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CustomerRelationshipManagement      MT 115               ©2012 LHST sarl
CUSTOMER RELATIONSHIPMANAGEMENT              •    Is the process of building and                   maintaining profitable ...
Course Agenda                                        Séance                     Sujet                        Intervenant  ...
Evalutation     MT 115              ©2012 LHST sarl
Assessment                                        Grading Scale                                        The marks in this m...
Participation - Curation                                         • Choose a topic for Scope.It                            ...
Videocast                               In your five minute videocast, incorporate testimony,                             ...
Why study CRM?                 • “Today’s businesses compete with                   multi-product offerings that are      ...
THE KE Y QUE S TION          Employees                                   Stockholders          How can customer relationsh...
The objectives of an IS                         Actionnaires                            Actifs                           ...
The Cost of Retaining a Customer                                          “Winning back a lost customer can cost          ...
Marketing vs CRM        Traditional Marketing                            CRMGoal: Expand customer base, increase   Goal: E...
THE A NS WE R(at leas t in part)        Focus          Improve         Knowledge   Leverage       Mesure        Organizati...
Organizational    Stuctures        MT 115                 ©2012 LHST sarl
ORGA NIS A TIONA L S TRUC TURE ?                 L. SCHLENKER      ©2012 LHST sarl
TE C HNOLOGIC A L INFRA S TRUC TURE S ?                 L. SCHLENKER             ©2012 LHST sarl
B US INE S S PROC E S S E S ?                 L. SCHLENKER   ©2012 LHST sarl
HUMA N C OMPE TE NC IE S ?                   Technicity      Method                       Reflection      Action          ...
Information Systems are a question ofperspective                       • The financial perspective                        ...
DIFFERENT SIDES OF THE COIN                    ERP             SCM             CRMHistory             MRP             Tota...
Key Tools   MT 115            ©2012 LHST sarl
Functional Coverage      Process        Identification    Differentiation      Interaction           Customization      Go...
Positioning CRM vs Traditional Marketing              Traditional Marketing                  CRM            Goal: Expand c...
CRM Activities                 •Cross-Selling- Additional products are sold as the result                 of an initial pu...
CRM Tools            Automated Sales Force Tools- Used for            documenting and communicating field activities      ...
CRM Technologies                   • Phone calls, E-mails,                   • SMS, WAP services                   • Cooki...
Market Share                                          • Salesforce.com - is the most popular cloud-                       ...
Key Metrics     MT 115              ©2012 LHST sarl
Organizational Benefits                   • Reduction of Marketing                     Cost                   • Timely Dat...
Customer Benefits                    • Order Tracking                    • Availability Checks                    • Web-ba...
Size/Share of Wallet                      J• Size of wallet =   ∑S                      j =1                             j...
Customer Value Metrics:Transition Matrix• Shows expected share of wallet from multiple brands• Depicts consumer’s willingn...
Some CRMApplication Providers Oracle •   Interaction Center- integrates with service, sales, contracts, and marketing     ...
Current Challenges in CRM New Privacy Regulations- Rules and   laws regarding invasion of privacy are   springing up. Solu...
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MT115 : Introduction

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MT115 : Introduction

  1. 1. CustomerRelationshipManagement MT 115 ©2012 LHST sarl
  2. 2. CUSTOMER RELATIONSHIPMANAGEMENT • Is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction • Think of multi-channel service delivery, the ways in which customers can interact with a business • Three components: 1. Sales force automation 2. Customer service and support 3. Marketing campaign management and analysis ©2012 LHST sarl
  3. 3. Course Agenda Séance Sujet Intervenant 04/06/2012 Introduction L. SCHLENKER 13:00 à 16:15 04/06/2012 Les aspects méthodologiques R. RISSOAN 16:30 à 19:45 05/06/2012 Application et étude de cas J.L. KALALA/ C. TANTUCCI 13:00 à 16:15 05/06/2012 Le CRM 2.0 L. SCHLENKER 16:30 à 19:45 06/06/2012 Préparation des livrables du L. SCHLENKER 16:30 à 19:45 cours Les objectifs du module MT115 sont d’aider les élèves à explorer les enjeux et les opportunités actuels en entreprise liés à la gestion de la relation client. ©2012 LHST sarl
  4. 4. Evalutation MT 115 ©2012 LHST sarl
  5. 5. Assessment Grading Scale The marks in this module will be based upon contributions in four areas : • Participation: 40 possible points based on the quality of each individual student’s on- liine and in-class participation • Video Case Study: 60 possible points based on the number and quality of the thematic spaces. Management isn’t about doing things, its about getting things done http://mt115.socialgo.com/ ©2012 LHST sarl
  6. 6. Participation - Curation • Choose a topic for Scope.It • Communicate your topic, the members of your group, and the URL to chaireet@em-lyon.com by June 5th, 2012 http://www.scoop.it/t/mobile-business • Curate and make it your own (title, link, analysis) • Participate in the discussion! • Evaluation : le 25/06/2012 sarl ©2012 LHST
  7. 7. Videocast In your five minute videocast, incorporate testimony, pictures, give us your perspective on how SCRM impacts business practice. Your case study should shed light on the following points: – How did the organization define the business problem? – What skills and knowledge were they targeting to develop? – How did technology provide a vision of how to improve organizational effectiveness? – Which metrics were used to measure success? Maximum group size : 2 Evaluation : le 25/06/2012 ©2012 LHST sarl
  8. 8. Why study CRM? • “Today’s businesses compete with multi-product offerings that are often assembled or simply outsourced. • The product/service offer is created and delivered by networks, alliances and partnerships of many kinds. • Sustainable competitive advantage depends upon nuturing long-term relationships with internal and external customers ©2012 LHST sarl
  9. 9. THE KE Y QUE S TION Employees Stockholders How can customer relationship management organizational performance? Clients PartnersCRM helps us understand the motivations, experience and objectives of the internal and external clients of the organization ©2012 LHST sarl
  10. 10. The objectives of an IS Actionnaires  Actifs  Demandes en temps Employées réel Société  Mobilité  Compétition  ...  Valorisation des tâches  “made in” “made by”  ...  ... L’organisation Clients Partenaires  Fidélité ?  Peu de barrières d’entrée  Vrai coûts  Acquisitions, OPA  ...  ...Objectives Problem IS Information Internet ©2012 LHST sarl
  11. 11. The Cost of Retaining a Customer “Winning back a lost customer can cost up to 50-100 times as much as keeping a current one satisfied.” Rob Yanker, Partner, McKinsey & Company • Loss current revenues that the business relationship created. • Loss of the jobs that the clients provide. • Loss of reputation. • Loss of of future business. Sherif Kamel ©2012 LHST sarl
  12. 12. Marketing vs CRM Traditional Marketing CRMGoal: Expand customer base, increase Goal: Establish a profitable, long-term,market share by mass marketing one-to-one relationship with customers; understanding their needs, preferences, expectationsProduct oriented view Customer oriented viewMass marketing / mass production Mass customization, one-to-one marketingStandardization of customer needs Customer-supplier relationshipTransactional relationship Relational approach ©2012 LHST sarl
  13. 13. THE A NS WE R(at leas t in part) Focus Improve Knowledge Leverage Mesure Organization Processes Explicit Transactions Efficency Networks Relationships Emerging Interactions Effectiveness Social CRM Participation Embedded Innovation Engagement ©2012 LHST sarl
  14. 14. Organizational Stuctures MT 115 ©2012 LHST sarl
  15. 15. ORGA NIS A TIONA L S TRUC TURE ? L. SCHLENKER ©2012 LHST sarl
  16. 16. TE C HNOLOGIC A L INFRA S TRUC TURE S ? L. SCHLENKER ©2012 LHST sarl
  17. 17. B US INE S S PROC E S S E S ? L. SCHLENKER ©2012 LHST sarl
  18. 18. HUMA N C OMPE TE NC IE S ? Technicity Method Reflection Action Imagination Cooperation John Holland L. SCHLENKER ©2012 LHST sarl
  19. 19. Information Systems are a question ofperspective • The financial perspective (entreprise resource planning) • The logistics perspective (supply chain management) • The client perspective(client relationship management) • The community perspective(social media)Objectives Problem IS Information Internet ©2012 LHST sarl
  20. 20. DIFFERENT SIDES OF THE COIN ERP SCM CRMHistory MRP Total Quality Client contact Management systemsMeasure Quantitative Quantitative Qualitative Static DynamicPerimeters Inside a firm Between firms Between firms and clientsCost e700 000 e100 000 e50 000Hardware/softwareROI 5 to 7 years 1 to 3 years 6 months to 1 year ©2012 LHST sarl
  21. 21. Key Tools MT 115 ©2012 LHST sarl
  22. 22. Functional Coverage Process Identification Differentiation Interaction Customization Goal · Identify · Evaluate ·Build a continuing · Fulfill customer individual customer value relationship needs customer and needs · Generate profit Traditional · Not done · Clustering · Call Center · Sales Mass · Services Marketing CRM · Customer · Individual level · Call center · Sales automation profiling analysis management · Marketing · Auto response process automation system Information · Cookies · Data mining · Web application · ERP  technologies · Web site · Organizational · Wireless · E-Commerce personalization learning communication ©2012 LHST sarl
  23. 23. Positioning CRM vs Traditional Marketing Traditional Marketing CRM Goal: Expand customer Goal: Establish a profitable, base, increase market long-term, one-to-one share by mass marketing relationship with customers; understanding their needs, preferences, expectations Product oriented view Customer oriented view Mass marketing / mass Mass customization, one-to- production one marketing Standardization of Customer-supplier customer needs relationship Transactional relationship Relational approach ©2012 LHST sarl
  24. 24. CRM Activities •Cross-Selling- Additional products are sold as the result of an initial purchase •Event-Based Marketing- Offering individual promotions tied to specific events to offer the right products & services to customers at the right time. •Mass personalization- understanding customers, their behaviors, and their preferences allows firms to customize communications aimed at specific groups of customers.. •Predicting Customer Behaviors- Behaviors can be predicted and firms forecast likelihood of customers’ purchases. •Profiling Customers- Grouping customers in a variety of ways to create more specialized communications about their products. •Relationship marketing or permission marketing- customers select the type and time of communication. ©2012 LHST sarl
  25. 25. CRM Tools Automated Sales Force Tools- Used for documenting and communicating field activities – Sales Activity – Sales Territory Management – Lead Management – Knowledge Management Call Centers Call center systems can now categorize all calls, determine average resolution time, and forecast future and improve the overall productivity of the staff, increasing customer satisfaction levels. Informational Scripting Scripts to successfully guide service representatives through many types of customer problems. They do not allow for much “out-of-the-box” thinking. ©2012 LHST sarl
  26. 26. CRM Technologies • Phone calls, E-mails, • SMS, WAP services • Cookies : used for authenticating, tracking, and maintaining specific information about users • Loyalty cards • CRM software- “Front office” solutions ©2012 LHST sarl
  27. 27. Market Share • Salesforce.com - is the most popular cloud- based CRM software globally , claiming 14.8% of the entire CRM software market. • Microsoft Dynamics CRM - Analysts expect the total revenue from Dynamics CRM and ERP to reach $2.5 billion by the end of 2018. • SAP - has over 30,000 customers and over 2 million users. They also have 12,000 partners to assist them. Marketshare of the French CRM market • SugarCRM - SugarCRM is the leading Copyright PAC 2011 provider of open-source CRM software. The company has more than 7,000 customers and over half a million users around the globe. ©2012 LHST sarl
  28. 28. Key Metrics MT 115 ©2012 LHST sarl
  29. 29. Organizational Benefits • Reduction of Marketing Cost • Timely Data • Increased Revenue • Increased Market Share • Improved Service ©2012 LHST sarl
  30. 30. Customer Benefits • Order Tracking • Availability Checks • Web-based Customer Self Service • Service and Claims Management ©2012 LHST sarl
  31. 31. Size/Share of Wallet J• Size of wallet = ∑S j =1 j Sj = Sales to focal customer by firm j Sj• Individual share of wallet % = J ∑S j =1 j• Share and size of wallet should be analyzed together... ©2012 LHST sarl
  32. 32. Customer 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 C Brand A 60% 30% 20% Brand B 10% 80% 15% Brand C 20% 15% 70% 32 ©2012 LHST sarl
  33. 33. Some CRMApplication Providers Oracle • Interaction Center- integrates with service, sales, contracts, and marketing applications. • Oracle Sales- processes across all sales and customer interaction channels. • Oracle Marketing -provides automation and tools for the entire marketing process. Siebel Systems • Call Center- improve agent productivity by providing critical customer information. • Siebel Sales- the means to focus on the right deals at the right time. • Siebel Marketing- optimizes targeting and improves response rates with robust segmentation capabilities. ©2012 LHST sarl
  34. 34. Current Challenges in CRM New Privacy Regulations- Rules and laws regarding invasion of privacy are springing up. Solution: develop a privacy policy and post it on their Web site. Application Service Providers (ASPs)- Fifty 50 percent of all CRM programs are now designed and maintained for clients by ASPs. Adapting CRM for global uses is increasing-New Markets out side of traditional industrialized countries require adaptation to local needs, language, and culture ©2012 LHST sarl

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