Crm objectives


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Crm objectives

  1. 1. Customer Relationship Management <ul><li>“ Process of creating and maintaining relationships with business customers or consumers” </li></ul><ul><li>“ A holistic process of identifying, attracting, differentiating, and retaining customers” </li></ul><ul><li>“ Integrating the firm’s value chain to create enhanced customer value at every step” </li></ul><ul><li>“ An integrated cross-functional focus on improving customer retention and profitability for the company.” </li></ul>
  2. 2. Customer Relationship Management <ul><li>Bottom-line: </li></ul><ul><li>The use of information-enabled systems for enhancing individual customer relationships to ensure long-term customer loyalty and retention </li></ul>
  3. 3. CRM Objectives <ul><li>Lifetime Value (LTV) </li></ul><ul><ul><li>Refers to the net present value of the potential revenue stream for any particular customer over a # of years </li></ul></ul><ul><ul><li>Starts with current purchase activity then extrapolates to include potential additions from cross-selling, upgrades, total ownership, etc. </li></ul></ul><ul><li>Customer Ownership </li></ul><ul><ul><li>Attempts to “own” the lionshare of customer spending and/or “share of mind” in a particular product category </li></ul></ul><ul><ul><li>Building brand equity, maintaining vigilant customer contact, keeping current with the market trends is critical </li></ul></ul><ul><ul><li>5% points increase in customer retention=20-125% increase in profit </li></ul></ul>
  4. 4. Is CRM New? <ul><li>No ! </li></ul><ul><li>Simply an extension of relationship marketing </li></ul><ul><li>Builds on customer service and satisfaction concepts </li></ul><ul><li>Just the latest buzzword for creating customer orientation </li></ul><ul><li>Bottom-line is still the same </li></ul><ul><li>Yes ! </li></ul><ul><li>A shift in corporate philosophy concerning the approach to value delivery </li></ul><ul><li>Customer-centric approach to value chain </li></ul><ul><li>New and technology-enhanced processes </li></ul><ul><li>Focus is not just on bottom-line, but on top-line </li></ul><ul><li>Goal is to create satisfying experiences across all customer contact points </li></ul>
  5. 5. CRM Programs Can Potentially Improve <ul><li>Analytical CRM </li></ul><ul><ul><li>Customer Segmentation </li></ul></ul><ul><ul><li>Trend Analysis </li></ul></ul><ul><li>Operational CRM </li></ul><ul><ul><li>Campaign Management </li></ul></ul><ul><ul><li>Tele-Marketing/Tele-Sales </li></ul></ul><ul><ul><li>Activity and Time Management </li></ul></ul><ul><ul><li>Quotation and Order Processing </li></ul></ul><ul><ul><li>Delivery and Order Fulfillment </li></ul></ul><ul><ul><li>Customer Service and Support </li></ul></ul><ul><ul><li>Remote Access </li></ul></ul><ul><li>Collaborative CRM </li></ul><ul><ul><li>Enterprise Portals </li></ul></ul><ul><ul><li>Customer Access </li></ul></ul><ul><ul><li>Supplier Access </li></ul></ul><ul><ul><li>Personalization </li></ul></ul>
  6. 6. Areas of CRM Activity <ul><li>Sales Force Automation (SFA) </li></ul><ul><li>Customer Service and Support (CSS) </li></ul><ul><li>Help Desk </li></ul><ul><li>Field Service </li></ul><ul><li>Marketing Automation </li></ul>
  7. 7. Areas of CRM Activity: Sales Force Automation <ul><li>35-40% of all CRM activity </li></ul><ul><li>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 (SWOT) </li></ul><ul><li>Goldmine and SalesLogix are examples of prepackaged SFA solutions. </li></ul><ul><li>Ex. Staples used SFA to integrate catalog, online, in-store sales efforts directed at its best customers </li></ul>
  8. 8. Areas of CRM Activity: Customer Service and Support (CSS) <ul><li>20-25% of CRM </li></ul><ul><li>Assign, escalate, and track trouble tickets, inquiries, solution attempts through resolution </li></ul><ul><li>Provides information to support customer call center activity </li></ul><ul><li>Gleans customer data from those interactions and records it in SFA for later use </li></ul><ul><li>Remedy , Siebel , Vantive, and Clarify are major vendors </li></ul><ul><li>Ex., 3M Adhesive Products division </li></ul>
  9. 9. Areas of CRM Activity: Help Desk <ul><li>15-20% of all CRM </li></ul><ul><li>Allows individuals to access network database to solve their own problems or find information. </li></ul><ul><li>Can be internal or external </li></ul><ul><li>Offers many bottom-line savings </li></ul><ul><li>Human Click , Tivoli, LivePerson , are providers </li></ul><ul><li>Ex., Land’s End Live allows customers browse FAQ’s but also click a link to talk directly with live representative. </li></ul>
  10. 10. Areas of CRM Activity: Field Service CRM <ul><li>3-5% of all CRM activity </li></ul><ul><li>Mobile service technicians can log information about work orders and service calls, as well as access information from the remote site. </li></ul><ul><li>Can feed information from customer problems into SFA for salesperson leads. </li></ul><ul><li>Market information can be gathered and logged into central database. </li></ul><ul><li>Ensures appropriate resource allocation by matching available resources to job requirements </li></ul><ul><li>Major vendors are RTS, Metrix, eDispatch </li></ul>
  11. 11. Areas of CRM Activity: Marketing Automation <ul><li>3-5% of CRM, but growing 5X faster than all others </li></ul><ul><li>Interfaces with data warehouses and data mining activities to tailor page views, products, and promotions, so that the right offer goes to the right person at the right time. </li></ul><ul><li>Can interact with SFA to support field sales efforts </li></ul><ul><li>Provides customized customer interactions critical to segment of one marketing, mass customization, customerization, etc. </li></ul><ul><li> , Epiphany , Oracle, Siebel, and Personify are leaders </li></ul>
  12. 12. New Frontiers in CRM <ul><li>Commercial E-Communities </li></ul><ul><ul><li>What are people loyal to? </li></ul></ul><ul><ul><ul><li>Families </li></ul></ul></ul><ul><ul><ul><li>Football teams </li></ul></ul></ul><ul><ul><ul><li>Schools </li></ul></ul></ul><ul><ul><ul><li>Clubs </li></ul></ul></ul><ul><ul><ul><li>Cultures </li></ul></ul></ul><ul><ul><ul><li>Countries </li></ul></ul></ul><ul><ul><ul><li>I.E.: Communities not Corporations </li></ul></ul></ul>
  13. 13. Commercial E-Communities <ul><li>Goal is to create an environment where people get meaningful interactions with the company and other users so that they feel part of the enterprise. </li></ul><ul><li>Adds human component and engages customers. </li></ul><ul><li>Creates more stickiness and “ownership” </li></ul><ul><li>Ex. User Groups for software products (Oracle, Intergraph) </li></ul><ul><li>Ex. Dell / Sony technical support communities </li></ul><ul><li>Can be run internally or by an external organization such as Sift </li></ul>
  14. 14. Components of Commercial E-Communities <ul><li>Customer-focused transactions </li></ul><ul><ul><li>Ex. IKEA Stock Query, Amazon rare book finder </li></ul></ul><ul><li>Community Interactions </li></ul><ul><ul><li>User product ratings, User alerts/Newswires, Dell technical support </li></ul></ul><ul><li>Access to Relevant Information </li></ul><ul><ul><li>Dell technical library, Customer chat rooms, Zero-time search facility </li></ul></ul><ul><li>Value-added Services Based on Customer Data </li></ul>
  15. 15. New Frontiers in CRM <ul><li>Customerization </li></ul><ul><ul><li>Mass Customization – Using flexible processes and organizational structures to produce varied and individualized products and services at the price of standard mass-produced offerings. </li></ul></ul><ul><ul><li>Personalization – Customization of some features of a product or services so that the customer enjoys more convenience, lower costs, or some other benefit. </li></ul></ul><ul><ul><li>Segment-of-One Marketing – Based on the idea of the firm learning individual reactions to marketing strategies, then treating this customer differently than other customers. </li></ul></ul><ul><ul><li>Customerization – Mass customization + personalization + segment-of-one, dependent on a web-based or electronic interaction </li></ul></ul>
  16. 16. Distinctions in Customerization Direct (online) Mix of direct and indirect Distribution Integrated, interactive Advertising and PR Communication Value based pricing; customer determined Fixed prices with discounting Price Customized based on customer interactions Marketing and R&D drive offering Product and service offering May not be articulated Researched and articulated Customer needs Customer is active co-producer, Customer is passive participant in process Relationship with customers Customerization Mass Marketing
  17. 17. Making CRM Happen <ul><li>Evaluate products and processes customers’ terms. </li></ul><ul><li>Analyze the multiple channels through which the company interacts with customers. </li></ul><ul><li>Examine how the company understands its customers. Does it keep good data? How does it get that data? Does information flow between functional areas? </li></ul><ul><li>Provide fingertip access to all information. </li></ul><ul><li>Analyze human resources and ensure that everyone has an understanding of philosophy of CRM </li></ul>