Introduction To CRM


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What is CRM? Why CRM is needed?
Technology Consideration of CRM, Steps Before Implementing CRM,Stages of Technology Implementation, Customer Intelligence, Customer Life Cycle Management, E-CRM, Frame Work of E-CRM, SIX “Es” IN E-CRM, E-CRM Architecture

Published in: Business, Technology

Introduction To CRM

  1. 1. SHEETAL WAGHMARE M.TECH (Computer Science & Data Processing) IIT KHARAGPUR EMAIL-ID:
  2. 2. What is CRM? • CRM, or Customer Relationship Management, is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. • True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time. SHEETAL WAGHMARE IIT KHARAGPUR
  3. 3. • CRM is an IT enhanced value process, which identifies, develops, integrates and focuses the various competencies of the firm to the „voice‟ of the customer in order to deliver long-term superior customer value, at a profit to well identified existing and potential customer. Contd.. SHEETAL WAGHMARE IIT KHARAGPUR
  4. 4. A customer (also known as a client, buyer or purchaser) is the recipient of a good, service, product, idea obtained from a seller, vendor or supplier for a monetary or other valuable consideration. Who is customer? SHEETAL WAGHMARE IIT KHARAGPUR
  5. 5. Need of CRM CRM is not just a technology, but rather a comprehensive approach to an organization‟s philosophy in dealing with its customer. Customer Relationship management is the strongest and the most efficient approach in maintaining and creating relationships with customers. CRM is not only pure business but also ideate strong personal bonding within people. Development of this type of bonding drives the business to new levels of success. SHEETAL WAGHMARE IIT KHARAGPUR
  7. 7. Imagine a system in place where the lines of communication and information requests are somewhat scrambled. Management does not have real time performance information Each area has their own system, tracking and keeping records on different software Customer Service does not have marketing information for cross sell opportunities. Sales does not have easy access to client records and customer calls, old system doesn't tie into account, so don't know past order SHEETAL WAGHMARE IIT KHARAGPUR
  8. 8. A CRM system has one central system where all the information is collected and stored in one location SHEETAL WAGHMARE IIT KHARAGPUR
  9. 9. • Everyone is connected into one system • People have the information they need to do their jobs • Sales and Customer Service have a deeper knowledge of the customers. • Data duplication is eliminated • Data security is strongly enhanced • Providing promotions, services and products that are exactly what your customers are looking for • Offering better customer service • Cross selling products more effectively and quickly • Helping sales staff close deals faster • Retaining existing customers and discovering new ones SHEETAL WAGHMARE IIT KHARAGPUR
  10. 10. “Customer Relationship Management is a comprehensive approach for creating, maintaining and expanding customer relationships” SHEETAL WAGHMARE IIT KHARAGPUR
  11. 11. Technology Consideration of CRM SHEETAL WAGHMARE IIT KHARAGPUR
  12. 12. Technology Consideration of CRM SHEETAL WAGHMARE IIT KHARAGPUR
  13. 13. Steps Before Implementing CRM Business Objectives Program Initiatives Departmental Plans Technology SHEETAL WAGHMARE IIT KHARAGPUR
  14. 14. Stages of Technology Implementation Functional CRM Departmental CRM Partial CRM Full CRM SHEETAL WAGHMARE IIT KHARAGPUR
  15. 15. Gather data Analyze the data Formulation Strategy Action Customer Intelligence SHEETAL WAGHMARE IIT KHARAGPUR
  16. 16. CRM Technology Components CRM Engine Front Office Solution Enterprise Application Integration SHEETAL WAGHMARE IIT KHARAGPUR
  17. 17. Customer Life Cycle SHEETAL WAGHMARE IIT KHARAGPUR
  18. 18. Customer Life Time Value SHEETAL WAGHMARE IIT KHARAGPUR
  19. 19. Customer Life Time Value Calculation • Say the average customer buys for 2 years, then stops for at least 1 year. Therefore, we define the LifeTime of a customer as 2years. Over years, the average customer makes 16 purchases  16* 2000 Profit per unit = 32000 LTV of the average customer SHEETAL WAGHMARE IIT KHARAGPUR
  20. 20. Justify Cost of retaining old customer is always less than generating new customer SHEETAL WAGHMARE IIT KHARAGPUR
  21. 21. Customer Life Cycle Management  Personalization  Customization  Cross selling  Up selling This is a special form of the product which will be prepared according to the personnel requirement because of this personalized attention, the customer retention process will become very easy This improves the product quality according to the expectations of the customer. This will change the standard product into the specialized solution for an individual to improve the customer satisfaction SHEETAL WAGHMARE IIT KHARAGPUR
  23. 23. • The E-CRM or electronic customer relationship marketing concept is derived from e-commerce. • It also uses net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers making use of information technology (IT) • E-CRM expands the traditional CRM techniques by integrating new electronic channels such as Web, wireless and voice technologies and combines it with e-business applications into the overall enterprise CRM strategy. E-CRM SHEETAL WAGHMARE IIT KHARAGPUR
  24. 24. • The CRM offerings remains channel centric not customer centric. • Customers want to interact with businesses when and where it is convenient for them. Need of E-CRM SHEETAL WAGHMARE IIT KHARAGPUR
  25. 25. Acquisition: Increasing the number of customers Retention: Increasing the amount of time that customer stays Increased Profitability Objective Customer acquisition Customer retention Customer value migration Cross-selling Frame Work of E-CRM SHEETAL WAGHMARE IIT KHARAGPUR
  26. 26. • eCRM implies capabilities like self service knowledge bases, automated email response, personalization of web content, online product bundling and pricing. • ECRM gives Internet users the ability to interact with the business through their preferred communication channel. • It also allows business to offset expensive customer service agents with technology. • E-CRM puts much emphasis on the customer satisfaction and reduced cost through improved efficiency. • E-CRM use customer data for personalization, cross-selling and up-selling. • Sales Force Automation(SFA )and Enterprise Marketing Automation(EMA) is integrated in the Ecrm. Features of E-CRM SHEETAL WAGHMARE IIT KHARAGPUR
  27. 27. Features of E-CRM Enables a personalized relationship with customers • Offers integrated customer information from all departments into one centralized knowledge base • Has a totally integrated, customer-centric approach • Employs e-business technologies to extend customer service and offers a variety of solutions tailored to your specific needs SHEETAL WAGHMARE IIT KHARAGPUR
  28. 28. E-Electronic Channel E-Enterprise E-Empowerment E-Economics E- Evaluation E- External Informati on SHEETAL WAGHMARE IIT KHARAGPUR
  29. 29. They make the companies closer to the customer They provide the best interaction between marketing, sales, service and support They reduce & eliminate the disconnection between customer and company relationship They both improve upon reality and perception of personalization Mail, telephone or in person or the common customer touch points
  30. 30. Difference Between in CRM & E-CRM Man Power Data Pooling Customer Touch Points Priority of Goals Process Strategy Nature of Transaction Emotional Dealings System Focus SHEETAL WAGHMARE IIT KHARAGPUR
  31. 31. Components of E-CRM • E-CRM Assessment • E-CRM strategy alignment If you can‟t measure it, you can‟t understand it. If you can‟t understand it you can‟t control it If you can‟t control it, you can‟t improve it. SHEETAL WAGHMARE IIT KHARAGPUR
  32. 32. E-CRM Architecture Customer Analytic Software Data Mining Software Campaign Management Software Business Simulation Real Time Decision Engine •campaign management software allows marketers to listen, learn and engage with individuals across channels and take them from new customer to loyal customer. •Every customer interaction generates data. Data which helps to understand a customer as an individual and reveal clues about how best to engage them.
  33. 33. Architecture of PeopleSoft CRM • The strength of PeopleSoft architecture is approach for integration using the concept of available enterprise integration points (EIPs). • The idea of EIP is central to all Internet architecture. • They are open, standard pieces of reusable code that provide the developers with preprogrammed means to communicate with internal systems and other PeopleSoft systems. • In Sap‟s world, they are called Business Application Programmers Interface [BAPI]. • PeopleSoft provides these EIPs through their Open Integration Framework. • OIF is a multi-featured framework that provides foundation for various interactions between systems. SHEETAL WAGHMARE IIT KHARAGPUR
  34. 34. OIF Application Messaging Business Interlink Component Interface API People Code Java File layout object & application engine EDI(Electronic Data Interchange) Manager Open Query Back-end code Business Interlinks architecture provides a plug-in framework for PeopleSoft applications to invoke third-party APIs over the internet. Different vendors support different methods for invoking their APIs—including object technologies such as CORBA; programming language- specific interfaces for C or C++; or interfaces based on HTTP and XML. The Business Interlinks framework provides a consistent framework for application developers to invoke external applications across this wide variety of technologies. The components are easily recognizable interfaces in the business world such as a sales order, invoice etc. The interface is the ability of architecture to recognize the document in other party‟s form and pass PeopleSoft data to that form. It can be done through the same languages and protocols as business interlink and CORBA Common Object Request Brooker Architecture is a standard defined by object management group (OMG) the enables software components written in multiple computer languages to work together SHEETAL WAGHMARE IIT KHARAGPUR
  35. 35. CRM Projects are divided into four phases: • Phase I : Sales module customizations : It means the product catalogs, the sales process embedding, the account and contact databases, and the sales pipeline management. • Phase II : Marketing module customizations : These are no different in technical process from Sales module customizations. They are merely different in what needs to be customized. • Phase III : Integration with external applications : This is an analysis of the existing information technology infrastructure and the network functionality. This work identifies the integration points between the legacy systems, the CRM application, and the possible installation and customization of other new non-CRM applications and systems. • Phase IV : Reporting integration : Reporting is a vital function for the businesses that are scattered the office. The customization of those reports and their generation are critical to corporate success. SHEETAL WAGHMARE IIT KHARAGPUR
  36. 36. 1. Explain the components of e-CRM. 2. Describe the steps to be followed before implementing CRM. 3. Explain the six E‟s associated with e-CRM in business organization. 4. Explain the four phases of any CRM project. 5. Compare CRM and e-CRM. 6. Explain the role of IT staff and integration experts as team members for implementing CRM. 7. Describe the customer life cycle with an example. 8. Explain the need of e-CRM with an example. 9. Difference between cross-selling and up-selling. SHEETAL WAGHMARE IIT KHARAGPUR