Customer Relationship Management

Report
Customer Relationship Management
Chapter 11 pages 147-155
Business Plug-In B9 pages 348-362
Managing
with an organization with the goal of increasing
customer loyalty and retention and an
organization's profitability
Customer Relationship Management (CRM)
• CRM is a business philosophy based on the premise
that those organizations
of individual customers are best positioned to
achieve a sustainable competitive advantage.
– A customer first approach that revolves around
– Shift from product focus to customer focus
• Product: sell one product to as many customers as possible
• Customer: sell one customer as many products as possible
CRM Philosophy
• What are companies trying to do through CRM?
–
–
–
–
–
–
–
Provide
Make call centers more efficient
Cross sell products more effectively
Help sales staff close deals faster
Simplify marketing and sales processes
Discover new customers
Increase customer revenues
• For many companies, approximately
of their overall IT budget is devoted to CRM.
• Is the customer always right?
Feedback
THE UGLY SIDE
OF CRM: WHY
CRM
MATTERS
MORE NOW
THAN EVER
BEFORE
THE UGLY SIDE OF CRM: WHY CRM MATTERS
MORE NOW THAN EVER BEFORE
Using CRM, companies are interested in
finding out:
• W
• W
the best customers?
are the most profitable?
• Companies are using CRM technologies to figure
out:
–H
a customer purchased items (recency)
–H
a customer purchases items
(frequency)
–H
a customer spends on each
purchase (monetary value)
Phases of CRM
• What are we trying to do with CRM?
–K
who
are?
–A
to understand what the customer is
doing.
–F
customers just like our existing customers
• T
Using Technology in CRM (examples)
in order to
for each customer.
• I
and
behavior
• Segment customers (
)
• User-generated content can be incorporated into new
product ideas (YouTube, Twitter, Lego)
• C
at point of contact
(phone, web, in-person)
• Make info
who interact with customers.
• D
to uncover patterns of behavior
that the company can capitalize.
• Personalization of web site (site changes to reflect
viewer preferences and interests)
Types of CRM
• Operational
CRM – supports
traditional
transactional
processing for
front-office
service, sales, billing, etc.)
or systems that
(marketing, customer
• Analytical CRM – supports back-office operations and
and includes all systems that
finance, human resources, data warehouses)
(accounting,
OPERATIONAL CRM
1. List generator –
customer
from a variety of sources and
then
that information by
for different marketing campaigns
2. Cross-selling and up-selling
– Cross-selling – selling
– Up-selling –
or services
of the sale
3. Sales force automation software is used to
automatically tracks all of the steps in the sales
process
– Sales reps had too much info to maintain and track
– Needed to get info out of sales rep heads and into a
system that could be used by all.
OPERATIONAL CRM
4. Sales reps can
so that one reps lead can become a sale by the
organization (even if it means someone else makes the
sale)
5. Contact management systems can be used to
and all
with that
customer
6. After acquiring a customer, you need to keep the
customer through excellent customer service
– If you want to ensure customer loyalty and
satisfaction, you must
•
A
Provide
to problems
OPERATIONAL CRM (Customer Service)
1. Provide
to questions (
)
2. Make sure customers don’t have to explain their
problems AGAIN (
, avoid customer frustration)
3. E
to detect when someone is
distressed and upset (determine baseline during first
few seconds of contact and then looks for deviations)
4. Web-based
find their own answers.
–
allows customers to
Federal Express, UPS and other sites with shipment tracking
5. Click-to-talk buttons on a web site
6. Call scripting systems automatically generate the next
item or question.
– Good way to be
Types of CRM
• Operational
CRM supports
front-office systems
that
• Analytical CRM doesn’t directly deal with
customers. It is used to support
and
by identifying patterns to help
the organization
Analytical CRM
• Analytical CRM relies heavily on
technologies
and
to glean insights into customer behavior
• These systems quickly aggregate, analyze, and disseminate customer
information throughout an organization
• Personalization – when a website knows enough about a person’s
likes and dislikes that it can fashion offers that are more likely to
appeal to that person
• Determine the
– Who should we invest in?
– Who should we service at an average level?
– Who should we not invest in at all?
– Since we can’t focus on all of our customers, who should be focus on ? Where
can we get the biggest bang for the buck?
Information Technology and Customer
Relationship Management
• Advances in information technology are making it possible to
who
are buying your products. If an organization understands the
characteristics of its customers, it is then in a better position
to meet customer needs, and therefore generate even more
business.
– How are we going to use all of this customer data that we have
collected?
• Information Technology is simply a
used to
the customer.
that can be
– How can customer interactions be made easier?
– If you understand customer characteristics, you are then
positioned to better serve customers (mine what you have to gain
a clearer understanding).
• Result: increase customer loyalty and probably increase
revenues

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