Business Plug-In B9
Customer Relationship
Management
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
LEARNING OUTCOMES
1. Describe the three CRM technologies used by
marketing departments.
2. Describe and differentiate the CRM technologies
used by sales departments and customer service
departments.
3. Compare customer relationship management,
supplier relationship management, partner
relationship management, and employee relationship
management.
4. Summarize the future of customer relationship
management.
B9-2
INTRODUCTION
• Customer Relationship Management—Involves
managing all aspects of a customer’s relationship
with an organization to increase customer loyalty
and retention and an organization’s profitability
– 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
B9-3
INTRODUCTION
B9-4
MARKETING AND
OPERATIONAL CRM
• Three marketing operational CRM technologies:
1. List Generator—Compiles customer information
from a variety of sources and segments 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
B9-5
SALES AND OPERATIONAL CRM
• Sales Force Automation—A system that automatically
tracks all of the steps in the sales process
• Three sales 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.
B9-6
SALES AND OPERATIONAL CRM
B9-7
SALES AND OPERATIONAL CRM
• CRM pointers for gaining prospective
customers:
1.
Get their attention.
2.
Value their time.
3.
Over deliver.
4.
Contact frequently.
5.
Generate a trustworthy mailing list.
6.
Follow up.
B9-8
CUSTOMER SERVICE AND
OPERATIONAL CRM
• Three customer service operational CRM technologies:
1. Contact Center is where customer service
representatives (CSRs) answer customer inquiries and
respond to problems through a number of different
customer touch points.
2. Web-Based Self-Service Systems allow customers to
use the web to find answers to their questions or
solutions to their problems.
3. Call Scripting Systems access organizational
databases that track similar issues or questions and
automatically generate the details for the CSR who can
then relay them to the customer.
B9-9
Analytical CRM
• Personalization—When a website knows enough
about a person’s 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
B9-10
Analytical CRM
• Analytical CRM Information Examples:
1. Give customers more of what they want.
2. Find new customers similar to the best
customers.
3. Find out what the organization does best.
4. Beat competitors to the punch.
5. Reactivate inactive customers.
6. Let customers know they matter.
B9-11
SUPPLIER RELATIONSHIP
MANAGEMENT
• Supplier Relationship Management (SRM)—Focuses
on keeping suppliers satisfied by evaluating and
categorizing suppliers for different projects, which
optimizes supplier selection
• Benefits HBOS derived from the SRM solution
include:
– A single consolidated view of all suppliers
– Consistent, detailed management information
allowing multiple views for every executive
– Elimination of duplicate suppliers
B9-12
PARTNER
RELATIONSHIP MANAGEMENT
• Partner Relationship Management (PRM)—
Focuses on keeping vendors satisfied by
managing alliance partner and reseller
relationships that provide customers with the
optimal sales channel
• The primary benefits of PRM include:
– Expanded market coverage
– Offerings of specialized products and services
– Broadened range of offerings and a more complete
solution
B9-13
EMPLOYEE
RELATIONSHIP MANAGEMENT
• Employee Relationship Management (ERM)—
Provides employees with a subset of CRM
applications available through a web browser
• Many of the ERM applications assist the
employee in dealing with customers by
providing detailed information on company
products, services, and customer orders
B9-14
FUTURE 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
B9-15