Customer Relationship Management

1
Customer Relationship Management

• Chapter 9

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Customer Relationship Management - What It Is?

• The use of technologies to establish develop,
  maintain, and optimize relationships with
  customers by focusing on the understanding of
  needs and desires.
• Integrating e-technologies with business
  processes, human resources, and CRM strategies
  can result in increased sales and decreased
  costs.
• By creating a single CRM access point in the
  companies ERP system customer information can be
  used throughout the organization to improve
  relationships with the customers at every access
  point.

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Customer Relationship Management - What It Is?

• Data capture - from each of the customer touch
  points eg) web, call center, POS (Point of Sale)
• Data analysis identify relevant customer
  intelligence
• Strategic Decision Making - identify initiatives
  related to strategic objectives (how best to
  present the product or service)
• Implementation change methods while evaluating
  outcomes
• Start at the beginning again

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Customer Relationship Management Process
Data Capture
CRM Application
Back Office
Touch Point
Corporate Intranet
Modification of Customer Interaction, Marketing,
and Service
CRM Data Warehouse
Implementation
Data Analysis
Strategic Decision-Making
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CRM System Infrastructure
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Goals of CRM (1)

• Marketing Goals
• Sales forecasting what do people want now?
• Competitor intelligence how and what are they
  doing?
• Trend analysis what will people want?
• Performance analysis how are we doing?

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Goals of CRM (2)

• Sales Goals
• Increased efficiency (lower costs, raise profits)
• Improved customer interaction and service (build
  customer loyalty)
• Redirection of sales to the most efficient and
  effective sales channels (auctions, trading
  exchanges, company web site)
• Simplifying sales in the field and integrating
  sales activity into corporate information through
  a process called Sales Force Automation (SFA)

8
Enhancing Profitability

• Better understanding of existing customers
• Up-sell encourage customers to purchase higher
  priced products or services (Do you want to
  Biggie size that?)
• Cross-sell encourage customers to purchase
  complementary or additional products or services
  (Would you like fries with that?)

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Retaining Profitable Customers For Life through
CRM

• This is where the relationship is critical
• Using the tools of CRM to better sell to,
  service, and assist customers selling while
  servicing (Every 2 years the guy came in and
  brought a new Chev)
• Ensuring that profitable customers get priority
  attention

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Internet Enabled CRM

• Online Contact Management
• Capture information about prospective buyers
  e.g. generic surveys
• Capture Information from customers at point of
  sale e.g. survey on warrantee registration card
  most products can now be registered online.
• Make a follow-up contact by phone call or email

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Online Data Analysis

• Click-Stream analysis users path through a
  website is tracked analyzed. highlights
  difficulty by
• Searches with no results
• Constant back movements
• Cookies small text files stored by a website on
  users computer
• Can record last site visited, preferences, etc.
• Used to customize site
• Example(1 of 266 found)
• LastVehicleVisited9090www.fordvehicles.com/1600258
  622809629680199272063945629674164

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Online Data Analysis (cont.)

• Log Files - A file that lists actions that have
  occurred. E.g. Web servers maintain log files
  listing every request made to the server.
• With log file analysis tools, it's possible to
  get a good idea of where visitors are coming
  from, how often they return, and how they
  navigate through a site.
• Using cookies enables Webmasters to log even more
  detailed information about how individual users
  are accessing a site.

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Online Data Analysis (cont.)

• Web Bugs clear (and VERY small) GIFs embedded
  in web page to track user movement undetected.
  Can be spotted by viewing the HTML source code of
  the page. Web bug is fetched from a server other
  then the one presently been viewed.
• ltimg src"http//ad.doubleclick.net/ad/pixel.quick
  en/NEW" width1 height1 border0gt
• What information is sent to a server when a Web
  Bug is viewed?
• The IP address of the computer that fetched the
  Web Bug
• The URL of the page that the Web Bug is located
  on
• The URL of the Web Bug image
• The time the Web Bug was viewed
• The type of browser that fetched the Web Bug
  image
• A previously set cookie value

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Online Marketing Campaigns

• Create targeted campaigns by better understanding
  who online customers are, how their needs differ,
  and what predictors of buying are relevant
• E-mail campaigns - Permission marketing (send to
  people who have agreed to receive mail, but the
  danger is you will be swept away with the spam
  it is an increasingly unpopular advertising
  method)
• Real-time chat customer can get convenient info
  immediately from a sales rep
• Voice Over Internet Protocol (VoIP) application
  that relays voices across the Internet e.g.
  Phone us now link on a website

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Online Marketing Campaigns (cont)

• Intelligent agent (web bot) program to assist
  users on the Web to automate tasks or search for
  info
• E-mail Management auto-search for keywords so
  e-mail can be directed to the correct person who
  can solve the problem.
• FAQs can solve many common customer problems
  without them having to go any further (no human
  intervention needed)
• Company Hosted Forums - even customer complaints
  and criticisms are helpful in product
  redevelopment

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Implementation of CRM (1)Company Structure

• Company political and cultural problems e.g.
  re-organization of departments, redistribution of
  responsibilities, changes in customer touch
  points. E.g. Service departments may have to
  become selling departments. Siloing may have to
  be overcome.

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Implementation of CRM (2)Integration

• Legacy systems CRM needs to be integrated with
  ERP, SCM etc - use of middleware and XML
• Computer telephony integration technology that
  allows phone systems to integrate with computer
  systems to aid in customer service and data
  capture
• Data warehousing storing data in a central
  repository that organizes, analyze, and reports
  on it

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Implementation Stages of CRM

• Planning needs analysis, software selection,
  project responsibilities, project timelines
  team approach
• Process Redesign early BPR (business planning
  reengineering) to provide feedback on changes
• Integration of data and capabilities required
• Education employee training for advanced
  queries, etc
• Analysis
• reports on the data
• managers users ask why things are occurring
• predicting - e.g.) which customers are most at
  risk of going to alternative suppliers and being
  proactive in retaining them
• Change Implementation redesigning process to
  make it easier for customers to deal with company