The document discusses customer relationship management (CRM). It provides an overview of CRM, including why customers leave companies and the transition from traditional to contemporary customer-centric approaches. It also discusses applying CRM concepts at Volkswagen and Virgin Mobile to improve customer experience. Finally, it covers measuring the effectiveness of CRM through frameworks like the balanced scorecard and analyzing customer value using metrics like recency, frequency, monetary value (RFM) analysis.
Customer Relationship Management. If you are a startup or business looking to buy a CRM software for your business this slide share will help you out immensely. 1Click team has spent time analyzing customers and CRM softwares to come up with this. SalesForce, Zoho, Microsoft... no matter which CRM you are evaluating for your business this you will find this immensely useful in decision making.
1Click live video chat, the best video chat solution for businesses and startups. 1click lets you have live conversations with visitors on your website. Our chat widget allows you to start video conversations with your customers or clients within seconds. No add-on, no plugin, no extension, your customers are truly one click away from having an audio or video conversation with you. 1Click live video chat allows multipoint face-to-face chat without any software installations, and perform cross-platform video conferencing; so that you need not worry what OS the visitor is using. Your customer can connect with your customer service representatives from anywhere, any device. Our live chat widget enables video, audio, and text on any website or mobile app. Further, our Wordpress live chat plugin, Shopify live chat plugin, Joomla live chat plugin, Drupal live chat plugin, blog live chat plugin and other similar live chat plugin will enables video and audio calling abilities on any website. Providing a live video customer support has never been easier before. Our customer support tool let's you make your customer go WOW.
With our SalesForce live chat plugin, Zoho live chat plugin, Jira live chat plugin, SugarCRM live chat plugin, and other similar live chat extensions you can start off every chat knowing whether there are any outstanding tickets, cases, or notes related to the customer. Similarly, you can create cases, notes or tickets for the customer anytime during the conversation. All the data on your 1Click live chat dashboard can be integrated with Salesforce, Zoho, Jira, SugarCRM or any other customer relationship management software you are using.
We know very that customer engagement is a team activity. 1Click live video chat widget lets you seamlessly chat with or transfer conversations to other agents. Our live chat widget comes with website statistics, and chat analytics available at your fingertips all the time. We take security very seriously. Enjoy secure encrypted chats on your SSL (https) web pages. All the video chats, audio chats, and text chats are 128 bit AES encrypted. We are developer friendly. Extend and customize the behavior of the widget. Be unique, and get creative with our Javascript APIs. Powered, and constantly upgraded with the latest web technologies such as webRTC we enable real-time communication over web (read browser). webRTC live chat, we believe will be the future of communication. 1Click live chat software will help you increase customer sastisfaction and multiply online sales.
http://1click.io
CRM is a competitive strategy and process of acquiring, reacting and partnering with selective customers to create superior value for the company and the customer.
Presentation slides from Customer Relationship Management (CRM) workshop as part of Destination Digital business support programme from Connecting Cambridgeshire.
Want more information? Small businesses across Cambridgeshire and Peterborough can currently get free business support on using digital technology until March 2015.
More information here: http://destinationdigital.info/advice/
Customer Relationship Management. If you are a startup or business looking to buy a CRM software for your business this slide share will help you out immensely. 1Click team has spent time analyzing customers and CRM softwares to come up with this. SalesForce, Zoho, Microsoft... no matter which CRM you are evaluating for your business this you will find this immensely useful in decision making.
1Click live video chat, the best video chat solution for businesses and startups. 1click lets you have live conversations with visitors on your website. Our chat widget allows you to start video conversations with your customers or clients within seconds. No add-on, no plugin, no extension, your customers are truly one click away from having an audio or video conversation with you. 1Click live video chat allows multipoint face-to-face chat without any software installations, and perform cross-platform video conferencing; so that you need not worry what OS the visitor is using. Your customer can connect with your customer service representatives from anywhere, any device. Our live chat widget enables video, audio, and text on any website or mobile app. Further, our Wordpress live chat plugin, Shopify live chat plugin, Joomla live chat plugin, Drupal live chat plugin, blog live chat plugin and other similar live chat plugin will enables video and audio calling abilities on any website. Providing a live video customer support has never been easier before. Our customer support tool let's you make your customer go WOW.
With our SalesForce live chat plugin, Zoho live chat plugin, Jira live chat plugin, SugarCRM live chat plugin, and other similar live chat extensions you can start off every chat knowing whether there are any outstanding tickets, cases, or notes related to the customer. Similarly, you can create cases, notes or tickets for the customer anytime during the conversation. All the data on your 1Click live chat dashboard can be integrated with Salesforce, Zoho, Jira, SugarCRM or any other customer relationship management software you are using.
We know very that customer engagement is a team activity. 1Click live video chat widget lets you seamlessly chat with or transfer conversations to other agents. Our live chat widget comes with website statistics, and chat analytics available at your fingertips all the time. We take security very seriously. Enjoy secure encrypted chats on your SSL (https) web pages. All the video chats, audio chats, and text chats are 128 bit AES encrypted. We are developer friendly. Extend and customize the behavior of the widget. Be unique, and get creative with our Javascript APIs. Powered, and constantly upgraded with the latest web technologies such as webRTC we enable real-time communication over web (read browser). webRTC live chat, we believe will be the future of communication. 1Click live chat software will help you increase customer sastisfaction and multiply online sales.
http://1click.io
CRM is a competitive strategy and process of acquiring, reacting and partnering with selective customers to create superior value for the company and the customer.
Presentation slides from Customer Relationship Management (CRM) workshop as part of Destination Digital business support programme from Connecting Cambridgeshire.
Want more information? Small businesses across Cambridgeshire and Peterborough can currently get free business support on using digital technology until March 2015.
More information here: http://destinationdigital.info/advice/
Je hebt veel gegevens van je klanten en leads, zoveel dat je door de bomen het bos niet meer ziet. Dan wordt het tijd om datamining eens los te laten op je bronnen: clustering, regression, propensity, forecasting, textmining', etcetera. Met als doel natuurlijk dichter op je klant en lead te zitten en met zo weinig mogelijk investeringen maximaal returns te genereren. Piconcepts onderscheidt verschillende dimensies met daarbinnen tal van oplossingen. Gebaseerd op bewezen techniek en getest in de praktijk.
Social CRM - Functional Architecture and Interactions FlowFabio Cipriani
Building long-lasting links with customer through innovative experience and co-generating value with them
Topics covered:
- Why Social CRM?
- Functional Architecture
- Flow and Value of Interactions
- What are CRM vendors doing to promote Social experience
- Pre-requisites and business questions
Businesses of every shape and size are using cloud to gain rapid access to world class IT capabilities (resource pooling, rapid elasticity,measured service, cost predictability, agility, rapid implementation, etc). Integrating a cloud solution with existing systems can be one of the most complex, costly and time-consuming aspects of cloud adoption.
The Future of CRM: Aligning Sales and Support Around the Customer JourneyTeckstco
CRM/Analytics thought leader Ryan McGuire looks at the future of CRM as one where the customer journey is aligned from sales to support, and how your organization can take steps toward making this transformation. Enterprise two-way messaging platform provider Teckst discusses enterprise use cases and learnings from past implementations.
Webinar - making customer retention your strategy for hyper-growthRanceTimiEbiwari
Consumer expectations have shifted. Digital-first brands are now the leaders in creating valuable experiences. Thoughtful, meaningful engagement is a more effective strategy than persistent, irrelevant campaigns.
Customer-centricity is an enterprise-wide way of business management that puts customers and the customer experience first and foremost in everything they do. Its focus is on developing strong and positive relationships with customers in the sales management process.
Customer-centricity is an enterprise-wide way of business management that puts customers and the customer experience first and foremost in everything they do. Its focus is on developing strong and positive relationships with customers in the sales management process.
Customer Relationship Management or CRM is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service and technical support.
It is a new business philosophy based on trust and value
It provides selling organisations with the platform to obtain a competitive advantage by embracing customer needs and building value-driven long-term relationships.
Webinar: All About Customer Success for PMsProduct School
You will learn:
What is customer success?
Different modes of operation
Customer success Vs project management Vs customer support
How to integrate customer success in your product roadmap?
1. CUSTOMER RELATIONSHIP
MANAGEMENT
Faculty : Prof .Ashok Kumar
Slides not for cirulation 1
2. Recommended Text Books :
1. Customer Relationship management
Emerging concepts, Tools & Application
J.N Sheth , Atul Parvatiyar
G.Shainesh
2. The Ultimate CRM Handbook
John. G . Freeland TMH edition
3. CRM at the lightening speed.
Paul Greenberg
Slides not for cirulation 2
3. Why CRM ???????
Why do customers quit ???
Research shows :
• 1% die
• 3% become dormant .
• 5% develop high aspiration .
• 9% leave for competitive reasons
• 14% are dissatisfied due to non value added
service
• 68% quit because of an attitude of
indifference( relationship) by marketer
. Slides not for cirulation 3
4. Traditional Marketing approach.
Traditionally, marketers have been trained to acquire new
customers, the ones who have not bought the product
category before or those who are currently competitors’
customers. This has required heavy doses of mass
advertising and price-oriented promotions to customers and
channel members.
Today, the tone of the conversation has changed from
customer acquisition to retention. This requires a different
mindset and a different set of tools.
The need to better understand customer behavior and focus
on those customers who can deliver long-term profits has
changed how marketers view the world.
Slides not for cirulation 4
5. Transition to CRM world
Traditional approach Contemporary approach
Production centric Customer centric
business Approach business approach
Mass production •Customized production
Economy of scale •Low volume & more variety
economy Of scope
Low cost & volume
Push. •Product delivery as a total solution
of Product & service
Sell ! Sell! Sell !!!
•Generate Pull demand
Slides not for cirulation 5
6. Transition to CRM world
•Customer = kasth se • Customer grants
Mar me destiny
•Customer has need, so •If customer likes me they
they come. will stay with me .
•Customer think I am in •Customer think I am
-dispensable dispensable
•
•They have no choice •More option, More
competition
Slides not for cirulation 6
7. 1.Which of the following a business enterprise don’t need ?
Market Share
Brand visibility
YoY revenue growth
YoY bottom line growth
Loyal customer
Reduced cost of operation
All of them
2.What should a business do to achieve all above ?
Customer centric business process
Customer oriented top management
Customer oriented operation team
Customer friendly business models
Value added solution
Long term relationship approach
All Above
Slides not for cirulation 7
8. Today’s corporate challenges
Is customer chasing a product Or product chasing a
customer ??
Slides not for cirulation 8
9. What do corporate world think of CRM
“Initially, when Bharti started its telecom
operations, just 40 percent of our customer
issues used to get resolved , this has now
gone up to about 90 percent," : vice president .
"It is vital for us to manage the expectations of
our customers and provide them with innovative
products and services in a manner which makes
them loyal," explains Gangotra.
"It is this need that made us opt for a CRM
(customer relationship management) solution,"
she says. Slides not for cirulation 9
10. CRM application in VOLKSWAGEN
Volkswagen AG is the largest automobile maker in Europe. More than 36 million
vehicles carry on their logo. Like other automobile manufacturers, the
company is well informed about its customers and heavily depends on this
information. However, they lose contact with the car owner after the first
change of ownership (after an average 3.7 years). As a result, the company
does not have current information about many of its customers.
In 1988, the company started its ‘Customer Come First’ marketing strategy.
Under this strategy, all of the decision-making processes are based on the
‘Voice of Customer.’ The company carefully monitored their response to
35 advertisements, customer expectations, and customer satisfaction. Customer
forums and focus group are used to hear the customer voice.
Volkswagen developed services such as service guarantee, the emergency plan,
the mobility guarantee, the customer club, and toll-free service phone. All
advertising media are designed toward two-way communication. This allows
the company to obtain useful information such as lifestyle, demographic, and
behavioral data.
The company maintains a central database to provide club card, bonus point
programs, club shops, and Volkswagen magazine. Every contact points with a
customer gives the company more information about the customer, so the
company can constantly improve the quality and value of the customer
Database.
Slides not for cirulation 10
11. Virgin Mobile’s vision required applications that could support the delivery
of a real time experience at any time of day, across multiple channels. “It’s
easier to have such a system for a postpaid cellular service , since they
just run the billing system a month after the calls have been made to
determine what the customer owes,” explains Mike Parks. CIO “For a
prepaid service , everything happens immediately, resulting in a
tremendous systems challenge.
You need systems that can seamlessly integrate with other systems. You
need to be able to instantly share data across channels and complete
transactions in real time. You must have real-time failover, so customers
are not inconvenienced if a system goes down.
To meet the challenge, Virgin Mobile knew it needed a customer
relationship management (CRM) solution that would allow customers to
speak with knowledgeable, friendly customer service employees who
could resolve their inquiries in a single call. “We wanted to give our
service agents the ability to have control of the call—not just to provide
information—,” says Mike Parks.
Slides not for cirulation 11
12. What is CRM ecosystem
Business Process
CRM levels
360 degree view
of client
Slides not for cirulation 12
13. Customer Life Cycle & CRM practice .
CRM practice in an organization helps to manage
customer life cycle in most profitable way.
CRM
Impulsive Compulsive Addictive
buying buying buying
Slides not for cirulation 13
14. The customer life cycle encompasses four continuous patterns
in which businesses interact with customers across multiple
channels and touch points.
CRM process integrates the right employees, partners,
processes, and technology to optimize relationship
management across all four patterns within a customer life
cycle:
. Engage: Recognizing potential customers and converting
them into (first-time) buyers.
. Transact: Getting the customer to make a purchase.
. Fulfill: Providing the total one point solution .
. Service: Providing customer care and service across all
channels. Slides not for cirulation 14
15. Integrating CRM with organization’s Business
Three important factors which determine the financial success of an enterprise: Market
Driven solution, Delighted Customer , Customer centric organization culture .
Consumer
Research
Strategy Formulation
Implementation Feedback
Communication
Measuring CRM driven ROI
Slides not for cirulation 15
16. Measuring business performance
Businesses have long since measured financial
performance with traditional financial measurement tools:
profit and loss statements, balance sheets and cash flow
statements. These measurement frameworks suffer from
limitations; they measure past activities.
Kaplan and Norton created the balanced
scorecard framework to address some of these
deficiencies and have expanded the tool to measure the
impact of strategy.
Balanced scorecard intends to predict future financial
performance and track how effectively the corporate
strategy is executed.
Slides not for cirulation 16
17. Balance Score card is a framework of evaluation used to measure
the overall effective ness of an organization.
The 4 perspectives used to evaluate the overall performance are :
Customer perspective , Learning & knowledge perspective , Financial
perspective & Internal process perspective.
The CRM specific perspectives are : 1. Customer Value perspective ,
which measures the financial benefits gained form the customer .
2. Customer satisfaction perspective which measures the level of
satisfaction achieved by products & service .
3. Customer interaction perspective that measures the operational
excellence of internal process & multi channel management.
4. Customer knowledge perspective that measures the quality of
Slides not for cirulation 17
customer knowledge & data analysis.
19. Concept of Balance Score Card in service
sector .
Slides not for cirulation 19
20. Measuring ROI in CRM driven business model.
Internally focused measurement Externally focused measurement
Customer
Value Value
Consumer
Creation delivery
Behavior
&
Attitude
Consumer
Insight
Customer Loyalty
Word of mouth
Increasing retained profitable
Slides not for cirulation Client base 20
21. Measuring ROI in CRM driven business model.
Internal Customer consumer Financial
Process perception Behavior Perspective
Slides not for cirulation 21
22. Kaplan and Norton’s balanced scorecard framework
CLV( Projected
revenue)
(Business process)
Slides not for cirulation 22
23. RFM approach for CRM strategy
(Recency, Frequency, Monetary Value )
• Recency
– When was the last customer interaction?
• Frequency
– How frequent was the customer in its
interactions with the business?
• Monetary value of the interactions
Slides not for cirulation 23
24. Recency, Frequency, Monetary Value
Marketing Problem:
A firm has sent e-mail to 30,000 of its existing
customers, announcing a promotion of $100. 458
of them responded (1.52% of the customers)
Is there any relation between the responding
customers and their historical purchasing
behaviours?
Slides not for cirulation 24
25. RFM Method:
Recency Coding
• 30,000 customers are sorted in descending
order with respect to their most recent
purchases
• Sorted data is divided into 5 equal groups, each
of them containing 6,000 people
• Recency codes are assigned: Top group has
code 5, bottom group has code 1
Slides not for cirulation 25
26. RFM Method:
Recency Coding
Recency Results
4.00 • According to analysis based on
Response %
3.1 customer recency, the group
having the highest recency
3.00 group has also the highest
response rate
2
2.00 1.5 • Remark:
(3.10% + 2.00% + 1.50% +
1.00 0.62 0.62% + 0.38) / 5= 1,52% which
0.38 is the response rate
0.00 • Strict Rule: Ones who have
5 4 3 2 1 purchased recently are much
more willing to buy new products
Recency code R than others purchasing in the 26
Slides not for cirulation
past
27. RFM Method:
Frequency Coding
• Sort the 30,000 customers with respect to
frequency metrics.
– Frequency metrics: Average number of purchases
made by customer in a time period t
– Sort customers in descending order with respect to
their purchase frequency.
• Assign them to 5 groups, top %20 in the first
frequency group.
• Assign frequency codes such that the top group
has code 5 and the bottom group has code 1.
Slides not for cirulation 27
28. RFM Method:
Frequency Coding
Frequency Results
3 2.8
• It is observed that highest
2.5 response rate is from the
2.1
customers having highest
Response %
2
frequency
1.5 1.3
• Frequent people respond
1 0.8
0.9 better than less frequent ones
but differences between
0.5 groups are less than the ones
0 in the recency
5 4 3 2 1 • The lowest frequency group
Frequency code F always contains new
customers
• That is why it is named RFM
Slides not for cirulation 28
29. RFM Method:
Monetary Value Coding
• The same process as recency and frequency
coding
• Sorting is done with respect to monetary value
metric
– Monetary value metric is the average amount
purchased in a time period t
• At the end of the monetary value coding, assign
monetary value codes M = 1,...,5 to groups
according to their groups.
Slides not for cirulation 29
30. RFM Method:
Monetary Value Coding
2.5 Frequency Results
2.1
2 1.8 • It is observed that highest
Response %
1.4
response rate is from the
1.5 customers having highest
1.2
1.1
monetary value
1
• Unlike the recency case,
0.5 there are not big differences
between groups
0
5 4 3 2 1
Monetary value code M
Slides not for cirulation 30
31. RFM Method:
Putting the Codes Together
• At the end of the monetary coding firm obtain R
F M metrics for customers. Each customer
belongs to one of 125 possible combinations of
the RFM values:
Database
R
1 2 3 4 5
F
21 22 23 24 25
Slides not for cirulation 31
231 232 233 234 235 M
32. RFM Method:
STEPS
• Create 3 digits RFM codes cells
• All cells having the same number of customers
in them
• RFM values are used to define group of
customers that marketing campaign should
target or should avoid
• Used for identifying customers having high
probability to respond to campaigns:
555’s response rate > 552’s > 543’s >541....
• Increase the response rate
• Increase profitability not for cirulation
Slides 32
33. Customer Value Metrics
• Critical measures used to define customer worth
in knowledge-driven and customer-focused
marketing
Slides not for cirulation 33
34. Customer Value Metrics:
Size of Wallet
J
• Size of wallet = ∑S
j =1
j
Sj = Sales to focal customer by firm j
• Assumption: Firms prefer customers with large
size of wallet in order to retain large revenues
and profits
Slides not for cirulation 34
35. Customer Value Metrics:
Individual Share of Wallet (SW)
• A proportion expressed in terms of percentage,
calculated among buyers
• Measured at individual level
• A measure of loyalty
• Can be used in future predictions
• Different from the “market share”, which also
considers customers with no purchase
Sj
• Individual share of wallet % = J
∑S
j =1
j
S j = Sales to focal customer by firm j
Slides not for cirulation 35
36. Customer Value Metrics
• Share of wallet and size of wallet should be
analyzed together because...
Size of Share of Purchases
Wallet Wallet
Customer 1 $500 50% $250
Customer 2 $100 50% $50
Slides not for cirulation 36
37. 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% Slides not for 15%
cirulation
70% 37
38. Lead analysis & sales forecast
RFQ analysis & Bid preparation (Investment
proposal )
Sales control
Sales collaterals & templates
Sales productivity analysis
Field intelligence report
Slides not for cirulation 38
39. Depending on the company’s business model , CRM
measurement frameworks vary. Some key categories of
performance measurement include:
1. Brand performance measures
2. Customer asset management
3. Customer behavior
4. Marketing performance
5. Sales force performance
6. Service center performance
7. Field service performance
8. Supply chain and logistic performance
9. Web site performance
Slides not for cirulation 39
40. 1.Brand-building
Customer equity building
Customer behavioral modeling
Customer value management
Customer-facing operations
2. Marketing operations
Sales force operations
Service center operations
Field service operations
3.Supply chain and logistic operations
Web site operations
Leading indicator measurement
4. Balanced scorecards
Slides not for cirulation 40
Customer knowledge management
41. Dimensions of Loyalty & loyalty management
1 Emotive
Loyalist loyalist
2 Inertial
loyalist
3 Deliberative
Customer loyalist
Downward 1 Life style
Migrators Downward
migrator
2 Deliberative
migrator
3 Dissatisfied
Downward migrator
Slides not for cirulation 41
42. Marketing Statistics
• The average business never hears from 96% of
its unhappy customers.
• They tell a minimum of 9-10 other people about
their bad experiences.
• Getting a repeat customer from unhappy
customer group is extremely difficult .
• Every positive experience is shared with 2 to 3
people( prospective customer ).
• For every single complaint received, there are in
fact 26 customers withfor cirulation
Slides not
the similar concern. 42
43. Marketing Statistics…
• Of the customers who register a complaint, as many as
70% will do business again with your organization if the
complaint is resolved effectively.
• This figure goes up to 95% if the complaint has been
resolved promptly.
• 40% of complaints result from customer mistakes or
incorrect expectations.
• Customers who complain and get satisfactory results
are 8% more loyal than if no complaint at all.
Slides not for cirulation 43
44. Customer Profitability and Life time Value.
As cost of serving a customer increases over
the years ,due to inflation ( rise in input cost )
profit earning ability of the firm decreases
during the life time . Hence customer centric
business leverage on RLEATIONSHIP
MANAGEMENT as key strategy to improve
customer profitability over the lifetime of the
customer.
Slides not for cirulation 44
45. Customer lifetime value represents exactly how much each
customer is worth in monetary terms, and therefore exactly how
much a marketing department should be willing to spend to
retain each customer or a specific segment .
Relationship can be contractual or referral. Accordingly the cost
of maintaining the relationship will change. This will reflect in
CLV.
Slides not for cirulation 45
46. CLV model makes simplifying assumptions :
1. Churn rate: The percentage of customers who end their
relationship with a company in a given period. One minus the
churn rate is the retention rate. Most models can be written
using either churn rate or retention rate. If the model uses only
one churn rate, the assumption is that the churn rate is constant
across the life of the customer relationship.
2.Discount rate: The cost of capital used to discount future
revenue from a customer. The current interest rate is generally
used as a simple discount rate.
Slides not for cirulation 46
47. 3.Retention cost/ Cost of servicing : The amount of money a
company has to spend in a given period to retain an existing
customer. Retention costs include customer support, billing,
promotional incentives, etc.
Period : The unit of time into which a customer relationship is
divided for analysis. A year is the most commonly used period.
Customer lifetime value is a multi-period calculation, usually
stretching 3-7 years into the future.
In practice, analysis beyond this point is viewed as too
speculative to be reliable. The number of periods used in the
calculation is sometimes referred to as the model horizon.
4.Periodic Revenue: The amount of revenue collected from a
customer in the period.
Slides not for cirulation 47
48. Customer Lifetime Value (simplified formula)
n
CLV = Σ D [(Rt – Ct)] - Ac + Rf [ Rtr – Acr ]
t=1
(1+r)t (1+r)t
Where:
t = Year
n = Length of customer relationship
r = Discount rate
Rt = Revenue earned from customer in year t
Ct = Cost of servicing customer in year t
Ac = Full acquisition costs
Rf = Number of referrals generated by customer each year
D = customer retention rate
Acr = Reduced acquisition costs .
Rtr = Revenue from referral customer
backup FolderSpecial LTV Calculator2.xls
Slides not for cirulation 48
49. The CLV equation can also be used to show where
additional profits can be obtained from customers.
Increased profits can result from:
· Increasing
J, the number of products
purchased, by cross-selling.
· Increasing P, the price paid, by up-selling or
charging higher prices.
· Reducing C, product marginal costs.
· Reducing MC, the customer acquisition
costs.
Slides not for cirulation 49
51. Effectiveness of Loyalty Programme
E
f
f
e
c
t
i
v Customer
e
Exit point
n
e
s
s
Time taken
to redeem CLP
Slides not for cirulation 51
52. Hence in a competition driven market
having more business challenges,
to attract , acquire and retain a customer,
business practices which are customer
centric ( Customer Relationship
Management ) is imperative and need of
the business.
Slides not for cirulation 52
53. Adoption( diffusion ) of the new product concept
happens only if :
Slides not for cirulation 53
54. Diffusion strategy
Factors which are responsible for early adoption are :
1. Perceived relative advantage
2. Compatibility with existing process , values , belief etc
3. Low complexity : Easy operation, maintenance. User
friendly.
4. Trailability : Ease of experimenting
5. Observability : Visual effect
Slides not for cirulation 54
55. Create adopter categories :
Innovators
Early adopters
Early majority
Late majority
Laggards Early Early
Innovators
adaptors majority
Strategy to : Develop innovators : Acquire innovators through price ,
trivertising , trade promotion, BTL promotion
flexible terms of take back if not satisfied
etc. Mass media
Develop Adaptors : Extensive sales promotion .
Push early majority ; Create demand through urgency , opportunity
loss, artificial delay etc.
Slides not for cirulation 55
56. Lead Management Process
Lead management or opportunity management process involves a CRM
process which help to identify the right opportunities , qualify the opportunities
and convert them. More popularly known as sales pipeline or sales
funnel management .
As the suspect to customer ratio decreases drastically in any sales process ,
sustained forecasting model for lead generation is must .
Material planning , production planning , budget , profit guidelines , etc largely
depend on the revenue plan of the firm .
Sales forecast happens to be the initial link for sound revenue plan. C RM
practice address this issue.
Slides not for cirulation 56
57. Customer Life Time value ( CLV) in the marketing lexicon explains
the concept that each customer in the database should be analyzed
in terms of current and future profitability to the firm.
A model of the profitability of a customer based on past and
current purchases is the following:
Profits t = ∑[ ∑ (P j – C j) - ∑ MC k] + R( PJ – CJ )
T
(1+ r)² (1+ r)²
where:
t = the current time period,
T = the total number of time periods in the database,
J = the number of products purchased,
K = the number of marketing tools used to target customers,
Pj = Revenue generated from the purchase.
Cj = Cost of the product purchased,
MCk = Customer acquisition costs).
Slides not for cirulation 57
58. Steps to develop CRM perspective in an organization.
1. Building database of customer activity
2. Set up a process to analyze the data base according to
activity .
3. Report which customer to target
4. Establish business process to build relation with the target
customer
5. Establish & convey customer privacy issues.
6. Define metrics for measuring the success of CRM program in
the organization
Slides not for cirulation 58
61. CRM Eco system
Intelligent and easy business solutions that
enable extraordinary customer experiences
Customer
Service
Empowered Connected
Sales Force Field
Employees Automation Service
Customers
Marketing eCommerce
Automation
Informed Integrated
Management Partners
Slides not for cirulation 61
62. CRM strategy in an organization helps to build 360
Degree view of the customer
Slides not for cirulation 62
65. CRM removes the disjoint & micro perspective of a customer in enterprise
Slides not for cirulation 65
66. Measuring business performance
Businesses have long since measured financial
performance with traditional financial measurement tools:
profit and loss statements, balance sheets and cash flow
statements. These measurement frameworks suffer from
limitations; they measure past activities.
Kaplan and Norton created the balanced
scorecard framework to address some of these
deficiencies and have expanded the tool to measure the
impact of strategy.
Balanced scorecard intends to predict future financial
performance and track how effectively the corporate
strategy is executed.
Slides not for cirulation 66
67. Measuring ROI in CRM driven business model.
Internally focused measurement Externally focused measurement
Customer
Value Value
Consumer
Creation delivery
Behavior
&
Attitude
Consumer
Insight
Customer Loyalty
Word of mouth
Increasing retained profitable
Slides not for cirulation Client base 67
68. Measuring ROI in CRM driven business model.
Internal Customer consumer Financial
Process perception Behavior Perspective
Slides not for cirulation 68
70. Depending on the company’s business model , CRM
measurement frameworks vary. Some key categories of
performance measurement include:
1. Brand performance measures
2. Customer asset management
3. Customer behavior
4. Marketing performance
5. Sales force performance
6. Service center performance
7. Field service performance
8. Supply chain and logistic performance
9. Web site performance
Slides not for cirulation 70
71. 1.Brand-building
Customer equity building
Customer behavioral modeling
Customer value management
Customer-facing operations
2. Marketing operations
Sales force operations
Service center operations
Field service operations
3.Supply chain and logistic operations
Web site operations
Leading indicator measurement
4. Balanced scorecards
Slides not for cirulation 71
Customer knowledge management
72. Products and services originate in the company’s value
production capabilities and then flow through the value
delivery capabilities and to the customer. The
company’s customer insight capabilities must collect
knowledge about the customer’s behavior and mindset
and inform the value production and delivery
capabilities.
While companies frequently measure customer value
production and delivery capabilities, very few measure
the customer insight or knowledge management
capabilities.
Slides not for cirulation 72
73. CRM strategy helps to build 360 degree view of the
customer
Pre consumption
Stage
Desire state
Perception & And aspiration
Consumption
stage Attitude displayed Driving the unstated
During consumption Need
Expectation gap
Or delight
Behavioral
Symptoms forcing
shift
Post consumption
Stage Slides not for cirulation 73
74. Evaluate Differentiate
360 degree Build
Customer Customer
Customer retention
ROI
View strategy
Slides not for cirulation 74
75. Identify your customer
H
Selectively
Add value
exit
& reduce cost
To serve.
Cost to
Serve
Move up the Differentiate through
Value chain VAS &
Retain
L
L H
Profitability
Slides not for cirulation 75
77. Is this the way you are Managing
Customers ?
MyWe keep track of customers using
sales, service, and marketing teams
My sales andtrack of customers using of
We keep service teams keep track
useOutlook, spreadsheets, paper,
separate applications; They can’t
things, but I am not sure where
our financial application
and manila folders
share information
•Customer chaos
•High Dissatisfaction
•High churn rate
•Low profitability
•Low brand equity
Slides not for cirulation 77
78. Is this how you want to manage
Customers ?
My sales, service, and our profitable
We know who are marketing teams
My sales and trackservice teams using of
We keep service teams keep follow
and of customers track
Our sales & closely work with them to
customers
are integrated tightly and share
our financialprocesses
consistent application
things.
enhance the experience of our products &
customer information for decision
making
services
Slides not for cirulation 78
79. ORGANIZATIONS NEED CUSTOMER CENTRIC
APPROACH AND CULTURE TO BUILD POSITIVE
CUSTOEMR EXPERIENCE , LOYALTY .
ORGANIZATION NEED TO DELIVER TOTAL BRAND
EXPERIENCE .
MUST DELIVER MULTIPLE TOUCH POINT VALUE
HIGH CUSTOMER LIFE TIME VALUE
Total Customer Solution = Product + Customer
service
Slides not for cirulation 79
80. Customer Relationship Management
• “Process of creating and maintaining
relationships with business customers or
consumers”
• “A holistic process of identifying, attracting,
differentiating, and retaining customers”
• “Integrating the firm’s value chain to create
enhanced customer value at every step”
• “An integrated cross-functional focus on
improving customer retention and profitability for
the company.”
Slides not for cirulation 80
81. Customer Relationship Management
A customer centric business processes
practiced by an organization from acquisition to
retention to build bonding , enhance positive
customer experience, increase multiple touch
point value and create high customer life time
value.
Slides not for cirulation 81
82. Customer Relationship Management
The use of information-enabled systems
for enhancing individual customer
relationships to ensure long-term
customer loyalty and retention
Slides not for cirulation 82
83. CRM process focuses more on personalized marketing
rather than mass marketing .
CRM process is developed on the principles of
relationship marketing concepts.
CRM process is created around customer service
concepts .
CRM is not just a software . MYTH
CRM can do well only in B2B model . MYTH
Slides not for cirulation 83
84. CRM process demands an attitude shift at
management level, change in business
process level to adapt to customer needs,
technology support to deliver & service the
customer fast and quick.
CRM = Customer oriented + Customer oriented + Information
Organizational culture business process Technology
Slides not for cirulation 84
85. Contemporary CRM process focuses on :
Proactive approach rather than reactive .
Personalized care to individual customer
Extensively leverage on technology
Product & service offerings specific rather than generic
Integrated with back end operations like ERP .
Slides not for cirulation 85
87. Shift from transactional marketing to Relationship Marketing
Interdependence
Relation ship
Marketing
Collaborate
Conflict
Transactional
Marketing
Independence
Slides not for cirulation 87
88. Relationship Marketing & customer Loyalty .
Relationship. CLV
CEM CTV
Marketing
It helps to build a life time customer value for the
organization .
CRM initiative helps the organization to manage relation
better to maximize revenue & life span while keeping the
operational cost low.
Slides not for cirulation 88
89. Level of relationship strategies
•Integrated information service • Volume & frequency
•Joint investments • Rewards
•Shared process & equipment • Bundling & cross selling
• Stable pricing
Structural Financial
bond bond
Mass •Continuos relationship
customization Customization Social •personal relationship
Customer bond bond •social bonds among
intimacy customers.
Innovation •
Slides not for cirulation 89
90. Distinctions in Customization
Mass Marketing Customization
Relationship Customer is passive Customer is active
with customers participant in process co-producer,
Customer needs Researched and May not be
articulated articulated
Product and service Marketing and R&D Customized based
offering drive offering on customer
interactions
Price Fixed prices with Value based pricing;
discounting customer
determined
Communication Advertising and PR Integrated,
interactive
Distribution Mix of direct and Direct (online)
indirect not for cirulation
Slides 90
91. CRM process focus areas
Customer Service
Process
Sales process
Marketing
Contact & Activity management
Management process
process
Slides not for cirulation 91
93. Sales Planning
A good sales strategy evolves from a good sales planning. Any sales
planning should ideally begin with the situation analysis.
Organization’s present position vis a vis the competition . Competition need
to be looked from direct & indirect perspective.
Its inherent strength & weak ness in a given account , market segment ,
territory , product etc.
The Sales planning process comprises of :
Business Marketing Sales Sales Sales
Objective Plan Plan Budget Responsibility
Evaluate & Sales
Control Report
Slides not for cirulation 93
94. Challenges of Sales Management process
•Long Sales Cycles : In complex products and
services ( solution sales ), the sales process from
lead generation to closure tend to get longer than
anticipated.
•Disconnected lead information system making
decision process of lead qualification difficult .
•Need for transparent sales transaction in
de- centralized customer set up.
•Control & streamline Sales forecast process.
•Unable to assess sales productivity
Slides not for cirulation 94
95. Sales Force Automation
• Manages lead generation, tracks movement of
leads through the pipeline, allows better usage
of customer data, integrates activities across
sales channels, simplifies relationship
management, forecasts for opportunities
• Helps to understand competitive position in
sales situation .
• Sales funnel ( Sales pipeline ) management
• Sales person productivity analysis
Slides not for cirulation 95
96. Revenue management is key the success of any
business .
•Revenue Planning : Begins during the third quarter for
next fiscal year.
•Input is gathered from sales & marketing team and
other sources and Revenue plan is fixed.
•Related expenses are decided & planned profit is pre
decided.
•Revenue plan is broken up into sales targets for
product line & communicated to sales force .
Q1( AMJ) Q2(JAS) Q3( OND) Q4 ( JFM)
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11
M12
annual revenue plan.xl
Slides not for cirulation 96
97. Sales Process Management
Sales force
Productivity Sales performance Annual business
Sales Planning
management Analysis planning
Order loss
Status report
& analysis
Order Order Business partner Channel partner
management Acquisition Management Warehouse
Order vetting C&F
•Technical
•Commercial
Feedback to Opportunity
sales team Management
Sales funnel
management
Slides not for cirulation 97
98. Generate More Leads: Capture those leads through a
variety of channels including your Web site.
Campaign ROI Top Search Terms Leads by Source Lead Quality
Web Site Visitors Web Form
• Google AdWords • Organic Web traffic • “Contact me” request
• Email Marketing • AdWords referrals • Free trial
• Email responses • Event registration
• Direct Mail
• Cold Calls
Inbound Calls Create New Leads Lead Capture
• Partners
• Yellow pages • Cold calling
• Set up auto-response emails
• TV • Google Maps • If one doesn’t exist, create a new lead -”Thank you for your interest”
• Radio • Word-of-mouth referrals -Your trial information
-Event details
• Events
Lists Import Data • Set up lead assignment rules
• Trade Shows
-Geography
• Purchased list • Use the import
• PR -Company size
• Trade show wizard or Excel -Product of interest
Slides not for cirulation 98
• Legacy data connector
99. Close More Deals
Close deals faster by providing a single place for updating deal information, tracking opportunity
milestones, and recording interactions. Easily analyze your sales pipeline so you can quickly
identify and eliminate any bottlenecks in the sales cycle.
Retail sales
forecast.xls
Closed Business
Top 10 Deals Top Sales Reps
by Month
Sales
Marketing
Open Opportunities Presentation Proposal Negotiation Won
YesNew Customers
No
You can Customize Sales force to Support
monitor your fit your internal sales Sales force gives your entire
opportunities methodologies and company a 360-degree view of
reports and processes, making it Keep an archive of your dead opportunities. your customers and facilitates
dashboards to easier to monitor your Use email marketing and collaboration across your
keep track of sales pipeline. organization, helping you build
call downs to re-market strong, lasting customer
your top deals to your archived relationships.
and prioritize opportunities.
Slides not for cirulation 99
your time.
100. Lead analysis & sales forecast
RFQ analysis
Bid preparation (Investment proposal )
Sales coordination
Sales collaterals & templates
Sales productivity analysis
Field intelligence report
Slides not for cirulation 100
101. Sales target The amount of sales each sales representative, team, product or product category has
committed or is assigned to solicit.
Close percentage This metric goes by many names. The purpose of the metric is to score a lead with a
percentage that it is likely to turn into a sale. As sales personnel work with the
customer to answer questions, exchange information, prepare legal contracts and so
on, the percentage is changed up or down.
Customer score Not only are leads scored, but customers are too. By scoring a customer, companies
can develop a model that helps them predict which customers are likely to purchase
their product or service. Many attributes (size of the company, geographic location,
level of access into the company, level of cultural, industries the customer serves,
size of budget for the solution being sold) can go into scoring a customer. In this
regard, customer scoring is similar to a segmentation exercise.
Sales expenses This metric includes all expenses related to the sale, such as travel, entertainment,
printing, shipping, use of other internal resources, 3rd party expenses, etc.
Close rate The percentage of sales leads that convert to sales. This is often tracked at the sales
representative, team, customer segment and product/product category level.
Slides not for cirulation 101
102. Sales totals The total number of sales represented by all leads. This metric is often multiplied
by the close percentage for a weighted sales leads number. This metric is used to
predict future sales.
Sales lost The number (or percentage) of sales lost, broken down by reasons, which can
include loss to a competitor, loss of customer funding, and many other reasons.
Training impact Companies use different techniques to detect the impact of sales training on the
sales force, including sales staff surveys on training effectiveness and
comparisons in other sales metrics pre- and post-training.
Cross-sell rate The percentage of sales totals that include items that were not specifically
requested but recommended by the sale force or through marketing.
Number of calls The number of calls made by a sales representative or sales team. This can be
broken down by new account calls and existing account calls.
Number of new How many new customers have been added during a period of time.
customers
Slides not for cirulation 102
103. Key returns from improved sales performance
and management include the following:
• Increased salesperson productivity
• Increased sales management productivity
• Decreased cost of customer acquisition
• Increased revenues (increased profits on
revenues)
• Decreased administrative overhead
• Reduced employee training costs
Slides not for cirulation 103
104. Customer Service management
QoS ( Quality of Service ) delivered
by an organization is judged by its
customer of the basis of 5 key
parameters known as serve qual
parameters.
Slides not for cirulation 104
105. 1. Tangibles of Service :
( Infrastructure & facilities , Employ commitment (People)
& the process links of services laid to build efficiency &
problem resolution )
2. Responsiveness :
Attitude (Willingness) to help the customer proactively.
3. Reliability : Dependability on the service & accuracy of
the service.
4. Assurance : Competence of the organization to deliver
the promises & gain credibility for service .
5. Empathy : Caring for the customer . Feeling of concern
& responsibilities.
Ser Mktg not for cirulation
Slides 105
Proprietary slides
106. Tangibles of Service
Responsiveness
Reliability
Assurance
Empathy
Serve Qual Model.
Ser Mktg not for cirulation
Slides 106
Proprietary slides
107. Service Quality Gap Model
Perception Gap
Communication
Employee Gap
perception
Delivery Gap
Knowledge
gap
Standard gap
Management – Employee
perception
Slides not for cirulation 107
108. CUSTOMER SERVICE MANAGEMENT
PRE SALE SERVICE POST SALE SERVICE
•CALL CENTER MANAGEMENT
•FILELD SERVICE MANAGEMENT
HELP DESK MANAGEMENT
WARRANTY SERVICE & NON WARRANTY SERVICE
SPARE SERVICE MANAGEMENT
FIELD ENGINEER ALLOACATION
Slides not for cirulation 108
109. Designing SLA for committed service
SLA is formal & legal document detailing the scope of service with standard
Operating procedure explained by the service provider to set right expectation
Of the client. ( Eliminate Service Gap )
Components of SLA
Scope of service to be rendered
Committed Total turn around time
Penalty clauses
Implementation time
Joint responsibility
Financial implication
Price escalation clause
Commercial implications
Legal implication
Termination clause
Renewal clause Slides not for cirulation 109
110. SLA Management encompasses :
SLA contract definition (basic schema
with the quality of service parameters.)
SLA negotiation
SLA monitoring
SLA enforcement, according to defined
policies.
Slides not for cirulation 110
111. CUSTOMER SERVICE MANAGEMENT PROCESS
SERVICE SERVICE STATISTICS
SERVICE ROI PERFORMANCE
Call call call call call incentives
capture analysis allocation tracking closure calculation
Set up auto-response
emails with id code
•SERVICE CALL benchmark
THR’U Web Site
• Email TO CC
Web Form • “Contact me” request
• Calls Thr’u
TOLLFREE NO. Inbound Calls Service call
• Allocation process
Import Data
Preventive call
Management Warranty
customer • Use the import
Database wizard or Excel
Slides not for cirulation 111
connector
112. Call tracking: logging to resolution
Call uptime calculation : Actual time / total committed time
Service center operations
Slides not for cirulation 112
113. Call counts and The number and duration of calls either received or sent, often
duration broken down by call type, which is input by the call center
representative after completing the call.
Average hold time The amount of time a customer has to wait before being served by
an agent.
Abandonment rate The number of calls abandoned expressed as a percentage of the
total calls. These are customers who hang up while waiting for an
agent or get disconnected.
Average The average time a caller waited before abandoning the call.
abandonment time
Adherence The amount of time the agent is “in their seat” ready to take calls,
expressed as a percentage of the total time the agent is scheduled.
Wrap-up time The amount of time, after the call is completed, the agent needs to
complete administrative tasks related to the call.
Slides not for cirulation 113
114. Average cost per call The sum of all costs for running the center divided by the number of calls
received.
Average talk time The amount of time the agent spends on the call talking to a customer.
Average handle time The sum of the talk time and the wrap-up time.
Agent utilization The amount of time agents spend on calls versus other internal tasks,
expressed as a percentage of available time.
Blocked calls The number and percentage of calls that receive a busy signal and could not
even get to the automatic call distribution system (ACD).
Service level A goal for call center performance. A widely used format for the goal and
values is for a call center to answer 80% of the calls within 20 seconds.
Call quality Companies have devised ways to monitor the quality of a call and the agent’s
abilities. Scores can include vocal intonation, friendliness, promptness,
knowledgeableness, and adherence to procedures.
Slides not for cirulation 114
115. Response time Amount of time it takes a service agent to respond
Completion time Amount of time it takes a service agent to resolve a customer’s
problem.
Repair fulfillment The amount of time it takes to deliver a requested part or service
time needed for a repair.
Service level This metric is similar identical to the call center metric when
applied to inbound phone calls. It includes additional measures
when applied to all support calls.
Customer Many companies routinely survey their customers after a service
satisfaction score call to verify satisfaction.
Service call priority Service calls are frequently prioritized to comply with service
contracts or warranty terms or to indicate the importance of the
request.
Slides not for cirulation 115
116. CRM driven Supply chain performance.
Fill rate The number of items ordered compared with items shipped.
Fill rate can be calculated on a line item, SKU, case or value
basis.
On time ship rate What percent of orders where shipped on or before the
requested ship date. On time ship rate can be calculated on a
line item, SKU, case or value basis.
Performance to What percentage of orders where shipped on or before the
promise promised ship date. In some cases, some items may be on
back order or delayed for whatever reason. This metric
captures the overall conformance with promised ship dates.
Backorders The number (or percentage) of unfulfilled orders.
Slides not for cirulation 116
117. Customer order The average time it takes to fill a customer order.
cycle time
Cash to cycle time The number of days between paying for raw materials and getting
paid for the product by the customer.
Supply chain cycle The total time it would take to satisfy a customer order if all
time inventory levels were 0.
Perfect Order The error-free rate of each stage of an order. Error rates are captured
Measure at each stage (order entry, picking, delivery, shipped without
damage, invoiced correctly) and multiplied together.
Upside flexibility The ability of a supplier to meet additional demand requirements
Slides not for cirulation 117
118. Contact and activity Management
•KAM process
•Blue book / Account dossier /Customer history
sheet preparation
•Scheduler and calendaring events
•Project management process
Slides not for cirulation 118
119. The critical new interfaces for sales
Marketing Strategy
Large
Key/Global
Account
Management
Customer The shrinking
Sales Level/ domain for the
Potential traditional
salesforce?
Direct
channels/
Internet-based
sales
Small
Low High
Customer Slides not for cirulation Requirements
Service/Relationship 119
120. The relational development model
KAM
Integrated
Strategic Interdependent
intent of
seller
Cooperative
Basic
Exploratory
Strategic intent of buyer
Adapted from a model developed by Millman, A.F. and Wilson, K.J.
“From Key Account Selling to Key Account Management” (1994)
121. Key account preliminary categorization
Degree of KAM relationship stage Needs of parties to
collaboration KAM relationship
High: collaborative
Integrated Realization of fullest potential
of both organizations
Confidence in relationship, stable
Interdependent
& highly evaluated by both sides
Cooperative Reduction of risk,
ability to forecast
Basic
Operational, efficient
transactions
Low: transactional
Slides not for cirulation 121
122. Creating closer relationships with supply chain
partners
D D
I I
Marketing From Marketing
R R
E E
C Operations Operations C
T T
O Information Sales Purchasing Information O
R Systems Systems
R
S S
Supplier Customer
123. Creating closer relationships with supply
chain partners
Directors Directors
selling company To buying company
Marketing Marketing
Operations Operations
Information Information
Key-Account Systems Systems Supplier
Co-ordination Development
Supplier Customer
124. Key account categorization
A Top 15 (in volume/revenue generated)
B Next 30
C Next 55
Slides not for cirulation 124
125. Selection of Key Accounts
Supplier Business
Strength with Customer
High low
High
Strategic Star
Account
Attractiveness
Large
Status Streamline
Low
Medium
Small
Slides not for cirulation 125
126. The key customer portfolio
Supplier business strength
with customer
High Low
High
Strategic Selective
investment investment
Key account
attractiveness
Pro-active Management
maintenance for cash
Low
Slides not for cirulation 126
127. Supplier Relationships as a Source of
Business Advantage
Business Business Process
Type Contribution Criteria
Criteria
10 Strategic • “First mover” advantage • KAM lead
10 Suppliers • Channels to market • Business strategy driven
< 1% of • Reverse revenue generation • “A team” on both sides
suppliers
20
Preferred • Point-to-point solution • Relationship manager
600 Suppliers • Technology access • Strategy from CatMan
c. 20% of all
• Operational advantage • SLA scorecard
suppliers
1, 350
Commodity • Cost improvement • Managed locally
3,000 Suppliers • Superior service levels • Performance monitored
c. 80% of all suppliers • Ease of transaction • E-enabled
Slides not for cirulation 127
128. Blake and Mouton
9
1/9 9/9
The customers The problem
friend solver
5/5
Concern for Compromise
customer “Method” approach
1/1 9/1
The order The pressure
taker salesman
1
1 9
Concern for making the sale
Slides not for cirulation 128
129. Implementing an Account Planning
Process
STEP 1
Continuous
Identify strategic customer &Improvement
Develop account
planning process
STEP 2
Continuous
Facilitate buy-in Improvement
at local manager
and KAM levels
STEP 3
Provide guidance
( CSH ), commit resources and discipline to
ensure
that plans are developed and used. Measure
account profitability.
Slides not for cirulation 129
130. Developing the Strategic
Account Planning Process
• The strategic account planning process
should be specific and actionable, and
include
– Objectives and activities
– Action plans designed to meet the objectives
– Assigned responsibilities and accountabilities
– A listing of the resources required to
implement the plans
Slides not for cirulation 130
131. Facilitating Buy-In
• Training and education programs can
facilitate buy-in within the selling
organization
• Sales education programs must
emphasize the value that KAM and sales
managers can provide to these strategic
accounts
Slides not for cirulation 131
132. Providing Guidance for Plan Development
and Implementation
• Key Account Managers provide much
guidance and leadership to their team
& buyers .
• They seek ongoing support from top
management
• Identify new opportunities & help
buying organization in decision
making.
• Act as problem for cirulation & evangelist. 132
Slides not solver
134. Six E’s e CRM are :
1. Electronic channel integration : (Web, Mail & messaging )
2. Enterprise : Across the organization other than sales &
marketing function are able to interact & provide
customer centric services & products. ( Enterprise
integration ERP , Work flow , DRP ) .
3. Empowerment : Enabling the customers to decide when
& how to stay in touch with the organization.
4. Evaluation : Evaluate customer interaction along various
touch point channel & compare anticipated ROI against
accruals.
Slides not for cirulation 134
135. 5 Economics : Concentrate on customer economics , which
drives smart asset allocation decision & greatest return on
customer communication
6. External information : Leverage information from third
party sources , web page profiler etc.
Slides not for cirulation 135
136. CRM application & development tools
Functional capabilities
Software Basic CMS SFA Help Added features
Analysis Desk
MySAP .com * * *
Siebel * ** ** * *
Clarify ** *
Sales Logix * *** *
Oracle
People soft * ** *
Netsol * * **
SAS * ***
Teradata * ***
Micro
strategy * Slides not for cirulation ** 136
137. Popularly used BI tools:
•Business objects,
•Teradata,
•Cognos - Power play
•Informatica ,
•Crystal enterprise suite ,
• SAS ,
•Micro strategy.
Slides not for cirulation 137
138. Data Mining
• Collection, storage, and analysis of –typically
huge amounts of- data
• Data readily resides in the company’s data
warehouse
• Data cleaning is almost inevitable
Slides not for cirulation 138
139. Data Mining
Goals of Data Mining
• Developing deeper understanding of the data
• Discovering hidden patterns
• Coming up with actionable insights
• Identifying relations between variables, inputs
and outputs
• Predicting future patterns
Slides not for cirulation 139
140. Data Mining:
Steps
• Data selection
• Data cleaning
• Sampling
• Dimensionality reduction
• Data mining methods
Slides not for cirulation 140
141. Data Mining:
Methods
• Exploratory Data Analysis
• Segmentation
– Cluster Analysis
– Decision Trees
• Market Basket Analysis
• Association rules
• Information Visualization
• Prediction
– Regression
– Neural Network
Slides not for cirulation 141
– Time Series Analysis
142. Information Visualization
Data mining algorithms...
• Can only detect certain types of patterns
and insights
• Are too complex for end users to
understand
Slides not for cirulation 142
143. Information Visualization
• A field of Computer Science which has
evolved since the 1990s.
• Before 1990s: Graphical methods for data
analysis to pave the way for statistical
methods
• After 1990s:
– Computer hardware has advanced with
respect to memory, computational power,
graphics calculations
– Software has advanced with respect to user
interfaces
– Data collection systems have advanced
(barcodes, RFID, ERP)
Slides not for cirulation 143
144. Information Visualization
• The analyst does not have to
understand complex
algorithms.
• Almost no training required.
• There are no limits to the types
of insights that can be
discovered.
Slides not for cirulation 144
145. Marketing Data analysis for
strategic marketing decisions.
Data standardized Information about
To a common format Data available in
DW
Slides not for cirulation 145
146. CRM process & information technology
Slides not for cirulation 146
148. Typical e CRM Architecture
CRM tool used for building high customer touch
Slides not for cirulation 148
149. Classification: It maps data into predefined group or
clusters . These classes are predefined . Classification
algorithms requires that the classes are defined on the data
attributes values. ( Micro Segmentation of consumers )
Regression : It assumes that the target result fit in to some
known type of functions ( eg linear , logistic etc ) & then
determines the best function which models the given data.
Clustering : The approach is useful for determining the
similarity On the predefined attributes . Identifying precise
set of variables / parameters describing the data set for
decision making process. Consumer modeling for
promotion strategy.
Summarization : It is used for extracting representative
information about the data not for cirulation
Slides base. It maps data in to subsets
149
with associated simple description.
150. CRM Project implementation
methodology
Envisioning
Planning
Development
Deployment
Post
Deployment
Slides not for cirulation 150
151. Components for CRM software project management
model
Basic components are common to any industries which
include
1. Scope management
2. Time management
3. Resources management
4. Quality management
5. Cost management
6. Communications management
7. Risk management,
8. Procurement management
9. Integration management.
Slides not for cirulation 151
152. Implementing CRM solution: Technology
perspective
CRM solutions stand on a integrated database of
customers/ transaction data , which are used for
building proactive marketing strategies .
People , Process & Technology are the corner stones
of any successful CRM solution implementation .
Industry nuances are to be kept in mind while
designing CRM solution for an organization.
Integration issues with back end operation viz ERP
work flow management etc need to be addressed prior
to the selection of CRP solution.
Slides not for cirulation 152
153. Data mining process: It helps to predict future trends & behavior allowing
the business to make proactive knowledge based decisions.
Data mining taxonomy .
Predictive model Descriptive model
Classification Clustering
Regression summarization
Time series analysis Association rules
Prediction Slides Sequence discovery
not for cirulation 153
157. Using Customer tracker an organization can do
following :
•Profile key contacts.
•Schedule activities and view tickler lists.
•Generate, distribute and store customer
correspondence.
•Create, store and track customer contracts.
•View customer project lists and support tickets.
•Identify, track and manage opportunities.
•Sales executives and administrators can leverage
views of Pending Pipeline, Win / Loss Data, and
Activity Lists.
•Establish a portal for named customer contacts to
submit project requests and support tickets.
Slides not for cirulation 157
170. Conclusion :
CRM is a business philosophy driving an
organization to build customer centric
business process & culture to gain
competitive edge in cut throat competition
driven market for sustainability & growth.
Technology is the backbone of any
successful CRM process implementation .
Slides not for cirulation 170
173. CRM Information platform
INPUT
Contact & Activity
Sales data management
Sales management
User profiles
Business rules
Business intelligence Marketing Programs
Market development For decision support Loyalty program
Product Relational database Sales promotion
Consumer Collaborative communication Pre sale prom
Competition Process
Price Customized information Customer delivery
Content operation & service
Marketing Process Call center
Business policy Help desk
& rules SMS alert
IVR
Internet access
Slides not for cirulation 173
175. CRM Process Framework
Formation Management & Governance Performance
CRM Purpose
Increase
Effectiveness &
Improve efficiency
Team structure Relationship
Role definition
Planning process Strategic
Programs
Process alignment Marketing
Account
Monitoring process Financial
Management
Market communication Customer
Retention Marketing
Employee motivation Satisfaction
Co-op agreements
Employee Training & loyalty
Strategic Partnership
Partners Feed back &
Criteria Process improvement
Process Slides not for cirulation 175
176. CRM Approach in an organization.
CRM SOLUTION includes all customer-facing
business applications integrated under a single
customer database .
• Sales Force Automation (SFA)
• Customer Service (CS)
• Sales and Marketing Management (SMM)
• Contact & Activity Management
Slides not for cirulation 176
177. Technology driven approach to CRM
Back end integration & Multipoint interaction
Develop touch point Descriptive & predictive With customer
Behavior Customer engagement
Operational CRM Analytical CRM Collaborative CRM
CUSTOMER
Slides not for cirulation 177
178. Technology driven approach to CRM
Web enabled & integrated
Building customer
Customer database
contact through:
Data security
Telephone
Data recovery & redundancy
Mail
Web Mining
Personal contact
Business network
After sale
Data integration with back end
Complaint handling
Business operation
Key Account
Data mining
Management
Integration with automated customer
Customer Care
Contact process
IVR
Help desk
SMS
Internet
Slides not for cirulation 178
181. Organization’s aim is to develop more of clients &
advisors.
Clients & advisors are likely to generate positive word of
Mouth ( WOM) which are called a reference customers.
Advisor / Partner
Foresters good
Client Customer
Repeat Loyalty
customer
First time
Customer
Prospect
Suspect
Slides not for cirulation 181
182. An Organization wants answers to the following
Questions:
• What are your customer satisfaction levels?
• What is your customer attrition rate?
• What are your customer's needs?
• Do you focus new product development around customer
feedback?
• Do Sales, Customer Service, and Technical Support work
together to provide outstanding customer service?
• Do you build and modify work processes around servicing the
customer better?
• Do you currently consolidate all customer related data into one
repository?
• Do you integrate key front office, back office, and web office
systems to interact with each other?
Slides not for cirulation 182
183. A media firm would like to plan and analyze its business
performance like : demographic profiling
Direct mail
Telemarketing
Cost and revenue analyses
Customer care, and retention .
Integration of various point-products and functions ( media
planning , media buying , client servicing, account
management etc , for advertising, circulation or clickstream
analytics etc to get an holistic perspective of the customer &
business .
In order to achieve this objective, they need comprehensive
and integrated CRM solutions.
Slides not for cirulation 183
184. Traditional marketing strategies focused on the four Ps (price,
product, promotion, and place) to increase market share. The
main concern was to increase the volume of transactions
between seller and buyer.
Volume of transactions is considered a good measure of the
performance of marketing strategies and tactics.
CRM is a business strategy that goes beyond
increasing transaction volume. Its objectives are to
increase profitability, revenue, and customer
satisfaction.
To build CRM, an organization wide set of tools, technologies,
and procedures are required to promote the relationship with the
customer to increase sales.
Slides not for cirulation 184
186. Rationale of Relationship marketing & customer
retention
Relationship Customer experience Customer life time
Marketing value
Relationship marketing can occur at different levels & each
successive levels of strategy results in ties & binds the customer
closer to the organization & helps to increase the competitive
advantage of the organization.
Level of relationship strategies
1 Financial Bonds 2 Social bond
3 Customization bond 4 structural bond
Slides not for cirulation 186
189. Sales information management in CRM ( Reporting
pipe line )
Enterprise Reporting using Sales Execution Framework
(SEF) reporting tool that would serve as the master data
source for every customer or potential customer within the
sales pipeline. Only those customers loaded by sales
force into the software application are considered when
measuring overall revenue and individual sales goals.
The Enterprise Reporting development had two clear
goals while building the SEF reporting tool:
• To drive consistent sales information across the
company .
• To ensure a simple and straightforward pipeline.
Slides not for cirulation 189
190. Building Role-Based Dashboards:
With opportunity management processes and business
rules already in place in the field, the development groups
need to find more productive method for reporting and
analyzing pipeline data.
Simplified, standardized reporting application that would
offer a level of functionality similar to that of SEF Reports,
in the form of personalized screen ( role-specific
Dashboard ) . All employees within a certain job category
would then be able to view the information on their
personalized screen in the same way, thereby solving many
of the communication problems.
Slides not for cirulation 190
191. Presentation layer of CRM (Enterprise Desktop)
The field salespeople use the enterprise desktop for
entering all of their opportunity data. Extract,
transform, and load (ETL) and Data Transformation
Services (DTS) processes take all of the data directly
from the data store and consolidate it in a single, local
SQL Server 2000 database.
SEF Dashboard uses this localized database to extract
and display sales pipeline data with the Business
Analytics application. Other data stores—such as SEF
Database, a SQL Server 2000 database for revenue
data—and quota and software licensing databases, also
SQL Server 2000, connect to the local SQL Server.
The consolidated database is refreshed from all the
other data stores fort nightly. cirulation
Slides not for 191
192. The reporting application uses the default/custom
built authentication tool within the operating
System to create and personalize a role based
dashboard for each user.
When field users log on to operating system
running on their personal computers, they click the
dashboard application icon located on their
desktops. SEF Dashboard automatically recognizes
the user and his or her job definition. The tool then
opens to the user’s personal role-based dashboard.
No additional procedures are required to
log on to the dashboard application.
Slides not for cirulation 192
Editor's Notes
Evaluate customer behaviour customer value
125—291= increase cost e mail more people 125---100 reduce cost but change RFM divisions
They have same share of wallet but different size of wallet
Think horizantal, diagolade retention rate. Different combinations: AA, BA, CA, etc..
“ Intelligent and easy business solutions that enable extraordinary customer experiences” Our vision for CRM is to provide the functionality needed to exceed expectations for what a CRM solution should offer our customer, including not only the traditional operational aspects but also the ability to collaborate with team members, partners, and the customers themselves to ensure highest possible levels of customer satisfaction and profitability. And with the ability to provide the functionality and collaboration is the drive to provide the business analytics capabilities demanded by our customers – growing to meet customers ever changing needs.
Actually, every company already manages relationships with their customers Sales relationships Marketing relationships Service relationships Financial relationships If done poorly, the result can be: Wasted time and money Customer dis-satisfaction and defection Internal “turf battles” and disputes Lower profits Here are a couple of situations of what you will find probably face today in sales and service department of your company..
Actually, every company already manages relationships with their customers Sales relationships Marketing relationships Service relationships Financial relationships If done poorly, the result can be: Wasted time and money Customer dis-satisfaction and defection Internal “turf battles” and disputes Lower profits Here are a couple of situations of what you will find probably face today in sales and service department of your company..
İNFORMATİON BASED STRATEGİES, KNOWLEDGE DRİVEN BUSİNESS!! Data warehouses, datasources, data marts
İNFORMATİON BASED STRATEGİES, KNOWLEDGE DRİVEN BUSİNESS!! Data warehouses, datasources, data marts
İNFORMATİON BASED STRATEGİES, KNOWLEDGE DRİVEN BUSİNESS!! Data warehouses, datasources, data marts
İNFORMATİON BASED STRATEGİES, KNOWLEDGE DRİVEN BUSİNESS!! Data warehouses, datasources, data marts
We asked ourselves that very question after listening to business decision makers like you from all different types and sizes of businesses. We listened to our partners and we listened to our existing customers. The result of our research and efforts is Microsoft CRM. We have taken the familiarity of Microsoft Outlook and combined it with an easy to use CRM solution to deliver to you a solution that we believe meets and exceeds the four key criteria necessary to meet the needs of progressive and customer focused businesses.
Our design goals for Microsoft CRM are as follows: (This slide should build with the top boxes building first and then off of a click build the drop down. Drop downs will build starting with Improve Business Productivity, then Extend easily, Lower TCO and then Integrate Powerfully.) Improve Business Productivity: We will truly make CRM work for users as well as managers by: Working as they work inside of their productivity applications (Outlook and Web Interface) so they can leverage their current knowledge and software usage patterns Activities are captured by the system as the user does them so there is no backtracking and recording of activities later Users are empowered across touches with the customer. Sales people do not have to launch a separate tool to see service incidents with a customer and likewise the CSR’s can be informed by actions taken by a salesperson that a specific customer is in need of extra care Like Office, the success of CRM will happen because of user massive adoption of the system in realizing the productivity gain and not because they will be mandated by their management to use it. Extend Easily While we will do a great job at leveraging the Microsoft Business Solutions (ex Great Plains and Navision) and Microsoft channels to reach as broad and deep within the mid-market of companies, our goal is to extend even beyond the reach of Microsoft and its channel partners. By leveraging the .Net platform and creating great tools for ISV’s, we will enable 3 rd parties to leverage constructs of our CRM applications as components of overall vertical software solutions targeted at the narrowest of business niches. Lower TCO We will target bringing down the total cost of ownership by reducing the current 2½-3:1 service to software cost down to 1:1 by: Making set up of servers simple and integrated across the suite Enabling remote set-up of individual clients with minimal/no software footprint on any machines Making true “one-button” upgrades a reality by respecting customizations done on one version as a business upgrades to a new one Reducing training costs of users by making the application intuitive and work the way users want it to work Integration We will bring a whole new realm to the world of integration for CRM. Back office will not seem distinct and separate from front office. Your web site will be an extension of how you interact with customers with customer activity on that site enabled through features and tracked in the CRM application. Quotes, orders, contracts, shopping carts, field service, product configurators will not be separate applications from CRM that need to be integrated with, but rather extensions of your CRM application that are just more activity points that you can create and track with your customers. Microsoft CRM’s ability to help organisations improve their productivity, maintain a lower Total Cost of Ownership, integrate powerfully with other key applications and extend easily using today’s technology make it a flexible and agile solution. One that can be used by smaller and medium size organizations as well as by divisions of larger corporations.
The following features will be included in Microsoft CRM Sales