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± Discuss the strategic importance of Customer Relationship
Management (CRM).
± Describe the components of a CRM initiative.
± Discuss the implementation procedures used for CRM
programs.
± Describe how information is used to create customer
satisfaction and greater profits for the firm.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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Defining Customer Relationship Management (CRM)
CRM¶s Role in Supply Chain Mgmt
Key Tools & Components of CRM
Segmenting Customers
Predicting Customer Behaviors
Customer Profitability Determination
Personalizing Customer Communications
Automated Sales Force Tools
Customer Service Capabilities
Designing and Implementing a Successful CRM Program
Some CRM Application Providers
Future Trends in CRM
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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± Customer relationship
management (CRM) is
associated with automated
transaction and communication
applications.
± Increased automated
interactions will lead more
organizations to find they must
continue to identify and develop
new value for customer
relationships
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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Customer Relationship Management (CRM) is defined as:.
Building and maintaining profitable long-term customer
relationships.
Successful CRM programs require cultural change in
many organizations, leading to strategies that are
focused on cultivating long-term relationships with
customers, aided by the software capabilities.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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± What does customer service actually mean?
± Seven Rs Rule´ having the product, in the quantity, in
the condition, at the place, at the time, for the
customer, at the costs.
± Performance measures are often designed around satisfying the
seven Rs. These kinds of services can come at a cost.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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Call center systems can now categorize all calls, determine average
resolution time, and forecast future and improve the overall productivity
of the staff, increasing customer satisfaction levels.
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Scripts to successfully guide service representatives through many
types of customer problems. They do not allow for much ³out-of-the-
box´ thinking.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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1"& Web sites act as support mechanisms for call
centers. Customers can access their account information and operating hours,
contact information, etc.
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' Customers can communicate directly with
product specialists using wireless devices and the right diagnosis can be made
quickly.
| '& Customers are frequently given
opportunities to provide feedback about a product, service, or organization.
| ')|%" Two important issues are ability to assure
privacy and ability to minimize customer harassment.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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This question must involve employees from all functions.
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" should include:
± Objectives of the CRM program
± CRM¶s fit with corporate strategy
± New applications to be purchased or developed
± Integration or replacement of existing methods or legacy systems
± Personnel Requirements- personnel, training, policies, Upgrades, and
maintenance and
± the costs and time frame for implementation.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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&'! To get acceptance of
the CRM initiative, employees should understand how it affects their
jobs.
± Create a project team with members from all affected organizational
areas.
± Test with a pilot application
%4 "!!%%"## Find an
appropriate application and determine the extent of customization
(adaptation).
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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%%" CRM is a collection of
various applications implemented over time.
± Customer contact mechanisms need to be coordinated so that every
CRM application user in the firm knows about all of the activity
associated with each customer.
± Centralized database or #0! containing all customer
information.
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Measuring performance
allows the firm to:
± Determine if objectives have been met
± Compare actual to planned = variance
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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%8 Providing CRM Training for All
Users-
± Provide and require training for
all of the initial users and then
provide training on an ongoing
basis as applications are added.
± Training can also help convince
key users like sales, call center,
and marketing personnel of the
benefits and uses of CRM
applications.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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| integrates with service, sales, contracts, and marketing
applications.
"" processes across all sales and customer interaction
channels.
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+ -provides automation and tools for the entire marketing
process.
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|""| improve agent productivity by providing critical customer
information.
"" the means to focus on the right deals at the right time.
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+ optimizes targeting and improves response rates with
robust segmentation capabilities.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
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0) " Rules and
laws regarding invasion of privacy are
springing up. Solution: develop a
privacy policy and post it on their Web
site.
%%"#9:
Fifty 50 percent of all CRM programs
are now designed and maintained for
clients by ASPs.
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increasing-New Markets out side of
traditional industrialized countries
require adaptation to local needs,
language, and culture
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing