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  1. 1. Customer Relationship Management /1 • The use of information to createCustomer Relationship and enable repetitive sales andManagement support processes, • To generate a value propositionIn any rapidly changing business that increases customer valueenvironment it is essential to manage and loyaltythe expectations and quality of service • The ability to increase orand support to the market. Serious flaws institutionalize pro-activityin this area have emerged in relation tothe management of service consistency To achieve these in a multi channeland customer care. This section provides organization a supplier of CRMinteresting research and guidance from applications must ensure the ability toDHL and other sources that will assist in support and drive integration across allavoiding problems in this critical area. relevant channels and functions.The consistent and effective Establishing CRM successfullymanagement of the customerrelationship across all channels and To establish a successful CRMfunctions within an organization is a key installation, changes will be requiredcompetitive differentiating and success within the organizational processes, datafactor for any evolving Business. and operation of the customer management.Customer relationship management Some of the changes required are:(CRM) can be defined as an integratedset of business processes and enabling • Establishing and implementingtechnologies in support of a consistent the key information sets thatentry, management and use of customer identify the customerrelated information across and between appropriatelychannels of sales and service. • Establishing a consistent set of data that describes customerThe essence of Customer activityrelationship Management • Establishing consistent data and business rules in gathering,At the heart of CRM is the issue of data processing and storing dataand relationship ownership. In the past, • Reengineering established andmarketing or sales have been deemed to emerging channels to comply withown the customer. In the CRM model CRM requirementsany single entity or function does not • Reengineering establishedown the customer. The customer is information and supportmanaged cooperatively by all the parties processes to reflect availablewith a customer contact responsibility or normalized dataservice provision / support role. • Management of change in any application or process related toThe purpose of CRM remains the same CRM support, feed oras that of existing customer presentationmanagement processes. These are: • Integration of manual and on-line processes to be mutually • The growth of business by supportive leveraging existing relationships, • Using information available to Should any of the above not be improve the customer achieved, then islands of data and relationship, process will remain un-integrated and add time, cost, inconsistency and WWW.DHLMASTERCLASS.COM
  2. 2. Customer Relationship Management /2inefficiency throughout the entire supplier to investigate andorganization. introduce innovative new services at an individual,What should CRM contain? corporate or industry level.Any successful CRM implementation • Application and processintegrates the following integration • Customer Detail Information This looks to ensure that the organizations internal application set is This provides a total view geared to integration in support of the of all activities and customer relationship. Here an information related to the organization looks to have access and customer, their activities, normalize all information from Legacy, their interactions and their emerging and future applications and stated or intimated needs processes in support of a single consistent but customizable view of the • Modes and means of contact or customer for all functions and support service provision activities. This defines the channels of access From Islands to Integration the customer has operated within in the past and future channel needs The organization into which CRM is and allows the activities performed introduced must also change. Traditional over each channel to be codified to a concepts of ownership and responsibility, single, integrated, consistent contribution and value projection have to relationship history. be addressed. The introduction of CRM requires present isolated and • Services, processes or support uncoordinated players in the customer used relationship to realign to focus on the relationship as a collegiate responsibility to which all cooperatively contribute and This identifies the gain reward. Failure to ensure that this is elements of the the overriding and explicitly stated organization offer that the objective of the implementation of CRM customer has used in the will cause the project to deliver less past. This information can benefit internally and externally. be used to illustrate customer trends in service This can only be achieved through the use, trends, patterns of inclusion of all stakeholders, realignment use and allows proactive of their focus in relation to the customer offers or channel transition and a singular focus on creating a totally suggestions to be made to consistent customer support resource for them. the customer and the organization. • Relationship information on other relationship stakeholders The role of the customer in CRM No customer or supplier relationship operates in The essential purpose of CRM is to isolation. Understanding maximize organizational effectiveness the precursors to a trade and efficiency in the servicing of and and the follow-on benefit from customer needs. This is a relationships of the learning and analysis process that is customer allows the generally focused on active customers. WWW.DHLMASTERCLASS.COM
  3. 3. Customer Relationship Management /3This, whilst central to the organizations • Customer analysisoperational efficiency, should beaugmented with careful analysis of Analyze existing and pastcustomers no longer trading with it. customers to have a truly rounded view of theEvery lost customer is a lost opportunity organization strengths,for additional revenue and growth. weaknesses, opportunitiesHowever it is also an opportunity to and threats. Competitiveidentify failings or inadequacies that the benchmarking is a criticalcustomer felt compelling enough to force element of this process asthem to embark on a process of it identifies external offerschanging suppliers and initiating the more attractive to pastdevelopment of a new relationship. customers and potentially to existing ones also. ThisIn support of any CRM project, special process should alsoattention should be focused on lost include the analysis ofcustomers and their perception of the internal customers.organizations failings. Generally thefeedback received will be very precise • Scope the project and itsand a very good indicator of issues that objectivesmany existing customers may have buthave yet to feel are sufficient to forcechange. In this process the organization carefullyExisting customers will also illustrate analyses the entireweaknesses and strengths. The organizational scope of thestrengths should be the core of the CRM customer relationship,initiative and the weaknesses the core of their channels, servicesdevelopment in support of a fuller products and supportmanagement offer in support of the already in place. From thiscustomer. Once addressed and in place a clearly defined,there then exists the opportunity to re- organizationally agreed,contact lapsed or lost customers to sell focused project descriptionthe new offer to them. is created.It should be realized that customers • Create the business casemight have a very tactical view of theservice and support offer made. This The business case must betactical view and feedback must be created in a manner thatcarefully merged to the strategic identifies the businessobjectives the organization has for the problem across theCRM project. Only through the correct organization and thebalance of the tactical and strategic can individual functional andCRM projects address today`s needs in a overall benefits that canmanner which allows flexibility to be gained from a CRMaddress future situations. project. The CRM business plan must illustrate andMoving Forward make clear that no single solution will deliverWhere the decision is made to progress everything all at once.with a CRM initiative there are a few CRM is an evolutionarysimple but relatively standard steps that process that will requireare needed to assist in the successful consistent, multi yeardelivery and operation of the final resourcing for people anddeliverable. budgets. WWW.DHLMASTERCLASS.COM
  4. 4. Customer Relationship Management /4• Cross integrate CRM strategy to management empowered the existing Organizational to align disparate functions strategies and processes will increase the opportunity for failure. All organizations have All functions should be business, technical and, in tasked to participate and most cases, customer care contribute key knowledge strategies already in place. personnel to the process. The CRM strategy must be Delivery of the CRM fitted to the framework of objectives should be a existing strategies. stated Key deliverable and Equally, because of the metric for all managers in strategically important the affected functions. nature of CRM, existing strategies have to be • Stage the implementation process reviewed to ensure alignment at a business, CRM is a rapidly evolving technical and customer field. The complexity of care objectives level. The aligning the internal objectives arrived at must processes and functions is support and be supported enormous and if not rolled by those of the core out in manageable organizational strategies. sections will overwhelm the organization`s ability• Technology choice will be critical to integrate its capabilities. Equally the No existing CRM package staging of the rollout will fulfill all your allows the organization to immediate needs. The review both the strategy CRM strategy needs to and the priority schedule identify, in priority order, to reflect changing market the requirements that and user needs / trends. must be delivered in sequence. This allows the • Allow no exceptions technical teams to clearly vet the technology offers CRM can only be in line with their ability to successful where it address the organization`s guarantees a consistency priorities. Ease of doing of customer management business and integration and service across all simplicity must be key channels, functions and criteria for application processes. An organization choice. ill prepared to align all channels, functions and• Simplify project management processes in support and use of the CRM The organization must deliverables has appoint one single undermined the project accountable and from the beginning. empowered manager to deliver against the • Measure the process strategy. Failure to have a distinct leader, explicitly CRM will, where staged deploy into an supported by senior organization that will have existing and WWW.DHLMASTERCLASS.COM
  5. 5. Customer Relationship Management /5new processes running in parallel for aperiod. It is critical that the metrics usedallows the value of both existing and newprocesses to be measured to comparablecriteria. This allows the effectiveness ofthe new to be measured against the oldand allows for business plans to be re-addressed to ensure reality is reflected inthem. These consistent measures alsoallow processes to be analyzed to seeinefficiencies or gains that are less thatprojected. This allows ongoingrealignment of the processes andsupporting technologies to provideexpected or better service levels.Some Things to remember • A dissatisfied non-Internet customer tells on average 9 people of their bad experience. A dissatisfied Internet customer can tell the world. • Selling to an existing customer is 500% cheaper than selling to a new customer • A 5% customer retention improvement can increase profitability by 85% • Good customer care will ensure that 70% of complaining customers trade againExisting customers are successfully soldnew products in 50% of cases. For newcustomers the figure is 15%. WWW.DHLMASTERCLASS.COM