Business Plug-in B9
CUSTOMER
RELATIONSHIP
MANAGEMENT
McGraw-Hill/Irwin
©2008 The McGraw-Hill Companies, All Rights Reserved
9-2
BUSINESS BENEFITS OF CRM
• CRM enables an organization to:
– Provide better customer service
– Make _____ centers more efficient
– Cross sell products more effectively
– Help sales staff close deals faster
– Simplify marketing and sales processes
– Discover new __________
– Increase customer revenues
9-3
CRM BASICS
• Organizations can find their most valuable
customers through “RFM”:
– How recently a customer purchased items
(Recency)
– How frequently a customer purchased items
(___________)
– How much a customer spends on each
purchase (Monetary Value)
9-4
The Evolution of CRM
• CRM reporting technology – help organizations
identify their customers across other applications
• CRM __________ technologies – help
organization segment their customers into
categories such as best and worst customers
• CRM predicting technologies – help
organizations make predictions regarding
customer behavior such as which customers are
at risk of leaving
9-5
The Evolution of CRM
• Three phases in the evolution of CRM
include reporting, analyzing, and
predicting
9-6
The Evolution of CRM
9-7
Operational and Analytical CRM
• Operational CRM – supports traditional
transactional processing for day-to-day
______-office operations or systems that
deal directly with the customers
• Analytical CRM – supports ______-office
operations and strategic analysis and
includes all systems that do not deal
directly with the customers
9-8
Operational and Analytical CRM
9-9
Using IT to Drive Operational CRM
9-10
Marketing and Operational CRM
•
Three marketing operational CRM
technologies:
1. List generator – compiles customer
information from a variety of sources and
segment the information for different marketing
campaigns
2. Campaign management system – guides
users through marketing campaigns
3. Cross-selling and up-selling
•
•
Cross-selling – selling additional products or
services
Up-selling – increasing the value of the sale
9-11
Sales and Operational CRM
•
The sales department was the first to begin
developing CRM systems with sales force
____________ – a system that automatically
tracks all of the steps in the sales process
9-12
Sales and Operational CRM
•
Sales and operational CRM technologies
1. Sales management CRM system –
automates each phase of the sales process,
helping individual sales representatives
coordinate and organize all of their accounts
2. Contact management CRM system –
maintains customer contact information and
identifies __________ customers for future
sales
3. Opportunity management CRM system –
targets sales opportunities by finding _____
customers or companies for future sales
9-13
Customer Service and
Operational CRM
•
Three customer service operational CRM
technologies:
1. Contact center (call center)
2. Web-based self-service system
• Click-to-talk
3. Call scripting system
• Access DB to automatically generate
details for the CSR
9-14
Customer Service and
Operational CRM
9-15
USING IT TO DRIVE
ANALYTICAL CRM
•
•
•
Personalization – when a Web site knows
enough about a persons likes and dislikes that it
can fashion offers that are more likely to appeal
to that person
Analytical CRM relies heavily on data
____________ technologies and business
intelligence to glean insights into customer
behavior
These systems quickly aggregate, analyze, and
disseminate customer information throughout an
organization
9-16
CURRENT TRENDS: SRM, PRM,
AND ERM
•
•
•
Supplier relationship management (SRM) –
focuses on keeping suppliers satisfied by
evaluating and __________ suppliers for different
projects
Partner relationship management (PRM) –
focuses on keeping _______ satisfied by
managing alliance partner and reseller
relationships
Employee relationship management (ERM) –
provides employees (as customers) with a subset
of CRM applications available through a
____________
9-17
FUTURE CRM TRENDS
•
•
•
•
CRM applications will change from employeeonly tools to tools used by suppliers, partners,
and even ____________
CRM will continue to be a major ________
focus for companies
CRM applications will continue to adapt
________ capabilities supporting mobile sales
and mobile customers
CRM suites will incorporate PRM and SRM
modules