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Utilization of CRM for excellent library customer service


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lecture presented at PAARL's Summer National Conference on the theme "“Library Tourism & Hospitality: The Business of Endearing Philippine Libraries and Information Centers to Publics” (San Antonio Resort, Baybay Beach, Roxas City, Capiz, 27-29 April 2011) by Michael Pinto

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Utilization of CRM for excellent library customer service

  1. 1. UTILIZATION OF CRM FOREXCELLENT LIBRARYCUSTOMER SERVICE Presented by: MICHAEL A. PINTO, MPA Director of Libraries- University of Saint Louis-Tuguegarao President – CaAKAp Librarians’ Association inc. Chair- PLAI HOD
  2. 2. OUTLINE OF PRESENTATIONPreliminariesWhat is CRM, its functions,stages, determinants.Activity2010 Top Ten Trends inAcademic LibrariesSix Guiding Principles of LibraryServiceBottom lines
  3. 3. PRELIMINARIESLibraries are service centers, thereforeit must provide “SERVICE ”What kind? “QUALITY SERVICE” CFor WHOM?For the CUSTOMERS. RWhat do they HAVE?They have their RIGHTS. MWhat LIBRARIANS should do?Librarians have to “PROTECT” theserightsHOW to Protect?ENHANCE our relationship with themthrough…
  4. 4. WHAT IS CUSTOMER RELATIONSHIPMANAGEMENT (CRM)?CRM is “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers” (Buttle, 2000)CRM is “an IT enhanced value process, which identifies, develops, integrates and focuses the various competencies of the firm to the ‘voice’ of the customer in order to deliver long-term superior customer value, at a profit to well identified existing and potential customers”. (Plakoyiannaki and Tzokas, 2001)
  5. 5. UNDERSTANDING CUSTOMERRELATIONSHIP MANAGEMENT (CRM)?CRM is a business philosophy based on upon individual customersand customised products and services supported by open lines ofcommunication and feedback from the participating firms thatmutually benefit both buying and selling organisations. The buying and selling firms enter into a “learning relationship”,with the customer being willing to collaborate with the seller andgrow as a loyal customer. In return,, the seller works to maximizethe value of the relationship for the customer’s benefit. In short, CRM provides selling organisations with the platformto obtain a competitive advantage by embracing customer needsand building value-driven long-term relationships.
  6. 6. WHY DID CRM DEVELOP?CRM developed for a number of reasons: The 1980’s onwards saw rapid shifts in business that changed customer power Supply exceeded demands for most products Sellers had little pricing power The only protection available to suppliers of goods and services was in their relationships with customers
  7. 7. WHAT DOES CRM INVOLVE?CRM involves the following : Organisations must become customer focused Organisations must be prepared to adapt so that it take customer needs into account and delivers them Market research must be undertaken to assess customer needs and satisfaction
  8. 8. DETERMINANTS OF CRM Trust The willingness to rely on the ability, integrity, and motivation of one company to serve the needs of the other company as agreed upon implicitly and explicitly. ValueThe ability of a selling organisation to satisfy the needs of thecustomer at a comparatively lower cost or higher benefit than that offered by competitors and measured in monetary, temporal, functional and psychological terms.
  9. 9. DETERMINANTS OF CRMIn addition to trust and value, salespeople/librarians must: Understand customer needs and problems; Meet their commitments; Provide superior after sales support; Make sure that the customer is always told the truth (must be honest); and Have a passionate interest in establishing and retaining a long-term relationship (e.g., have long-term perspective).
  10. 10. THE PURPOSE OF CRM The focus [of CRM] is on creating value for the customer and the company over the longer term”. When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs . CRM enables organisations to gain ‘competitive advantage’ over competitors that supply similar products or services
  11. 11. WHY IS CRM IMPORTANT? “Today’s businesses compete with multi- product offerings created and delivered by networks, alliances and partnerships of many kinds. Both retaining customers and building relationships with other value- adding allies is critical to corporate performance” . “The adoption of C.R.M. is being fuelled by a recognition that long-term relationships with customers are one of the most important assets of an organisation”
  12. 12. FUNCTIONS OF CUSTOMER RELATIONSHIP MANAGEMENT Direct functions (are the basic requirements of a company that are necessary to survive in the competitive marketplace) Profit; Volume; and Safeguard Indirect functions (are the actions necessary to convince the customer to participate in various marketing activities). Innovation: Market; Scout: and Access.
  13. 13. STAGES IN THE DEVELOPMENT OF A CUSTOMER RELATIONSHIP The Pre-relationship Stage The event that triggers a buyer to seek a new business partner. The Early Stage Experience is accumulated between the buyer and seller although a great degree of uncertainty and distance exists. The Development Stage Increased levels of transactions lead to a higher degree of commitment and the distance is reduced to a social exchange. The Long-term Stage Characterised by the companies’ mutual importance to each other. The Final Stage The interaction between the companies becomes institutionalized.
  14. 14. STAGES IN THE DEVELOPMENT OF A KEY-ACCOUNT RELATIONSHIP High Synergistic KAM Partnership Degree ofinvolvement Mid-KAM Early-KAM Low Pre-KAM Transactional Collaborative Nature of customer relationship (Millman and Wilson, 1995)
  15. 15. “STRATEGICALLY SIGNIFICANTCUSTOMERS” “Customer relationship management focuses on strategically significant markets. Not all customers are equally important” . Therefore, relationships should be built with customers that are likely to provide value for services Building relationships with customers that will provide little value could result in a loss of time, staff and financial resources
  16. 16. MARKERS OF STRATEGICALLYSIGNIFICANT CUSTOMERSStrategically significant customers need to satisfy at least one of three conditions : 1. Customers with high life-time values (i.e. customers that will repeatedly use the service in the long-term e.g. Researchers in the library) 2. Customers who serve as benchmarks for other customers e.g. In a hospital library consultants who teach on academic courses 3. Customers who inspire change in the supplier
  17. 17. INFORMATION TECHNOLOGY AND CRM Technology plays a pivotal role in CRM. Technological approaches involving the use of databases, data mining and one-to-one marketing can assist organisations to increase customer value and their own profitability This type of technology can be used to keep a record of customers names and contact details in addition to their history of buying products or using services This information can be used to target customers in a personalised way and offer them services to meet their specific needs This personalised communication provides value for the customer and increases customers loyalty to the provider
  18. 18. INFORMATION TECHNOLOGY AND CRM:Examples Phone calls, emails, mobile phone text messages Loyalty cards CRM software- Library Management Software Additional Borrowing Privileges Social Networking Sites
  19. 19. FACE-TO-FACE CRM CRM can also be carried out in face-to-face interactions without the use of technology Staff members often remember the names and favourite services/products of regular customers and use this information to create a personalised service for them. However, face-to-face CRM could prove less useful when organisations have a large number of customers as it would be more difficult to remember details about each of them.
  20. 20. ACTIVITY: SWOT ANALYSIS Identify the SWOT of your library in terms of your customer relation Strengths Opportunities Weaknesses Threats
  21. 21. CRM IMPLEMENTATION Create a Database for your customers which includes the following: Personal Information Emails Reading Preferences Choose a CRM Activity that will enhance your relationship with your customers Email Alerts Online Bulletin Board (Library Website) CRM through Social Networking Sites (announcements, alerts (obligations), schedule of returning, news bits, etc.
  22. 22. 2010 TOP TEN TRENDS IN ACADEMICLIBRARIESBY: ACRL RESEARCH PLANNING AND REVIEW COMMITTEE#1. Academic library collection growth is driven by patron demand and will include new resources#2. Budget challenges will continue and libraries will evolve as a result.#3. Changes in higher education will require that librarians possess diverse skill sets.#4. Demands for accountability and assessment will increase. Increasingly, academic libraries are required to demonstrate the value they provide to their clientele and institutions.#5. Digitization of unique library collections will increase and require a larger share of resources.
  23. 23. 2010 TOP TEN TRENDS IN ACADEMICLIBRARIESBY: ACRL RESEARCH PLANNING AND REVIEW COMMITTEE#6. Explosive growth of mobile devices and applications will drive new services.#7. Increased collaboration will expand the role of the library within the institution and beyond.#8. Libraries will continue to lead efforts to develop scholarly communication and intellectual property services.#9. Technology will continue to change services and required skills.#10. The definition of the library will change as physical space is repurposed and virtual space expands. Source: C&RL News (June, 2010; 71.6)
  24. 24. SIX GUIDING PRINCIPLES OF LIBRARY SERVICE1. Accommodate all forms of queries2. Library users don’t know everything3. Library users need to be informed4. Prioritize access to maximize utilization5. Technology enhances library service6. Library provides service
  25. 25. GUIDING PRINCIPLE #1Accommodate all forms of queries- This asserts that all library services are born out from the curiosity of the mind- The questions that customers ask become the triggering factor for the library to think of what are the services it must provide to its users.
  26. 26. GUIDING PRINCIPLE #2Library users don’t know everything- This asserts that the reason why library users go to the library is because they want to know something.- The library users have the motivation to come to the library and discover things
  27. 27. GUIDING PRINCIPLE #3Library users need to be informed-The role of the librarian in terms of information dissemination is expounded.- Librarians should disseminate information
  28. 28. GUIDING PRINCIPLE #4Prioritize access to maximize utilization- Library resources to serve its purpose should be utilized to its fullest.- Librarians on the other hand should strategize ways by which full access to the information can be achieved.
  29. 29. GUIDING PRINCIPLE #5Technology enhances library service- As the library grows and develops, development in the information technology also continues and new technologies are introduced to improve the services of the library
  30. 30. GUIDING PRINCIPLE #6Library provides service- Library is a service center- Libraries do not only exist for the purpose of preservation and conservation but to make available all the library resources to users through the different services it offers- “Service is the main ethos of librarianship” (Chowdhary)
  31. 31. THE BOTTOM LINES Bottom line #1"Thereis only one boss. The customer. And he can fire everybody in the company from the chairman down, simply by spending his money somewhere else." Sam Walton
  32. 32. BOTTOM LINE #2 Always give people more than what they expect to get.“ Nelson BoswellSurprise the customerEntertain the customerAmaze the customer
  33. 33. BOTTOM LINE #3 The way to a customer’s heart and wallet lies in how well we initially serve our customers and recover from poor service.” Unknown
  34. 34. BOTTOM LINE #4 The fruit of SILENCE is Prayer The fruit of PRAYER is Faith The fruit of FAITH is Love The fruit of LOVE is Service The fruit of SERVICE is Peace.” Mother Teresa’s Business Card
  35. 35. THE FINAL BOTTOM LINE“Librarianship is a combination of something you are (CHARACTER) and some things you do. (COMPETENCE)” May DATING at GALING
  38. 38. REFERENCESLiz Shahnam. What’s really CRM? CRM Today. [Online] [Accessed November 2008]Adrian Payne. Customer relationship management. Cranfield University. [Online] [Accessed June 2006, no longer available online]Francis Buttle. The S.C.O.P.E of Customer Relationship Marketing. Macquarie Graduate School of Management. [Online] [Accessed June 2006, no longer available online]