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Business Challenges
Businesses in many industries may lose up 50% of their
customers over a five year period.
Studies have shown its 6 to 7 times more expensive to
acquire a new customer than it is to retain a current
customer.
As little as a 5% increase in customer retention can
increase profits by 25 to 95%.
Yet many businesses are still focused only on customer
acquisition and see customers from the fragmented view
of individual transactions
Customer Relationship
Management
Customer is important
Analysis on Customers essential
Customer is
There is only one boss. The customer!
He can fire everybody in the company, from the chairman
on down, simply by spending his money somewhere else.
Sam Walton, founder of Wal-Mart
Todays customer is
Smarter
leaner
more price conscious
has lower morale
overwhelmed by competitors
more demanding
less forgiving
harder to satisfy
less loyal
What's Out
Mass Marketing
Standardized Products
Market Share
Present Value
Program Driven Marketing
Know Your Products
Manage Your Products
Differentiate Products
Acquisition
100% of Market, 10% of
Customer
History of CRM
B&S
RM
CIMS
CRM
e-CRM
Time
line
Late
80s
Early
90s
Mid 90s
2002 Future
Definitions
is a business strategy with outcomes
that optimise profitability, revenue and customer
satisfaction
by organizing around customer segments,
fostering customer-satisfying behaviors and
implementing customer-centric processes.
is a strategy
used to learn more about customers' needs and
behaviors
in order to develop stronger relationships with them.
Customer retention
Share of customer or share of wallet
Cross-selling
Up-selling
Continuity
A contact point
Personalisation
Customer ?
Relationship ?
Channels of interaction, segmentations
Management?
organization of customer related information
Customer
Employees
Suppliers
Government
Citizens
Continuity
Mutuality
Interdependence
Understanding
Trust
Customer
Acquisition
Customer
Retention
Customer
Development
Retain profitable
customers and
increase their
long-term value
The process of
Targeting
Acquiring
Servicing
Retaining
and
Building long-term relationships with customers
Traditional
Traditional
Mass
Mass
Marketing
Marketing
Shotgun
ShotgunApproach
Approach
CRM
CRM
Rifle
RifleApproach
Approach
Define customer
relationship management
CRM is NOT
1. a technology.
CRM is just a new system to install, new code to write.
2. sales force automation (SFA).
CRM is just a business development process for our salespeople.
3. customer loyalty.
CRM is a synonym for customer loyalty.
4. database marketing.
CRM just allows us to leverage our customer data better.
5. call center technology.
CRM is just a way to cut costs in the call center.
6. a project.
We can install CRM in 30 days with this team of three!
7. a producer of intangible benefits.
You just cant measure relationship management concretely.
CRM is a customer-focused
business philosophy designed to
effectively create experiences
that attract, acquire and retain
customers.
To realize the benefits,
enterprises must implement collaborative processes
and technologies that support customer interactions throughout all
channels.
CRM ?
A company-wide business strategy
designed to optimize profitability,
revenue, and customer satisfaction by
focusing on highly defined and precise
customer groups.
Customer-centric
CRM Definitions
An enterprise approach to
understanding and influencing
customer behavior through
continuous relevant communication to
improve customer acquisition,
customer retention, and customer
profitability. (NCR corps.,1999)
What is CRM?
Organizing
Organizing Around
Around
Segments
Segments
Tracking
Tracking Interactions
Interactions
Fostering
Fostering Satisfaction
Satisfaction
Linking
Linking Processes
Processes
Special
Special Promotions
Promotions
Targeting
Targeting
Markets
Markets and
and Individuals
Individuals
Sales
Service
Marketing
Mfg
Product
Planning
Purchasing
R&D
Spares
CRM
FAST FWD
ERP
SCM
MFG
PURCHASING
R&D
2.
3.
4.
Architecture of CRM
There are three parts of application architecture of CRM:
Operational CRM
Operational CRM means supporting the so-called "front office"
business processes, which include customer contact (sales,
marketing and service)
Operational part of CRM typically involves three general areas of
business:
Sales force automation (SFA)
Customer service and support (CSS)
Enterprise marketing automation (EMA)
Analytical CRM
Data gathered within operational CRM are analyzed to segment
customers or to identify cross- and up-selling potential.
Collaborative CRM
Collaborative CRM facilitates interactions with customers through
all channels (personal, letter, fax, phone, web, e-mail) and
supports co-ordination of employee teams and channel.
CRM Components
Closed Loop Processing
Operational CRM
Business Operation Management
Marketing
Sales
Analytical CRM
Business Performance Management
Planning/
Analysis
Service
Action
Marketing data
Analysis
Feed
Back
Collaborative CRM
Customer Interaction Management
Web
Personalization
Call Center
Automation
Web Sales
& Service
Sales Data
Analysis
Customer Data
Analysis
Operational CRM:
effective and efficient use and management of people, process and technology
Analytical CRM:
the measurement of people, process and technology
Communication
Customer
Communication
Segmentation
Member
Conversion
Value
Segmentation
Retain
Value
Customer is
KING
Understand him !!!
Bottom-line !!!!
CRM
Phased Elements
Degree of
Relationship
Improving
Core Products/Service
Innovation of Channel Mgmt.
Customer
Satisfaction
Attitude,
not Action
Reward Program
/Continuing Campaign
Repurchase
/ Cross-selling
(CR Strategy)
Trust/
Intimacy
Recognition
of Relationship,
Referral
Customer
Loyalty
Loyalty
Encourage
WOM
(word of mouth)
Increase Email
Click-thru and
Open Rates
CRM
Customer Direct
Communications
Encourage
Multi-channel
Buying
Identify
Customers at
all Touchpoints
Increase Re-buy
Rates
Advantages of CRM
While company is quickly growing, customers are more satisfied as
well
Service provided in a better way, and a quicker way
Sales force automated
Integrated customer information
Certain processes eliminated
Operation cost cut, and time efficient
Brand names more quickly established
A central database so that everyone in your company can keep track
of customer contacts
Sales and marketing teams can benefit from having all this inside
knowledge about customers
Lets you set up rules for distributing work throughout your company
Lets you pick and choose the functionality that you want
Disadvantages:
-Organizational wise change of priority to customers.
- Significant investment of time and money
- Threatens managements control/power struggle
- Heightens peoples resistance to change
- Inappropriate integration leads to disaster
Organization
Customers
Touchpoints
Field Sales
Website
Email
Call Center
POS
Traditional Mail
Retail
Fax
PDA
Field Sales
Website
Email
Sales
Marketing
Call Center
POS
Service
Traditional Mail
Retail
Finance
Fax
PDA
Production
Field Sales
Website
Email
Sales
Marketing
Call Center
POS
Service
Traditional Mail
Retail
Finance
Fax
PDA
Production
Field Sales
Sales
Website
Email
Marketing
Call Center
POS
CRM
Service
Traditional Mail
Retail
Finance
Fax
PDA
Production
Website
Email
Sales
Selling Knowledge
Product Knowledge
Solutions Knowledge
Customer Knowledge
Marketing
CRM
Service
Call Center
POS
Traditional Mail
Retail
Finance
Fax
PDA
Production