CUSTOMER
RELATIONSHIP
MANAGEMENT
9-2
LEARNING OUTCOMES
1. Compare operational and analytical customer
relationship management
2. Explain the formula an organization can use to find
its most valuable customers
3. Describe and differentiate the CRM technologies
used by sales departments and customer service
departments
4. Describe and differentiate the CRM technologies
used by marketing departments and sales
departments
9-3
BUSINESS BENEFITS OF CRM
• CRM enables an organization to:
– Provide better customer service
– Make call centers more efficient
– Cross sell products more effectively
– Help sales staff close deals faster
– Simplify marketing and sales processes
– Discover new customers
– Increase customer revenues
9-4
CRM BASICS
• Organizations can find their most valuable
customers through “RFM” - Recency,
Frequency, and Monetary value
– How recently a customer purchased items
(Recency)
– How frequently a customer purchased items
(Frequency)
– How much a customer spends on each
purchase (Monetary Value)
9-5
The Evolution of CRM
• CRM reporting technology – help organizations
identify their customers across other applications
• CRM analysis 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
9-6
The Evolution of CRM
• Three phases in the evolution of CRM
include reporting, analyzing, and
predicting
9-7
The Evolution of CRM
9-8
Operational and Analytical CRM
• Operational CRM – supports traditional
transactional processing for day-to-day
front-office operations or systems that
deal directly with the customers
• Analytical CRM – supports back-office
operations and strategic analysis and
includes all systems that do not deal
directly with the customers
9-9
Operational and Analytical CRM
9-10
Using IT to Drive Operational CRM
9-11
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
9-12
Sales and Operational CRM
•
The sales department was the first to begin
developing CRM systems with sales force
automation – a system that automatically tracks
all of the steps in the sales process
9-13
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 prospective customers for future
sales
3. Opportunity management CRM system –
targets sales opportunities by finding new
customers or companies for future sales
9-14
Sales and Operational CRM
•
CRM Pointers for Gaining Prospective
Customer
1.
2.
3.
4.
5.
6.
Get their attention
Value their time
Overdeliver
Contact frequently
Generate a trustworthy mailing list
Follow up
9-15
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
9-16
Customer Service and
Operational CRM
9-17
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 warehousing
technologies and business intelligence to glean insights
into customer behavior
•
These systems quickly aggregate, analyze, and
disseminate customer information throughout an
organization
9-18
USING IT TO DRIVE
ANALYTICAL CRM
•
Analytical CRM information examples
1.
2.
3.
4.
5.
6.
Give customers more of what they want
Value their time
Overdeliver
Contact frequently
Generate a trustworthy mailing list
Follow up
9-19
OPENING CASE QUESTIONS
Customer First Awards
1. Summarize the evolution of CRM and provide
an example of a reporting, analyzing, and
predicting question Progressive might ask its
customers
2. How could Progressive’s marketing
department use CRM technology to improve
its operations?
3. How could Mini’s sales department use CRM
technology to improve its operations?
CUSTOMER
RELATIONSHIP
MANAGEMENT
STRATEGIES
9-21
LEARNING OUTCOMES
5. Identify the primary forces driving the explosive
growth of customer relationship management
6. Summarize the best practices for implementing
a successful customer relationship
management system
7. Compare customer relationship management,
supplier relationship management, partner
relationship management, and employee
relationship management
9-22
CUSTOMER RELATIONSHIP
MANAGEMENT’S EXPLOSIVE GROWTH
CRM Business Drivers
9-23
CUSTOMER RELATIONSHIP
MANAGEMENT’S SUCCESS FACTORS
•
CRM success factors include:
1.
2.
3.
4.
5.
Clearly communicate the CRM strategy
Define information needs and flows
Build an integrated view of the customer
Implement in iterations
Scalability for organizational growth
9-24
CURRENT TRENDS: SRM, PRM,
AND ERM
•
Current trends include:
–
–
–
Supplier relationship management (SRM) –
focuses on keeping suppliers satisfied by
evaluating and categorizing suppliers for different
projects, which optimizes supplier selection
Partner relationship management (PRM) –
focuses on keeping vendors satisfied by managing
alliance partner and reseller relationship that
provide customers with the optimal sales channel
Employee relationship management (ERM) –
provides employees with a subset of CRM
applications available through a Web browser
9-25
FUTURE CRM TRENDS
•
CRM future trends include:
–
–
–
–
CRM applications will change from employee-only
tools to tools used by suppliers, partners, and even
customers
CRM will continue to be a major strategic focus for
companies
CRM applications will continue to adapt wireless
capabilities supporting mobile sales and mobile
customers
CRM suites will incorporate PRM and SRM
modules
9-26
FUTURE CRM TRENDS
Mobile CRM Archi.
Management
Analytics
Sales
PDA
CRM
Marketing
Knowledgebase
ERP Back Office
Customers
Products
Pricing
Promotions
Competitors
Consumers
Complaints
Campaigns
History
Customer
1
Support
Internet
/ Email
www.resonatesolutions.com.au