M115 crm2013


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  • CRM is a business philosophy which provides a vision for the way companies deal with their customers Other than the 4ps, customer value involves the quality of the interactions with the supplier over time. Atos divides the market into collaborative, operational, and analytical CRM solutions, Consult, build and plan, Vision workshops, modelling, implementation, support Peugeot, Carlsbert, Exxon, System U, Essilor EMLYON Business School 16/05/13 Prof. Lee SCHLENKER - lee@lhstech.com
  • Think horizantal, diagolade retention rate. Different combinations: AA, BA, CA, etc..
  • M115 crm2013

    1. 1. ©2013 LHST sarlCustomerRelationshipManagementMT 115
    2. 2. ©2013 LHST sarlThe Key QuestionPartnersStockholdersClientsEmployeesHow can customer relationshipmanagement enhanceorganizational performance?CRM helps us understand the motivations, experience and objectives of theinternal and external clients of the organization
    3. 3. ©2013 LHST sarlThe answer(at least in part)Focus Improve Knowledge Leverage MesureOrganization Processes Explicit Transactions EfficencyCommunity Participation Embedded Innovation EngagementNetworks Relationships Emerging Interactions Effectiveness
    4. 4. ©2013 LHST sarlFive Questions•How does Atos Origin define “customerrelationship management”?•Why do the authors argue that customervalue is more than just price, product, placeand promotion?•How does Atos divide the CRM market intothree main solution areas?•What role can a consultancy play inimplementing a CRM solution.•Of the different “case studies” mentioned inthe paper, which example seems the mostsignificant, and why?“Customer Relationshp Management“
    5. 5. ©2013 LHST sarlThe objectives of an IS Actifs Demandes en tempsréel ...Actionnaires Compétition “made in” “made by” ...Société Peu de barrières d’entrée Acquisitions, OPA ...Partenaires Fidélité ? Vrai coûts ...ClientsL’organisation Mobilité Valorisation des tâches ...EmployéesObjectivesObjectives ISIS InformationInformationProblemProblem InternetInternet
    6. 6. ©2013 LHST sarlThe Cost of Retaining a Customer“Winning back a lost customer can costup to 50-100 times as much askeeping a current one satisfied.”Rob Yanker, Partner, McKinsey & CompanySherif Kamel• Loss current revenues that the business relationship created.• Loss of the jobs that the clients provide.• Loss of reputation.• Loss of of future business.
    7. 7. ©2013 LHST sarlPositioning CRM vs Traditional MarketingTraditional Marketing CRMGoal: Expand customerbase, increase marketshare by mass marketingGoal: Establish a profitable,long-term, one-to-onerelationship with customers;understanding their needs,preferences, expectationsProduct oriented view Customer oriented viewMass marketing / massproductionMass customization, one-to-one marketingStandardization ofcustomer needsCustomer-supplierrelationshipTransactional relationship Relational approach
    8. 8. ©2013 LHST sarlOrganizationalStucturesMT 115
    12. 12. ©2013 LHST sarlL. SCHLENKERHUMAN COMPETENCIES ?TechnicityReflectionImaginationCooperationMethodActionJohn Holland
    13. 13. ©2013 LHST sarlInformation Systems are a question ofperspective• The financial perspective(entreprise resource planning)• The logistics perspective(supply chain management)• The client perspective(clientrelationship management)• The communityperspective(social media)ObjectivesObjectives ISIS InformationInformationProblemProblem InternetInternet
    14. 14. ©2013 LHST sarlDIFFERENT SIDES OF THE COINERP SCM CRMHistory MRP Total QualityManagementClient contactsystemsMeasure QuantitativeStaticQuantitativeDynamicQualitativePerimeters Inside a firm Between firms Between firmsand clientsROI 5 to 7 years 1 to 3 years 6 months to 1year
    15. 15. ©2013 LHST sarlKey ToolsMT 115
    16. 16. ©2013 LHST sarlFunctional CoverageProcess Identification Differentiation Interaction CustomizationGoal · Identifyindividualcustomer· Evaluatecustomer valueand needs·Build a continuingrelationship· Fulfill customerneeds· Generate profitTraditionalMassMarketing· Not done · Clustering · Call Center · Sales· ServicesCRM · Customerprofiling· Individual levelanalysis· Call centermanagement· Auto responsesystem· Sales automation· Marketingprocess automationInformationtechnologies· Cookies· Web sitepersonalization· Data mining· Organizationallearning· Web application· Wirelesscommunication· ERP· E-Commerce 
    17. 17. ©2013 LHST sarlCRM Activities•Cross-Selling- Additional products are sold as the resultof an initial purchase•Event-Based Marketing- Offering individual promotionstied to specific events to offer the right products &services to customers at the right time.•Mass personalization- understanding customers, theirbehaviors, and their preferences allows firms tocustomize communications aimed at specific groups ofcustomers..•Predicting Customer Behaviors- Behaviors can bepredicted and firms forecast likelihood of customers’purchases.•Profiling Customers- Grouping customers in a variety ofways to create more specialized communications abouttheir products.•Relationship marketing or permission marketing-customers select the type and time of communication.
    18. 18. ©2013 LHST sarlCRM ToolsAutomated Sales Force Tools- Used fordocumenting and communicating field activities– Sales Activity– Sales Territory Management– Lead Management– Knowledge ManagementCall CentersCall center systems can now categorize all calls,determine average resolution time, and forecast futureand improve the overall productivity of the staff,increasing customer satisfaction levels.Informational ScriptingScripts to successfully guide service representativesthrough many types of customer problems. They donot allow for much “out-of-the-box” thinking.
    19. 19. ©2013 LHST sarl“Traditional” Technologies• Phone calls, E-mails,• SMS, WAP services• Cookies : used forauthenticating, tracking, andmaintaining specific informationabout users• Loyalty cards• CRM software- “Front office”solutions
    20. 20. ©2013 LHST sarlMarketSellServeeChannelDistributorCall CenterCSR/TSRField SalesSiebel, Baan (Aurum),Vantive and ClarifyPrimeResponse, Siebel,Vantive, ClarifyAsera,Marketsoft, WebBridgeBlue Martini,Accrue,BroadVision, AndromediaNet Perceptions, eGain,Vignette, WebTrendsMarketWave, Rubric,Aptex, PrimeResponse,LikeMinds, RighPoint,Online Insight,ResponsysClick Interactive,Allegis,Partnerware,Channelwave,WebridgeBlue Martini, Interworld,BroadVision, IBM,OpenMarket, SAP, Oracle, ArtTechnology Group(ATG), Microsoft, i2Calico, SilkNet,Cygent,Trilogy, Netscape,RighPoint,NetSales, BackWebBroadway & Seymour, Clarify,Chordiant, Corepoint, IMA,Pegasystems, Quintus, SCTUtilities, Siebel, SilkNet,Vantive,Advantage KBS (adivision of Carnegie Group),Inference, Molloy Group,Primus, ServiceSoft, ServiceWareClick InteractiveServiceSoft, Inference,Siebel, Vantive, Motive,SilkNet, ServiceWare,Primus, Scala, Invera,WebTone, Octane,Chordiant, PeopleSupportSiebel, Baan (Aurum),Vantive and ClarifyClarify, Metrix, Vantive,Serviceware, Siebel,Foresight, RTS, AsteaEnablersKana, Brightware, iContact, netDialog,Acuity, General Interactive, Mustang, LivePerson,Dialog, Genesys, G2X, Webtone, Webline, Nortel,CosmoCom, BroadQuest, Amteva, TumbleweedXcellenet, PowerCerv,SynchrologicChannelIndependentEnablersBroadbase, BusinessObjects, Cognos,E.piphany, Seagate,Quadstone, IBM,HNC, Tessera,NeuralWare,RightPoint,SASTalus, Concentra,Calico, TrilogyInferenceAvalon, Broadway & Seymour,Clarify, Chordiant, Oracle,Corepoint, IMA, Pegasystems,Onyx,Pivotal,Point, Siebel,Vantive,Firepond,Proscape, SoftAd, CalicoAspect, Lucent, ATIO,Apropos, Webline, eShare,Genesys, Geotel, HP ,Quintus, Davox (Answersoft)Market PlayersAccenture
    21. 21. ©2013 LHST sarlMarket Share• Salesforce.com - is the most popular cloud-based CRM software globally , claiming14.8% of the entire CRM software market.• Microsoft Dynamics CRM - Analysts expectthe total revenue from Dynamics CRM andERP to reach $2.5 billion by the end of2018.• SAP - has over 30,000 customers and over 2million users. They also have 12,000partners to assist them.• SugarCRM - SugarCRM is the leadingprovider of open-source CRM software.The company has more than 7,000customers and over half a million usersaround the globe.Marketshare of the French CRM marketCopyright PAC 2011
    22. 22. ©2013 LHST sarlKey MetricsMT 115
    23. 23. ©2013 LHST sarlOrganizational Benefits• Reduction of MarketingCost• Timely Data• Increased Revenue• Increased Market Share• Improved Service
    24. 24. ©2013 LHST sarlCustomer Benefits• Order Tracking• Availability Checks• Web-based CustomerSelf Service• Service and ClaimsManagement
    25. 25. ©2013 LHST sarlTraditional Metrics• Churn - the number of customers wholeave a business in a year’s time dividedby the number of new customers in thesame period.• Defection Rate - the percentage ofcustomers who leave a business in oneyear.• Customer Lifetime Value - the net presentvalue of the profits a customer generatesover the average customer life.• Touch Points – number of times yourcompany interacts with a customer
    26. 26. ©2013 LHST sarlSize/Share of Wallet• Size of wallet = ∑=JjjS1=jS Sales to focal customer by firm j• Individual share of wallet % =• Share and size of wallet should be analyzed together...∑=JjjjSS1
    27. 27. ©2013 LHST sarl27Customer Value Metrics:Transition Matrix• Shows expected share of wallet from multiple brands• Depicts consumer’s willingness to buy over time• Transition probability from B to A, than from A to C:10%*20% = 2%Brand A Brand B Brand CBrand A 60%60% 30% 20%Brand B 10% 80%80% 15%Brand C 20% 15% 70%70%
    28. 28. ©2013 LHST sarlOracle• Interaction Center- integrates with service, sales, contracts, and marketingapplications.• Oracle Sales- processes across all sales and customer interactionchannels.• Oracle Marketing -provides automation and tools for the entire marketingprocess.Siebel Systems• Call Center- improve agent productivity by providing critical customerinformation.• Siebel Sales- the means to focus on the right deals at the right time.• Siebel Marketing- optimizes targeting and improves response rates withrobust segmentation capabilities.Some CRMApplication Providers
    29. 29. ©2013 LHST sarlRules for Successful CRM RELATIONSHIP- CRM is ultimately about relationship nottechnology. Focus on improvingrelationship, which enables organization to developmore prospects PROACTIVE EXECUTIVE EMPOWERMENT- management involvement is critical- management set overall strategic direction- Ensure that the culture of customer service isincorporated in the organization KNOW YOUR BUSINESS- many people deploy CRM withoutunderstanding the business processes- define business processes, understandingdepartmental interactionswill help employees better manage customerrelationship“We are not an airline with greatcustomer service. We are agreat customer serviceorganization that happens to bean airline”.Colleen BarrettExecutive VicePresidentSouthwest Airlines
    30. 30. ©2013 LHST sarlCurrent Challenges in CRMNew Privacy Regulations- Rules andlaws regarding invasion of privacy arespringing up. Solution: develop aprivacy policy and post it on their Website.Application Service Providers (ASPs)-Fifty 50 percent of all CRM programsare now designed and maintained forclients by ASPs.Adapting CRM for global uses isincreasing-New Markets out side oftraditional industrialized countriesrequire adaptation to local needs,language, and culture