Session 3.crm strategy analytical


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Session 3.crm strategy analytical

  1. 1. Chapter 1customer relationship management
  2. 2. By the of this chapter, you will be aware of:1. Four major perspectives on CRM: strategic, operational, analytical and collaborative2. Several common misunderstandings about CRM3. A definition of CRM4. The six constituencies having an interest in CRM5. How important CRM issues vary across industries6. Five generic models of CRM 2
  3. 3. Introduction The expression customer relationship management (CRM) hasonly been in use since the early 1990s. Information technology (IT) companies have tended to usethe term CRM to describe the software applications that automatethe marketing, selling and service function of businesses. 3
  4. 4. Strategic CRMStrategic CRM is focused upon the developmentof a customer-centric business culture. This culture isdedicated to winning and keeping customers bycreating and delivering value better than competitors. Many business claim to be customer-centric,customer-led, customer-focused or customer oriented,but few are. 4
  5. 5. Strategic CRMCustomer-centricity competes with other business logics.Philip Kotler identifies three other major business orientation:Product-oriented business believe that customer chooseproducts with the best quality, performance, design or features.Production-oriented business believe that customer choose low-price products. Consequently, these business strive to keepoperating costs low, and develop low-cost routes to market. 5
  6. 6. Strategic CRMSale-oriented business make the assumption that if they investenough in advertising, selling, public relations (PR) and salespromotion, customers will be persuaded to buy.A customer or market-oriented company shares a set of beliefsabout putting the customer first. It collects, disseminates anduses customer and competitive information to develop bettervalue propositions for customers. 6
  7. 7. Operational CRMOperational CRM automaters and improves customer-facing andcustomer-supporting business processes. CRM softwareapplications enable the marketing, selling and service functionsto be automated and integrated.Marketing automationMarketing automation (MA) applies technology to marketingprocesses. 7
  8. 8. Operational CRMSale-force automationSale-force automation (SFA) was the original form of operationalCRM. SFA system are now widely adopted in business-to-business environments and are seen as a competitive imperativethat offers competitive parity. Sale-force automation software enables companiesautomatically to assign leads and track opportunities as theyprogress through the sales and pipeline towards closure. 8
  9. 9. Operational CRMService automationService automation allows companies to manage their serviceoperation whether delivered through call centre, contact centre,web or face-to-face. CRM software enables companies tohandle and coordinate their service-related inbound andoutbound communications across all channels. Service automation differs significantly depending on theproduct being serviced. 9
  10. 10. Analytical CRMAnalytical CRM is concerned with capturing, storing, extracting,integrating, processing, interpreting, distributing, using andreporting customer-related data to enhance both customer andcompany value.Analytical CRM is has become an essential part of many CRMimplementations.Analytical CRM can lead companies to decide that selling approaches should differ between customer group. 10
  11. 11. Analytical CRMAnalytical CRM can lead companies to decide that sellingapproaches should differ between customer group. From the customer’s point of view , analytical CRM candeliver timely, customized, solutions to the customer’s problem,thereby enhancing customer satisfaction. From the company’s point of view, analytical CRM offers theprospect of more effective customer retention and customeracquisition programmes. 11
  12. 12. Collaborative CRMCollaborative CRM is the term used to describe the strategic andtactical alignment of normally separate enterprises in supplyChain for the more profitable identification, attraction, retentionand development of customers. Some CRM technology vendors have developed partnerrelationship management (PRM) applications that enablecompanies to manage complex partner or channel ecosystemand reduce the costs of partner or channel management. PRMapplications are often used to manage partner promotions. 12
  13. 13. Misunderstandings about CRMMisunderstanding 1: CRM is database marketingMisunderstanding 2: CRM is marketing processMisunderstanding 3: CRM is an IT issueMisunderstanding 4: CRM is about loyalty schemesMisunderstanding 5: CRM can be implemented by any company 13
  14. 14. Defining CRM CRM is the core business strategy that integratesIntegrates internal processes and function, and externalnetwork, to create and deliver value to targetedcustomers at a profit. It is grounded on high qualitycustomer-related data and enabled by informationtechnology. 14
  15. 15. CRM constituenciesThere are several important constituencies having aninterest in CRM:1. Companies implementing CRM :many companies have implemented CRM.2. Customers and partners of those companies3. Vendors of CRM software: such as Oracle, SAP, SAS, KANA, Microsoft and StayinFront. 15
  16. 16. CRM constituencies4. CRM application service providers (ASPs):5. Vendors of CRM hardware and infrastructure:6. Management consultants: 16
  17. 17. Commercial contexts of CRM Banks Automobile manufacturers High-tech companies Consumer goods manufacturers 17
  18. 18. The not-for-profit contextMost of this chapter has been concerned with CRM inthe for-profit context. CRM can also be found in thenot-for-profit context. Universities have deployed CRM to manage theirstudent and alumni relationships. For example,students who enjoy their experiences at a graduateschool of business may return there for executiveeducation. 18
  19. 19. Models of CRMA number of comprehensive CRM models have been developed.We introduce five of them here.1. The IDIC modelThe IDIC model suggests that companies should take four actionsin order to build closer one-to-one relationships with customers: identify differentiate interact customize 19
  20. 20. Models of CRM2. The QCi model 20
  21. 21. Models of CRM3. The CRM value chain 21
  22. 22. Models of CRM4. Payne’s five-process model 22
  23. 23. Models of CRM5. The Gartner competency model 23