CRM system and processes In vocational college Ville Krannila, Espoo Finland, (Omnia Vocational College) Definition of CRM CRM = Customer Relationship Management Managing customer relationships as opposed to managing customers Joint working model in enterprise co-operation Defining your segments, customers and customer information Carrying out varying customership care plans Customer Relationship Management (CRM) is a business strategy that is designed to improve customer service. CRM is also aims to increase customer satisfaction, manage the best customers effectively, and gain new quality customers, thus increasing a business’s profitability. (Intellinova.com) CRM in vocational college project results in Omnia Based on a 4-year project and action research 2006-2010 Results: 1) customer strategy for Adult Education Centre 2) customer leadership models, areas and responsibilities developed 3) the customerbase analysed, segments defined and customer-care programmes developed 4) own-care programmes were formed for customer groups. 5) manual for CRM database created and developed “The results proved that customer relationship management and customer leadership were challenging but possible to carry out in the academy organisation and they can be executed successfully in this environment.” The development project was evaluated as reliable, truly work-life based, valuable and useful in the practical functions of the target organisation. CRM is not a system or a database, CRM is a method and actions carried out from a customer perspective. It is done by people and for the people. CRM database is a tool in this work. V.Krannila - Customer leadership and development 2010 (case Omnia) CRM Database basics A tool for CRM work Consists mainly of customership information Customer data, adresses, contacts, e-mail, customership activity and classifications Can be located in user’s own server or as cloud service (usually www-based) All employees can have access (via passwords) to CRM database or different roles for different users can be created Usually those working directly with enterprises, management and marketing are the main users (of database) CRM database advantages CRM database is used by management to gain customer information and plan marketing and management strategies CRM database is used to carry out marketing campaigns (marketing various training programmes etc.) via e-mail or telephone, and gathering the feedback from the campaign CRM database is used by customer account managers to sustain customership programs, information on customer activity, complaints and other useful information CRM database collects customer information on various raports, including balance scorecard CRM database streghtens co-operation between various units of a company and ensures customer-oriented way of working CRM database project (case Omnia) 1) Define your main customers and segments 2) Define your targets of customership management and work 3) Collect your customer information, in which form it currently exists 4) Commit people from every unit to work together on the project 5) Choose a pilot group, depending on your organization, max. 5-20 persons is recommended, from different units if possible 6) Map out the service providers and bring them and your own ITC personnel into project as early as possible 7) Define targets, budget and follow-up points to pilot project 8) Pilot project should last at least few months, preferably 1 year to provide sufficient information for continuation 9) Organise meetings in regular basis to follow systems use and possible problems. A service provider and ICT should be present every step of the way CRM database project (case Omnia) 10) Organise sufficient training on the use of the system and database 11) Choose 1 person as main user in charge of the project and system updates 12) Map out possible integrations with other systems and their cost 13) Organise meetings in regular basis to follow systems use and possible problems. A service provider and ICT should be present every step of the way 14) Write a report at the end of the pilot and build a plan for further development Some critical points: - In Omnia development took several years with the amount of users growing slowly. - The cooperation and communication with ICT and service provider is neccessary, especially during the system aquisition and pilot project - Pilot group should work closely together and should not be larger than 5-7 persons CRM system pilot project Process: Targets, spesific goals for each division, project plan, Setting up database, collecting customer info from various sources, Training of pilot participants Possible integrations to other systems Testing and carrying out marketing and sales operations via CRM system, according to project plan Evaluation of pilot project, raport of procedures, further development and plan for the future Regular meetings with the pilot group, system provider and IT personnel CRM database today (case Omnia) Users (active passwords) 94 in total Users from Adult Education Centre, InnoOmnia, Administration, Youth Workshops, Apprenticeship Training Centre One main user and trainer (V.Krannila) 4 vice-users (one person in each unit) Integrated to MS Outlook, On-the-job learning system, ProFinder b2b service and Studenta+ (student management system for adults) CRM database today (case Omnia) An open database -> everyone with a password can see everything in the system This has increased the co-operation with different units and departments who often deal with same customers System is based on openess and sharing of information A culture of exploiting the system regulary is important in maximising its benefits CRM database today (case Omnia) Main actions carried out with the database and system: Offers for enterprises and other organizations (for educational services, additional training) Adult education centre Marketing campaigns for different target groups -> Adult education center, InnoOmnia, Administration Maintenance of various customer classifications and lists, for example a list of guests invited to a certain event in Omnia Mantenance of outside organisations, students and personnel working in Omnia’s projects -> for Balance Scorecard A list of workplace instructors -> a regular e-mail information of educations -> e-mails sent from the system A list of various operations executed with the customers: visists, e-mails, phone calls, meetings – all located in customers datafile CRM database process and resposibilities (case Omnia) x Administration Marketing/ Communication Account managers/ representatives Main user Units Receives raports from Units and from main user Maintains administration (upper) Level marketing lists And classifications Maintain ja update Their customer data Sign in various actions Customer segmentation Offers? Controls systemupdates and is in Contact with the System provider Maintaining and updating various customerlists and Customer classifications Monitors the utilization Organizes Marketing and Communication via CRM system Makes decisions regarding development action Centrally sends news letters, press releases, Annual reports and holiday cards for customers Maintaining offers and Educational products Maintaining and updating Customer careplans Updates the database manual Informs users Follow-up on sales and actions by account managers Raports to administration Carry out development Procedures on preceding points Trains users in co-operation With vice-users Raports to administration Raports to administration CRM system dataflow diagram Systems and dataflow Fonecta Profinder B2B (customer information updates from the web) Integrated into CRM Student administration System and database Customer data and updates classifications Microsoft Outlook (integrated to CRM) CRM database Customer ’information Excel (data) On-the-job learning System and database Workshop discussion in groups Discuss and find answers to these questions in groups: Define your customers, who is your main customer? How would you classify your customers/divide them into categories? How is business co-operation organized in your field? What type of information regarding your customers do you find essential? Who in your organization is in contact with these customers/busineses? Present your views, questions and results References Links and other useful material CRM Basics: http://intellinova.com/crm/strategy/crm-for-beginners-customer-relationshipmanagement-basics/ http://www.mycustomer.com/topic/beginners-guide-crm Literature: Payne, A. 2006. The Handbook of CRM. Great Britain: ButterwothHeinemann McKenzie, R. 2001. The relationship-based enterprise : powering business success through customer relationship management. Toronto: McGraw-Hill. V. Kumar & W. Reinartz. Customer Relationship Management: Concept, Strategy, and Tools. 2012.