Customer Relationship Management

1
Customer Relationship Management

• Small Business Information Systems
• Professor Barry Floyd

2
Agenda

• Defining ERP
• Implementation tasks for CRM
• CRM Overview / Demos
• Conceptual Overview
• An application perspective of CRM
• Operational
• Analytical
• Lab component
• Hands on use of CRM with Microsoft

3
Use of ERP software in the curriculum Defining
ERP? Defining ERP

• In 1990, research firm Gartner Group coined the
  term Enterprise Resource Planning, or ERP. It
  quickly became a catchall for back office
  enterprise functions that included financials,
  human resources, accounting, purchasing, ordering
  and costing.
• ERP II takes the ERP foundation and extends it
  outward, to position the enterprise in the supply
  an value chains (e.g., Supply Chain Management
  (SCM), Customer Relationship Management (CRM),
  Product Life Cycle Management (PLM) .

4
Conceptual Overview Sales?
5
Conceptual Overview A shift in thinking

• Transaction ? Learning relationship
• Mass Marketing ? Individual marketing
• Transaction Value ? Life time value
• Conquest Marketing ? Retention marketing
• Product Life Cycle ? Customer Life Cycle
• Customer Satisfaction ? Customer Loyalty
• Share of the market ? Share of the customer
• Product differentiation ? Customer differentiation

6
Whats a relationship?

• Can an organization have a relationship with a
  person?
• Emphasis on CRM is the notion of a learning
  relationship
• Knowledge
• Intent
• Trust

7
Customer Satisfaction ? Customer Loyalty The
Death of Customer Satisfaction CRM in the
Internet Age by Tony Zingale

• Fulfillment The company has what I want.
• Value The price meets my expectations.
• Convenience The product is easy to get.
• Trust Im reasonably confident the product is
  reliable.

8
PeopleSoft CRM

• Consider the front-facing CRM application
  developed by PeopleSoft (not a product line of
  Oracle).
• A front-facing application is an application
  that the customer sees.
• Contrast with back-office operations like we
  have been working with using GP Dynamics 9.0
• In this clip, a customer wishes to file a damage
  claim.
• Key points
• Customer centric, can see all interactions with
  this insurance company, customer-driven, is an
  example of mass customization and personalization

9
PeopleSoft Customer Request
10
Customer Satisfaction ? Customer Loyalty The
Death of Customer Satisfaction CRM in the
Internet Age by Tony Zingale

• Satisfaction My basic transactional needs are
  met
• Bonding The company is acting in my best
  interests.
• Personalization The company demonstrates that
  it understands and anticipates my needs.
• Empowerment The relationship is on my terms and
  under my control.

11
Customer Differentiation vs. Product
Differentiation

• Research by Professors Cooper and Kaplan at the
  Harvard Business School has shown that in a large
  number of companies 20 percent of customers
  account for 225 percent of profits and the 80
  percent lose 125 percent of profits.
• But the trouble is that most companies do not
  know which customers make up the 20 percent and
  which make up the 80 percent.

12
Enterprise Strategy Map
Ability to Interact withCustomers Individually
Interacting
Customers addressedonly in mass media
Cus
Standardproducts
Tailoredproducts
Tailoring
Source Pepper / Rogers, Enterprise One to
One,New York Doubleday/Currency, 1997.
13
Share of the Market vs. Share of the Customer
Needs Satisfied
Needs Satisfied
Customers Reached
Customers Reached
14
Themes

• Customers as assets
• Market based assets, including customer
  relationships
• Companies executives will need to report their
  customer relationship management performance to
  investors
• Holistic view of the customer
• Analysis out of the hands of the statisticians

15
Four implementation tasks for creating and
managing customer relationships

• IDIC
• Identify
• Differentiate
• Interact
• Customize

Reference Peppers and Rogers, Managing Customer
Relationships, A Strategic Framework
16
Four implementation tasks for creating and
managing customer relationships

• IDIC
• Identify
• Differentiate
• Interact
• Customize

Reference Peppers and Rogers, Managing Customer
Relationships, A Strategic Framework
17
Identify

• Relationships are individualistic, not with
  markets or groups of people
• Must be able to identify your customers
  individually and recognize them when interacting
  with them
• Without identification, you cannot understand who
  they are and what their needs are.
• Difficult to do, can be almost impossible if
  channels of communication involve intermediaries
• Steps
• How much customer identification does a company
  already have (what info do you need)
• Get customers to identify themselves

18
Four implementation tasks for creating and
managing customer relationships

• IDIC
• Identify
• Differentiate
• Interact
• Customize

Reference Peppers and Rogers, Managing Customer
Relationships, A Strategic Framework
19
Differentiate

• Some customers are worth more than others
• 80/20 rule
• Want to better understand customer needs vs.
  demographics
• Want to better understand the value of that
  customer to the enterprise
• Knowing value of customer to the enterprise
  allows prioritization
• Lifetime value (LTV) net present value of the
  stream of expected future contributions from the
  customer.
• Most valuable customers, most growable customers,
  below-zeros, migrators
• Differentiate customers based on needs
• Refers to why customer buys rather than what they
  buy.

20
PeopleSoft CRM Insurance Companys Response

• What support is provided by the company to help
  the Customer Support Agent
• What information does this agent have about the
  client?
• Where does it come from?
• How useful is it?
• What information does the agent have about their
  own performance?
• Consider
• What information has the claimant provided to the
  Insurance Company?
• How does this interaction reflect a partnership
• How much trust is there?

21
PeopleSoft Customer Support Agent Response
22
Four implementation tasks for creating and
managing customer relationships

• IDIC
• Identify
• Differentiate
• Interact
• Customize

Reference Peppers and Rogers, Managing Customer
Relationships, A Strategic Framework
23
Interact

• Goal of interaction is to get more information
  directly from a customer in order to serve him in
  a way no competitor can who doesnt have the
  information
• Want to turn the interaction into a collaboration
  in which the enterprise and customer work
  together to make transactions beneficial to both
  parties a learning relationship
• Important issue in the interaction is privacy.
  Research has indicated that individuals are
  willing to provide information

24
Four implementation tasks for creating and
managing customer relationships

• IDIC
• Identify
• Differentiate
• Interact
• Customize

Reference Peppers and Rogers, Managing Customer
Relationships, A Strategic Framework
25
Customize

• Use knowledge of customer to figure out what
  he/she needs
• Key term is mass customization
• Can be product based
• Or service based on standard products
• Use of information technologies key

26
PeopleSoft CRM Insurance Companys Response

• What support is provided by the company to help
  the Sales Agents Response
• Are we wasting the Sales Agents time? Why not?
• When the Sales Agent calls the client, will it be
  consider intrusive?
• How are gaining share of the customer (in
  contrast to share of the market?)
• Again consider
• What information has the claimant provided to the
  Insurance Company?
• How does this interaction reflect a partnership
• How much trust is there?

27
PeopleSoft Sales Agent Response
28
How does technology play a role?

• Enabler .
• Managing all touch points with the customer to
  develop knowledge so that the relationship part
  of the interaction becomes meaningful.
• Note, technology is only an enabler, people and
  organizational design play critical roles in CRM
  success

29
CRM Overview / Demos An application perspective
of CRMPeopleSoft CRM View

• PeopleSoft Enterprise Customer Relationship
  Management (CRM) is a comprehensive solution
  offering greater user adoption, an improved user
  experience, and real-time intelligence for your
  enterprise to make smarter decisions. Every
  customer interaction can now be an opportunity to
  build business value with your customers.

30
CRM Overview / Demos An application perspective
of CRMPeopleSoft CRM View

• Get immediate, seamless integration among your
  customer, financial, supply chain, and employee
  management systems.
• CRM Analytics
• Marketing Solution
• Sales Solution
• Service Solution
• CRM Industry Solutions

Operational CRM Analytics CRM
31
CRM Overview / Demos An application perspective
of CRMOperational CRM

• Operational CRM is the automation of
  horizontally integrated business processes
  involving front-office customer touch points
  across sales, marketing and customer service via
  multiple, interconnected delivery channels.
• Meta Group

32
CRM Overview / Demos An application perspective
of CRMPeopleSoft CRM View

• MARKETING
• New product campaign
• Email wave
• Telesales wave
• Free software offer

• SUPPORT
• Installed Product
• Agreement
• Warranty
• Specialist
• Competencies
• Call Center Agent
• Resolution Database

• HELPDESK
• Call Center Agent
• Resolution Database

• SALES
• Forecasts
• Leads/Opportunities
• Sales Reps

INTERACTION MANAGEMENT

• FIELD SERVICE
• Service Order
• Technician Competencies

ANALYTICS
33
CRM Overview / Demos An application perspective
of CRMCRM Demos User Perspective

• Customer Perspective
• Customer Support Agent
• Sales Representative
• Sales Manager

34
CRM Overview / Demos An application perspective
of CRMExample Business ProcessCRM Marketing
and Sales Business Process Flow

• Analyze Customer Performance and Generate Target
  Audience List

Create Campaign
Create Wave
Lead Generation
CRM Marketing Business Process
CRM Sales Business Process
Manage Leads
Measure Campaign Measure Opportunity Performance
Create Opportunity
Generate Forecasts and Rollup Forecasts
35
CRM Overview / Demos An application perspective
of CRMTwo key features of business process

• Embedded Analytics
• Allows for data analysis within the business
  process stream
• Interaction Management
• Provides a 360-degree view of the customers
  interactions (cases, leads, installed products,
  service orders, agreements, returned materials,
  interactions)

36
CRM Overview / Demos An application perspective
of CRMAnalytical CRM

• Analytical CRM is the analysis of data created
  on the operational side of CRM and through other
  relevant operational data sources for the
  purposes of business performance management and
  customer-specific analysis.
• Meta
  Group

37
CRM Overview / Demos An application perspective
of CRMCRM Analytics Solution

• CRM Portal Pack
• CRM Warehouse
• Customer Behavior Modeling
• Customer Scorecard
• EPM Portal Pack
• Predictive Analytics

38
CRM Overview / Demos An application perspective
of CRMCustomer Behavior Marketing

• Which customers are most likely to purchase your
  product
• Which customer segment will maximize your ROI on
  marketing campaigns
• Which personalized, targeted offers your call
  center reps should present
• Which customers are at risk of attrition

39
PeopleSoft Sales Manager
40
Predictive analytics

• An application that leverages a companies
  operational data about customers and past events
  and uses it to predict a customers future
  behavior.
• Goal is to distribute the value of statistical
  analysis to non-statisticians in the organization.

41
CRM Demo Resources

• Siebel http//www.siebel.com/bestpractices/exampl
  es.shtm
• SalesForce.com http//www.salesforce.com/us/produ
  cts/demo-center.jsp
• Microsoft
• http//www.microsoft.com/dynamics/crm/default.mspx
  
• http//mscrm.demoservers.com/
• Avaya http//www1.avaya.com/enterprise/resourceli
  brary/demos/crm_callcenter.html

42
CRM Resources
http//crm-daily.newsfactor.com/
http//www.destinationcrm.com/
http//searchcrm.techtarget.com/
TeraData Center, Duke University
http//crm.ittoolbox.com/
http//www.crmguru.com/
43
CRM Lab

• Go to the following web site
• http//mscrm.demoservers.com/
• Register
• Once youve registered, log in and do the SALES
  CRM lab.
• Ive given you a handout on this.

44
Summary

• CRM is an exciting application that provides an
  integrated view of critical business processes
  and allows the student to develop a real-world
  understanding
• Integration with other modules like Supply Chain
  Management, Financials, and HR is critical for a
  complete view of the customer