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  • Evaluate customer behaviour customer value
  • 125—291= increase cost e mail more people 125---100 reduce cost but change RFM divisions
  • They have same share of wallet but different size of wallet
  • Think horizantal, diagolade retention rate. Different combinations: AA, BA, CA, etc..
  • “ Intelligent and easy business solutions that enable extraordinary customer experiences” Our vision for CRM is to provide the functionality needed to exceed expectations for what a CRM solution should offer our customer, including not only the traditional operational aspects but also the ability to collaborate with team members, partners, and the customers themselves to ensure highest possible levels of customer satisfaction and profitability. And with the ability to provide the functionality and collaboration is the drive to provide the business analytics capabilities demanded by our customers – growing to meet customers ever changing needs.
  • Actually, every company already manages relationships with their customers Sales relationships Marketing relationships Service relationships Financial relationships If done poorly, the result can be: Wasted time and money Customer dis-satisfaction and defection Internal “turf battles” and disputes Lower profits Here are a couple of situations of what you will find probably face today in sales and service department of your company..
  • Actually, every company already manages relationships with their customers Sales relationships Marketing relationships Service relationships Financial relationships If done poorly, the result can be: Wasted time and money Customer dis-satisfaction and defection Internal “turf battles” and disputes Lower profits Here are a couple of situations of what you will find probably face today in sales and service department of your company..
  • İNFORMATİON BASED STRATEGİES, KNOWLEDGE DRİVEN BUSİNESS!! Data warehouses, datasources, data marts
  • İNFORMATİON BASED STRATEGİES, KNOWLEDGE DRİVEN BUSİNESS!! Data warehouses, datasources, data marts
  • İNFORMATİON BASED STRATEGİES, KNOWLEDGE DRİVEN BUSİNESS!! Data warehouses, datasources, data marts
  • İNFORMATİON BASED STRATEGİES, KNOWLEDGE DRİVEN BUSİNESS!! Data warehouses, datasources, data marts
  • We asked ourselves that very question after listening to business decision makers like you from all different types and sizes of businesses. We listened to our partners and we listened to our existing customers. The result of our research and efforts is Microsoft CRM. We have taken the familiarity of Microsoft Outlook and combined it with an easy to use CRM solution to deliver to you a solution that we believe meets and exceeds the four key criteria necessary to meet the needs of progressive and customer focused businesses.
  • Our design goals for Microsoft CRM are as follows: (This slide should build with the top boxes building first and then off of a click build the drop down. Drop downs will build starting with Improve Business Productivity, then Extend easily, Lower TCO and then Integrate Powerfully.) Improve Business Productivity: We will truly make CRM work for users as well as managers by: Working as they work inside of their productivity applications (Outlook and Web Interface) so they can leverage their current knowledge and software usage patterns Activities are captured by the system as the user does them so there is no backtracking and recording of activities later Users are empowered across touches with the customer. Sales people do not have to launch a separate tool to see service incidents with a customer and likewise the CSR’s can be informed by actions taken by a salesperson that a specific customer is in need of extra care Like Office, the success of CRM will happen because of user massive adoption of the system in realizing the productivity gain and not because they will be mandated by their management to use it. Extend Easily While we will do a great job at leveraging the Microsoft Business Solutions (ex Great Plains and Navision) and Microsoft channels to reach as broad and deep within the mid-market of companies, our goal is to extend even beyond the reach of Microsoft and its channel partners. By leveraging the .Net platform and creating great tools for ISV’s, we will enable 3 rd parties to leverage constructs of our CRM applications as components of overall vertical software solutions targeted at the narrowest of business niches. Lower TCO We will target bringing down the total cost of ownership by reducing the current 2½-3:1 service to software cost down to 1:1 by: Making set up of servers simple and integrated across the suite Enabling remote set-up of individual clients with minimal/no software footprint on any machines Making true “one-button” upgrades a reality by respecting customizations done on one version as a business upgrades to a new one Reducing training costs of users by making the application intuitive and work the way users want it to work Integration We will bring a whole new realm to the world of integration for CRM. Back office will not seem distinct and separate from front office. Your web site will be an extension of how you interact with customers with customer activity on that site enabled through features and tracked in the CRM application. Quotes, orders, contracts, shopping carts, field service, product configurators will not be separate applications from CRM that need to be integrated with, but rather extensions of your CRM application that are just more activity points that you can create and track with your customers. Microsoft CRM’s ability to help organisations improve their productivity, maintain a lower Total Cost of Ownership, integrate powerfully with other key applications and extend easily using today’s technology make it a flexible and agile solution. One that can be used by smaller and medium size organizations as well as by divisions of larger corporations.
  • The following features will be included in Microsoft CRM Sales
  • CRM

    1. 1. CUSTOMER RELATIONSHIP MANAGEMENT Faculty : Prof .Ashok Kumar Slides not for cirulation 1
    2. 2. Recommended Text Books :1. Customer Relationship management Emerging concepts, Tools & Application J.N Sheth , Atul ParvatiyarG.Shainesh2. The Ultimate CRM Handbook John. G . Freeland TMH edition3. CRM at the lightening speed. Paul Greenberg Slides not for cirulation 2
    3. 3. Why CRM ??????? Why do customers quit ??? Research shows :• 1% die• 3% become dormant .• 5% develop high aspiration .• 9% leave for competitive reasons• 14% are dissatisfied due to non value added service• 68% quit because of an attitude of indifference( relationship) by marketer. Slides not for cirulation 3
    4. 4. Traditional Marketing approach.Traditionally, marketers have been trained to acquire newcustomers, the ones who have not bought the productcategory before or those who are currently competitors’customers. This has required heavy doses of massadvertising and price-oriented promotions to customers andchannel members.Today, the tone of the conversation has changed fromcustomer acquisition to retention. This requires a differentmindset and a different set of tools.The need to better understand customer behavior and focuson those customers who can deliver long-term profits haschanged how marketers view the world. Slides not for cirulation 4
    5. 5. Transition to CRM worldTraditional approach Contemporary approachProduction centric Customer centricbusiness Approach business approachMass production •Customized productionEconomy of scale •Low volume & more variety economy Of scopeLow cost & volumePush. •Product delivery as a total solution of Product & serviceSell ! Sell! Sell !!! •Generate Pull demand Slides not for cirulation 5
    6. 6. Transition to CRM world•Customer = kasth se • Customer grantsMar me destiny•Customer has need, so •If customer likes me they they come. will stay with me .•Customer think I am in •Customer think I am-dispensable dispensable••They have no choice •More option, More competition Slides not for cirulation 6
    7. 7. 1.Which of the following a business enterprise don’t need ?Market ShareBrand visibilityYoY revenue growthYoY bottom line growthLoyal customerReduced cost of operationAll of them2.What should a business do to achieve all above ?Customer centric business processCustomer oriented top managementCustomer oriented operation teamCustomer friendly business modelsValue added solutionLong term relationship approachAll Above Slides not for cirulation 7
    8. 8. Today’s corporate challenges Is customer chasing a product Or product chasing a customer ?? Slides not for cirulation 8
    9. 9. What do corporate world think of CRM“Initially, when Bharti started its telecomoperations, just 40 percent of our customerissues used to get resolved , this has nowgone up to about 90 percent," : vice president . "It is vital for us to manage the expectations ofour customers and provide them with innovativeproducts and services in a manner which makesthem loyal," explains Gangotra."It is this need that made us opt for a CRM(customer relationship management) solution,"she says. Slides not for cirulation 9
    10. 10. CRM application in VOLKSWAGENVolkswagen AG is the largest automobile maker in Europe. More than 36 millionvehicles carry on their logo. Like other automobile manufacturers, thecompany is well informed about its customers and heavily depends on thisinformation. However, they lose contact with the car owner after the firstchange of ownership (after an average 3.7 years). As a result, the companydoes not have current information about many of its customers.In 1988, the company started its ‘Customer Come First’ marketing strategy.Under this strategy, all of the decision-making processes are based on the‘Voice of Customer.’ The company carefully monitored their response to35 advertisements, customer expectations, and customer satisfaction. Customerforums and focus group are used to hear the customer voice.Volkswagen developed services such as service guarantee, the emergency plan,the mobility guarantee, the customer club, and toll-free service phone. Alladvertising media are designed toward two-way communication. This allowsthe company to obtain useful information such as lifestyle, demographic, andbehavioral data.The company maintains a central database to provide club card, bonus pointprograms, club shops, and Volkswagen magazine. Every contact points with acustomer gives the company more information about the customer, so thecompany can constantly improve the quality and value of the customerDatabase. Slides not for cirulation 10
    11. 11. Virgin Mobile’s vision required applications that could support the deliveryof a real time experience at any time of day, across multiple channels. “It’seasier to have such a system for a postpaid cellular service , since theyjust run the billing system a month after the calls have been made todetermine what the customer owes,” explains Mike Parks. CIO “For aprepaid service , everything happens immediately, resulting in atremendous systems challenge.You need systems that can seamlessly integrate with other systems. Youneed to be able to instantly share data across channels and completetransactions in real time. You must have real-time failover, so customersare not inconvenienced if a system goes down.To meet the challenge, Virgin Mobile knew it needed a customerrelationship management (CRM) solution that would allow customers tospeak with knowledgeable, friendly customer service employees whocould resolve their inquiries in a single call. “We wanted to give ourservice agents the ability to have control of the call—not just to provideinformation—,” says Mike Parks. Slides not for cirulation 11
    12. 12. What is CRM ecosystem Business Process CRM levels360 degree viewof client Slides not for cirulation 12
    13. 13. Customer Life Cycle & CRM practice .CRM practice in an organization helps to managecustomer life cycle in most profitable way. CRM Impulsive Compulsive Addictive buying buying buying Slides not for cirulation 13
    14. 14. The customer life cycle encompasses four continuous patternsin which businesses interact with customers across multiplechannels and touch points.CRM process integrates the right employees, partners,processes, and technology to optimize relationshipmanagement across all four patterns within a customer lifecycle:. Engage: Recognizing potential customers and convertingthem into (first-time) buyers.. Transact: Getting the customer to make a purchase.. Fulfill: Providing the total one point solution .. Service: Providing customer care and service across allchannels. Slides not for cirulation 14
    15. 15. Integrating CRM with organization’s BusinessThree important factors which determine the financial success of an enterprise: MarketDriven solution, Delighted Customer , Customer centric organization culture . Consumer Research Strategy Formulation Implementation Feedback Communication Measuring CRM driven ROI Slides not for cirulation 15
    16. 16. Measuring business performanceBusinesses have long since measured financialperformance with traditional financial measurement tools:profit and loss statements, balance sheets and cash flowstatements. These measurement frameworks suffer fromlimitations; they measure past activities.Kaplan and Norton created the balancedscorecard framework to address some of thesedeficiencies and have expanded the tool to measure theimpact of strategy.Balanced scorecard intends to predict future financialperformance and track how effectively the corporatestrategy is executed. Slides not for cirulation 16
    17. 17. Balance Score card is a framework of evaluation used to measurethe overall effective ness of an organization.The 4 perspectives used to evaluate the overall performance are :Customer perspective , Learning & knowledge perspective , Financialperspective & Internal process perspective.The CRM specific perspectives are : 1. Customer Value perspective ,which measures the financial benefits gained form the customer .2. Customer satisfaction perspective which measures the level ofsatisfaction achieved by products & service .3. Customer interaction perspective that measures the operationalexcellence of internal process & multi channel management.4. Customer knowledge perspective that measures the quality of Slides not for cirulation 17customer knowledge & data analysis.
    18. 18. Slides not for cirulation 18
    19. 19. Concept of Balance Score Card in service sector . Slides not for cirulation 19
    20. 20. Measuring ROI in CRM driven business model.Internally focused measurement Externally focused measurement Customer Value Value Consumer Creation delivery Behavior & Attitude Consumer Insight Customer Loyalty Word of mouth Increasing retained profitable Slides not for cirulation Client base 20
    21. 21. Measuring ROI in CRM driven business model.Internal Customer consumer FinancialProcess perception Behavior Perspective Slides not for cirulation 21
    22. 22. Kaplan and Norton’s balanced scorecard framework CLV( Projected revenue)(Business process) Slides not for cirulation 22
    23. 23. RFM approach for CRM strategy(Recency, Frequency, Monetary Value )• Recency – When was the last customer interaction?• Frequency – How frequent was the customer in its interactions with the business?• Monetary value of the interactions Slides not for cirulation 23
    24. 24. Recency, Frequency, Monetary ValueMarketing Problem:A firm has sent e-mail to 30,000 of its existingcustomers, announcing a promotion of $100. 458of them responded (1.52% of the customers)Is there any relation between the respondingcustomers and their historical purchasingbehaviours? Slides not for cirulation 24
    25. 25. RFM Method: Recency Coding• 30,000 customers are sorted in descending order with respect to their most recent purchases• Sorted data is divided into 5 equal groups, each of them containing 6,000 people• Recency codes are assigned: Top group has code 5, bottom group has code 1 Slides not for cirulation 25
    26. 26. RFM Method: Recency Coding Recency Results 4.00 • According to analysis based onResponse % 3.1 customer recency, the group having the highest recency 3.00 group has also the highest response rate 2 2.00 1.5 • Remark: (3.10% + 2.00% + 1.50% + 1.00 0.62 0.62% + 0.38) / 5= 1,52% which 0.38 is the response rate 0.00 • Strict Rule: Ones who have 5 4 3 2 1 purchased recently are much more willing to buy new products Recency code R than others purchasing in the 26 Slides not for cirulation past
    27. 27. RFM Method: Frequency Coding• Sort the 30,000 customers with respect to frequency metrics. – Frequency metrics: Average number of purchases made by customer in a time period t – Sort customers in descending order with respect to their purchase frequency.• Assign them to 5 groups, top %20 in the first frequency group.• Assign frequency codes such that the top group has code 5 and the bottom group has code 1. Slides not for cirulation 27
    28. 28. RFM Method: Frequency Coding Frequency Results 3 2.8 • It is observed that highest 2.5 response rate is from the 2.1 customers having highestResponse % 2 frequency 1.5 1.3 • Frequent people respond 1 0.8 0.9 better than less frequent ones but differences between 0.5 groups are less than the ones 0 in the recency 5 4 3 2 1 • The lowest frequency group Frequency code F always contains new customers • That is why it is named RFM Slides not for cirulation 28
    29. 29. RFM Method: Monetary Value Coding• The same process as recency and frequency coding• Sorting is done with respect to monetary value metric – Monetary value metric is the average amount purchased in a time period t• At the end of the monetary value coding, assign monetary value codes M = 1,...,5 to groups according to their groups. Slides not for cirulation 29
    30. 30. RFM Method: Monetary Value Coding 2.5 Frequency Results 2.1 2 1.8 • It is observed that highestResponse % 1.4 response rate is from the 1.5 customers having highest 1.2 1.1 monetary value 1 • Unlike the recency case, 0.5 there are not big differences between groups 0 5 4 3 2 1 Monetary value code M Slides not for cirulation 30
    31. 31. RFM Method: Putting the Codes Together• At the end of the monetary coding firm obtain R F M metrics for customers. Each customer belongs to one of 125 possible combinations of the RFM values: Database R 1 2 3 4 5 F 21 22 23 24 25 Slides not for cirulation 31 231 232 233 234 235 M
    32. 32. RFM Method: STEPS• Create 3 digits RFM codes cells• All cells having the same number of customers in them• RFM values are used to define group of customers that marketing campaign should target or should avoid• Used for identifying customers having high probability to respond to campaigns: 555’s response rate > 552’s > 543’s >541....• Increase the response rate• Increase profitability not for cirulation Slides 32
    33. 33. Customer Value Metrics• Critical measures used to define customer worth in knowledge-driven and customer-focused marketing Slides not for cirulation 33
    34. 34. Customer Value Metrics: Size of Wallet J• Size of wallet = ∑S j =1 j Sj = Sales to focal customer by firm j• Assumption: Firms prefer customers with large size of wallet in order to retain large revenues and profits Slides not for cirulation 34
    35. 35. Customer Value Metrics: Individual Share of Wallet (SW)• A proportion expressed in terms of percentage, calculated among buyers• Measured at individual level• A measure of loyalty• Can be used in future predictions• Different from the “market share”, which also considers customers with no purchase Sj• Individual share of wallet % = J ∑S j =1 j S j = Sales to focal customer by firm j Slides not for cirulation 35
    36. 36. Customer Value Metrics• Share of wallet and size of wallet should be analyzed together because... Size of Share of Purchases Wallet WalletCustomer 1 $500 50% $250Customer 2 $100 50% $50 Slides not for cirulation 36
    37. 37. 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% Slides not for 15% cirulation 70% 37
    38. 38. Lead analysis & sales forecastRFQ analysis & Bid preparation (Investmentproposal )Sales controlSales collaterals & templatesSales productivity analysisField intelligence report Slides not for cirulation 38
    39. 39. Depending on the company’s business model , CRM measurement frameworks vary. Some key categories of performance measurement include:  1. Brand performance measures2. Customer asset management3. Customer behavior4. Marketing performance5. Sales force performance6. Service center performance7. Field service performance8. Supply chain and logistic performance9. Web site performance  Slides not for cirulation 39
    40. 40. 1.Brand-buildingCustomer equity building Customer behavioral modeling Customer value managementCustomer-facing operations 2. Marketing operations Sales force operations Service center operations Field service operations 3.Supply chain and logistic operations Web site operationsLeading indicator measurement 4. Balanced scorecards Slides not for cirulation 40 Customer knowledge management
    41. 41. Dimensions of Loyalty & loyalty management 1 Emotive Loyalist loyalist 2 Inertial loyalist 3 DeliberativeCustomer loyalist Downward 1 Life style Migrators Downward migrator 2 Deliberative migrator 3 Dissatisfied Downward migrator Slides not for cirulation 41
    42. 42. Marketing Statistics• The average business never hears from 96% of its unhappy customers.• They tell a minimum of 9-10 other people about their bad experiences.• Getting a repeat customer from unhappy customer group is extremely difficult .• Every positive experience is shared with 2 to 3 people( prospective customer ).• For every single complaint received, there are in fact 26 customers withfor cirulation Slides not the similar concern. 42
    43. 43. Marketing Statistics…• Of the customers who register a complaint, as many as 70% will do business again with your organization if the complaint is resolved effectively.• This figure goes up to 95% if the complaint has been resolved promptly.• 40% of complaints result from customer mistakes or incorrect expectations.• Customers who complain and get satisfactory results are 8% more loyal than if no complaint at all. Slides not for cirulation 43
    44. 44. Customer Profitability and Life time Value.As cost of serving a customer increases overthe years ,due to inflation ( rise in input cost )profit earning ability of the firm decreasesduring the life time . Hence customer centricbusiness leverage on RLEATIONSHIPMANAGEMENT as key strategy to improvecustomer profitability over the lifetime of thecustomer. Slides not for cirulation 44
    45. 45. Customer lifetime value represents exactly how much eachcustomer is worth in monetary terms, and therefore exactly howmuch a marketing department should be willing to spend toretain each customer or a specific segment .Relationship can be contractual or referral. Accordingly the costof maintaining the relationship will change. This will reflect inCLV. Slides not for cirulation 45
    46. 46. CLV model makes simplifying assumptions :1. Churn rate: The percentage of customers who end theirrelationship with a company in a given period. One minus thechurn rate is the retention rate. Most models can be writtenusing either churn rate or retention rate. If the model uses onlyone churn rate, the assumption is that the churn rate is constantacross the life of the customer relationship.2.Discount rate: The cost of capital used to discount futurerevenue from a customer. The current interest rate is generallyused as a simple discount rate. Slides not for cirulation 46
    47. 47. 3.Retention cost/ Cost of servicing : The amount of money acompany has to spend in a given period to retain an existingcustomer. Retention costs include customer support, billing,promotional incentives, etc.Period : The unit of time into which a customer relationship isdivided for analysis. A year is the most commonly used period.Customer lifetime value is a multi-period calculation, usuallystretching 3-7 years into the future. In practice, analysis beyond this point is viewed as toospeculative to be reliable. The number of periods used in thecalculation is sometimes referred to as the model horizon.4.Periodic Revenue: The amount of revenue collected from acustomer in the period. Slides not for cirulation 47
    48. 48. Customer Lifetime Value (simplified formula) nCLV = Σ D [(Rt – Ct)] - Ac + Rf [ Rtr – Acr ] t=1 (1+r)t (1+r)tWhere: t = Year n = Length of customer relationship r = Discount rateRt = Revenue earned from customer in year tCt = Cost of servicing customer in year tAc = Full acquisition costsRf = Number of referrals generated by customer each year D = customer retention rateAcr = Reduced acquisition costs .Rtr = Revenue from referral customerbackup FolderSpecial LTV Calculator2.xls Slides not for cirulation 48
    49. 49. The CLV equation can also be used to show whereadditional profits can be obtained from customers.Increased profits can result from:· Increasing J, the number of productspurchased, by cross-selling.· Increasing P, the price paid, by up-selling orcharging higher prices.· Reducing C, product marginal costs.· Reducing MC, the customer acquisition costs. Slides not for cirulation 49
    50. 50. CLV proposition Slides not for cirulation 50
    51. 51. Effectiveness of Loyalty ProgrammeEffectiv Customere Exit pointness Time taken to redeem CLP Slides not for cirulation 51
    52. 52. Hence in a competition driven markethaving more business challenges, to attract , acquire and retain a customer,business practices which are customercentric ( Customer RelationshipManagement ) is imperative and need ofthe business. Slides not for cirulation 52
    53. 53. Adoption( diffusion ) of the new product concepthappens only if : Slides not for cirulation 53
    54. 54. Diffusion strategyFactors which are responsible for early adoption are :1. Perceived relative advantage2. Compatibility with existing process , values , belief etc3. Low complexity : Easy operation, maintenance. User friendly.4. Trailability : Ease of experimenting5. Observability : Visual effect Slides not for cirulation 54
    55. 55. Create adopter categories :InnovatorsEarly adoptersEarly majorityLate majorityLaggards Early Early Innovators adaptors majorityStrategy to : Develop innovators : Acquire innovators through price , trivertising , trade promotion, BTL promotion flexible terms of take back if not satisfied etc. Mass media Develop Adaptors : Extensive sales promotion . Push early majority ; Create demand through urgency , opportunity loss, artificial delay etc. Slides not for cirulation 55
    56. 56. Lead Management ProcessLead management or opportunity management process involves a CRMprocess which help to identify the right opportunities , qualify the opportunitiesand convert them. More popularly known as sales pipeline or salesfunnel management .As the suspect to customer ratio decreases drastically in any sales process ,sustained forecasting model for lead generation is must .Material planning , production planning , budget , profit guidelines , etc largelydepend on the revenue plan of the firm .Sales forecast happens to be the initial link for sound revenue plan. C RMpractice address this issue. Slides not for cirulation 56
    57. 57. Customer Life Time value ( CLV) in the marketing lexicon explainsthe concept that each customer in the database should be analyzedin terms of current and future profitability to the firm. A model of the profitability of a customer based on past and current purchases is the following: Profits t = ∑[ ∑ (P j – C j) - ∑ MC k] + R( PJ – CJ ) T (1+ r)² (1+ r)² where: t = the current time period, T = the total number of time periods in the database, J = the number of products purchased, K = the number of marketing tools used to target customers, Pj = Revenue generated from the purchase. Cj = Cost of the product purchased, MCk = Customer acquisition costs). Slides not for cirulation 57
    58. 58. Steps to develop CRM perspective in an organization. 1. Building database of customer activity 2. Set up a process to analyze the data base according to activity . 3. Report which customer to target 4. Establish business process to build relation with the target customer 5. Establish & convey customer privacy issues. 6. Define metrics for measuring the success of CRM program in the organization Slides not for cirulation 58
    59. 59. CRM perspective in an organization. Slides not for cirulation 59
    60. 60. Slides not for cirulation 60
    61. 61. CRM Eco system Intelligent and easy business solutions that enable extraordinary customer experiences Customer ServiceEmpowered Connected Sales Force FieldEmployees Automation Service Customers Marketing eCommerce Automation Informed IntegratedManagement Partners Slides not for cirulation 61
    62. 62. CRM strategy in an organization helps to build 360Degree view of the customer Slides not for cirulation 62
    63. 63. CRM Process At HDFC Slides not for cirulation 63
    64. 64. Technology: Slides not for cirulation 64
    65. 65. CRM removes the disjoint & micro perspective of a customer in enterprise Slides not for cirulation 65
    66. 66. Measuring business performanceBusinesses have long since measured financialperformance with traditional financial measurement tools:profit and loss statements, balance sheets and cash flowstatements. These measurement frameworks suffer fromlimitations; they measure past activities.Kaplan and Norton created the balancedscorecard framework to address some of thesedeficiencies and have expanded the tool to measure theimpact of strategy.Balanced scorecard intends to predict future financialperformance and track how effectively the corporatestrategy is executed. Slides not for cirulation 66
    67. 67. Measuring ROI in CRM driven business model.Internally focused measurement Externally focused measurement Customer Value Value Consumer Creation delivery Behavior & Attitude Consumer Insight Customer Loyalty Word of mouth Increasing retained profitable Slides not for cirulation Client base 67
    68. 68. Measuring ROI in CRM driven business model.Internal Customer consumer FinancialProcess perception Behavior Perspective Slides not for cirulation 68
    69. 69. CLV( Projected revenue)(Business process) Slides not for cirulation 69
    70. 70. Depending on the company’s business model , CRM measurement frameworks vary. Some key categories of performance measurement include:  1. Brand performance measures2. Customer asset management3. Customer behavior4. Marketing performance5. Sales force performance6. Service center performance7. Field service performance8. Supply chain and logistic performance9. Web site performance  Slides not for cirulation 70
    71. 71. 1.Brand-buildingCustomer equity building Customer behavioral modeling Customer value managementCustomer-facing operations 2. Marketing operations Sales force operations Service center operations Field service operations 3.Supply chain and logistic operations Web site operationsLeading indicator measurement 4. Balanced scorecards Slides not for cirulation 71 Customer knowledge management
    72. 72. Products and services originate in the company’s valueproduction capabilities and then flow through the valuedelivery capabilities and to the customer. Thecompany’s customer insight capabilities must collectknowledge about the customer’s behavior and mindsetand inform the value production and deliverycapabilities.While companies frequently measure customer valueproduction and delivery capabilities, very few measurethe customer insight or knowledge managementcapabilities. Slides not for cirulation 72
    73. 73. CRM strategy helps to build 360 degree view of the customer Pre consumption Stage Desire state Perception & And aspirationConsumptionstage Attitude displayed Driving the unstated During consumption Need Expectation gap Or delight Behavioral Symptoms forcing shift Post consumption Stage Slides not for cirulation 73
    74. 74. Evaluate Differentiate360 degree Build Customer CustomerCustomer retention ROI View strategy Slides not for cirulation 74
    75. 75. Identify your customer H Selectively Add value exit & reduce cost To serve.Cost toServe Move up the Differentiate through Value chain VAS & Retain L L H Profitability Slides not for cirulation 75
    76. 76. Slides not for cirulation 76
    77. 77. Is this the way you are Managing Customers ?MyWe keep track of customers using sales, service, and marketing teamsMy sales andtrack of customers using of We keep service teams keep track useOutlook, spreadsheets, paper, separate applications; They can’t things, but I am not sure where our financial application and manila folders share information •Customer chaos •High Dissatisfaction •High churn rate •Low profitability •Low brand equity Slides not for cirulation 77
    78. 78. Is this how you want to manage Customers ? My sales, service, and our profitable We know who are marketing teams My sales and trackservice teams using of We keep service teams keep follow and of customers track Our sales & closely work with them to customers are integrated tightly and share our financialprocesses consistent application things. enhance the experience of our products & customer information for decision making services Slides not for cirulation 78
    80. 80. Customer Relationship Management• “Process of creating and maintaining relationships with business customers or consumers”• “A holistic process of identifying, attracting, differentiating, and retaining customers”• “Integrating the firm’s value chain to create enhanced customer value at every step”• “An integrated cross-functional focus on improving customer retention and profitability for the company.” Slides not for cirulation 80
    81. 81. Customer Relationship ManagementA customer centric business processespracticed by an organization from acquisition toretention to build bonding , enhance positivecustomer experience, increase multiple touchpoint value and create high customer life timevalue. Slides not for cirulation 81
    82. 82. Customer Relationship ManagementThe use of information-enabled systemsfor enhancing individual customerrelationships to ensure long-termcustomer loyalty and retention Slides not for cirulation 82
    83. 83. CRM process focuses more on personalized marketingrather than mass marketing .CRM process is developed on the principles ofrelationship marketing concepts.CRM process is created around customer serviceconcepts .CRM is not just a software . MYTHCRM can do well only in B2B model . MYTH Slides not for cirulation 83
    84. 84. CRM process demands an attitude shift atmanagement level, change in businessprocess level to adapt to customer needs,technology support to deliver & service thecustomer fast and quick. CRM = Customer oriented + Customer oriented + Information Organizational culture business process Technology Slides not for cirulation 84
    85. 85. Contemporary CRM process focuses on :Proactive approach rather than reactive .Personalized care to individual customerExtensively leverage on technologyProduct & service offerings specific rather than genericIntegrated with back end operations like ERP . Slides not for cirulation 85
    86. 86. Relationship Management Slides not for cirulation 86
    87. 87. Shift from transactional marketing to Relationship Marketing Interdependence Relation ship Marketing CollaborateConflict Transactional Marketing Independence Slides not for cirulation 87
    88. 88. Relationship Marketing & customer Loyalty .Relationship. CLV CEM CTVMarketingIt helps to build a life time customer value for theorganization .CRM initiative helps the organization to manage relationbetter to maximize revenue & life span while keeping theoperational cost low. Slides not for cirulation 88
    89. 89. Level of relationship strategies•Integrated information service • Volume & frequency•Joint investments • Rewards•Shared process & equipment • Bundling & cross selling • Stable pricing Structural Financial bond bondMass •Continuos relationshipcustomization Customization Social •personal relationshipCustomer bond bond •social bonds amongintimacy customers.Innovation • Slides not for cirulation 89
    90. 90. Distinctions in Customization Mass Marketing CustomizationRelationship Customer is passive Customer is activewith customers participant in process co-producer,Customer needs Researched and May not be articulated articulatedProduct and service Marketing and R&D Customized basedoffering drive offering on customer interactionsPrice Fixed prices with Value based pricing; discounting customer determinedCommunication Advertising and PR Integrated, interactiveDistribution Mix of direct and Direct (online) indirect not for cirulation Slides 90
    91. 91. CRM process focus areas Customer Service Process Sales process Marketing Contact & Activity management Management process process Slides not for cirulation 91
    92. 92. SALES Management Process Slides not for cirulation 92
    93. 93. Sales Planning A good sales strategy evolves from a good sales planning. Any sales planning should ideally begin with the situation analysis. Organization’s present position vis a vis the competition . Competition need to be looked from direct & indirect perspective. Its inherent strength & weak ness in a given account , market segment , territory , product etc. The Sales planning process comprises of :Business Marketing Sales Sales SalesObjective Plan Plan Budget Responsibility Evaluate & Sales Control Report Slides not for cirulation 93
    94. 94. Challenges of Sales Management process•Long Sales Cycles : In complex products andservices ( solution sales ), the sales process fromlead generation to closure tend to get longer thananticipated.•Disconnected lead information system makingdecision process of lead qualification difficult .•Need for transparent sales transaction in de- centralized customer set up.•Control & streamline Sales forecast process.•Unable to assess sales productivity Slides not for cirulation 94
    95. 95. Sales Force Automation• Manages lead generation, tracks movement of leads through the pipeline, allows better usage of customer data, integrates activities across sales channels, simplifies relationship management, forecasts for opportunities• Helps to understand competitive position in sales situation .• Sales funnel ( Sales pipeline ) management• Sales person productivity analysis Slides not for cirulation 95
    96. 96. Revenue management is key the success of any business .•Revenue Planning : Begins during the third quarter fornext fiscal year.•Input is gathered from sales & marketing team andother sources and Revenue plan is fixed.•Related expenses are decided & planned profit is predecided.•Revenue plan is broken up into sales targets forproduct line & communicated to sales force . Q1( AMJ) Q2(JAS) Q3( OND) Q4 ( JFM) M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 annual revenue plan.xl Slides not for cirulation 96
    97. 97. Sales Process ManagementSales forceProductivity Sales performance Annual business Sales Planningmanagement Analysis planningOrder lossStatus report& analysisOrder Order Business partner Channel partnermanagement Acquisition Management WarehouseOrder vetting C&F•Technical•CommercialFeedback to Opportunitysales team Management Sales funnel management Slides not for cirulation 97
    98. 98. Generate More Leads: Capture those leads through a variety of channels including your Web site. Campaign ROI Top Search Terms Leads by Source Lead Quality Web Site Visitors Web Form• Google AdWords • Organic Web traffic • “Contact me” request• Email Marketing • AdWords referrals • Free trial • Email responses • Event registration• Direct Mail• Cold Calls Inbound Calls Create New Leads Lead Capture• Partners • Yellow pages • Cold calling • Set up auto-response emails• TV • Google Maps • If one doesn’t exist, create a new lead -”Thank you for your interest”• Radio • Word-of-mouth referrals -Your trial information -Event details• Events Lists Import Data • Set up lead assignment rules• Trade Shows -Geography • Purchased list • Use the import• PR -Company size • Trade show wizard or Excel -Product of interest Slides not for cirulation 98 • Legacy data connector
    99. 99. Close More DealsClose deals faster by providing a single place for updating deal information, tracking opportunitymilestones, and recording interactions. Easily analyze your sales pipeline so you can quicklyidentify and eliminate any bottlenecks in the sales cycle. Retail sales forecast.xls Closed Business Top 10 Deals Top Sales Reps by Month Sales MarketingOpen Opportunities Presentation Proposal Negotiation Won YesNew Customers No You can Customize Sales force to Support monitor your fit your internal sales Sales force gives your entire opportunities methodologies and company a 360-degree view of reports and processes, making it Keep an archive of your dead opportunities. your customers and facilitates dashboards to easier to monitor your Use email marketing and collaboration across your keep track of sales pipeline. organization, helping you build call downs to re-market strong, lasting customer your top deals to your archived relationships. and prioritize opportunities. Slides not for cirulation 99 your time.
    100. 100. Lead analysis & sales forecastRFQ analysisBid preparation (Investment proposal )Sales coordinationSales collaterals & templatesSales productivity analysisField intelligence report Slides not for cirulation 100
    101. 101. Sales target The amount of sales each sales representative, team, product or product category has committed or is assigned to solicit.Close percentage This metric goes by many names. The purpose of the metric is to score a lead with a percentage that it is likely to turn into a sale. As sales personnel work with the customer to answer questions, exchange information, prepare legal contracts and so on, the percentage is changed up or down.Customer score Not only are leads scored, but customers are too. By scoring a customer, companies can develop a model that helps them predict which customers are likely to purchase their product or service. Many attributes (size of the company, geographic location, level of access into the company, level of cultural, industries the customer serves, size of budget for the solution being sold) can go into scoring a customer. In this regard, customer scoring is similar to a segmentation exercise.Sales expenses This metric includes all expenses related to the sale, such as travel, entertainment, printing, shipping, use of other internal resources, 3rd party expenses, etc.Close rate The percentage of sales leads that convert to sales. This is often tracked at the sales representative, team, customer segment and product/product category level. Slides not for cirulation 101
    102. 102. Sales totals The total number of sales represented by all leads. This metric is often multiplied by the close percentage for a weighted sales leads number. This metric is used to predict future sales.Sales lost The number (or percentage) of sales lost, broken down by reasons, which can include loss to a competitor, loss of customer funding, and many other reasons.Training impact Companies use different techniques to detect the impact of sales training on the sales force, including sales staff surveys on training effectiveness and comparisons in other sales metrics pre- and post-training.Cross-sell rate The percentage of sales totals that include items that were not specifically requested but recommended by the sale force or through marketing.Number of calls The number of calls made by a sales representative or sales team. This can be broken down by new account calls and existing account calls.Number of new How many new customers have been added during a period of time.customers Slides not for cirulation 102
    103. 103. Key returns from improved sales performanceand management include the following:• Increased salesperson productivity• Increased sales management productivity• Decreased cost of customer acquisition• Increased revenues (increased profits onrevenues)• Decreased administrative overhead• Reduced employee training costs Slides not for cirulation 103
    104. 104. Customer Service managementQoS ( Quality of Service ) deliveredby an organization is judged by itscustomer of the basis of 5 keyparameters known as serve qualparameters. Slides not for cirulation 104
    105. 105. 1. Tangibles of Service :( Infrastructure & facilities , Employ commitment (People) & the process links of services laid to build efficiency &problem resolution )2. Responsiveness : Attitude (Willingness) to help the customer proactively.3. Reliability : Dependability on the service & accuracy ofthe service.4. Assurance : Competence of the organization to deliverthe promises & gain credibility for service .5. Empathy : Caring for the customer . Feeling of concern& responsibilities. Ser Mktg not for cirulation Slides 105 Proprietary slides
    106. 106. Tangibles of ServiceResponsiveness Reliability Assurance Empathy Serve Qual Model. Ser Mktg not for cirulation Slides 106 Proprietary slides
    107. 107. Service Quality Gap Model Perception Gap Communication Employee Gap perception Delivery GapKnowledgegap Standard gapManagement – Employee perception Slides not for cirulation 107
    109. 109. Designing SLA for committed serviceSLA is formal & legal document detailing the scope of service with standardOperating procedure explained by the service provider to set right expectationOf the client. ( Eliminate Service Gap ) Components of SLA Scope of service to be rendered Committed Total turn around time Penalty clauses Implementation time Joint responsibility Financial implication Price escalation clause Commercial implications Legal implication Termination clause Renewal clause Slides not for cirulation 109
    110. 110. SLA Management encompasses :SLA contract definition (basic schema with the quality of service parameters.) SLA negotiation SLA monitoring SLA enforcement, according to defined policies. Slides not for cirulation 110
    111. 111. CUSTOMER SERVICE MANAGEMENT PROCESS SERVICE SERVICE STATISTICS SERVICE ROI PERFORMANCE Call call call call call incentives capture analysis allocation tracking closure calculation Set up auto-response emails with id code•SERVICE CALL benchmark THR’U Web Site• Email TO CC Web Form • “Contact me” request• Calls Thr’uTOLLFREE NO. Inbound Calls Service call• Allocation process Import DataPreventive callManagement Warranty customer • Use the import Database wizard or Excel Slides not for cirulation 111 connector
    112. 112. Call tracking: logging to resolutionCall uptime calculation : Actual time / total committed timeService center operations Slides not for cirulation 112
    113. 113. Call counts and The number and duration of calls either received or sent, oftenduration broken down by call type, which is input by the call center representative after completing the call.Average hold time The amount of time a customer has to wait before being served by an agent.Abandonment rate The number of calls abandoned expressed as a percentage of the total calls. These are customers who hang up while waiting for an agent or get disconnected.Average The average time a caller waited before abandoning the call.abandonment timeAdherence The amount of time the agent is “in their seat” ready to take calls, expressed as a percentage of the total time the agent is scheduled.Wrap-up time The amount of time, after the call is completed, the agent needs to complete administrative tasks related to the call. Slides not for cirulation 113
    114. 114. Average cost per call The sum of all costs for running the center divided by the number of calls received.Average talk time The amount of time the agent spends on the call talking to a customer.Average handle time The sum of the talk time and the wrap-up time.Agent utilization The amount of time agents spend on calls versus other internal tasks, expressed as a percentage of available time.Blocked calls The number and percentage of calls that receive a busy signal and could not even get to the automatic call distribution system (ACD).Service level A goal for call center performance. A widely used format for the goal and values is for a call center to answer 80% of the calls within 20 seconds.Call quality Companies have devised ways to monitor the quality of a call and the agent’s abilities. Scores can include vocal intonation, friendliness, promptness, knowledgeableness, and adherence to procedures. Slides not for cirulation 114
    115. 115. Response time Amount of time it takes a service agent to respondCompletion time Amount of time it takes a service agent to resolve a customer’s problem.Repair fulfillment The amount of time it takes to deliver a requested part or servicetime needed for a repair.Service level This metric is similar identical to the call center metric when applied to inbound phone calls. It includes additional measures when applied to all support calls.Customer Many companies routinely survey their customers after a servicesatisfaction score call to verify satisfaction.Service call priority Service calls are frequently prioritized to comply with service contracts or warranty terms or to indicate the importance of the request. Slides not for cirulation 115
    116. 116. CRM driven Supply chain performance.Fill rate The number of items ordered compared with items shipped. Fill rate can be calculated on a line item, SKU, case or value basis.On time ship rate What percent of orders where shipped on or before the requested ship date. On time ship rate can be calculated on a line item, SKU, case or value basis.Performance to What percentage of orders where shipped on or before thepromise promised ship date. In some cases, some items may be on back order or delayed for whatever reason. This metric captures the overall conformance with promised ship dates.Backorders The number (or percentage) of unfulfilled orders. Slides not for cirulation 116
    117. 117. Customer order The average time it takes to fill a customer order.cycle timeCash to cycle time The number of days between paying for raw materials and getting paid for the product by the customer.Supply chain cycle The total time it would take to satisfy a customer order if alltime inventory levels were 0.Perfect Order The error-free rate of each stage of an order. Error rates are capturedMeasure at each stage (order entry, picking, delivery, shipped without damage, invoiced correctly) and multiplied together.Upside flexibility The ability of a supplier to meet additional demand requirements Slides not for cirulation 117
    118. 118. Contact and activity Management •KAM process •Blue book / Account dossier /Customer history sheet preparation •Scheduler and calendaring events •Project management process Slides not for cirulation 118
    119. 119. The critical new interfaces for sales Marketing Strategy Large Key/Global Account ManagementCustomer The shrinkingSales Level/ domain for thePotential traditional salesforce? Direct channels/ Internet-based sales Small Low High Customer Slides not for cirulation Requirements Service/Relationship 119
    120. 120. The relational development model KAM Integrated Strategic Interdependent intent of seller Cooperative Basic Exploratory Strategic intent of buyerAdapted from a model developed by Millman, A.F. and Wilson, K.J. “From Key Account Selling to Key Account Management” (1994)
    121. 121. Key account preliminary categorization Degree of KAM relationship stage Needs of parties to collaboration KAM relationship High: collaborative Integrated Realization of fullest potential of both organizations Confidence in relationship, stable Interdependent & highly evaluated by both sides Cooperative Reduction of risk, ability to forecast Basic Operational, efficient transactionsLow: transactional Slides not for cirulation 121
    122. 122. Creating closer relationships with supply chain partners D D I I Marketing From Marketing R R E E C Operations Operations C T T O Information Sales Purchasing Information O R Systems Systems R S S Supplier Customer
    123. 123. Creating closer relationships with supply chain partners Directors Directors selling company To buying company Marketing Marketing Operations Operations Information InformationKey-Account Systems Systems SupplierCo-ordination Development Supplier Customer
    124. 124. Key account categorization A Top 15 (in volume/revenue generated) B Next 30 C Next 55 Slides not for cirulation 124
    125. 125. Selection of Key Accounts Supplier Business Strength with Customer High low High Strategic Star Account Attractiveness Large Status Streamline Low Medium Small Slides not for cirulation 125
    126. 126. The key customer portfolio Supplier business strength with customer High Low High Strategic Selective investment investmentKey accountattractiveness Pro-active Management maintenance for cash Low Slides not for cirulation 126
    127. 127. Supplier Relationships as a Source of Business Advantage Business Business Process Type Contribution Criteria Criteria 10 Strategic • “First mover” advantage • KAM lead 10 Suppliers • Channels to market • Business strategy driven < 1% of • Reverse revenue generation • “A team” on both sides suppliers 20 Preferred • Point-to-point solution • Relationship manager 600 Suppliers • Technology access • Strategy from CatMan c. 20% of all • Operational advantage • SLA scorecard suppliers 1, 350 Commodity • Cost improvement • Managed locally 3,000 Suppliers • Superior service levels • Performance monitoredc. 80% of all suppliers • Ease of transaction • E-enabled Slides not for cirulation 127
    128. 128. Blake and Mouton 9 1/9 9/9 The customers The problem friend solver 5/5Concern for Compromise customer “Method” approach 1/1 9/1 The order The pressure taker salesman 1 1 9 Concern for making the sale Slides not for cirulation 128
    129. 129. Implementing an Account Planning Process STEP 1 ContinuousIdentify strategic customer &ImprovementDevelop accountplanning process STEP 2 Continuous Facilitate buy-in Improvement at local manager and KAM levels STEP 3 Provide guidance ( CSH ), commit resources and discipline to ensure that plans are developed and used. Measure account profitability. Slides not for cirulation 129
    130. 130. Developing the Strategic Account Planning Process• The strategic account planning process should be specific and actionable, and include – Objectives and activities – Action plans designed to meet the objectives – Assigned responsibilities and accountabilities – A listing of the resources required to implement the plans Slides not for cirulation 130
    131. 131. Facilitating Buy-In• Training and education programs can facilitate buy-in within the selling organization• Sales education programs must emphasize the value that KAM and sales managers can provide to these strategic accounts Slides not for cirulation 131
    132. 132. Providing Guidance for Plan Development and Implementation • Key Account Managers provide much guidance and leadership to their team & buyers . • They seek ongoing support from top management • Identify new opportunities & help buying organization in decision making. • Act as problem for cirulation & evangelist. 132 Slides not solver
    133. 133. The Engineering Perspective DATA MINING Slides not for cirulation 133
    134. 134. Six E’s e CRM are :1. Electronic channel integration : (Web, Mail & messaging )2. Enterprise : Across the organization other than sales & marketing function are able to interact & provide customer centric services & products. ( Enterprise integration ERP , Work flow , DRP ) .3. Empowerment : Enabling the customers to decide when & how to stay in touch with the organization.4. Evaluation : Evaluate customer interaction along various touch point channel & compare anticipated ROI against accruals. Slides not for cirulation 134
    135. 135. 5 Economics : Concentrate on customer economics , whichdrives smart asset allocation decision & greatest return oncustomer communication6. External information : Leverage information from thirdparty sources , web page profiler etc. Slides not for cirulation 135
    136. 136. CRM application & development tools Functional capabilitiesSoftware Basic CMS SFA Help Added features Analysis Desk MySAP .com * * * Siebel * ** ** * * Clarify ** * Sales Logix * *** * Oracle People soft * ** * Netsol * * ** SAS * *** Teradata * *** Micro strategy * Slides not for cirulation ** 136
    137. 137. Popularly used BI tools: •Business objects, •Teradata, •Cognos - Power play •Informatica , •Crystal enterprise suite , • SAS , •Micro strategy. Slides not for cirulation 137
    138. 138. Data Mining• Collection, storage, and analysis of –typically huge amounts of- data• Data readily resides in the company’s data warehouse• Data cleaning is almost inevitable Slides not for cirulation 138
    139. 139. Data MiningGoals of Data Mining• Developing deeper understanding of the data• Discovering hidden patterns• Coming up with actionable insights• Identifying relations between variables, inputs and outputs• Predicting future patterns Slides not for cirulation 139
    140. 140. Data Mining: Steps• Data selection• Data cleaning• Sampling• Dimensionality reduction• Data mining methods Slides not for cirulation 140
    141. 141. Data Mining: Methods• Exploratory Data Analysis• Segmentation – Cluster Analysis – Decision Trees• Market Basket Analysis• Association rules• Information Visualization• Prediction – Regression – Neural Network Slides not for cirulation 141 – Time Series Analysis
    142. 142. Information VisualizationData mining algorithms...• Can only detect certain types of patterns and insights• Are too complex for end users to understand Slides not for cirulation 142
    143. 143. Information Visualization• A field of Computer Science which has evolved since the 1990s.• Before 1990s: Graphical methods for data analysis to pave the way for statistical methods• After 1990s: – Computer hardware has advanced with respect to memory, computational power, graphics calculations – Software has advanced with respect to user interfaces – Data collection systems have advanced (barcodes, RFID, ERP) Slides not for cirulation 143
    144. 144. Information Visualization• The analyst does not have to understand complex algorithms.• Almost no training required.• There are no limits to the types of insights that can be discovered. Slides not for cirulation 144
    145. 145. Marketing Data analysis forstrategic marketing decisions. Data standardized Information about To a common format Data available in DW Slides not for cirulation 145
    146. 146. CRM process & information technology Slides not for cirulation 146
    147. 147. TechnologySlides not for cirulation 147
    148. 148. Typical e CRM ArchitectureCRM tool used for building high customer touch Slides not for cirulation 148
    149. 149. Classification: It maps data into predefined group orclusters . These classes are predefined . Classificationalgorithms requires that the classes are defined on the dataattributes values. ( Micro Segmentation of consumers )Regression : It assumes that the target result fit in to someknown type of functions ( eg linear , logistic etc ) & thendetermines the best function which models the given data.Clustering : The approach is useful for determining thesimilarity On the predefined attributes . Identifying preciseset of variables / parameters describing the data set fordecision making process. Consumer modeling forpromotion strategy.Summarization : It is used for extracting representativeinformation about the data not for cirulation Slides base. It maps data in to subsets 149with associated simple description.
    150. 150. CRM Project implementation methodologyEnvisioning Planning Development Deployment Post Deployment Slides not for cirulation 150
    151. 151. Components for CRM software project managementmodelBasic components are common to any industries whichinclude1. Scope management2. Time management3. Resources management4. Quality management5. Cost management6. Communications management7. Risk management,8. Procurement management9. Integration management. Slides not for cirulation 151
    152. 152. Implementing CRM solution: TechnologyperspectiveCRM solutions stand on a integrated database ofcustomers/ transaction data , which are used forbuilding proactive marketing strategies .People , Process & Technology are the corner stonesof any successful CRM solution implementation .Industry nuances are to be kept in mind whiledesigning CRM solution for an organization.Integration issues with back end operation viz ERPwork flow management etc need to be addressed priorto the selection of CRP solution. Slides not for cirulation 152
    153. 153. Data mining process: It helps to predict future trends & behavior allowingthe business to make proactive knowledge based decisions. Data mining taxonomy . Predictive model Descriptive model Classification Clustering Regression summarization Time series analysis Association rules Prediction Slides Sequence discovery not for cirulation 153
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    157. 157. Using Customer tracker an organization can dofollowing :•Profile key contacts.•Schedule activities and view tickler lists.•Generate, distribute and store customercorrespondence.•Create, store and track customer contracts.•View customer project lists and support tickets.•Identify, track and manage opportunities.•Sales executives and administrators can leverageviews of Pending Pipeline, Win / Loss Data, andActivity Lists.•Establish a portal for named customer contacts tosubmit project requests and support tickets. Slides not for cirulation 157
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    163. 163. CRM implementation•User interface.•Session management•Work flow•Database•Graphics•Messaging•Business Slides not for cirulation 163
    164. 164. Introducing The Solution… An easy to useCombine Outlook CRM Solution with Slides not for cirulation 164
    165. 165. Pipe line reporting tool. Slides not for cirulation 165
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    170. 170. Conclusion :CRM is a business philosophy driving anorganization to build customer centricbusiness process & culture to gaincompetitive edge in cut throat competitiondriven market for sustainability & growth.Technology is the backbone of anysuccessful CRM process implementation . Slides not for cirulation 170
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    173. 173. CRM Information platform INPUT Contact & Activity Sales data management Sales management User profiles Business rules Business intelligence Marketing ProgramsMarket development For decision support Loyalty programProduct Relational database Sales promotionConsumer Collaborative communication Pre sale promCompetition ProcessPrice Customized information Customer delivery Content operation & service Marketing Process Call center Business policy Help desk & rules SMS alert IVR Internet access Slides not for cirulation 173
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    175. 175. CRM Process FrameworkFormation Management & Governance PerformanceCRM PurposeIncreaseEffectiveness &Improve efficiency Team structure Relationship Role definition Planning process Strategic Programs Process alignment Marketing Account Monitoring process Financial Management Market communication Customer Retention Marketing Employee motivation Satisfaction Co-op agreements Employee Training & loyalty Strategic PartnershipPartners Feed back &Criteria Process improvementProcess Slides not for cirulation 175
    176. 176. CRM Approach in an organization.CRM SOLUTION includes all customer-facingbusiness applications integrated under a singlecustomer database .• Sales Force Automation (SFA)• Customer Service (CS)• Sales and Marketing Management (SMM)• Contact & Activity Management Slides not for cirulation 176
    177. 177. Technology driven approach to CRMBack end integration & Multipoint interactionDevelop touch point Descriptive & predictive With customer Behavior Customer engagement Operational CRM Analytical CRM Collaborative CRM CUSTOMER Slides not for cirulation 177
    178. 178. Technology driven approach to CRM Web enabled & integratedBuilding customer Customer databasecontact through: Data securityTelephone Data recovery & redundancyMail Web MiningPersonal contact Business networkAfter sale Data integration with back endComplaint handling Business operationKey Account Data miningManagement Integration with automated customerCustomer Care Contact process IVR Help desk SMS Internet Slides not for cirulation 178
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    181. 181. Organization’s aim is to develop more of clients &advisors.Clients & advisors are likely to generate positive word ofMouth ( WOM) which are called a reference customers. Advisor / Partner Foresters good Client Customer Repeat Loyalty customer First time Customer Prospect Suspect Slides not for cirulation 181
    182. 182. An Organization wants answers to the followingQuestions:• What are your customer satisfaction levels?• What is your customer attrition rate?• What are your customers needs?• Do you focus new product development around customerfeedback?• Do Sales, Customer Service, and Technical Support work together to provide outstanding customer service?• Do you build and modify work processes around servicing the customer better?• Do you currently consolidate all customer related data into one repository?• Do you integrate key front office, back office, and web office systems to interact with each other? Slides not for cirulation 182
    183. 183. A media firm would like to plan and analyze its businessperformance like : demographic profilingDirect mailTelemarketingCost and revenue analysesCustomer care, and retention .Integration of various point-products and functions ( mediaplanning , media buying , client servicing, accountmanagement etc , for advertising, circulation or clickstreamanalytics etc to get an holistic perspective of the customer &business .In order to achieve this objective, they need comprehensiveand integrated CRM solutions. Slides not for cirulation 183
    184. 184. Traditional marketing strategies focused on the four Ps (price,product, promotion, and place) to increase market share. Themain concern was to increase the volume of transactionsbetween seller and buyer.Volume of transactions is considered a good measure of theperformance of marketing strategies and tactics.CRM is a business strategy that goes beyondincreasing transaction volume. Its objectives are toincrease profitability, revenue, and customersatisfaction.To build CRM, an organization wide set of tools, technologies,and procedures are required to promote the relationship with thecustomer to increase sales. Slides not for cirulation 184
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    186. 186. Rationale of Relationship marketing & customer retentionRelationship Customer experience Customer life timeMarketing valueRelationship marketing can occur at different levels & eachsuccessive levels of strategy results in ties & binds the customercloser to the organization & helps to increase the competitiveadvantage of the organization. Level of relationship strategies 1 Financial Bonds 2 Social bond 3 Customization bond 4 structural bond Slides not for cirulation 186
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