Customer Relationship Management

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Customer Relationship Management

• presented by
• Ben Bachman
• Frank Johnston
• Shaun Patterson

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Customer Relationship Management

• Stores information on customers and potential
  customers
• Info shared among different departments
• Marketing
• Sales Distribution
• Customer Service and Support
• Overall goal Focus on customer

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Common Marketing Features

• Customer profiling
• Common demographic
• Track customer calls of any type
• Analyze customer lifecycle behavior
• Campaign management

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Common Sales Features

• Product database
• With pricing info
• Tracking sales leads
• Sale calendaring
• Ordering
• Telemarketing

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Common Service Features

• Logging of service requests
• Inventory tracking
• Warranties and serial number information
• Repairs

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Databases Used
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Feature Comparison
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Feature Comparison

• High functionality somewhat correlated with low
  satisfaction

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Detailed Features

• Looking at over 100 features, both Microsoft and
  Oracle have every one
• Products are distinguished by usability and
  integration with existing workflow
• Implementation failure rate 65

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Primary Features

• Microsoft
• Integrates with other Office products
• Peoplesoft
• Streamlines business processes
• Sage
• Customizable

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CRM Architecture

• Basic client-server architecture

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CRM Architecture
CRM Architecture

• On Demand software
• Aimed at smaller companies that cannot afford
  fullscale CRM implementations
• Advantage of easy updates
• Disadvantage of not being as customizable

Server
Web Browser
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(No Transcript)
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PeopleSoft

• Popular CRM system
• Originally designed for HR support
• Tracked information on employees rather than
  customers
• Later expanded to customer support, linkage to
  accounting systems, ERP systems

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PeopleSoft

• Customer specific requirements can be implemented
• Access to source code
• Additional plugin modules
• Dashboards
• Realtime monitoring of business activities
• Screens can be fully customizable to suit needs

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Typical CRM Applications

• Human Resources
• Customer Support
• Sales
• Trend Analysis
• Marketing

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• CRM system used to track customer purchases
• Customer buys computer via website
• Information recorded as new customer record
• Stores name, address, computer bought
• Linked up with ERP systems

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Dell.com

• Customer calls up tech support
• Tech support can pull up CRM page
• Shows exact specifications of computer in question

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Dell.com

• Notable features in system architecture
• Linkup with web server
• Advertising/marketing can add new customer to
  catalog mailing list
• All tech support people have information,
  including on-site service

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CRM Data Analysis

• Key feature of CRM is statistical analysis
• Human analysis
• Human operators draw on outside experience,
  knowledge
• Suggestions made to customers based off this
• Computer analysis
• Analysis of buying trends
• Marketing
• Customized suggestions, Amazon.com

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Wine Rep CRM Example
Sample readout of red wines from
server Downloaded via tablet PC
Real-time availability of items Update to date
price changes Information may even be linked to
webpages via hyperlinks, etc
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Wine Rep Human Analysis
Wine rep can pinpoint non-selling items, such as
the Australian Shiraz Wine rep, based on
knowledge of restaurant food and atmosphere can
suggest replacing Australian Shiraz with South
African Shiraz
Replace
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Sales Positions and CRM

• Commission based pay
• More information on customer, customer needs may
  result in more sales
• Wine rep beneficial to know about sales of
  wines in other restaurants, popular trends
• CRM systems play a crucial role

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Amazon.com
Automated recommendations based off your buy
habits and others
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Amazon.com
Incorporates previous customer data
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Amazon.com

• System attempts to decipher how customers shop,
  what they buy, what they would want to buy
• System very basic, not perfect
• Buy one book from author, suggests more
• Buy one book on hacking, suggests them all
• One time buy of subject leads to further
  suggestions

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Victorias Secret CRM Analysis

• Secret Marketing?
• Computerized CRM Analysis
• Buying habits of individuals tracked and analyzed
• Buyers MORE willing to buy again after a recent
  sales
• Started sending out catalogs immediately after
  sale
• Found buyers looked at catalog, if satisfied by
  recent purchase, purchased more goods
• CRM integrated with e-mail marketing
• E-mail advertisements replace paper catalogs
• Personalized to buying habits

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Using CRM for Marketing

• Follow purchase trends
• Mailings
• What types catalogs, specials, coupons
• When to send
• Billboard advertising
• Based on areas and types of sales
• Who to advertise to

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CRM Market Share
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Marketing Strategies

• All inclusive solution
• Sell additional features or suites
• ERP suites
• Success stories

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Problems with CRM

• Lack of commitment
• Users within company adjusting to implementation
• Poor communication
• Weak leadership
• Trying to buy more than you need
• Implementing a complete solution right away
  rather than starting with a basic solution and
  adding features as needed
• Look and feel
• Peoplesoft interface is bloated
• Others may be hard to use

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Future of CRM

• e-CRM
• Marketing/Advertising
• Research
• 65 failure rate and how to improve this
• CRM in the public sector

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References

• http//www.businesslink.gov.uk/bdotg/action/detail
  ?typeRESOURCESitemId1075422956
• Hee-woong Kim, Shan L Pan. Towards a Process
  Model of Information Systems Implementation The
  Case of Customer Relationship Management (CRM)
• http//blogs.ittoolbox.com/crm/realms/archives/crm
  -market-grows-in-2005-but-gartners-methodology-que
  stioned-9956
• www.sap.com
• www.oracle.com