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Customer relationship management

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For PGDM Marketing students of BK School
Nov 2011

www.profmanishparihar.blogspot.com

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Customer relationship management

  1. 1. Customer Relationship Management www.profmanishparihar.blogspot.com
  2. 2. <ul><li>The Basics of </li></ul><ul><li>Customer Relationship Management (CRM) </li></ul>
  3. 3. <ul><li>Have more choices than ever </li></ul>Expect immediate, high quality, personalized 24-7 service
  4. 4. Are expected to do MORE… with the same or FEWER resources
  5. 5. <ul><li>Plan, program, market, sell and service </li></ul><ul><li>SMARTER </li></ul><ul><li>With faster, better, more personalized service? </li></ul>Good Information
  6. 6. <ul><li>CRM is about… </li></ul><ul><li>finding customers </li></ul><ul><li>collecting info about them along the way </li></ul><ul><li>using that info to enhance their experience and foster long-term relationships </li></ul>
  7. 8. <ul><li>What are their needs? </li></ul><ul><li>Do you offer programs/products in response to their needs? </li></ul><ul><li>… or your organization’s </li></ul><ul><li>convenience? </li></ul>
  8. 9. Source: OSAT
  9. 10. <ul><li>Positioning Your Organization for CRM </li></ul>
  10. 11. <ul><li>Information flow </li></ul>Customer contact Decision-making
  11. 12. <ul><li>Many organizations place customers in the hands of entry-level staff who are… </li></ul><ul><li>Poorly trained </li></ul><ul><li>Poorly paid </li></ul><ul><li>Lacking information to do their jobs </li></ul>
  12. 13. <ul><li>No longer just a communication channel </li></ul><ul><li>Customers interacting with your site are interacting with your business </li></ul><ul><li>Are the people creating your website’s content poorly trained, poorly paid and lacking information? </li></ul>
  13. 15. <ul><li>The Role of Technology in CRM </li></ul>
  14. 16. <ul><li>CRM is a philosophy that is </li></ul><ul><li>supported and enhanced </li></ul><ul><li>by technology </li></ul>
  15. 17. <ul><li>CRM, Marketing Strategy and Measurement </li></ul>
  16. 18. AWARENESS PURCHASE SHOPPING INFO SEEKING What do they know about you? Will you be on their short list? Consider the 4 Cs Customer, cost, convenience, communication How difficult do you make it?
  17. 20. Traditional Marketing Funnel
  18. 22. <ul><li>Goal is to move people through the funnel </li></ul><ul><li>Success measured by conversion rate </li></ul><ul><ul><li># people at one stage/ # people at the prior </li></ul></ul><ul><ul><li>Conversion rates higher as you move down </li></ul></ul><ul><ul><li>May vary by segment, program, strategy,etc. </li></ul></ul><ul><li>On avg 0.5% of strangers become customers </li></ul>
  19. 23. The new age customer is much more informed and much better connected with OTHER customers through the new age WEB 2.0 technologies (eg. Social media).. This has given rise to the concept of Social CRM..
  20. 24. Social Media – Social CRM Source: Rick Mans - Social Media Evangelist
  21. 25. A paradigm shift in internet… Publishing is complex and limited to few traditional media and online merchants Value is created by aggregating content (portals) Easy and free publication for all Value is generated by tools allowing to publish easily Mainly narrow band Mainly Broadband 2004 2005 Traditional media Alternative media Google search Flickr Wikipedia netvibes Web 1.0 Web 2.0
  22. 26. Technology and social factors have converged over the past few years to create a phenomenon called social computing <ul><li>TECHNOLOGY </li></ul><ul><li>Cheap hardware and software reach the masses. </li></ul><ul><li>Simple devices that anyone can operate. </li></ul><ul><li>SOCIAL CHANGE </li></ul><ul><li>Consumers look for cost and time efficient technologies, ways to make their voices heard. </li></ul><ul><li>Younger techno savvy generations pioneer the use of personal networks and viral communication. </li></ul>Source: Forrester (2006) – Social Computing.
  23. 27. Internet statistics <ul><li>100 billion – The number clicks per day </li></ul><ul><li>55 trillion – links on the Internet </li></ul><ul><li>5% - The percentage of global electricity used for the Internet </li></ul><ul><li>90 trillion  – The number of emails sent in 2009 </li></ul><ul><li>81%  – The percentage of emails that were spam. </li></ul><ul><li>200 billion  – The number of spam emails per day (assuming 81% are spam). </li></ul><ul><li>1 million - IM messages per second </li></ul><ul><li>8 terabytes – Traffic per seconde </li></ul><ul><li>234 million  – The number of websites as of December 2009. </li></ul><ul><li>47 million  – Added websites in 2009. </li></ul>
  24. 28. Social Media statistics <ul><li>24 – Hours of video uploaded every minute onto YouTube </li></ul><ul><li>600k - new members on Facebook per day </li></ul><ul><li>900.000 -The number of blogs posts put up every day </li></ul><ul><li>700 million – The number of photos uploaded per day on Facebook </li></ul><ul><li>400 million  – People on Facebook. </li></ul><ul><li>50%  – Percentage of Facebook users that log in every day. </li></ul><ul><li>500,000  – The number of active Facebook applications. </li></ul><ul><li>84%  – Percent of social network sites with more women than men. </li></ul><ul><li>1,73 billion  – Internet users worldwide (September 2009). </li></ul><ul><li>18%  – Increase in Internet users since the previous year. </li></ul><ul><li>126 million  – The number of blogs on the Internet (as tracked by BlogPulse). </li></ul><ul><li>27.3 million  – Number of tweets on Twitter per day (November, 2009) </li></ul><ul><li>57%  – Percentage of Twitter’s user base located in the United States. </li></ul><ul><li>4.25 million  – People following @aplusk (Ashton Kutcher, Twitter’s most followed user). </li></ul><ul><li>1800 – only this many people are following Rick Mans </li></ul>
  25. 29. The Intelligence is in the Connections Connections between people Connections between Information Email Social Networks Groupware Javascript Blogging Databases File Systems HTTP Keyword Search USENET Wikis Websites Directory Portals 2009 Web 1.0 1999 1989 PC Era 1977 RSS Widgets PC’s 2018 Office 2.0 XML RDF SPARQL AJAX FTP IRC SOAP Mashups File Servers Social Media Lightweight Collaboration ATOM Web 3.0 Web 4.0 Semantic Search Lifestreaming Natural Language Search Intelligent personal agents Java SaaS Web 2.0 Flash OWL HTML SGML SQL Gopher P2P The Web The Desktop Windows MacOS SWRL OpenID BBS VR Semantic Web The Internet Social Web Web OS Real-Time Web Intelligent Web Microblogging Memetrackers Online Services Consumer online services Multimedia CDROMs Activity streams Virtual worlds
  26. 32. HUMAN INTERACTION IN A VIRTUAL WORLD <ul><li>Social Media is </li></ul>
  27. 33. http://www.flickr.com/photos/greenboy/416052683/ who are you? (as a customer)
  28. 34. A new generation <ul><li>Cut and paste Generation : Today’s youth create their own authentic style but combining different styles. </li></ul><ul><li>Generation Search : S=searching and sharing, E=equilibrium, A=achieving, R=rules, C=commitment, H=harmony. </li></ul><ul><li>Digitale Generatie : Todays youth … Jongeren van nu vinden het leven in de virtuele wereld even vanzelfsprekend als daarbuiten; de eerste generatie die opgroeit met digitale media. </li></ul><ul><li>My Media Generation : Today’s youth have three basic needs: community, selfexpression and personalisation; the first 'global' generation That can customize everything to its own taste and wants. </li></ul><ul><li>Generatie Einstein : Todays youth is smarter, stronger and more social: the first positive generation! </li></ul>Generation Y, The Millenials, Digital Natives… the future generations are infinately connected, born and raised digital, and favour values such as connectedness / community, environmental awareness, authenticity, freedom and friendship above all else. What does this mean for a company
  29. 35. Generation V Generation Virtual is used to describe a growing online culture in which people participate, often anonymously, through personas in a flat, virtual environment. Generation Virtual is not defined by age, gender, social demographics or geographic location . It is based on demonstrated accomplishments (merit) and an increasing preference for the use of digital media channels to discover information, build knowledge and share insights. The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ – Gartner ID Number: G00158087
  30. 36. Or in a more visual way Multiple Online Personas
  31. 39. http://www.flickr.com/photos/naturalturn/3264726560/ THE END OF THE WEB AS WE KNOW
  32. 40. The Internet and its attendant array of consumer devices, networks and content sources have fundamentally changed how customers, employees and partners expect to interact with the enterprise (Gartner CIO survey 2008/2009).
  33. 41. INTERNET RETAILING IS RESPONSIBLE FOR CIRCA 10% OF TOTAL SALES, THIS IS EXPECTED TO GROW NOT SHRINK
  34. 42. HOWEVER, SOCIAL MEDIA AND NETWORKS INFLUENCE A VERY SIGNIFICANT PORTION (GREATER THAN 40%) OF ALL OFFLINE SALES.
  35. 43. The Historic Focus of CRM projects vs How Customers buy things today
  36. 44. Social CRM
  37. 45. <ul><li>Social CRM is your existing CRM plus the ability to leverage the social web and kick start, manage and ultimately automate the conversation process. Its power lies in the ability for all parts of the organisation but mostly customer services and sales/marketing teams to listen in on conversations (social voyeurism), craft compelling messages , join in on customer conversations (Twitter is being increasingly used in this context) and offer people added value information in real time . </li></ul>
  38. 46. <ul><li>Social CRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics , designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. </li></ul><ul><li>It’s the company’s response to the customer’s ownership of the conversation </li></ul>
  39. 48. Building meaningful relationships <ul><li>With your friends and colleagues </li></ul><ul><li>With people you don’t know (yet) </li></ul><ul><li>Build trust </li></ul>
  40. 49. www.profmanishparihar.blogspot.com Source: Rick Mans [email_address] +31 6 512 10 144 http://twitter.com/rickmans http://www.linkedin.com/in/rickmans

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