Customer

Relationship
Management
Small Business Information
Systems
Professor Barry Floyd

Agenda

Defining ERP
Implementation tasks for CRM
CRM Overview / Demos

Conceptual Overview
An application perspective of CRM

Operational
Analytical

Lab component:

Hands on use of CRM with Microsoft

Use of ERP software in the curriculum Defining ERP?

Defining ERP

In 1990, research firm Gartner Group coined

the term Enterprise Resource Planning, or
ERP. It quickly became a catchall for back
office enterprise functions that included
financials, human resources, accounting,
purchasing, ordering and costing.
ERP II takes the ERP foundation and extends
it outward, to position the enterprise in the
supply an value chains (e.g., Supply Chain
Management (SCM), Customer Relationship
Management (CRM), Product Life Cycle
Management (PLM) .

Conceptual Overview

Sales?

Conceptual Overview

A shift in thinking

Transaction Learning relationship

Mass Marketing Individual marketing
Transaction Value Life time value
Conquest Marketing Retention marketing
Product Life Cycle Customer Life Cycle
Customer Satisfaction Customer Loyalty
Share of the market Share of the customer
Product differentiation Customer
differentiation

Whats a relationship?

Can an organization have a

relationship with a person?
Emphasis on CRM is the notion of a
learning relationship
Knowledge
Intent
Trust

Customer Satisfaction Customer Loyalty

The Death of Customer

Satisfaction: CRM in the Internet
Age by Tony Zingale

Fulfillment The
company has what I
want.
Value The price
meets my expectations.
Convenience The
product is easy to get.
Trust Im reasonably
confident the product
is reliable.

PeopleSoft CRM

Consider the front-facing CRM application

developed by PeopleSoft (not a product line of
Oracle).
A front-facing application is an application that
the customer sees.

Contrast with back-office operations like we have

been working with using GP Dynamics 9.0

In this clip, a customer wishes to file a damage

claim.
Key points:

Customer centric, can see all interactions with this

insurance company, customer-driven, is an example of
mass customization and personalization

PeopleSoft
Customer Request

Customer Satisfaction Customer Loyalty

The Death of Customer

Satisfaction: CRM in the Internet
Age by Tony Zingale

Satisfaction My basic
transactional needs are
met
Bonding The company is
acting in my best interests.
Personalization The
company demonstrates
that it understands and
anticipates my needs.
Empowerment The
relationship is on my
terms and under my
control.

Customer Differentiation
vs. Product Differentiation

Research by Professors Cooper and Kaplan

at the Harvard Business School has shown
that in a large number of companies 20
percent of customers account for 225
percent of profits and the 80 percent `lose
125 percent of profits.

But the trouble is that most companies do

not know which customers make up the 20
percent and which make up the 80 percent.

Enterprise Strategy Map

Ability to
Interact with
Customers Individually

Interacting
Customers addressed
only in mass media
C
u
s

Database
Marketing

1 to 1
learning
relationship

Mass
Marketing

Niche
Marketing

Standard
products

Tailoring

Source: Pepper / Rogers, Enterprise One to One,

New York: Doubleday/Currency, 1997.

Tailored
products

Needs Satisfied

Needs Satisfied

Share of the Market

vs. Share of the Customer

Customers Reached

Customers Reached

Themes

Customers as assets
Market based assets, including
customer relationships
Companies executives will need to
report their customer relationship
management performance to investors
Holistic view of the customer
Analysis out of the hands of the
statisticians

Four implementation tasks

for creating and managing
customer relationships

IDIC
Identify
Differentiate
Interact
Customize

Reference: Peppers and Rogers,

Managing Customer Relationships,
A Strategic Framework

Four implementation tasks

for creating and managing
customer relationships

IDIC
Identify
Differentiate
Interact
Customize

Reference: Peppers and Rogers,

Managing Customer Relationships,
A Strategic Framework

Identify

Relationships are individualistic, not with

markets or groups of people

Must be able to identify your customers

individually and recognize them when interacting
with them
Without identification, you cannot understand who
they are and what their needs are.
Difficult to do, can be almost impossible if
channels of communication involve intermediaries

Steps
1.
2.

How much customer identification does a

company already have (what info do you need)
Get customers to identify themselves

Four implementation tasks

for creating and managing
customer relationships

IDIC
Identify
Differentiate
Interact
Customize

Reference: Peppers and Rogers,

Managing Customer Relationships,
A Strategic Framework

Differentiate

Some customers are worth more than others

Knowing value of customer to the enterprise

allows prioritization

80/20 rule
Want to better understand customer needs vs.
demographics
Want to better understand the value of that customer to
the enterprise

Lifetime value (LTV) net present value of the stream

of expected future contributions from the customer.
Most valuable customers, most growable customers,
below-zeros, migrators

Differentiate customers based on needs

Refers to why customer buys rather than what they buy.

PeopleSoft CRM
Insurance Companys
Response

What support is provided by the company to

help the Customer Support Agent

What information does this agent have about the

client?
Where does it come from?
How useful is it?
What information does the agent have about their
own performance?

Consider

What information has the claimant provided to

the Insurance Company?
How does this interaction reflect a partnership
How much trust is there?

PeopleSoft
Customer Support Agent
Response

Four implementation tasks

for creating and managing
customer relationships

IDIC
Identify
Differentiate
Interact
Customize

Reference: Peppers and Rogers,

Managing Customer Relationships,
A Strategic Framework

Interact

Goal of interaction is to get more information

directly from a customer in order to serve him
in a way no competitor can who doesnt have
the information
Want to turn the interaction into a
collaboration in which the enterprise and
customer work together to make transactions
beneficial to both parties a learning
relationship
Important issue in the interaction is privacy.
Research has indicated that individuals are
willing to provide information

Four implementation tasks

for creating and managing
customer relationships

IDIC
Identify
Differentiate
Interact
Customize

Reference: Peppers and Rogers,

Managing Customer Relationships,
A Strategic Framework

Customize

Use knowledge of customer to figure

out what he/she needs
Key term is mass customization
Can be product based
Or service based on standard products
Use of information technologies key

PeopleSoft CRM
Insurance Companys
Response

What support is provided by the company to

help the Sales Agents Response

Are we wasting the Sales Agents time? Why not?

When the Sales Agent calls the client, will it be
consider intrusive?
How are gaining share of the customer (in
contrast to share of the market?)

Again consider

What information has the claimant provided to

the Insurance Company?
How does this interaction reflect a partnership
How much trust is there?

PeopleSoft Sales Agent

Response

How does technology

play a role?

Enabler .
Managing all touch points with the
customer to develop knowledge so
that the relationship part of the
interaction becomes meaningful.
Note, technology is only an enabler,
people and organizational design
play critical roles in CRM success

CRM Overview / Demos An application perspective of

CRM

PeopleSoft CRM View

PeopleSoft Enterprise Customer
Relationship Management (CRM) is a
comprehensive solution offering greater
user adoption, an improved user
experience, and real-time intelligence
for your enterprise to make smarter
decisions. Every customer interaction
can now be an opportunity to build
business value with your customers.

CRM Overview / Demos An application perspective of

CRM

PeopleSoft CRM View

Get immediate, seamless integration
among your customer, financial,
supply chain, and employee
management systems.
CRM Analytics
Marketing Solution
Sales Solution
Service Solution
CRM Industry Solutions

Operational CRM
Analytics CRM

CRM Overview / Demos An application perspective of

CRM

Operational CRM

Operational CRM is the automation

of horizontally integrated business
processes involving front-office
customer touch points across sales,
marketing and customer service via
multiple, interconnected delivery
channels.
Meta Group

CRM Overview / Demos An application perspective of

CRM

PeopleSoft CRM View

MARKETING

New product
campaign

Email wave
Telesales wave
Free software
offer

SUPPORT

Installed Product

Agreement
Warranty

Specialist
Competencies
Call Center Agent
Resolution Database

HELPDESK

Call Center
Agent
Resolution
Database

SALES

Forecasts
Leads/Opportuni
ties
Sales Reps

FIELD SERVICE

ANALYTICS

Service Order
Technician
Competencies

INTERACTION
MANAGEMENT

CRM Overview / Demos An application perspective of

CRM

CRM Demos User

Perspective
Customer Perspective

Customer Perspective
Customer Support Agent
Sales Representative
Sales Manager

CRM Overview / Demos An application perspective of

CRM

Example Business Process:

CRM Marketing and Sales
Business Process Flow

Analyze Customer
Performance and
Generate Target
Audience List

Create Campaign
Create Wave

CRM Marketing
Business Process
CRM Sales
Business Process
Measure Campaign

Lead Generation

Manage
Leads

Measure Opportunity
Performance

Generate Forecasts
and Rollup
Forecasts

Create Opportunity

CRM Overview / Demos An application perspective of

CRM

Two key features of

business process

Embedded Analytics

Allows for data analysis within the

business process stream

Interaction Management

Provides a 360-degree view of the

customers interactions (cases, leads,
installed products, service orders,
agreements, returned materials,
interactions)

CRM Overview / Demos An application perspective of

CRM

Analytical CRM

Analytical CRM is the analysis of

data created on the operational side
of CRM and through other relevant
operational data sources for the
purposes of business performance
management and customer-specific
analysis.
Meta
Group

CRM Overview / Demos An application perspective of

CRM

CRM Analytics Solution

CRM Portal Pack

CRM Warehouse
Customer Behavior Modeling
Customer Scorecard
EPM Portal Pack
Predictive Analytics

CRM Overview / Demos An application perspective of

CRM

Customer Behavior
Marketing

Which customers are most likely to

purchase your product
Which customer segment will
maximize your ROI on marketing
campaigns
Which personalized, targeted offers
your call center reps should present
Which customers are at risk of attrition

PeopleSoft Sales
Manager

Predictive analytics

An application that leverages a

companies operational data about
customers and past events and uses
it to predict a customers future
behavior.
Goal is to distribute the value of
statistical analysis to nonstatisticians in the organization.

CRM Demo Resources

Siebel: http://

www.siebel.com/bestpractices/examples.shtm

SalesForce.com:

http://www.salesforce.com/us/products/demo-center
.jsp

Microsoft:

http://www.microsoft.com/dynamics/crm/d
efault.mspx
http:// mscrm.demoservers.com /

Avaya:

http://www1.avaya.com/enterprise/resourcelibrary
/demos/crm_callcenter.html

CRM Resources
http://crm-daily.newsfactor.com/

http://www.destinationcrm.com/

http://searchcrm.techtarget.com/

http://crm.ittoolbox.com/

http://www.crmguru.com/

TeraData Center,
Duke University

CRM Lab

Go to the following web site:

http://mscrm.demoservers.com/
Register
Once youve registered, log in and do
the SALES CRM lab.

Ive given you a handout on this.

Summary

CRM is an exciting application that

provides an integrated view of
critical business processes and
allows the student to develop a realworld understanding
Integration with other modules like
Supply Chain Management,
Financials, and HR is critical for a
complete view of the customer