li></ul>Target Acquire Onboard Serve Grow Retain Personalize the experience a customer has with you over time Customer Engagement Customer Lifecycle
    24. 28. <ul><li>Grow: Deepen your relationship with your customer base </li></ul><ul><li>Phase 1: Recognize: </li></ul><ul><li>Online Community’s </li></ul><ul><li>Special Pricing </li></ul><ul><li>Phase 2: Anticipate </li></ul><ul><li>Cross Sell </li></ul><ul><li>Lifecycle dialogs </li></ul><ul><li>Phase 3: Engage </li></ul><ul><li>Sales dashboards </li></ul><ul><li>Event based workflows </li></ul>Target Acquire Onboard Serve Grow Retain Personalize the experience a customer has with you over time Customer Engagement Customer Lifecycle
    25. 29. <ul><li>Retain: Reduce your customer churn </li></ul><ul><li>Phase 1: Recognize: </li></ul><ul><li>Enhanced content </li></ul><ul><li>Phase 2: Anticipate </li></ul><ul><li>Event based dialogs </li></ul><ul><li>Knowledge Base </li></ul><ul><li>Expert location </li></ul><ul><li>Phase 3: Engage </li></ul><ul><li>Click to call </li></ul><ul><li>Instant messaging </li></ul>Target Acquire Onboard Serve Grow Retain Personalize the experience a customer has with you over time Customer Engagement Customer Lifecycle
    26. 30. CEM Components <ul><li>CEM’s can also be broken down into three key components </li></ul>Experience Clues EMOTIONS Significant Strengthened Renewed Inspired Safe Confident “ How they feel” ATTITUDES Loyal Promote Committed Apostleship Passionate Trust “ How customers feel about ”
    27. 31. CRM = 1. Maximize revenue and profits Through already existing customers 2. Quick results CEM = Customer Experience Management 1. Long term 2. Stress on every interaction 3. First focus = employees – recruitment/training/performance appraisal/suggestion/QCs CEM = Totality of “employee + customer experience”
    28. 32. MARUTI – INTERNAL CEM 1. Increase dealer profitability: Conversion ratio of sales executives = Enq / test Vs buy Asked its dealers -> ↑ Manpower -> ↑ Salaries of sales agents -> ↑ Better incentives Ratio – 10-35% ↑ - Others adopted But Small dealers ? – Underwriting half the cost for a year - Liberal credit - can deal with insurance services too 2. Rural Market – State Bank of Patiala - Pay every Kharif & Rabbi (6 months) - Teachers Plus – couples 3. Promos – simple and straight Boy car – ‘Kya karu papa, Petrol khatam hinah hota’ Leverage – fuel efficiency ‘brand recall
    29. 33. MARUTI – EXTERNAL CEM 2000 – Price wars to positioning New Revenue Streams 4. Maruti True value – 2001 – Used cars 1. Huge market 2. , ‘Protect’ customers Beyond – Initial stages of purchase, After sales and Maintenance Used cars-Less than 7 years,100,000 k.m. mileage, condition -> Certified -> 1 year warranty -> 3 free services Customer Delight to Customer Value Maruti is truly “Maruti”
    30. 34. CUSTOMER AS PARTNER Make your business competitive by making the business of your customer more competitive. 4 E’s Educate Empower Enable Enhance efficiency & effectiveness
    31. 36. All Brand Experiences - past and present - shape the consumers view of a brand and will effect their decisions to buy, buy again...and maybe even advocate it Visiting a store Seeing it On-line Memories from past Noticing an ad Word of mouth Seeing Packaging Talking to salesperson Using it Dealing with customer service
    32. 37. A BRAND is a collection of perceptions in the mind of the consumer Experience  is the appreciation or knowledge about something gained through seeing, hearing or interacting with it A BRAND EXPERIENCE is what occurs every time a consumer sees , hears or interacts with that brand .
    33. 38. Notice  is when a brand gets on the radar of a consumer; when they see/hear about it and consider whether it is right for them. Choose  is the process the consumer goes through when trying to decide what brand(s) make it to their short list – usually based on it’s ability to meet their functional and/or emotional needs. Buy  is when the consumer enters the store (on or of-line) and goes through the process of purchasing the brand – sometimes referred to as the first ‘moment of truth.’ Loyal  is what consumer is when they buy again. . Use  is when the consumer uses the brand; not just when they unpack and use it for the first time (second ‘moment of truth’), but every time it is used. A Fan  is what a consumer becomes when they have been well treated and feel valued by a brand organisation Advocate  is when a consumer proactively talk about the brand in a positive way to friends, families, etc.
    34. 39. Promise - is what consumers are told by a brand, e.g. what will happen/how they will feel when they buy/use the brand Delivery  - this is what actually happens when the consumer buys/uses the brand. (It is when the promise that the brand has made has to be delivered.) Delight  - this is when the brand goes beyond what was expected. It can be the magical bit because when consumers are delighted they can become a powerful and positive brand advocate .
    35. 42. <ul><li>Customer Acquisition </li></ul><ul><li>Gain the greatest number of new “Best” customers as early in their “lifespan” as possible. </li></ul><ul><li>Customer Retention </li></ul><ul><li>Retain and expand your business and relationships with your customers through up-selling, cross-selling and servicing. </li></ul><ul><li>Customer Loyalty </li></ul><ul><li>Offer programs to ensure that your customers happily buy what you offer only from you. </li></ul><ul><li>Customer Evangelism </li></ul><ul><li>Enable loyal customers to become a volunteer sales force. </li></ul><ul><li>Cost Reduction </li></ul><ul><li>Reduce costs related to marketing, sales, customer service and support. </li></ul><ul><li>Improve Productivity </li></ul><ul><li>Enhance your e-business strategies. </li></ul>
    36. 43. Interactive Marketing Management Customer Relationship Management Customer Innovation Management tm Customer Quality Management tm Cause Marketing Management Customer Experience Management Customer Lifecycle Management Customer Evangelism Management tm Customer Actualization Management tm
    37. 44. <ul><li>According to Gartner a 2005 study shows earnings like </li></ul><ul><li>SAP – 1475 million US$ </li></ul><ul><li>Siebel – 966 million US$ </li></ul><ul><li>Oracle – 368 million US$ </li></ul><ul><li>Salesforce – 281 million US$ </li></ul><ul><li>amdocs – 276 million US$ </li></ul><ul><li>Others – 2,333 million US$ </li></ul>
    38. 45. <ul><li>With increasing popularity of Open Source vendors have started openly marketing CRM. Some Open source CRM’s to note are: </li></ul><ul><li>Sugar CRM http://www.sugarcrm.com/crm/ </li></ul><ul><li>XRMS http://xrms.sourceforge.net/pagebuilder.php?s1=18 </li></ul><ul><li>Vtiger http://www.vtiger.com </li></ul><ul><li>OpenCRX http://www.opencrx.org/ </li></ul>
    39. 46. <ul><li>Siebel, Amdocs, PeopleSoft, Oracle, SAP, EDS, Avaya, Baan, Aspect, E.piphany, Pivotal, Kana, eGain, Primus, Quintus, Trilogy, Motive, Brightware, Annuncio </li></ul>
    40. 48. <ul><ul><li>Data mining — core of knowledge discovery process </li></ul></ul>Data Cleaning Data Integration Databases Data Warehouse Knowledge Task-relevant Data Selection Data Mining Pattern Evaluation
    41. 49. CRM Applications BackOffice Customer Information Analytics Marketing Web Call Center Field Partner Customers Email
    42. 50. CRM & IT Monitor C R M E N G I N Operation Analyze Customer Interaction Letter, Fax, Email, SMS, Phone, Personal Contact, web, XML CRM DB IT A P P L I C A T I O N Call Center Help Desk SFA ERP