Session#1; An Overview of CRM.pdf

7/27/2019 Session#1; An Overview of CRM.pdf

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Customer Relationship Manageme14 September 2013

N.Karami; CRM ٢ر

Customer Relationship managementCustomer Relationship management

Introduction &Introduction & ConceptsConcepts

١


Introduction & ConceptsIntroduction & Concepts

Learning ObjectivesLearning Objectives

1. Traditional Marketing vs. RM

2. Evolution and Growth of CRM

3. Importance of CRM

4. Some definitions of CRM; Our

definition

5. Several common

misunderstandin s about CRM

٢

6. Four major perspectives on CRM:

strategic, operational, analytical

and collaborative




N.Karami; CRM ٢ر



Failure of Traditional Marketing

Traditional MarketingTraditional Marketing vs. Relationshipvs. Relationship

MarketingMarketing

ra ona mar e ng as a e n a cus omers

have been put last, not first. This inherent lack of

customer focus on behalf of organizations led many

consumers to conclude that organizations generally

over-promise and under-deliver .

٣

Traditional Marketing Relationship Marketing


Introduction & ConceptsIntroduction & ConceptsThe Transition of Relationship MarketingThe Transition of Relationship Marketing

٤




N.Karami; CRM ٢ر


Introduction & ConceptsIntroduction & ConceptsThe Rise of CRMThe Rise of CRM

The shift in business focus from transactional marketing

to relationship marketing

The realization that customers are a business asset and

not simply a commercial audience

The transition in structuring organizations, on a strategic

basis, from functions to processes

The recognition of the benefits of using information

proactively rather than solely reactively

The reater utilization of technolo in mana in and

٥

maximizing the value of information

The acceptance of the need for trade-off betweendelivering and extracting customer value

The development of one-to-one marketing approaches.



Evolution and Growth of CRMEvolution and Growth of CRM

>1990 >1996 >2002

1st generation 2nd generation 3rd generation

Customer Service Support

Integrated customer facing Strategic CRM

ERP IntegrationCustomer analytics

Complete Web integration

Sales force Automation

Call Center Management

Front-end( marketing, sales, service)

Campaign Management

٦

cope:

Service function

Goals:

Improve service operationsIncrease sales efficiency

Marketing functionService functionSales function

Reduce cost of interaction

Increase customer retentionImprove customer experience Competitive Advantage

Sales function

Entire organization

Cost reduction & Revenue growth




N.Karami; CRM ٢ر



Why Customers?Why Customers?

“There is only one boss-the customer. And he

can fire ever bod in the com an from the

chairman on down, simply by spending his

money somewhere else.”

Sam Walton;

Founder, Wal-Mart

“Individual, differentiable customer relationships

٧

the 1:1 future. All your products are ephemeral.

Only your customers are real.”Don Peppers & Martha Rogers;

“The One-To-One Future”



“Your most unhappy customers are your greatest

source of learning.”

Why Customers?Why Customers?ContinuedContinued

Bill Gates

“In the 1980s, we saw in every individual a

٨

. ,see in every customer an individual.”

Jack Welch,

CEO, General Electric




N.Karami; CRM ٢ر


Introduction & ConceptsIntroduction & ConceptsOur CustomersOur Customers

SuspectDisqualified

rospec

First-time

Customers

Repeat

CustomersEx-customers

٩

Clients

MembersAdvocates

Partners



If a company loses 10% of its inventory to Theft,

- swift action would be taken to sto the loss

TheThe Importance of Importance of CRMCRM

But

If a company loses 10% of its customers,

- no one might even notice it,

١٠

- not many things could be done to stop it!

80/20 rule

20% of the customers contr ibute 80% of the revenue




N.Karami; CRM ٢ر



It is a comprehensive set of processes andtechnologies for managing the relationships with

CRMCRM DefinitionDefinition

partners across marketing, sales, and service

regardless of the communication channel.

Brent Frei, President and CEO, Onyx Software

Customer Relationship Management is the

commitment of the company to place the

١١

cus omer exper ence a e cen er o s pr or es

and to ensure that incentive systems, processes,

and information resources leverage the

relationship by enhancing the experience.

Peter Keen, Chairman, Keen Innovations



The management approach that involves identifying,

attracting, developing and maintaining successful

CRMCRM DefinitionDefinitionContinuedContinued

customer relationships over time in order to increase

retention of profitable customers.

Bradshaw & Brash

CRM is a disciplined business strategy to create and

sustain long-term, profitable customer relationships.

١٢

, , u , . Customer Relationship Management (CRM) is a

business strategy to select and manage customers

to optimize long-term value.

CRMGuru.com




N.Karami; CRM ٢ر



“CRM relates to strategy, managing the dual-creation

CRMCRM DefinitionDefinitionContinuedContinued

, ,

the acquisition of customer knowledge and the

diffusion of this knowledge to the appropriate

stakeholders, the development of appropriate (long-

term) relationships with specific customers and/or

customer groups, and the integration of processes

١٣

network of firms that collaborate to generate

customer value”Payne, 2006



growing business by effectively managing the

relationship with future, past, and present

customers

A

Methodology

Other Definitions of CRMOther Definitions of CRM

achieving business goals by defining objectives,

implementing a plan, and then measuring

results via a system

A

Strategy

the infrastructure that enables the delineation of

and increase in customer value, and the correctA

١٤

means by which to motivate valuable customersto remain loyal

oncep

software, hardware, process, and workflowA System

Marketing, Sales, Support, etc.Automation

of BP




N.Karami; CRM ٢ر



CRM = Customer Relationship Management

Our DefinitionOur Definition

,

successful customer relationships over time

A strategy for identifying, satisfying,

retaining and maximizing the value of a

company’s best customers

١٥

organizations use to identify, select,

acquire, develop, retain, and better servecustomers


Introduction & ConceptsIntroduction & Concepts360360°° ViewView oof the Customer f the Customer

١٦




N.Karami; CRM ٢ر



CRM ≠ Click stream analysis CRM is NOT watching the customer behind his back and

recordin what he does in his browser

What CRM is NotWhat CRM is Not

CRM ≠ Clustering

CRM is NOT grouping a bunch of customers together and

assuming their wants and needs are the same for every

member of the group

CRM ≠ Statistical model

١٧

marketing strategy

CRM ≠ Database applications CRM is NOT a DB application that records all customer

information


Introduction & ConceptsIntroduction & ConceptsWhat CRM is NotWhat CRM is Not

ContinuedContinued

CRM ≠ Sales management

CRM is NOT part of the human resources issues

nvo v ng sa espeop e

CRM ≠ Contact management

CRM is NOT managing contacts means of

customers

CRM ≠ Audio call recording

CRM is NOT a tool for agent assessment which

١٨

allows the call centre to provide a better service

CRM ≠ Voice over IP (VoIP)

CRM is NOT a technology to access customers

through different channels




N.Karami; CRM ٢٠ر



Three Types of CRM Technology (Three Types of CRM Technology (11))

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Three Types of CRM Technology (Three Types of CRM Technology (22))

٢٠

Source: Improving customer interaction with customer knowledge

management ; Adrian Buren




N.Karami; CRM ٢١ر


Introduction & ConceptsIntroduction & ConceptsOperational CRM:Operational CRM:Touching the Customer Touching the Customer

Means supporting the so-called "front office“ business processes,which include customer contact (sales, marketing and service).

responsible, information necessary for carrying out the tasks and

interfaces to back-end applications are being provided and

activities with customers are being documented for further

reference.

Benefits of O erational CRMBenefits of O erational CRM

٢١

Delivers personalized and efficient marketing, sales, and service

through multi-channel collaboration Sales people and service engineers can access complete history of

all customer interaction with your company, regardless of the touch

point

Enables a 360-degree view of your customer while you are


Introduction & ConceptsIntroduction & ConceptsThree Areas in Operational CRMThree Areas in Operational CRM

٢٢




N.Karami; CRM ٢٢ر


Introduction & ConceptsIntroduction & ConceptsAnalytical CRM:Analytical CRM:Understanding the Customer Understanding the Customer

An essential part of many CRM implementations. Customer perspective - delivers better, more timely, personalized

customized solutions.

ompany perspec ve - ena es cross-se ng an up-se ngprograms, and more effective customer retention and acquisition.

Data gathered within operational CRM are analyzed to segmentcustomers or to identify cross- and up-selling potential

Data collection and analysis is viewed as a continuing anditerative process

Analytical CRM is inextricably tied to a Data Warehouse

٢٣

arc ec ure, an use ana y ca app ca ons o everageoptimized functionality for analysis and reporting

Ad-Hoc Query Reporting

OLAP

Data Mining



Customer Segmentation

Groupings dividing customers into

those most and least

Event Monitoring for example, when a

customer reaches a certain

Analytical CRM Can Provide…Analytical CRM Can Provide…

likely to repurchase a

product

Profitability Analysis which customers lead to

the most profit over time

Personalization

dollar volume of purchases

What-if Scenarios how likely is a customer or

customer category that

bought one product to buy

a similar one

Predictive Modelin

٢٤

individual customers

based on the data

collected about them

for example, comparing

various product

development plans in

terms of likely future

success, given the

customer knowledge base





Introduction & ConceptsIntroduction & ConceptsCollaborative CRMCollaborative CRM

Facilitates interactions with customers through all channels

(personal, letter, fax, phone, web, email) and supports co-ordination of employee teams and channels.

,companies can better serve and retain their customers.

The data/activities can be structured, unstructured,conversational, and/or transactional in nature.

Benefits of Collaborative CRMBenefits of Collaborative CRM

Enables web collaboration to reduce customer service costs

٢٥

Enables efficient productive customer interactions across all

communications channels

Integrates view of the customer while interaction at the

transaction level

Integrates call centers enabling multi-channel personal

customer interaction

THANK YOU For

LISTENING

Customer Relationship

Management

Presented by N.Karami

٢مهر

Session#1; An Overview of CRM.pdf

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