Customer Relations Management Class 6 LO205 Jan. 24,2001

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Customer Relations ManagementClass 6 - LO205 -
Jan. 24,2001

• Lecture by Judith Molka-Danielsen
• References (not required to read)
• Electronic Commerce A Managers Guide, Ravi
  Kalkota and Andrew B. Whinston, Addison-Wesley,
  chapter 11, 1999.
• Related power point notes from Michael Spring,
  U.of.Pittsburgh, 2000.
• The E-business Revolution, Daniel Amor,
  Hewlitt-Packard Professional books, ch.5, 1999.

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Overview

• Summary of Turban Chapter 3, prelude to this.
• Motivation of Customer Relations Management
• CRM Subsystems -
• Marketing Management (MM),
• Sales Force Automation (SFA),
• Customer Service and Support (CSS)
• Web Design Rules
• On-Line Measurement

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Turban Ch.3 Summary

• 1. Consumer behavior - Vendors control the parts
  of Logistics, Support Technology, and Customer
  Service and Support Systems
• 2. It is important to know customer
  characteristics
• 3. It is important to understand the customer
  decision making process
• to understand where you can influence customer
  behavior
• Intelligent Agents can be used in some steps

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Turban Ch.3 Summary

• 4. Build One-to-One relationships with customers.
  
• Boost loyalty
• boost trust
• One-to-One include software to trigger special
  offers
• BroadVision - recognizes customers and displays
  products relevant to them.
• Cold Fusion - tool for rapid application
  development and site design.
• GroupLens - collaborative filtering, with rating
  services, for contents and products.
• WebObjects - serve data from legacy databases to
  on-line visitors.

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Turban Ch.3 Summary

• 5. Implement Customer Service to
• retain customers - Look at Web Site Design
  (Content is King).
• satisfy new needs
• 6. Doing Market Research involves
• understanding segments of products and groups
• classification of customers

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Turban Ch.3 Summary

• 6. (cont.)Doing Market Research involves
• using Data Mining tools to
• predict trends, find hidden patterns, find what
  is ordered together
• Algorithms use association, sequences,
  classification, clusters, and forecasting
  techniques.
• Collect samples on the Internet
• larger is better
• voluntary through surveys, data accuracy
  limitations
• involuntary through tracking movements, (ie.
  Cookies)
• Ernst Young market research on-line retailing

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Turban Ch.3 Summary

• Ernst Young market research on-line retailing

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Turban Ch.3 Summary

• 7. Intelligent Agents - provide
• auto replys
• analyze movements
• learn customer behavior and needs
• 8. Organizationl buyer behavior model
• follow organizational purchasing guidelines and
  constraints
• involve interpersonal influences (power, politics)

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Overview

• Summary of Turban Chapter 3, prelude to this.
• Motivation of Customer Relations Management
• CRM Subsystems -
• Marketing Management (MM),
• Sales Force Automation (SFA),
• Customer Service and Support (CSS)
• Web Design Rules
• On-Line Measurement

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B2B Inputs
Logistics Management
Manufacturing Process Management
SupportServices
Customer Relations Management
Financial Management
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Customer Relations Management

• Pull supply chains are based on linking
  customer information gathering to the upstream
  business processes
• CRM involves the integration of traditionally
  separate systems
• Marketing Management
• Sales Force Automation
• Customer Service and Support

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The Motivation of CRM

• Marketing and sales account for 15-35 of costs
• Customer input can lead to better products
• Current customers are a predictable source of
  future sales
• Customer assets can be valued as a part of
  acquisitions and mergers
• Customers increasingly expect high quality
  personalized service

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CRM-MMMarketing management

• Marketing has been based on product, price, and
  promotion
• Marketing in a global economy across multiple
  product categories using different channels
  requires better tools
• Ultimately, customer driven marketing makes it
  essential to gather customer input

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CRM-MMGoals

• Provide data for data mining and OnLine Analytic
  Processing(OLAP)
• Provide real time accurate data
• Allow for better inventory management and input
  into promotions and sales
• Provide trend analysis data across channels to
  drive operation

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CRM-MM
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CRM-SFASales Force Automation

• Two goals in sales force automation
• Support the sales person in the field
• Economically integrate sales information
  increasing corporate wide coordination
• A good system will
• Support salesperson and telemarketing
  productivity
• Automate selected sales processes
• Maintain direct mail and email systems
• Support sales and marketing management including
  compensation management

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CRM-SFASupport of Sales Representatives

• Provision of marketing materials, price lists,
  business intelligence online
• Provision of customer leads and information
  captured from all sources
• Prequalification of sales prospects and
  classification of customers
• Provision of real time product availability and
  order entry information

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CRM-SFASome basic examples

• Web information requests are processed
• Through a standard set of followups
• To the appropriate sales person
• Automated tickler systems
• Tracking of contacts
• Prospects stored for future use
• Datamining of prospects
• Provide information
• To sales people about current pricing inventory
  etc,
• To other company support units to enhance sales

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CRM-SFAMore sophisticated examples

• Develop intelligent-agents to acquire news items
  and competitor information for distribution to
  the sales force and management
• Develop analysis tools to detect trends in
  customers and sales
• Develop network based push promotion and
  information dissemination
• Provide online customer controlled input and
  tracking information

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CRM-CSSCustomer Service and Suppport

• Customers are increasingly defined as an
  important company asset
• The Web makes new forms of customer support
  possible and cost-effective
• The Web can serve both as a way to reach out to
  customers and as a way for them to reach into the
  company

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CRM-CSSGoals

• Lower support costs
• Provide global access
• Create proactive services
• Empower customers to solve issues independently
• Provide an opportunity for customers to input
  into the business process

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CRM-CSSBasic Processes

• Provide the customer with product update
  information, fixes, new product information
• Provide a simple registration system that
  gathers
• User demographics
• Product satisfaction
• Agreement to receive targeting notifications

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CRM-CSSAdvanced Processes

• Link sales information and customer ID for
  telephone help desk support
• Use a workflow system to track resolution of
  customer issues through involved departments
• Feed problem reports lead into research and
  development operations for action
• Use problem tracking data feed into manage
  operations and field service personnel

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Overview

• Summary of Turban Chapter 3, prelude to this.
• Motivation of Customer Relations Management
• CRM Subsystems -
• Marketing Management (MM),
• Sales Force Automation (SFA),
• Customer Service and Support (CSS)
• Web Design Rules
• On-Line Measurement

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Web Design Rules

• Content - focus first on content and then on
  design. Never let users leave your site without
  giving them information, so they will come back.
• Consistency - design your site with consistent
  content quality, do not bore the customer. Images
  should give information, not irrelevant images.
• Density - break content into small pieces, that
  fit together. Short pages. Information over
  pages. No more than 10 links from a page.
• Design - use few colors, color theme for pages
  connected with your site. If possible, give users
  a choice of format for document download type.
  Let users decide the sequence that they visit
  pages (escape from demos).
• Size - use small graphics with large impact.

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Overview

• Summary of Turban Chapter 3, prelude to this.
• Motivation of Customer Relations Management
• CRM Subsystems -
• Marketing Management (MM),
• Sales Force Automation (SFA),
• Customer Service and Support (CSS)
• Web Design Rules
• On-Line Measurement

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On-Line Measurement

• Counting can be done by web site owners. They use
  web server log files. Can count visits to web
  pages too.
• The counts can be inflated visits from spiders,
  visits from yourself, criteria to increase count
  after every refresh even within the same session.
• The counts can be under-counted ISPs save pages
  in cache files, so the user might see an old copy
  even between sessions (opening the browser).
  Proxy servers relay requests from users making
  1000 people appear like 1.
• Server can use cookies, but you cannot force
  users to accept cookies from a web server.

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On-Line Measurement

• Counting - Continued
• Page Views - are all the pages that were viewed
  by on-line customers.
• Visits - are all page views by a single on-line
  customer.
• Automated log file analyzers - can import data
  into a propriatary database to analyze traffic.
  Can produce graphical reports, tables, charts.
• On-line rating agencies - add software on the
  users PC to monitor use, instead of at the
  server.
• Third Party Auditing - I/Pro http//www.ipro.com
  and MatchLogic http//www.matchlogic.com/ offer
  programs to address problems with firewalls and
  proxy servers. (Java applets must be allowed
  through.)