Customer Relationship Management

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• Customer Relationship Management

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LEARNING OUTCOMES

• Describe the three CRM technologies used by
  marketing departments
• Describe and differentiate the CRM technologies
  used by sales departments and customer service
  departments
• Compare customer relationship management,
  supplier relationship management, partner
  relationship management, and employee
  relationship management
• Summarize the future of customer relationship
  management

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INTRODUCTION

• Customer relationship management involves
  managing all aspects of a customers relationship
  with an organization to increase customer loyalty
  and retention and an organizations profitability
• Operational CRM supports traditional
  transactional processing for day-to-day
  front-office operations or systems that deal
  directly with the customers
• Analytical CRM supports back-office operations
  and strategic analysis and includes all systems
  that do not deal directly with the customers

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INTRODUCTION
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INTRODUCTION

• Organizations can find their most valuable
  customers through RFM - Recency, Frequency, and
  Monetary value
• How recently a customer purchased items (Recency)
• How frequently a customer purchased items
  (Frequency)
• How much a customer spends on each purchase
  (Monetary Value)

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• Initial CRM information will be compiled to
  identify patterns and behavior to create
  marketing campaign, sale promotion to increase
  business.
• Example Person who only buys at the height of
  the season or person who only buys software and
  not computer.

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The Evolution of CRM

• Three phases in the evolution of CRM include
  reporting, analyzing, and predicting

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The Evolution of CRM

• There are 3 phases in evolution of CRM
• CRM reporting technology help organizations
  identify their customers across other
  applications
• CRM analysis technologies help organization
  segment their customers into categories such as
  best and worst customers
• CRM predicting technologies help organizations
  make predictions regarding customer behavior such
  as which customers are at risk of leaving

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The Evolution of CRM
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Using IT to Drive Operational CRM
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MARKETING AND OPERATIONAL CRM

• Companies no longer trying to sell one product to
  as many customer as possible, instead they are
  trying to sell one customer as many products as
  possible
• Using CRM allow companies to perform this change
  of marketing strategy

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MARKETING AND OPERATIONAL CRM

• Three marketing operational CRM technologies
• List generator compiles customer information
  from a variety of sources and segment the
  information for different marketing campaigns-
  using filter and sort criteria
• Campaign management system guides users through
  marketing campaigns, such as planning,
  scheduling, segmentation and success analysis

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SALES AND OPERATIONAL CRM

• Cross-selling and up-selling
• Cross-selling selling additional products or
  services
• Up-selling increasing the value of the sale
• Example McDonalds
• Cross-selling apple pie with meal
• Up-selling super-size meal

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SALES AND OPERATIONAL CRM

• Traditionally the sales department was the first
  to begin developing CRM systems with sales force
  automation a system that automatically tracks
  all of the steps in the sales process

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SALES AND OPERATIONAL CRM

• Three sales operational CRM technologies
• Sales management CRM system automates each
  phase of the sales process, helping individual
  sales representatives coordinate and organize all
  of their accounts see previous diagram
• Contact management CRM system maintains
  customer contact information and identifies
  prospective customers for future sales-e.g.
  caller id info previous conversation
• Opportunity management CRM system targets sales
  opportunities by finding new customers or
  companies for future sales

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CUSTOMER SERVICE AND OPERATIONAL CRM

• Three customer service operational CRM
  technologies
• Contact center (call center)
• Web-based self-service system
• Click-to-talk
• Chat
• Call scripting system
• Access the org database that track similar
  issues or question and automatically generate the
  details to costumer service representative and
  hence helping the customer.

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CUSTOMER SERVICE AND OPERATIONAL CRM
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Analytical CRM

• Personalization when a Web site knows enough
  about a persons likes and dislikes that it can
  fashion offers that are more likely to appeal to
  that person
• Cookie
• Analytical CRM relies heavily on data
  warehousing technologies and business
  intelligence to gain insights about customer
  behavior
• These systems quickly aggregate, analyze, and
  disseminate customer information throughout an
  organization

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Analytical CRM Information

• Give customers more of what they want
• Find new customers similar to the best customer
• Find out what the org does best
• Best compotators to punch
• Reactivate inactive customer
• Let customers know they matter

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Current Trends SRM, PRM, and ERM

• Current trends include
• Supplier relationship management (SRM) focuses
  on keeping suppliers satisfied by evaluating and
  categorizing suppliers for different projects,
  which optimizes supplier selection
• Partner relationship management (PRM) focuses
  on keeping vendors satisfied by managing alliance
  partner and reseller relationship that provide
  customers with the optimal sales channel
• Employee relationship management (ERM) provides
  employees with a subset of CRM applications
  available through a Web browser

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Future Trends

• CRM future trends include
• CRM applications will change from employee-only
  tools to tools used by suppliers, partners, and
  even customers
• CRM will continue to be a major strategic focus
  for companies
• CRM applications will continue to adapt wireless
  capabilities supporting mobile sales and mobile
  customers
• CRM suites will incorporate PRM and SRM modules

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Video

• Spawn.com
• Todd McFarlane's comic books, toys, and films
  enjoy customer loyalty many companies can only
  dream of. Show how the company uses its web site
  to build a following for their products and get
  existing customers to buy more.