Week 11

1
Week 11

• CRM
• Customer Relationship Management

2
Learning Objectives

• Describe the role of IT in facilitating
• Customer Relationship Management
• Partnership Relationship Management

3
Some background

• Channel Systems
• are all the systems involved in the process of
  getting a product or service to customers
  dealing with all customers needs.
• Four main channel systems activities
• Telemarketing
• Distribution channels
• Marketing management
• The Customer is King/Queen

4
Telemarketing Online Shopping

• A telemarketing process can be divided into five
  major activities
• Advertisement and reaching customers
• Order processing
• Customer service
• Sales support
• Account management
• Recently, telemarketing has been moving to cell
  phones, using Short message service (SMS), which
  consists of messages you can receive on your cell
  phone.

5
Distribution Channels

• Organizations can distribute their products
  services through several available delivery
  channels.
• A company may use its own outlets
• A distributors.
• trains, planes, trucks
• Distribution Channels Management. Once products
  are in the distribution channels, firms need to
  monitor and track them to guarantee customer
  satisfaction
• Improving Sales at Retail Stores. Using
  information technology, it is possible to improve
  sales by reengineering the checkout process

6
Marketing Management

• Many marketing management activities are
  supported by computerised information systems.
  Some areas where this is being done include
• Pricing of Products or Services. 
• Salesperson Productivity. 
• Productivity Software (Sales automation software)
• Product-Customer Profitability Analysis.
• Sales Analysis and Trends. 
• New Product, Service, and Market Planning. 
• Web-Based Systems in Marketing.

7
The Customer is King/Queen

• It is essential for companies today to be aware
  of their customers and treat them like royalty.
• Innovative products services and superb
  customer service are becoming a necessity for
  many organizations. For example
• Customer Profiles and Preference Analysis.
• Prospective Customer Lists Marketing Databases.
• Mass Customization.
• Personalization.

8
Customer Relationship Management

• Customer relationship management (CRM) is an
  approach that recognizes that customers are the
  core of the business and that the companys
  success depends on effectively managing
  relationships with them.
• Customer service is a series of activities
  designed to enhance the level of customer
  satisfaction.
• Relationship marketing is the overt attempt of
  exchange partners to build a long-term
  association, characterized by purposeful
  cooperation and mutual dependence on the
  development of social, as well as structural,
  bonds (Mowen Minor, 1998).
• E-Service is customer service that is performed
  on the Web, sometimes automatically.

9
CRM in Action

• According to Seybold and Marshak (1998) there are
  five steps in building IT-supported CRM. These
  are
• Make it easy for customers to do business with
  you.
• Focus on the end customer for your products and
  services.
• Redesign your customer-facing business processes
  from the end customers point of view.
• Wire your company for profit design a
  comprehensive, evolving electronic business
  architecture.
• Foster customer loyalty. In e-Commerce,
  especially, this is the key to profitability.

10
Information Technology in CRM
11
Customer Service on the Web

• Providing Search and Comparison Capabilities.
• Providing Free Products and Services.
• Providing Technical and Other Information and
  Service.
• Allowing Customers to Order Customized Products
  and Services Online.
• Letting Customers Track Accounts or Order Status

12
Tools for Customer Service

• Personalized Web Pages
• FAQs
• Tracking Tools
• Chat Rooms
• E-mail and Automated Response
• Help Desks and Call Centers
• Troubleshooting Tools

13
Tools for Customer Service

• One way to determine how much customer service to
  provide is to compare your company against a set
  of standards known as metrics.
• Response time.
• Site availability.
• Download time.
• Timeliness.
• Security and privacy.
• Fulfillment.
• Return policy.
• Navigability.

14
CRM Failures

• A large percentage of failures have been reported
  in CRM.
• Some of the big issues are
• Failure to identify and focus on specific
  business problems.
• Lack of active senior management (non-IT)
  sponsorship.
• Poor user acceptance, which can occur for a
  variety of reasons such as unclear benefits and
  usability issues.
• Trying to automate a poorly defined process.

15
Partner Relationship Management

• Partnership Relationship Management (PRM) refers
  to all of the efforts made to apply CRM to all
  types of business partners.
• Specific functions of PRM applications
• Partner profiles ?Centralized forecasting
• Partner communications ? Group planning
• Lead management ? E-mail/ Web-based alerts
• Targeted information distribution ? Messaging
• Connecting the extended enterprise ? Price lists
• Partner planning ? Community bulletin boards

16
Case Integrated Server System at Europcar

• Problem
• Europcar Internet, the largest European-based car
  rental agency, combined 55 different mainframe
  and minicomputer systems into a single
  client/server center known as Greenway.
• The 55 independent systems needed to be
  integrated.
• Solution
• Key business processes were all integrated into
  Greenway.
• Customer-related benefits include (1) faster
  service (2) reservation desks linked to airline
  reservation systems, and (3) corporate customers
  managed from one location.
• Results
• By 2000, Europcar expanded to 100 countries
  worldwide.

17
Managerial Issues

• The customer is kingqueen. In implementing IT
  applications, management must remember the
  importance of the customer, whether external or
  internal.

18
Reading

• This weeks reading is
• Handouts
• Information Technology for Management - Chapter
  7 Customer Relationship Management pp 314 to
  333 - Be selective
• Look at references and bibliography for this
  chapter
• Computing Press read it

19
Next Week

• Revision