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![Page 1: Customer Relationship Management. Sharon Crost enthusiastically leads a role in the worlds of Enterprise and Entrepreneur. In the Enterprise world, Sharon.](https://reader035.fdocuments.net/reader035/viewer/2022062517/56649ee95503460f94bfaf57/html5/thumbnails/1.jpg)
Customer Relationship Management
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Sharon Crost enthusiastically leads a role in the worlds of Enterprise and Entrepreneur. In the Enterprise world, Sharon has worked for the large companies of IBM and Hewlett-Packard in Finance, Marketing and Information Technology. Her passion for the hi-tech world and flair for working with international clients has led her to positions from managing business finances to managing business system projects, to consulting on enterprise systems, to managing international marketing programs to managing international technology and e-business teams. As an entrepreneur, Sharon has started up two diverse small businesses in the U.S. - a customized travel service and an organic vegetable farm. Sharon's appreciation of the mountains has brought her to Grenoble, France where she currently works as an independent consultant.
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Class ScheduleTo Be Finalized
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Presentation of Course -Outline
CRM Overview – What is CRM– CRM as a Business Tool– Strategic CRM
Technology – Technology Framework– Infrastructure Alternatives
Managing CRM projects and Follow-up – Analyzing the data– Measuring Results– Ongoing improvement
Applying CRM to business cases and student projects – Applying CRM and Review– Student Projects– Course Discussion/evaluation
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Presentation of Course (style) ACTIVE! Interactive discussion Cases to apply learning Practical vs. Theoretical Instructor – ideas, facilitation, resources
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Presentation of Course – evaluation
Individual evaluation based on student participation and understanding of CRM concepts
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CRM Student Project Business Objective CRM strategy to meet the business
objective Infrastructure and Process
supporting the CRM strategy Ongoing Management of the
program Business Results and Follow-up
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Introductions
Using « post-it » paper list three of each:
What I know about CRM– (3 thoughts on 3 separate pieces of paper)
What I want to know about CRM – (3 thoughts on 3 separate pieces of paper)
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Discussion Case #1 – computer online
Michael Shmichael is purchasing a personal computer from HAKR Computers Online. Describe the customer’s purchase experience, the vendor’s sales experience and the relationship between customer and vendor
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Discussion Case #1 – computer online
Customer Perspective Select the Product
– quality, price, availability, functionality Purchase Product
– easy process, quick delivery, online delivery info, payment terms
Use and Learn– assemble parts, instructions, features, new
information, upgrades Ongoing Support
– technical support, sales support
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Discussion Case #1 – computer online
Vendor Perspective Provide Product Information/Marketing
– quality, price, availability, functionality Efficient Purchase Process
– easy process, quick delivery, online delivery info, payment terms
Client Knowledge– repeat buy, product feedback
Revenues, Profit, Customer Satisfaction– return on investment, customer retention,
profit, customer share
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Discussion Case #1 – computer online
Relationship – Customer and Vendor Product info
– web search, preferences, comparisons, pop-ups, live customer support, exclusive info
Purchases– online view, stored address info, auto
payments Shared Knowledge
– preferences, license or consumables info, Increased Customer Value!!!
– satisfied customer, loyalty, advocate, €€€€€
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Definitions and Terms
CRM: the infrastructure and process that allows you to manage customer interaction and increase customer value and profit
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General Terms e-commerce enterprise CRM (sometimes e-CRM) Front office/back office Operational CRM (front office – sales
force, call center) Brick-and-mortar companies Customer Touch point Sales Force Automation Up-selling
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Marketing Terms Attrition/Churn Closed-loop marketing
campaigns Customer
profiling/segmentation B2B/B2C Campaign management opt-in/opt out permission marketing
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Internet/Technology Terms Cookie Clickstream ASP screen pop cyberagents (animation) Data warehouse/data marts Data Mining (predictive
analysis) Integrated Database Automated Workflow
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Analytical CRM Customer Value Measurement Affinity analysis (burgers/fries) Prospect qualification Next-sequential-purchase
analysis Churn analysis and prediction Propensity to buy modeling Customer segmentation Partner contribution
measurement Customer profiling
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CRM conceptual model
Increased customer knowledge Increased
customer value Increased
operational efficiency and effectiveness
Increased customer loyalty and customer base
Increased Profits and satisfaction
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CRM conceptual model
Increased customer knowledge
Increased customer value
Increased operational efficiency and effectiveness
Increased customer loyalty and customer base
Increased Profits and satisfaction
gather data
segment/profile
analyze data
customize and optimize offer
customize interaction
optimize programs
create targeted campaigns
create efficient infrastructure and process
divest unprofitable customers
create customer care programs
create feedback loop
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Summary and Questions What you know about CRM Discussion on how CRM works CRM terms CRM conceptual model
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CRM Business Cases Business Objective CRM strategy to meet the business
objective Infrastructure and Process
supporting the CRM strategy Ongoing Management of the
program Business Results and Follow-up
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Discussion – Business Objective
How much are you willing to pay for customer satisfaction?
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Discussion – CRM strategy to support business objective
Do you want a relationship with your vendors? Why or why not?
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References www.crmcommunity.com www.crm-forum.com www.crmmagazine.com www.crm2002online.com www.searchcrm.com
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Summary and Questions What you know about CRM Discussion on how CRM works CRM terms CRM conceptual model Business Objective CRM strategy
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Discussion - Operational Process
You are the operations manager of a typical small manufacturing company. Describe your customer touch points and discuss how CRM could improve operational processes.
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Customer Touchpoints
Delivery
Call Center
HotlineE-mail Direct Marketing
Store Purchase
Sales Rep Finance Survey Order Processing
Web Site
Feedback Processes
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Business Operations
Marketing Finance
Sales
Call Center
Delivery
Orders
Partner
Mgmt
Purchasing
Activity Mgmt
Contact Mgmt
Campaign Mgmt
Call center analysis
Pricing
Configuration
Partner Analysis
Supplier Eval
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CRM --- SCM --- ERP
Supply Chain Management
Customer Relationship Management
Enterprise Resource Planning
order entrydistributionprocurementproductionlogisticsinventoryfinance/acctghuman resources
demand planningmanufacturingplanning/schedulingsupply planninglogistics planningsupplier management
lead generationqualificationcustomisationquotation/cost mgmtorder processingdeliveryservice/supportmarketingcampaign management
Manage Business
Transactions
Supply products
or services
Customer Interaction
s
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Contact Information - Example
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Technology Framework - Discussion
You are the IT manager of a typical small manufacturing company. Describe your current technology infrastructure and how CRM could become a more valuable part of this infrastructure.
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Logical Flow
Business Objective
Infrastructure
Processes &Outputs
Strategy to meet objectiveCustomer
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Infrastructure Alternatives
Database
Data
Database
Data
Contact Management CRM system Call Center
CRM system
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Infrastructure Alternatives
Integrated Data Warehouse
Application Server
Web Server E-mail Server
Data Mart
Data Mart
Data Mart
Data Mart
Data Mart
Data Mart
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Analyzing CRM data - discussion
You are the CRM manager for HAKRs computers online and you have created a new CRM system to collect whatever data you need to increase the business profitability. Describe your data analysis methods.
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Analyzing CRM data
Results Analysis
CurrentActivity
Predictive Analysis
Prospect qualificationAffinity analysis (fries
with burgers)Churn analysis and
predictionPropensity to buy
modelingCustomer profiling
Next-sequential-purchase analysis
Propensity to buyClickstream analysisCustomer Support
Revenue AnalysisChannel AnalysisCustomer Value
MeasurementCustomer segmentationPartner contribution
measurementCustomer profiling
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Managing CRM projects - discussion
You are the project manager for a CRM project and you have just found out that the project will take 2 months longer than planned, and cost 200k euros more than planned. How do you explain this to your boss?
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CRM project management
FunctionalityTime
Resources
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Project Management Project Objective Task Outline: what, who, link tasks On Budget
Cost estimates, track cost to estimate On time
Time schedule, beginning, end, duration
Plan meets objective – measure results Risk Mangement
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Measuring Results/Follow-up - discussion
You are the program manager for a CRM program and you need to present your results and next steps to your boss. What are good measures? What do you recommend for a follow-up?
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SMART Metrics
Specific Measurable Actionable Relevant Timely
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Follow-up
Closed-loop Milestones Risks and Risk Management Ongoing Process Future Advances
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Summary and Questions What you know about CRM Discussion on how CRM works CRM terms CRM conceptual model Business Objective CRM strategy Operational Processes Technology/Infrastructure Analyzing data Managing Projects Measuring Results and Follow-
up
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Trends Process and Infrastructure customer-
driven (not internally driven) CRM buy-in comes from the top of
the organization ROI needs to be justified (too much
hype) Long-term versus short term
strategic view Integration of information (versus
single function solutions) CRM is not just about the technology
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Privacy/Legal Legal issues vary from country
to country Culture is a key consideration Seek legal advice and keep up
with changes Describe clearly your privacy
policy , and/or what you will do with the information, and hold true to your commitments
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Class Project Select a company currently undergoing a CRM
project or with a business objective that can be solved with a CRM project
Creatively propose a CRM solution using the following framework:
– Business Objective– CRM strategy to meet the business objective– Infrastructure and Process supporting the CRM
strategy– Ongoing Management of the program– Business Results and Follow-up
Your project is to be presented/discussed on the last course day.
You are graded on the following:– demonstrate understanding or CRM concepts– your project meets the stated business
objective– project is organized, interesting, insightful and
creative
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Project Notes discuss your assumptions describe customer touchpoints present proposed ROI discuss how the solution could
be managed using resources, timeframe and functionality
describe how your project aligns with CRM trends
show graphics of a proposed process flow or infrastructure
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Business Case Practice You are the CRM manager of digital
cameras online and you need to increase your sales by 25% for the year 2003. You have a very large customer base and would like to be more efficient in getting and keeping customers? You have discovered that your competitors are starting to email new product info to clients. You have started using customer information databases but don’t yet have a campaign strategy. Describe the business objective, CRM objective and a creative CRM program to meet your business objective.
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Business Case Study - HP
CeBit – March 2002, Germany>Larget Euro Tradeshow>Business and Technology Oriented>In person-attendance averages several hundred thousands (700 thousand this year)>German web team Antje Lindner
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Executive Summary Business Objective: Increase awareness
of products, particularly new products leading to eventual increased sales
CRM strategy: create a closed-loop marketing campaign on the web:– segment customers– get more customers to the site– increase page views on the site– gather customer information– push product information to customers
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Executive Summary (continued)
Infrastructure and Process:– create exciting web pages– audio streaming– local DJs to promote products– SMS newscast– create game to get registrations– database of customer info
Ongoing Management of the program:– program and marketing mgr involvement– technology support and review
Business Results and Follow-up:– Business results presented– presentation communicated and saved for next
year
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Objective
Increase awareness of products, particularly new products leading to eventual increased sales
Increased awareness leads to increased sales Awareness can be leveraged to sales of existing products Excitement and creativity in the awareness-building can lead to increased customer excitement and value
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CRM Strategy
CRM strategy: create a closed-loop marketing campaign on the web:
– segment customers– get more customers to the site– increase page views on the site– gather customer information– push product information to
customers
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Segmenting Customers
>Pre-selected – those attending or interested in CeBit show>German Speaking Targeted (Germany, Austria, Switz)>Technology oriented> Early Adopters
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Customer Segments
High Volume HardwareHigh Value OutsourcingCustomized Solutions (SAP)
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Get more customers to the site
>Direct mail campaign>Advertising>Press Activity
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Increasing Page Views
Create an informative and interesting website focused on the segmented customers
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Gather Customer Information
Create a web game that interests customers and motivates them to submit customer information
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Push Product Info to Customers
Create an innovative web radio streaming, using local DJs to talk about products as advocates and to push product info to customers
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Mapping to Model
Increased customer knowledge
Increased customer value
Increased operational efficiency and effectiveness
Increased customer loyalty and customer base
Increased Profits and satisfaction
collect customer registrations
collect feedback from customers
collect info on which technique (web/radio/game) customers preferred
game to keep customers coming back
new interaction via web radio and game
positive customer experiences with company
closed-loop campaign (repeat next year)
leverage infrastructure
focus on those that “opt-in”
word of mouth to friends/ colleagues
establish new interactions
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Ongoing Management of the program
Program manager and marketing mgr assigned to program with certain budget and agencies identified. Timeframe was critical (to be ready for CeBit) and was the most constrained criteria
Technology was optimized and functionality was based on time available. Technology support and review was available throughout the CeBit program
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Results: websiteObjective: Page ViewsInformative, interesting
17927 15480
2447
104403
84358
20045
0
20000
40000
60000
80000
100000
120000
Februaryin Total
FebruaryGermanVersion
FebruaryEnglishVersion
March inTotal
MarchGermanVersion
MarchEnglishVersion
PageViews
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Results: gameObjective: registrationsHigh Tech,Fun
14
894 1021
615 490 449 391
3758
1611
0
500
1000
1500
2000
2500
3000
3500
4000
Registered Users
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Results: Web RadioObjective: ListenersInformative, relax
0
200
400
600
800
1000
1200
1400
09/03/
10/03/
11/03/
12/03/
13/03/
14/03/
15/03/
16/03/
17/03/
18/03/
19/03/
20/03/
21/03/
Total Number ofListenersEnglish
German
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Results Results communicated Work materials saved for next
year’s campaign Data entered into customer
database Feedback saved for next year’s
campaign
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Mapping to Model
Increased customer knowledge
Increased customer value
Increased operational efficiency and effectiveness
Increased customer loyalty and customer base
Increased Profits and satisfaction
collect customer registrations
collect feedback from customers
collect info on which technique (web/radio/game) customers preferred
game to keep customers coming back
new interaction via web radio and game
positive customer experiences with company
closed-loop campaign (repeat next year)
leverage infrastructure
focus on those that “opt-in”
word of mouth to friends/ colleagues
establish new interactions