Lecture Slides 11 10 08


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Lecture Slides 11 10 08

  1. 1. ITM 309 Customer Relationship Management Dr. Frederick Rodammer Michigan State University Eli Broad College of Business [email_address] November 10, 2008
  2. 2. Today’s Learning Objectives <ul><li>Understand the CRM technologies used by sales departments, customer service departments, and marketing departments </li></ul><ul><li>Discuss Ritz-Carlton Case </li></ul><ul><li>Identify the primary forces driving the explosive growth of customer relationship management </li></ul><ul><li>Summarize the best practices for implementing customer relationship management systems </li></ul><ul><li>Compare CRM, SRM, PRM, and ERM </li></ul>
  3. 3. CLOSING CASE THREE Ritz-Carlton <ul><li>What are the two different types of CRM and how has the Ritz-Carlton used them to become a world-class customer-service business? </li></ul><ul><li>Explain ERM and describe how the Ritz-Carlton could use it to increase efficiency in its business. </li></ul>
  4. 4. Customer Relationship Management: Definition The use of information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a company’s customers
  5. 5. Operational and Analytical CRM <ul><li>Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers </li></ul><ul><li>Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers </li></ul>
  6. 6. USING IT TO DRIVE ANALYTICAL CRM <ul><li>Analytical CRM information examples </li></ul><ul><ul><li>Give customers more of what they want </li></ul></ul><ul><ul><li>Value their time </li></ul></ul><ul><ul><li>Overdeliver </li></ul></ul><ul><ul><li>Contact frequently </li></ul></ul><ul><ul><li>Generate a trustworthy mailing list </li></ul></ul><ul><ul><li>Follow up </li></ul></ul>
  7. 7. Using IT to Drive Operational CRM
  8. 8. Marketing and Operational CRM <ul><li>Three marketing operational CRM technologies: </li></ul><ul><ul><li>List generator – compiles customer information from a variety of sources and segment the information for different marketing campaigns </li></ul></ul><ul><ul><li>Campaign management system – guides users through marketing campaigns </li></ul></ul><ul><ul><li>Cross-selling and up-selling </li></ul></ul><ul><ul><ul><li>Cross-selling – selling additional products or services </li></ul></ul></ul><ul><ul><ul><li>Up-selling – increasing the value of the sale </li></ul></ul></ul>
  9. 9. CRM EXPLOSIVE GROWTH <ul><li>CRM Business Drivers </li></ul>
  10. 10. CRM SUCCESS FACTORS <ul><li>CRM success factors include: </li></ul><ul><ul><li>Clearly communicate the CRM strategy </li></ul></ul><ul><ul><li>Define information needs and flows </li></ul></ul><ul><ul><li>Build an integrated view of the customer </li></ul></ul><ul><ul><li>Implement in iterations </li></ul></ul><ul><ul><li>Scalability for organizational growth </li></ul></ul>
  11. 11. CRM Failures <ul><li>Lack of understanding and preparation </li></ul><ul><li>Rely on CRM to solve business problem without first developing the business process changes and change management programs that are required </li></ul><ul><li>CRM projects implemented without the participation of the business stakeholders involved </li></ul>
  12. 12. CURRENT TRENDS: SRM, PRM, AND ERM <ul><li>Current trends include: </li></ul><ul><ul><li>Supplier relationship management (SRM) – focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection </li></ul></ul><ul><ul><li>Partner relationship management (PRM) – focuses on keeping vendors satisfied by managing alliance partner and reseller relationship that provide customers with the optimal sales channel </li></ul></ul><ul><ul><li>Employee relationship management (ERM) – provides employees with a subset of CRM applications available through a Web browser </li></ul></ul>
  13. 13. FUTURE CRM TRENDS <ul><li>CRM future trends include: </li></ul><ul><ul><li>CRM applications will change from employee-only tools to tools used by suppliers, partners, and even customers </li></ul></ul><ul><ul><li>CRM will continue to be a major strategic focus for companies </li></ul></ul><ul><ul><li>CRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customers </li></ul></ul><ul><ul><li>CRM suites will incorporate PRM and SRM modules </li></ul></ul>
  14. 14. ITM 309 Homework <ul><li>Assignment #5 due November 19-20 </li></ul><ul><li>Read Baltzan - Chapter 10 </li></ul>