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Customer Relationship
Management
(CRM)
Table of Contents
1. Introduction to CRM
2. Strategic CRM
3. CRM and Customer Service
4. Operational CRM
5. Analytical CRM
6. CRM Implementation
7. The CRM Performance Assessment Process
8. Future of CRM
1.Introduction to Customer
Relationship Management
(CRM)
1.1. Definitions of CRM
1. CRM is an information industry term for methodologies, software and usually internet capabilities that help an
enterprise manage customer relationship in an organized way.
2. CRM is the process of managing all aspects of interaction a company has with its customers, including
prospecting, sales and service. CRM applications attempt to provide insight into and improve the
company/customer relationship by combining all these views of customer interaction into one picture."
3. CRM is an integrated approach to identifying, acquiring and retaining customers. By enabling organizations to
manage and coordinate customer interactions across multiple channels, departments, lines of business and
geographies, CRM helps organizations maximize the value of every customer interaction and drive superior
corporate performance.
4. CRM is an integrated information system that is used to plan, schedule and control the pre-sales and post-
sales activities in an organization. CRM embraces all aspects of dealing with prospects and customers, including
the call centre, sales force, marketing, technical support and field service. The primary goal of CRM is to improve
long-term growth and profitability through a better understanding of customer behaviour. CRM aims to provide
more effective feedback and improved integration to better gauge the return on investment (ROI) in these areas.
5. CRM is a business strategy that maximizes profitability, revenue and customer satisfaction by organizing
around customer segments, fostering behaviour that satisfies customers, and implementing customer-centric
processes.
1. Introduction to CRM
1.2 The function of CRM
A. Sales Force Automation
B. Marketing Automation
C. Customer Service Automation
1. Introduction to CRM
1.2 The function of CRM
A. Sales Force Automation
Sales are crucial to the success of every business and the best way to stay ahead of your competitors is to leverage sales
management. In some instances, business owners sell their product and in others, they barter their services. Hence, the core
idea behind every business today is to make sales.
• Improve Sales Management
Understanding the key role of sales for every business is difficult without a sales tracking software. CRM software offers sales
force automation systems to improve sales strategies and helps boost the potential of Sales Professionals by facilitating them in
identifying their opportunities.
• Accurate Forecasting & Reporting
Another glory of this system is the forecasting functionality that helps sales directors to generate accurate and timely forecast
reports. These reports fuel informed decision-making and help manage quota performance across teams and territories.
• Contact Management
With the use of sales force automation, sales personnel can expeditiously manage their contacts, accounts, pipelines, and other
related activities. Along with being a contact management software, sales force automation in CRM will allow you to seamlessly
manage your relationship with your customers. It will also help to engage customers better and improve customer retention rates.
1. Introduction to CRM
1.2 The function of CRM
A. Sales Force Automation
• Activity Management
A sales force automation system entangles a lot of meaningful functionalities such as activity management, alerts and
notifications, opportunity management and task management, etc.
Activity Management lets you control all the activities taking place in your organization. Moreover, the Alerts and Notification
feature notifies you when a task gets completed or anything else that you want to be notified about.
• Opportunity Management
Many companies are closing more deals and seeing a growth in their revenues with sales pipeline software. But, with a CRM
platform, you can do a lot more! Opportunity Management in CRM gives you an opportunity to follow a lead that you can turn into
a sale won. Moreover, it allows you to streamline the sales pipeline and keep track of a lead until the closing stage, making CRM
the best sales management software.
• Task Management
Task Management enables you to manage all the tasks in your organization without ever having to leave your seat. So, boost
your team productivity by keeping track of all activities and setting reminders, so you don’t miss a deadline.
1. Introduction to CRM
1.2 The function of CRM
B. Marketing Automation
Organizations invest heavily in marketing automation in order to supercharge their operational efficiency and to grow revenue.
Supporting the magical influence of marketing, CRM offers a functionality called Marketing Automation.
• Customer Journey Automation
Marketing automation is a handy tool that helps you take your marketing efforts to the next level while saving your resources in
the long run and also assists you in nurturing leads through proficient automated campaigns. These campaigns drastically
enhance Customer Engagement in a cost-effective manner, helping you grow. Hence, with customer journey automation, you
won’t miss any customer touchpoint and deliver meaningful customer experiences.
• Marketing Funnel Automation
Incorporating robust business strategies, efficacious marketing processes, and dynamic automation technologies, marketing
funnel automation in CRM helps businesses with lead acquisition, lead scoring, lead nurturing, and lead assignment. The feature
works closely with Sales Force Automation to ensure that leads are effectively passed between marketing and sales
departments.
1. Introduction to CRM
1.2 The function of CRM
B. Marketing Automation
• Marketing Campaign Automation
To cater to the basic marketing needs of a business, CRM’s marketing automation allows entrepreneurs to develop, launch, and
track campaigns and other marketing offers to customers.
The big umbrella of marketing automation entangles bulk modern marketing practices in marketing campaign automation such
as lead generation, segmentation, cross-selling and up-selling, ROI analysis, etc.
• Automated Email Marketing
Featuring Email Marketing, newsletter based campaigns, and non-email-based campaigns such as SMS campaigns and
conference call campaigns, etc. automated email marketing solution of CRM enables business owners to adopt fully optimized
technology that can lessen the burden on the staff and increase profits.
1. Introduction to CRM
1.2 The function of CRM
C. Customer Service Automation
One of the chores considered most hectic in every business is customer service, but it is no longer something that the
companies can flaunt. Customer service has become a mandatory part of businesses in this modern world.
Now that people have a number of choices available and the authority to choose anything that pleases them in terms of product
quality or customer experience, customer support have proved to be a game-changer.
• Personalized Customer Experiences
Reducing the tedious aspects of it, CRM software automates the customer service process and delivers automated services that
help entrepreneurs and marketers distinguish their products or services through personalized communication with their clients in
this challenging business environment.
• Customer Contact Management
Customer service automation is the key to enhancing a corporation’s profitability. The core philosophy of this customer-centric
feature is to create and enhance relationships with customers.
For this purpose, a consolidated knowledge base of support information is created in CRM that enables customer service
representatives to ameliorate customer satisfaction levels with the timely delivery of accurate services.
1. Introduction to CRM
1.2 The function of CRM
C. Customer Service Automation
• Improve Customer Relationships
Using CRM’s customer service automation, one can easily improve customer relationships. CRM supports trouble ticketing,
management of interaction history and escalations, customer case tracking, management of product problems, responding to
customer inquiries, and sharing customer service information across the entire organization.
Moreover, it facilitates the automation of service scheduling and adjustment of resource assignments in real-time to meet high
priority requests. Being an end-to-end customer service solution, CRM becomes the best customer service software.
1. Introduction to CRM
1.3. Types of CRM
1. Strategic CRM:
Strategic CRM is a core customer-centric business strategy that aims at winning
and keeping profitable customers.
1. Operational CRM:
Operational CRM focuses on the automation of customer-facing processes such
as selling, marketing and customer service.
1. Analytical CRM:
Analytical CRM is the process through which organizations transform customer-
related data into actionable insight for either strategic or tactical purposes.
1. Introduction to CRM
1.4. Models of CRM
1. The IDIC model
2. The CRM Value Chain
3. Payne and Frow's 5 process model
4. The Gartner competency model
1. Introduction to CRM
1.4. Models of CRM
1. The IDIC model
The IDIC model was developed by Don Peppers and Martha Rogers, of the Peppers & Rogers Group, and
has featured in a number of their books.20 The IDIC model suggests that companies should take four
actions in order to build closer one-to-one relationships with customers:
> Identify who your customers are and build a deep understanding of them.
> Differentiate your customers to identify which customers have most value now and which offer most for
the future.
> Interact with customers to ensure that you understand customer expectations and their relationships
with other suppliers or brands.
> Customize the offer and communications to ensure that the expectations of customers are met.
1. Introduction to CRM
1.4. Models of CRM
2. The CRM Value Chain
Francis Buttle's model, consists of five primary stages and four supporting conditions leading towards the end
goal of enhanced customer profitablity.
"The primary stages of customer portfolio analysis, customer intimacy, network development, value
proposition development and managing the customer lifecycle are sequenced to ensure that a company, with
the support of its network of suppliers, partners and employees, creates and delivers value propositions that
acquire and retain profitable customers. The supporting
conditions of leadership and culture, data and IT, people and processes enable the CRM strategy to function
effectively and efficiently."
1. Introduction to CRM
1.4. Models of CRM
2. The CRM Value Chain
1. Introduction to CRM
1.4. Models of CRM
3. Payne and Frow's 5 process model
This model clearly identifies five core processes in CRM: the strategy
development process,the value creation process, the multi-channel integration
process, the performance assessment process and the information management
process.
The first two represent strategic CRM; the multi-channel integration process
represents operational CRM; the information management process is analytical
CRM.
1. Introduction to CRM
1.4. Models of CRM
3. Payne and Frow's 5 process model
1. Introduction to CRM
1.4. Models of CRM
4. The Gartner competency model
The model suggests that companies need competencies in eight areas for CRM to
be successful. These include building a CRM vision, developing CRM strategies,
designing valued customer experiences, intra and extra organizational
collaboration, managing customer lifecycle processes, information management,
technology implementation and developing measures indicates of CRM success
or failure.
1. Introduction to CRM
1.4. Models of CRM
4. The Gartner competency model
1. Introduction to CRM
1.5. Evolution and Growth of CRM
1.5.1. First Function (Functional CRM)
1.5.2. Second Generation (Customer Facing Front End Approach)
1.5.3. Third Generation (Strategic Approach)
1.5.4. Fourth Generation (Agile and Flexible Strategic CRM)
1.5.5. Fifth Generation (Social CRM)
1. Introduction to CRM
1.5. Evolution and Growth of CRM
1.5.1. First Function (Functional CRM)
The collection of activities that later took on the umbrella acronym CRM originally developed as two independent
product offerings:
1. Sales force automation (SFA): These products addressed pre sales functions such as maintaining prospect
and customer data, telemarketing, generating leads, creating sales quotes, and placing sales orders.
2. Customer service and support (CSS):
This function addressed mainly after-sales activities, such as help desks, contact and call centers, and field
service support. The CSS databases often worked with specific customer information, isolated from other
systems.
Although fragmented and poorly integrated with the back office, early SFA/CSS applications delivered the
promise of sales and service improvements, though their combined market niche remained small. The market for
enterprise resource planning (ERP)—a tool designed to integrate all company departments and functions within a
single computer system that served every department’s needs—instead was growing.
1. Introduction to CRM
1.5. Evolution and Growth of CRM
1.5.1. First Function (Functional CRM)
1. Introduction to CRM
1.5. Evolution and Growth of CRM
1.5.2. Second Generation (Customer Facing Front End Approach)
"Innovations in CRM during the 1990s matched those of ERP, including the integration of differ ent
independent subsystems into one package. CRM technology was expected to fill the gaps left by ERP
functionality and address the business needs of the company’s customer-facing front end.
The goal was to create a single view of all inter actions with customers, independent of the pur pose of
that contact (e.g., pre-sales, sales transaction, post-sales service) or its means (e.g., telephone, e-mail,
Internet). For the most part, this goal was not achieved during the 1990s, leading to increasing
disillusionment with CRM technology and implementations. Customer expectations in this period far
exceeded the realized benefits of CRM technology. Industry observers began talk ing about the demise of
CRM. Even as the Internet fuelled new expectations, it became clear that rev enue increases through
technology were difficult to implement, realize, and measure, without a more strategic understanding of
the process"
1. Introduction to CRM
1.5. Evolution and Growth of CRM
1.5.2. Second Generation (Customer Facing Front End Approach)
1. Introduction to CRM
1.5. Evolution and Growth of CRM
1.5.3. Third Generation (Strategic Approach)
The integration of the Internet technology helped to boost CRM. Many
organizations realized that they could benefit by adopting a strategic CRM
approach rather than blindly implementing technology-based solutions.
Companies recognized the eventual goal of CRM: to grow revenue, not just
control costs.
1. Introduction to CRM
1.5. Evolution and Growth of CRM
1.5.4. Fourth Generation (Agile and Flexible Strategic CRM)
Strategic CRM is widely accepted and established as an essential element of the
market ing strategy, and an ever-increasing number of small and medium-sized
companies adopt this management tool and its corresponding technol ogies to
drive their business. Agility, flexibility, and low fixed costs are key. The emergence
of social media and increased self-service, as well as the growing prevalence of
web-based services, mean that customer empowerment is an emerg ing topic. In
particular, CRM technology on a pay-per-use basis can provide on-demand
functionality.
1. Introduction to CRM
1.5. Evolution and Growth of CRM
1.5.5. Fifth Generation (Social CRM)
The development of the new technological advances and the unprecedented reach of social media
gave rise to the fifth generation of CRM. Social CRM is characterized by the engagement of the
customer through the integration of the web 2.0 and social media and by the use of data driven
insights to optimize the overall customer experience. Companies encourage active customer
participation online, while they use software applications to track real time social data. This
information enables companies to offer relevant content and personalized messages to specific
customers and to improve the customer experience at each touchpoint along the customer
journey. Additionally, the combination of data across different social media platforms allows
companies to determine the customer value not only based on profitability but also based on their
online behavior in terms of referrals, knowledge dispersion and influencing other members of the
social media community.
1. Introduction to CRM
1.6. Concept of Customer Value
1.6.1. Value to the Customer
1.6.2. Value to the Company
1. Introduction to CRM
1.6. Concept of Customer Value
1.6.1. Value to the Customer
A company’s very existence is based on the premise that it creates value for its customers –
regardless of whether in terms of a good or a service, an end product or an input factor, and
whether in a B2B or B2C setting.
"Consequently, creating and sustaining value for customers is at the heart of business in general
and marketing and CRM specifically as they are the vehicles through which companies can deliver
value to its customers."
"A key component of CRM and its application is its direct and two-sided interaction with customers
through a variety of touchpoints. Hence, a core function and capability of CRM is its ability to
influence a customer’s perceived value of the company’s offering. In summary, strategically
employed CRM can improve customers’ perception of an offering and meet the demand for
solutions to customer specific needs"
1. Introduction to CRM
1.6. Concept of Customer Value
1.6.2. Value to the Company
From Value for Customers to Value from Customers: The Satisfaction-Loyalty-Profit Chain
The key underlying idea is that improving product and service attributes will lead to an
improvement in customer satisfaction. Increased customer satisfaction, i.e. increased value for the
customer is expected to lead to greater customer retention, which is often used as a proxy for
customer loyalty, which then is expected to lead to greater profitability or value from the customer
Under which circumstances increased customer satisfaction may improve a firm’s customer
retention rate and how increased retention rates, in turn, may lead to higher profits.
1. Introduction to CRM
1.6. Concept of Customer Value
1.6.2. Value to the Company
The Level of Analysis
1. Introduction to CRM
1.6. Concept of Customer Value
1.6.2. Value to the Company
The Direct Link Between Customer Satisfaction and Profits
The direct link between customer satisfaction and profits suggests that as customers experience greater
satisfaction with a firm’s offering, profits rise.
The Link Between Satisfaction and Retention
The Link Between Loyalty and Profits
1. Introduction to CRM
2. Strategic CRM
2.1. CRM Perspectives
Three perspectives of CRM
1. Functional level: If viewed from a functional perspective, CRM refers to the set of processes that must be in place to
execute customer related tasks, such as sales force automation or online campaign management. This CRM perspective is
often combined with a strong technology orientation that arises
when vendors need to position their particular product. For some vendors or buyers, functional CRM is nearly synonymous
with technology.
2. Customer-facing front-end level: In contrast, from the customer-facing perspective, CRM
is a set of activities that provides a single view of the customer across all contact channels. This type of CRM evolves from
practitioners’ need to manage different channels consistently in order to focus on the total customer experience. The goal is
to build a single view of the customer across all contact channels and to distribute customer intelligence to all customer-
facing functions (marketing, sales, service, etc.)
3. Company-wide level: If CRM is viewed from a company-wide level perspective, the primary objective is to uncouple the
term «CRM» from any technology underpinnings and from specific customer management techniques. Instead, this
perspective views CRM as a strategic orientation to implement customer centricity within the entire organization and create
shareholder value.
2. Strategic CRM
2.2. Elements of a CRM Strategy
2.2.1. CRM Vision
• Any initiative around CRM should be based on a clear vision of what the company aims to achieve with their customer relationship management efforts.
• An essential component of the CRM vision should focus on the customer value.
• The CRM vision is to build an organization in a manner that all actions are
geared towards maximizing the lifetime value of each customer to the firm.
• The vision involves acquiring and retaining strategically important customers and develop, communicate, and deliver value propositions that meet or exceed customer expectation.
• With this kind of vision, company can focus on developing the key asset of the enterprise that matters in long term.
2.2.2. Business and Customer Strategy
• The role of business strategy
Business strategy is a top management responsibility that involves identifying the future direction of the enterprise as well as managing the creative interaction of the functional disciplines of operations, marketing, finance and human resource
management.
It is both a process and a way of thinking which leads to the development of a set of strategies that assist the business in achieving its corporate objectives.
• Business vision
The process of business strategy formulation should commence with a review or articulation of a company’s vision. The business vision should explicitly reflect the basic beliefs, values and aspirations of the organization.
A business vision should be an enduring statement of purpose that distinguishes the organization from its competitors and it should act as an important device for coordinating activity in an organization. A company’s business vision should reflect
the shared value systems which are held within the organization
The questions and terms that can be use to build your business vision:
‣ What are we here for? – Purpose
‣ What is our long-term destination? – Vision
‣ What beliefs and behaviours will guide us on the journey? – Values.
• Analyzing the industry and competitive environment
A number of frameworks and conceptual models are especially help ful in both developing business strategy and assessing if it has been formulated with sufficient clarity and detail in the context of the competition.
There are three of the important frameworks for assessing the industry and competitive environment in order to develop an improved business strategy:
‣ the industry analysis model
‣ the generic strategies framework
‣ the market leaders framework
• The role of customer strategy
Customer strategy involves examining your existing and potential customers and identifying which forms of segmentation are most appropriate.
The organization needs to identify the characteristics of their customers and customer segments.
This may require analysis of a considerable number of customer data, which has significant
implications regarding the collection and organization of these data in appropriate data repositories, such as a data warehouse
• Customer choice and characteristics
This is a key principle of CRM. The aim of CRM is to build relationship strategies that refine and redefine relationships and in this way increase their value.
Creating competitive advantage through the skilful management of customer relationships will normally require a reappraisal of the way in which customers are approached and segmented and the way in which resources are allocated and used.
• Choosing spesific segments
‣ demographic profile: including age of household head, occupation,education, home ownership, number of full time wage earners in house hold, annual household income and net worth and average balances
‣ service penetration: by transaction accounts,regular savings accounts and time deposits. Details of credit services, credit cards used, trust-related services and electronic funds transfer services were included
‣ average dollars balances: by transactions accounts, savings accounts, time deposits, instalment credit and revolving lines of credit.
• Aligning business strategy and customer strategy
Alignment and integration of business strategy and customer strategy should be a high priority, especially where they are developed within different functions of the business.
2. Strategic CRM
2.2. Elements of a CRM Strategy
2.2.3. Integration and alignment of organizational processes
In the context of strategic CRM, the integration and alignment of organizational processes involve the
organization-wide creation and synchroniza tion of processes, systems, and reward systems that enable
the implementation of customer manage ment principles (Reinartz, Krafft, & Hoyer, 2004).
The integration and alignment of organizational processes also require the recognition that the value
provided to target customers constitutes the
driver of all processes (Kumar & Reinartz, 2016).
The following questions can help firms to assess the extent of integration and alignment of customer
centricity in its organizational processes:
‣ Does the company have a clear understanding of its customers’ desired value? Do its processes
produce this value?
‣ Are its various processes in the value chain synchronized to maximize value to the customer?
‣ Are the processes configured such that they ensure continuous improvement?
2. Strategic CRM
2.2. Elements of a CRM Strategy
2.2.4. Data and Technology Support
Successful CRM also involves collecting and analyze complex customer information
In order to support CRM activities, companies need specialized capabilities
to leverage data and turn it into actionable information (McKinsey, 2013)—a process that may sound
generic but is very hard to execute.
Data and technology can make customer management processes not only more efficient but also more
effective, for example by creating new processes and channels based on online and wireless applications.
Three questions can help reveal where a company’s position with respect to data and technology in
support of CRM activities:
‣ Does your organization harness the enabling capabilities of IT systems in terms of customer
management?
‣ How timely and relevant is the available customer information?
‣ Are you able to turn data about customers into information that can be acted on?
2. Strategic CRM
2.2. Elements of a CRM Strategy
2.2.5. CRM Implementation
Implementing CRM comprises several processes and activities, as cap tured in the CRM Implementation Matrix. This matrix
encompasses the vast scope of potential
activities and is structured along two key dimensions.
1. Customer dimension: Pertains to the chang ing phases of a customer–firm relationship (customer acquisition, growth,
retention, exit).
2. Management dimension: Activities and processes that constitute analytical CRM (i.e., to obtain a good understanding of
customer needs, behaviors, and expectations) and oper ational CRM (to roll out and manage interac tions with customers
across all demands).
Marketing-driven CRM implementation thus is characterized by:
‣ Activities and processes that constitute both analytical and operational CRM. They might include customer data collection,
satisfaction and loyalty metrics, customer needs analyses, relationship economics, or segmentation for example.
‣ Activities and processes that constitute operational CRM, such as value proposition management, campaign
management, channel management, referral management, and loyalty management.
‣ The firm’s ability to understand the value of the customer to the firm and varied needs of different customer
‣ An acquisition and retention process that con tinuously aligns the offering with customer needs and values.
‣ An ability to improve the company’s offer ings continually by learning about its customer
2. Strategic CRM
2.3. Developing a CRM strategy
2.3.1. Step 1: Gain enterprise wide commitment
2.3.2. Step 2: Build a CRM project team
2.3.3. Step 3: Analyze business requirement
2.3.4. Step 4: Define the CRM strategy
2. Strategic CRM
3. CRM and Customer
Service
3. CRM and Customer Service
3.1. What is Customer Service
3.2. Customer Service Communication Channels
3.3. Importance of Customer Feedback
3.4. Customer satisfaction measurement
3.5. Managing the customer experience
3.6. Customer service checklist for success
3.7. Customer service tools and application
3.1 & 3.2 Customer Service
Customer Service is the provision of service to customer before, during and after
a purchase.
Communication Channels
‣ Evolution of technology;
‣ Spread of mobile applications;
‣ Smart devices empowered customers with additional tools and resources they
can use to get the needed support from Customer Service.
3. CRM and Customer Service
3.3. Importance of Customer Feedback
‣ Find out customers’ needs
‣ Take better business decisions;
‣ Learn how customer rates your products vs. competitive products.
3. CRM and Customer Service
3.4. Customer satisfaction measurement
‣ Surveys: Model of Customer Satisfaction Questionnaire Development and Use
‣ Customer Satisfaction Score
‣ Net Promoter Score (NPS)
Promoters (score of 9 or 10) - loyal and enthusiastic customers.
Passives (score of 7 or 8) - satisfied with the service
Detractors (score of 0 to 6) - unhappy customers, unlikely to buy again
‣ Customer Effort Score (CES)
‣ Web-Analytics
‣ Social Media Metrics
3. CRM and Customer Service
3.5. Managing the customer experience
Customer experience is the cognitive and affective outcome of the customer’s exposure to, or interaction with, a
company’s people, processes, technologies, products, services and other outputs.
3.5.1. Customer Experience Concepts
Touchpoints - Web, social media channels, service centres, warehouses, events and more
Moments of truth (MOT) is any occasion the customer interacts with, or is exposed to, any organizational output
that leads to the formation of an impression of the organization.
3.5.2. How to manage customer experience?
Mystery shopping
Experience mapping
Ethnographic methods
Participant observation
3. CRM and Customer Service
3.6. Customer service checklist for success
1. Set clear service expectations.
2. Speak from the company’s voice.
3. Listen more than you talk.
4. Provide more than the customer
needs.
5. Respond as quickly as possible.
6. Put the customer first.
3. CRM and Customer Service
7. Learn everything about your
company’s products and services.
8. Match customer needs with
product solutions.
9. Create and follow the chain of
command.
10. Help your fellow teammates.
11. Remain calm during crises.
3.7. Customer service tools and application
3.7.1. Customer Service Technology
3.7.2. Technology Enablers
3.7.3. Customer Service Tools
Knowledge Management
Agent productivity solutions:
- Case management software
- Interaction analytics tools
Voice of the customer:
- Enterprise feedback management systems
- Social Listening platforms
3.7.4. Customer Service Software
3. CRM and Customer Service
4. Operational CRM
4.1. Loyalty programs: Design and Effectiveness
Loyalty Program: marketing process that generates rewards for customers, based on their repeat purchases or engagement with the
brand.
1. Building true (attitudinal and behavioral) loyalty
2. Efficiency profits
3. Effectiveness profits
4. Value alignment
2 Types of Loyalty
- Behavioral loyalty refers to the observed actions that customers have demonstrated toward a particular product or service.
- Attitudinal loyalty instead refers to a customer’s perceptions and attitudes toward a particular product or service.
4. Operational CRM
4.1. Loyalty programs: Design and Effectiveness
Loyalty Effectiveness
LP design characteristics:
- Customer
- Firm
- Market
Ensure success based on:
• Clear goals, aligned design, cost
management, measure the
predicted benefits
4. Operational CRM
4.2. Campaign Management
A campaign is a series of
interconnected promotional efforts
designed to achieve precise
marketing goals.
How to develop a campaign:
1. Set objectives
2. Identify customer segments
3. Communication strategy
4. Develop offer
5. Budgeting
6. Testing
7. Execution
8. Feedback
4. Operational CRM
4.3. CRM in the Business to Business Context
Sales Force Automation
The application of computerized technologies to support salesperson and sales management in
the achievement of their objectives.
Ex: Internet, email programs, graphics and presentation software, laptops.
Key Account Management
Relationship-oriented and aim to create long-term customer relationships.
4. Operational CRM
4.4. CRM in Social media
1. Blogs
2. E-mail
3. Social Networking Platforms
4. Podcast and Internet Radio
4. Operational CRM
Steps to Social Media Campaign
5. Analytical CRM
6. CRM Implementation
6.1. Types of CRM Implementation Projects
The implementation of the CRM strategy is a process of planning and executing a series of small
CRM projects, Three categories:
1. Operational CRM projects:
To meet technical and functional requirements of CRM strategy.
2. Analytical CRM projects:
Understanding customer's needs, expectations, and behaviors.
3. Application projects:
Deploying operational and analytical outputs, improve marketing decisions and customer
relationships.
6. CRM Implementation
6.2. CRM Implementation Effectiveness
ROI(%) = Profits/Investment x 100%
Direct benefit:
Lower customer acquisition costs,
lower costs-to serve, higher average
transaction margin, or customer value.
Indirect benefit:
Customer retention
6. CRM Implementation
6.3. Build CRM Project Foundations
● Establish governance structures
● Identify change management needs
● Identify project or programme management needs
● Identify critical success factors
● Develop risk management plan
6. CRM Implementation
6.4 Needs specification and partner selection
● Process Engineering
● Data Review and Gap Analysis
● Initial Technology Needs Specification and
Research Alternative Solutions
6. CRM Implementation
6.1. Types of CRM Implementation Projects
1. Blogs
2. E-mail
3. Social Networking Platforms
4. Podcast and Internet Radio
6. CRM Implementation
Steps to Social Media Campaign
6.1. Types of CRM Implementation Projects
1. Blogs
2. E-mail
3. Social Networking Platforms
4. Podcast and Internet Radio
6. CRM Implementation
Steps to Social Media Campaign
7. The CRM Performance
Assessment Process
8. Future of CRM
Customer Relationship Management  (CRM).pptx

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Customer Relationship Management (CRM).pptx

  • 2. Table of Contents 1. Introduction to CRM 2. Strategic CRM 3. CRM and Customer Service 4. Operational CRM 5. Analytical CRM 6. CRM Implementation 7. The CRM Performance Assessment Process 8. Future of CRM
  • 4. 1.1. Definitions of CRM 1. CRM is an information industry term for methodologies, software and usually internet capabilities that help an enterprise manage customer relationship in an organized way. 2. CRM is the process of managing all aspects of interaction a company has with its customers, including prospecting, sales and service. CRM applications attempt to provide insight into and improve the company/customer relationship by combining all these views of customer interaction into one picture." 3. CRM is an integrated approach to identifying, acquiring and retaining customers. By enabling organizations to manage and coordinate customer interactions across multiple channels, departments, lines of business and geographies, CRM helps organizations maximize the value of every customer interaction and drive superior corporate performance. 4. CRM is an integrated information system that is used to plan, schedule and control the pre-sales and post- sales activities in an organization. CRM embraces all aspects of dealing with prospects and customers, including the call centre, sales force, marketing, technical support and field service. The primary goal of CRM is to improve long-term growth and profitability through a better understanding of customer behaviour. CRM aims to provide more effective feedback and improved integration to better gauge the return on investment (ROI) in these areas. 5. CRM is a business strategy that maximizes profitability, revenue and customer satisfaction by organizing around customer segments, fostering behaviour that satisfies customers, and implementing customer-centric processes. 1. Introduction to CRM
  • 5. 1.2 The function of CRM A. Sales Force Automation B. Marketing Automation C. Customer Service Automation 1. Introduction to CRM
  • 6. 1.2 The function of CRM A. Sales Force Automation Sales are crucial to the success of every business and the best way to stay ahead of your competitors is to leverage sales management. In some instances, business owners sell their product and in others, they barter their services. Hence, the core idea behind every business today is to make sales. • Improve Sales Management Understanding the key role of sales for every business is difficult without a sales tracking software. CRM software offers sales force automation systems to improve sales strategies and helps boost the potential of Sales Professionals by facilitating them in identifying their opportunities. • Accurate Forecasting & Reporting Another glory of this system is the forecasting functionality that helps sales directors to generate accurate and timely forecast reports. These reports fuel informed decision-making and help manage quota performance across teams and territories. • Contact Management With the use of sales force automation, sales personnel can expeditiously manage their contacts, accounts, pipelines, and other related activities. Along with being a contact management software, sales force automation in CRM will allow you to seamlessly manage your relationship with your customers. It will also help to engage customers better and improve customer retention rates. 1. Introduction to CRM
  • 7. 1.2 The function of CRM A. Sales Force Automation • Activity Management A sales force automation system entangles a lot of meaningful functionalities such as activity management, alerts and notifications, opportunity management and task management, etc. Activity Management lets you control all the activities taking place in your organization. Moreover, the Alerts and Notification feature notifies you when a task gets completed or anything else that you want to be notified about. • Opportunity Management Many companies are closing more deals and seeing a growth in their revenues with sales pipeline software. But, with a CRM platform, you can do a lot more! Opportunity Management in CRM gives you an opportunity to follow a lead that you can turn into a sale won. Moreover, it allows you to streamline the sales pipeline and keep track of a lead until the closing stage, making CRM the best sales management software. • Task Management Task Management enables you to manage all the tasks in your organization without ever having to leave your seat. So, boost your team productivity by keeping track of all activities and setting reminders, so you don’t miss a deadline. 1. Introduction to CRM
  • 8. 1.2 The function of CRM B. Marketing Automation Organizations invest heavily in marketing automation in order to supercharge their operational efficiency and to grow revenue. Supporting the magical influence of marketing, CRM offers a functionality called Marketing Automation. • Customer Journey Automation Marketing automation is a handy tool that helps you take your marketing efforts to the next level while saving your resources in the long run and also assists you in nurturing leads through proficient automated campaigns. These campaigns drastically enhance Customer Engagement in a cost-effective manner, helping you grow. Hence, with customer journey automation, you won’t miss any customer touchpoint and deliver meaningful customer experiences. • Marketing Funnel Automation Incorporating robust business strategies, efficacious marketing processes, and dynamic automation technologies, marketing funnel automation in CRM helps businesses with lead acquisition, lead scoring, lead nurturing, and lead assignment. The feature works closely with Sales Force Automation to ensure that leads are effectively passed between marketing and sales departments. 1. Introduction to CRM
  • 9. 1.2 The function of CRM B. Marketing Automation • Marketing Campaign Automation To cater to the basic marketing needs of a business, CRM’s marketing automation allows entrepreneurs to develop, launch, and track campaigns and other marketing offers to customers. The big umbrella of marketing automation entangles bulk modern marketing practices in marketing campaign automation such as lead generation, segmentation, cross-selling and up-selling, ROI analysis, etc. • Automated Email Marketing Featuring Email Marketing, newsletter based campaigns, and non-email-based campaigns such as SMS campaigns and conference call campaigns, etc. automated email marketing solution of CRM enables business owners to adopt fully optimized technology that can lessen the burden on the staff and increase profits. 1. Introduction to CRM
  • 10. 1.2 The function of CRM C. Customer Service Automation One of the chores considered most hectic in every business is customer service, but it is no longer something that the companies can flaunt. Customer service has become a mandatory part of businesses in this modern world. Now that people have a number of choices available and the authority to choose anything that pleases them in terms of product quality or customer experience, customer support have proved to be a game-changer. • Personalized Customer Experiences Reducing the tedious aspects of it, CRM software automates the customer service process and delivers automated services that help entrepreneurs and marketers distinguish their products or services through personalized communication with their clients in this challenging business environment. • Customer Contact Management Customer service automation is the key to enhancing a corporation’s profitability. The core philosophy of this customer-centric feature is to create and enhance relationships with customers. For this purpose, a consolidated knowledge base of support information is created in CRM that enables customer service representatives to ameliorate customer satisfaction levels with the timely delivery of accurate services. 1. Introduction to CRM
  • 11. 1.2 The function of CRM C. Customer Service Automation • Improve Customer Relationships Using CRM’s customer service automation, one can easily improve customer relationships. CRM supports trouble ticketing, management of interaction history and escalations, customer case tracking, management of product problems, responding to customer inquiries, and sharing customer service information across the entire organization. Moreover, it facilitates the automation of service scheduling and adjustment of resource assignments in real-time to meet high priority requests. Being an end-to-end customer service solution, CRM becomes the best customer service software. 1. Introduction to CRM
  • 12. 1.3. Types of CRM 1. Strategic CRM: Strategic CRM is a core customer-centric business strategy that aims at winning and keeping profitable customers. 1. Operational CRM: Operational CRM focuses on the automation of customer-facing processes such as selling, marketing and customer service. 1. Analytical CRM: Analytical CRM is the process through which organizations transform customer- related data into actionable insight for either strategic or tactical purposes. 1. Introduction to CRM
  • 13. 1.4. Models of CRM 1. The IDIC model 2. The CRM Value Chain 3. Payne and Frow's 5 process model 4. The Gartner competency model 1. Introduction to CRM
  • 14. 1.4. Models of CRM 1. The IDIC model The IDIC model was developed by Don Peppers and Martha Rogers, of the Peppers & Rogers Group, and has featured in a number of their books.20 The IDIC model suggests that companies should take four actions in order to build closer one-to-one relationships with customers: > Identify who your customers are and build a deep understanding of them. > Differentiate your customers to identify which customers have most value now and which offer most for the future. > Interact with customers to ensure that you understand customer expectations and their relationships with other suppliers or brands. > Customize the offer and communications to ensure that the expectations of customers are met. 1. Introduction to CRM
  • 15. 1.4. Models of CRM 2. The CRM Value Chain Francis Buttle's model, consists of five primary stages and four supporting conditions leading towards the end goal of enhanced customer profitablity. "The primary stages of customer portfolio analysis, customer intimacy, network development, value proposition development and managing the customer lifecycle are sequenced to ensure that a company, with the support of its network of suppliers, partners and employees, creates and delivers value propositions that acquire and retain profitable customers. The supporting conditions of leadership and culture, data and IT, people and processes enable the CRM strategy to function effectively and efficiently." 1. Introduction to CRM
  • 16. 1.4. Models of CRM 2. The CRM Value Chain 1. Introduction to CRM
  • 17. 1.4. Models of CRM 3. Payne and Frow's 5 process model This model clearly identifies five core processes in CRM: the strategy development process,the value creation process, the multi-channel integration process, the performance assessment process and the information management process. The first two represent strategic CRM; the multi-channel integration process represents operational CRM; the information management process is analytical CRM. 1. Introduction to CRM
  • 18. 1.4. Models of CRM 3. Payne and Frow's 5 process model 1. Introduction to CRM
  • 19. 1.4. Models of CRM 4. The Gartner competency model The model suggests that companies need competencies in eight areas for CRM to be successful. These include building a CRM vision, developing CRM strategies, designing valued customer experiences, intra and extra organizational collaboration, managing customer lifecycle processes, information management, technology implementation and developing measures indicates of CRM success or failure. 1. Introduction to CRM
  • 20. 1.4. Models of CRM 4. The Gartner competency model 1. Introduction to CRM
  • 21. 1.5. Evolution and Growth of CRM 1.5.1. First Function (Functional CRM) 1.5.2. Second Generation (Customer Facing Front End Approach) 1.5.3. Third Generation (Strategic Approach) 1.5.4. Fourth Generation (Agile and Flexible Strategic CRM) 1.5.5. Fifth Generation (Social CRM) 1. Introduction to CRM
  • 22. 1.5. Evolution and Growth of CRM 1.5.1. First Function (Functional CRM) The collection of activities that later took on the umbrella acronym CRM originally developed as two independent product offerings: 1. Sales force automation (SFA): These products addressed pre sales functions such as maintaining prospect and customer data, telemarketing, generating leads, creating sales quotes, and placing sales orders. 2. Customer service and support (CSS): This function addressed mainly after-sales activities, such as help desks, contact and call centers, and field service support. The CSS databases often worked with specific customer information, isolated from other systems. Although fragmented and poorly integrated with the back office, early SFA/CSS applications delivered the promise of sales and service improvements, though their combined market niche remained small. The market for enterprise resource planning (ERP)—a tool designed to integrate all company departments and functions within a single computer system that served every department’s needs—instead was growing. 1. Introduction to CRM
  • 23. 1.5. Evolution and Growth of CRM 1.5.1. First Function (Functional CRM) 1. Introduction to CRM
  • 24. 1.5. Evolution and Growth of CRM 1.5.2. Second Generation (Customer Facing Front End Approach) "Innovations in CRM during the 1990s matched those of ERP, including the integration of differ ent independent subsystems into one package. CRM technology was expected to fill the gaps left by ERP functionality and address the business needs of the company’s customer-facing front end. The goal was to create a single view of all inter actions with customers, independent of the pur pose of that contact (e.g., pre-sales, sales transaction, post-sales service) or its means (e.g., telephone, e-mail, Internet). For the most part, this goal was not achieved during the 1990s, leading to increasing disillusionment with CRM technology and implementations. Customer expectations in this period far exceeded the realized benefits of CRM technology. Industry observers began talk ing about the demise of CRM. Even as the Internet fuelled new expectations, it became clear that rev enue increases through technology were difficult to implement, realize, and measure, without a more strategic understanding of the process" 1. Introduction to CRM
  • 25. 1.5. Evolution and Growth of CRM 1.5.2. Second Generation (Customer Facing Front End Approach) 1. Introduction to CRM
  • 26. 1.5. Evolution and Growth of CRM 1.5.3. Third Generation (Strategic Approach) The integration of the Internet technology helped to boost CRM. Many organizations realized that they could benefit by adopting a strategic CRM approach rather than blindly implementing technology-based solutions. Companies recognized the eventual goal of CRM: to grow revenue, not just control costs. 1. Introduction to CRM
  • 27. 1.5. Evolution and Growth of CRM 1.5.4. Fourth Generation (Agile and Flexible Strategic CRM) Strategic CRM is widely accepted and established as an essential element of the market ing strategy, and an ever-increasing number of small and medium-sized companies adopt this management tool and its corresponding technol ogies to drive their business. Agility, flexibility, and low fixed costs are key. The emergence of social media and increased self-service, as well as the growing prevalence of web-based services, mean that customer empowerment is an emerg ing topic. In particular, CRM technology on a pay-per-use basis can provide on-demand functionality. 1. Introduction to CRM
  • 28. 1.5. Evolution and Growth of CRM 1.5.5. Fifth Generation (Social CRM) The development of the new technological advances and the unprecedented reach of social media gave rise to the fifth generation of CRM. Social CRM is characterized by the engagement of the customer through the integration of the web 2.0 and social media and by the use of data driven insights to optimize the overall customer experience. Companies encourage active customer participation online, while they use software applications to track real time social data. This information enables companies to offer relevant content and personalized messages to specific customers and to improve the customer experience at each touchpoint along the customer journey. Additionally, the combination of data across different social media platforms allows companies to determine the customer value not only based on profitability but also based on their online behavior in terms of referrals, knowledge dispersion and influencing other members of the social media community. 1. Introduction to CRM
  • 29. 1.6. Concept of Customer Value 1.6.1. Value to the Customer 1.6.2. Value to the Company 1. Introduction to CRM
  • 30. 1.6. Concept of Customer Value 1.6.1. Value to the Customer A company’s very existence is based on the premise that it creates value for its customers – regardless of whether in terms of a good or a service, an end product or an input factor, and whether in a B2B or B2C setting. "Consequently, creating and sustaining value for customers is at the heart of business in general and marketing and CRM specifically as they are the vehicles through which companies can deliver value to its customers." "A key component of CRM and its application is its direct and two-sided interaction with customers through a variety of touchpoints. Hence, a core function and capability of CRM is its ability to influence a customer’s perceived value of the company’s offering. In summary, strategically employed CRM can improve customers’ perception of an offering and meet the demand for solutions to customer specific needs" 1. Introduction to CRM
  • 31. 1.6. Concept of Customer Value 1.6.2. Value to the Company From Value for Customers to Value from Customers: The Satisfaction-Loyalty-Profit Chain The key underlying idea is that improving product and service attributes will lead to an improvement in customer satisfaction. Increased customer satisfaction, i.e. increased value for the customer is expected to lead to greater customer retention, which is often used as a proxy for customer loyalty, which then is expected to lead to greater profitability or value from the customer Under which circumstances increased customer satisfaction may improve a firm’s customer retention rate and how increased retention rates, in turn, may lead to higher profits. 1. Introduction to CRM
  • 32. 1.6. Concept of Customer Value 1.6.2. Value to the Company The Level of Analysis 1. Introduction to CRM
  • 33. 1.6. Concept of Customer Value 1.6.2. Value to the Company The Direct Link Between Customer Satisfaction and Profits The direct link between customer satisfaction and profits suggests that as customers experience greater satisfaction with a firm’s offering, profits rise. The Link Between Satisfaction and Retention The Link Between Loyalty and Profits 1. Introduction to CRM
  • 35. 2.1. CRM Perspectives Three perspectives of CRM 1. Functional level: If viewed from a functional perspective, CRM refers to the set of processes that must be in place to execute customer related tasks, such as sales force automation or online campaign management. This CRM perspective is often combined with a strong technology orientation that arises when vendors need to position their particular product. For some vendors or buyers, functional CRM is nearly synonymous with technology. 2. Customer-facing front-end level: In contrast, from the customer-facing perspective, CRM is a set of activities that provides a single view of the customer across all contact channels. This type of CRM evolves from practitioners’ need to manage different channels consistently in order to focus on the total customer experience. The goal is to build a single view of the customer across all contact channels and to distribute customer intelligence to all customer- facing functions (marketing, sales, service, etc.) 3. Company-wide level: If CRM is viewed from a company-wide level perspective, the primary objective is to uncouple the term «CRM» from any technology underpinnings and from specific customer management techniques. Instead, this perspective views CRM as a strategic orientation to implement customer centricity within the entire organization and create shareholder value. 2. Strategic CRM
  • 36. 2.2. Elements of a CRM Strategy 2.2.1. CRM Vision • Any initiative around CRM should be based on a clear vision of what the company aims to achieve with their customer relationship management efforts. • An essential component of the CRM vision should focus on the customer value. • The CRM vision is to build an organization in a manner that all actions are geared towards maximizing the lifetime value of each customer to the firm. • The vision involves acquiring and retaining strategically important customers and develop, communicate, and deliver value propositions that meet or exceed customer expectation. • With this kind of vision, company can focus on developing the key asset of the enterprise that matters in long term. 2.2.2. Business and Customer Strategy • The role of business strategy Business strategy is a top management responsibility that involves identifying the future direction of the enterprise as well as managing the creative interaction of the functional disciplines of operations, marketing, finance and human resource management. It is both a process and a way of thinking which leads to the development of a set of strategies that assist the business in achieving its corporate objectives. • Business vision The process of business strategy formulation should commence with a review or articulation of a company’s vision. The business vision should explicitly reflect the basic beliefs, values and aspirations of the organization. A business vision should be an enduring statement of purpose that distinguishes the organization from its competitors and it should act as an important device for coordinating activity in an organization. A company’s business vision should reflect the shared value systems which are held within the organization The questions and terms that can be use to build your business vision: ‣ What are we here for? – Purpose ‣ What is our long-term destination? – Vision ‣ What beliefs and behaviours will guide us on the journey? – Values. • Analyzing the industry and competitive environment A number of frameworks and conceptual models are especially help ful in both developing business strategy and assessing if it has been formulated with sufficient clarity and detail in the context of the competition. There are three of the important frameworks for assessing the industry and competitive environment in order to develop an improved business strategy: ‣ the industry analysis model ‣ the generic strategies framework ‣ the market leaders framework • The role of customer strategy Customer strategy involves examining your existing and potential customers and identifying which forms of segmentation are most appropriate. The organization needs to identify the characteristics of their customers and customer segments. This may require analysis of a considerable number of customer data, which has significant implications regarding the collection and organization of these data in appropriate data repositories, such as a data warehouse • Customer choice and characteristics This is a key principle of CRM. The aim of CRM is to build relationship strategies that refine and redefine relationships and in this way increase their value. Creating competitive advantage through the skilful management of customer relationships will normally require a reappraisal of the way in which customers are approached and segmented and the way in which resources are allocated and used. • Choosing spesific segments ‣ demographic profile: including age of household head, occupation,education, home ownership, number of full time wage earners in house hold, annual household income and net worth and average balances ‣ service penetration: by transaction accounts,regular savings accounts and time deposits. Details of credit services, credit cards used, trust-related services and electronic funds transfer services were included ‣ average dollars balances: by transactions accounts, savings accounts, time deposits, instalment credit and revolving lines of credit. • Aligning business strategy and customer strategy Alignment and integration of business strategy and customer strategy should be a high priority, especially where they are developed within different functions of the business. 2. Strategic CRM
  • 37. 2.2. Elements of a CRM Strategy 2.2.3. Integration and alignment of organizational processes In the context of strategic CRM, the integration and alignment of organizational processes involve the organization-wide creation and synchroniza tion of processes, systems, and reward systems that enable the implementation of customer manage ment principles (Reinartz, Krafft, & Hoyer, 2004). The integration and alignment of organizational processes also require the recognition that the value provided to target customers constitutes the driver of all processes (Kumar & Reinartz, 2016). The following questions can help firms to assess the extent of integration and alignment of customer centricity in its organizational processes: ‣ Does the company have a clear understanding of its customers’ desired value? Do its processes produce this value? ‣ Are its various processes in the value chain synchronized to maximize value to the customer? ‣ Are the processes configured such that they ensure continuous improvement? 2. Strategic CRM
  • 38. 2.2. Elements of a CRM Strategy 2.2.4. Data and Technology Support Successful CRM also involves collecting and analyze complex customer information In order to support CRM activities, companies need specialized capabilities to leverage data and turn it into actionable information (McKinsey, 2013)—a process that may sound generic but is very hard to execute. Data and technology can make customer management processes not only more efficient but also more effective, for example by creating new processes and channels based on online and wireless applications. Three questions can help reveal where a company’s position with respect to data and technology in support of CRM activities: ‣ Does your organization harness the enabling capabilities of IT systems in terms of customer management? ‣ How timely and relevant is the available customer information? ‣ Are you able to turn data about customers into information that can be acted on? 2. Strategic CRM
  • 39. 2.2. Elements of a CRM Strategy 2.2.5. CRM Implementation Implementing CRM comprises several processes and activities, as cap tured in the CRM Implementation Matrix. This matrix encompasses the vast scope of potential activities and is structured along two key dimensions. 1. Customer dimension: Pertains to the chang ing phases of a customer–firm relationship (customer acquisition, growth, retention, exit). 2. Management dimension: Activities and processes that constitute analytical CRM (i.e., to obtain a good understanding of customer needs, behaviors, and expectations) and oper ational CRM (to roll out and manage interac tions with customers across all demands). Marketing-driven CRM implementation thus is characterized by: ‣ Activities and processes that constitute both analytical and operational CRM. They might include customer data collection, satisfaction and loyalty metrics, customer needs analyses, relationship economics, or segmentation for example. ‣ Activities and processes that constitute operational CRM, such as value proposition management, campaign management, channel management, referral management, and loyalty management. ‣ The firm’s ability to understand the value of the customer to the firm and varied needs of different customer ‣ An acquisition and retention process that con tinuously aligns the offering with customer needs and values. ‣ An ability to improve the company’s offer ings continually by learning about its customer 2. Strategic CRM
  • 40. 2.3. Developing a CRM strategy 2.3.1. Step 1: Gain enterprise wide commitment 2.3.2. Step 2: Build a CRM project team 2.3.3. Step 3: Analyze business requirement 2.3.4. Step 4: Define the CRM strategy 2. Strategic CRM
  • 41. 3. CRM and Customer Service
  • 42. 3. CRM and Customer Service 3.1. What is Customer Service 3.2. Customer Service Communication Channels 3.3. Importance of Customer Feedback 3.4. Customer satisfaction measurement 3.5. Managing the customer experience 3.6. Customer service checklist for success 3.7. Customer service tools and application
  • 43. 3.1 & 3.2 Customer Service Customer Service is the provision of service to customer before, during and after a purchase. Communication Channels ‣ Evolution of technology; ‣ Spread of mobile applications; ‣ Smart devices empowered customers with additional tools and resources they can use to get the needed support from Customer Service. 3. CRM and Customer Service
  • 44. 3.3. Importance of Customer Feedback ‣ Find out customers’ needs ‣ Take better business decisions; ‣ Learn how customer rates your products vs. competitive products. 3. CRM and Customer Service
  • 45. 3.4. Customer satisfaction measurement ‣ Surveys: Model of Customer Satisfaction Questionnaire Development and Use ‣ Customer Satisfaction Score ‣ Net Promoter Score (NPS) Promoters (score of 9 or 10) - loyal and enthusiastic customers. Passives (score of 7 or 8) - satisfied with the service Detractors (score of 0 to 6) - unhappy customers, unlikely to buy again ‣ Customer Effort Score (CES) ‣ Web-Analytics ‣ Social Media Metrics 3. CRM and Customer Service
  • 46. 3.5. Managing the customer experience Customer experience is the cognitive and affective outcome of the customer’s exposure to, or interaction with, a company’s people, processes, technologies, products, services and other outputs. 3.5.1. Customer Experience Concepts Touchpoints - Web, social media channels, service centres, warehouses, events and more Moments of truth (MOT) is any occasion the customer interacts with, or is exposed to, any organizational output that leads to the formation of an impression of the organization. 3.5.2. How to manage customer experience? Mystery shopping Experience mapping Ethnographic methods Participant observation 3. CRM and Customer Service
  • 47. 3.6. Customer service checklist for success 1. Set clear service expectations. 2. Speak from the company’s voice. 3. Listen more than you talk. 4. Provide more than the customer needs. 5. Respond as quickly as possible. 6. Put the customer first. 3. CRM and Customer Service 7. Learn everything about your company’s products and services. 8. Match customer needs with product solutions. 9. Create and follow the chain of command. 10. Help your fellow teammates. 11. Remain calm during crises.
  • 48. 3.7. Customer service tools and application 3.7.1. Customer Service Technology 3.7.2. Technology Enablers 3.7.3. Customer Service Tools Knowledge Management Agent productivity solutions: - Case management software - Interaction analytics tools Voice of the customer: - Enterprise feedback management systems - Social Listening platforms 3.7.4. Customer Service Software 3. CRM and Customer Service
  • 50. 4.1. Loyalty programs: Design and Effectiveness Loyalty Program: marketing process that generates rewards for customers, based on their repeat purchases or engagement with the brand. 1. Building true (attitudinal and behavioral) loyalty 2. Efficiency profits 3. Effectiveness profits 4. Value alignment 2 Types of Loyalty - Behavioral loyalty refers to the observed actions that customers have demonstrated toward a particular product or service. - Attitudinal loyalty instead refers to a customer’s perceptions and attitudes toward a particular product or service. 4. Operational CRM
  • 51. 4.1. Loyalty programs: Design and Effectiveness Loyalty Effectiveness LP design characteristics: - Customer - Firm - Market Ensure success based on: • Clear goals, aligned design, cost management, measure the predicted benefits 4. Operational CRM
  • 52. 4.2. Campaign Management A campaign is a series of interconnected promotional efforts designed to achieve precise marketing goals. How to develop a campaign: 1. Set objectives 2. Identify customer segments 3. Communication strategy 4. Develop offer 5. Budgeting 6. Testing 7. Execution 8. Feedback 4. Operational CRM
  • 53. 4.3. CRM in the Business to Business Context Sales Force Automation The application of computerized technologies to support salesperson and sales management in the achievement of their objectives. Ex: Internet, email programs, graphics and presentation software, laptops. Key Account Management Relationship-oriented and aim to create long-term customer relationships. 4. Operational CRM
  • 54. 4.4. CRM in Social media 1. Blogs 2. E-mail 3. Social Networking Platforms 4. Podcast and Internet Radio 4. Operational CRM Steps to Social Media Campaign
  • 57. 6.1. Types of CRM Implementation Projects The implementation of the CRM strategy is a process of planning and executing a series of small CRM projects, Three categories: 1. Operational CRM projects: To meet technical and functional requirements of CRM strategy. 2. Analytical CRM projects: Understanding customer's needs, expectations, and behaviors. 3. Application projects: Deploying operational and analytical outputs, improve marketing decisions and customer relationships. 6. CRM Implementation
  • 58. 6.2. CRM Implementation Effectiveness ROI(%) = Profits/Investment x 100% Direct benefit: Lower customer acquisition costs, lower costs-to serve, higher average transaction margin, or customer value. Indirect benefit: Customer retention 6. CRM Implementation
  • 59. 6.3. Build CRM Project Foundations ● Establish governance structures ● Identify change management needs ● Identify project or programme management needs ● Identify critical success factors ● Develop risk management plan 6. CRM Implementation
  • 60. 6.4 Needs specification and partner selection ● Process Engineering ● Data Review and Gap Analysis ● Initial Technology Needs Specification and Research Alternative Solutions 6. CRM Implementation
  • 61. 6.1. Types of CRM Implementation Projects 1. Blogs 2. E-mail 3. Social Networking Platforms 4. Podcast and Internet Radio 6. CRM Implementation Steps to Social Media Campaign
  • 62. 6.1. Types of CRM Implementation Projects 1. Blogs 2. E-mail 3. Social Networking Platforms 4. Podcast and Internet Radio 6. CRM Implementation Steps to Social Media Campaign
  • 63. 7. The CRM Performance Assessment Process