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Transcript of CRM
Customer Relationship Management
Carl Benz AcademyNathan Garrett, PhD
available on http://profgarrett.comCreative Commons by-sa 2.0.
http://www.flickr.com/photos/ehktang/6298004648/sizes/o/in/photostream/
How can we go from one store to a country?
1. Record Data– Name, address– Revenue & cost– Preferences
2. Understand Customers– Segmentation– Upselling
3. Relationship Engagement– Email– Website– Personal
How well does CRM work?
2001 2002 2005 2006 2007 2007 20090%
10%
20%
30%
40%
50%
60%
70%
80%
Around 50% of CRM systems failed to reach expectations
What separates successful projects from failures?
Measurable goal
Reshape your businessDoes it work?
Establish require-ments
Buy system
Plan installation
Install system
Build
Buy
Company Mission
What separates successful projects from failures?
Buy a System Build Capabilities
Leadership IT Departmental Managers
FocusLarge-scale
technological system implementation
Pain points. Understanding customer
needs and aligning organization
Visibility Highly visible large projects Small and tacit
Resources Capital Time
Time Once Repeatedly
• Most valuable• Most expensiveThe right customer
• What do we offer?• How does it compare?
The right value proposition
• Unique value chain• Good linkagesThe best processes
• Resources and training• Compensation
Motivated employees
• Churn root causes• Metrics and learning
Learning to retain customers
What can a CRM do for us?
1. Record Data2. Understand Customers3. Relationship Engagement
CRM Tasks 1: Record Data
• Goals– Accurate– Available– Reduce costs
• Types– Quantitative ($, #)– Qualitative (preferences)
How can we create data?
• Survey– Formal sampling– Informal sampling– Automated follow-up / analysis– Not trivial!
• Micro-Experiments• Usability groups / task oriented• Focus group• Estimated metrics for competitors
Enterprise Rent-a-car
• “Overall, how satisfied were you…”– 80% to 50%– Shoot the messenger?
• Design: – Survey: granular, timely, summative– Callbacks: root cause analysis, probing
• Result:– Lower: 12% to 5%– Top scores 3x
Screen shot 2012-05-16 at 4.37.15 PM.png
CRM Tasks 2: Understand Customers
• High value– Over-Segmented– Personalized
• Mid value• Low value– Automated
Simple Methods
• Average• Separate by groups• Excel example
A/B Testing
Source: http://www.optimizely.com/static/img/whatisabtesting/howitworks.jpg
• 64m vehicles and customers
• 10-15 variables
• Which 100 people are likely to buy?
Regression Analysis
Decision Tree
Neural Network
Dataset
• 24 Disciplines• 19,000 Links• 1,639 Nodes• NodeXL
Times Node Appears
Count of Nodes
1 4132 3673 1704 1585 956 827 598 509 35
10 2911 2012 1513 1314 16
15+ 122
Fashion Design
InterdisciplinaryArchitecture
History
Art HistoryFilm
Writing
Graphic DesignAnimation
BusinessPsychology
MarketingPolitical Sci.
Comm. Theory
Library Science
MathNatural Sci.
Comp. Sci.
Economics
Interior Arch.
PhysicsBiology
Accounting
CRM Tasks 3: Engagement
• Sales automation– Emails– Self-service portal– Notecards– Targeted marketing materials– Service reminders
• Personalized Relationships– Sales staff follow-up– Service information
• Value-added Events– Event invitations– Clubs– Up-sell / cross-sell
Screen shot 2012-05-16 at 4.37.15 PM.png
Source: http://www.businessweek.com/magazine/content/10_02/b4162057120453.htm
How do you run a call center?
Source: http://photos.lasvegassun.com/media/img/photos/2009/06/15/scaled.0616_met_PON_hsieh_t653.jpg?214bc4f9d9bd7c08c7d0f6599bb3328710e01e7b
Closing Thoughts
A large, expensive, technology-focused project
or
Small, repeated projects to test tactical metrics