Customer Relationship Management

Process of creating and maintaining relationships with business customers or consumers A holistic process of identifying, attracting, differentiating, and retaining customers Integrating the firms value chain to create enhanced customer value at every step An integrated cross-functional focus on crossimproving customer retention and profitability for the company.

Customer Relationship Management BottomBottom-line: The use of information-enabled systems for informationenhancing individual customer relationships to ensure long-term customer loyalty and longretention

CRM Objectives


Lifetime Value (LTV)

Refers to the net present value of the potential revenue stream for any particular customer over a # of years Starts with current purchase activity then extrapolates to include potential additions from cross-selling, upgrades, crosstotal ownership, etc.

Customer Ownership
Attempts to own the lionshare of customer spending and/or share of mind in a particular product category Building brand equity, maintaining vigilant customer contact, keeping current with the market trends is critical 5% points increase in customer retention=20-125% retention=20increase in profit

Is CRM New?
No! No! Simply an extension of relationship marketing Builds on customer service and satisfaction concepts Just the latest buzzword for creating customer orientation Bottom-line is still the Bottomsame Yes! Yes! A shift in corporate philosophy concerning the approach to value delivery Customer-centric Customerapproach to value chain New and technologytechnologyenhanced processes Focus is not just on bottombottom-line, but on toptopline Goal is to create satisfying experiences across all customer contact points

Strategy of SBI on CRM



Analytical CRM
Customer Segmentation Trend Analysis

Operational CRM
Campaign Management Tele-Marketing/Tele-Sales Tele-Marketing/TeleActivity and Time Management Quotation and Order Processing Delivery and Order Fulfillment Customer Service and Support Remote Access Enterprise Portals Customer Access Supplier Access Personalization

Collaborative CRM

Areas of CRM Activity Sales Force Automation (SFA)  Customer Service and Support (CSS)  Help Desk  Field Service  Marketing Automation


Areas of CRM Activity: Sales Force Automation

 

3535-40% of all CRM activity Manages lead generation, tracks movement of leads through the pipeline, allows better usage of customer data, integrates activities across sales channels, simplifies relationship management, forecasts for opportunities (SWOT) Goldmine and SalesLogix are examples of prepackaged SFA solutions. Ex. Staples used SFA to integrate catalog, online, in-store sales efforts directed at its best customers in-

Areas of CRM Activity: Customer Service and Support (CSS)

 

2020-25% of CRM Assign, escalate, and track trouble tickets, inquiries, solution attempts through resolution Provides information to support customer call center activity Gleans customer data from those interactions and records it in SFA for later use Remedy, Siebel, Remedy, Siebel, Vantive, and Clarify are major vendors Ex., 3M Adhesive Products division

Areas of CRM Activity: Help Desk

 

   

1515-20% of all CRM Allows individuals to access network database to solve their own problems or find information. Can be internal or external Offers many bottom-line savings bottomHuman Click, Tivoli, LivePerson, are providers Click, LivePerson, Ex., Lands End Live allows customers browse FAQs but also click a link to talk directly with live representative.

Areas of CRM Activity: Field Service CRM

 

   

3-5% of all CRM activity Mobile service technicians can log information about work orders and service calls, as well as access information from the remote site. Can feed information from customer problems into SFA for salesperson leads. Market information can be gathered and logged into central database. Ensures appropriate resource allocation by matching available resources to job requirements Major vendors are RTS, Metrix, eDispatch

Areas of CRM Activity: Marketing Automation

 

 

3-5% of CRM, but growing 5X faster than all others Interfaces with data warehouses and data mining activities to tailor page views, products, and promotions, so that the right offer goes to the right person at the right time. Can interact with SFA to support field sales efforts Provides customized customer interactions critical to segment of one marketing, mass customization, customerization, etc. www.webgroove.com, Epiphany, www.webgroove.com, Epiphany, Oracle, Siebel, and Personify are leaders

New Frontiers in CRM



Commercial E-Communities E What are people loyal to?

Families Football teams Schools Clubs Cultures Countries I.E.: Communities not Corporations

Commercial E-Communities E Goal is to create an environment where people get meaningful interactions with the company and other users so that they feel part of the enterprise.  Adds human component and engages customers.  Creates more stickiness and ownership  Ex. User Groups for software products (Oracle, Intergraph)  Ex. Dell / Sony technical support communities  Can be run internally or by an external organization such as Sift

Components of Commercial E-Communities E Customer-focused transactions Customer Ex. IKEA Stock Query, Amazon rare book finder

 Community Interactions
 User product ratings, User alerts/Newswires, Dell technical support

 Access to Relevant Information

 Dell technical library, Customer chat rooms, Zero-time Zerosearch facility

 Value-added Services Based on Customer Data Value-

New Frontiers in CRM



Customerization
Mass Customization Using flexible processes and organizational structures to produce varied and individualized products and services at the price of standard mass-produced offerings. mass Personalization Customization of some features of a product or services so that the customer enjoys more convenience, lower costs, or some other benefit. Segment-of-One Marketing Based on the idea of the firm Segment-oflearning individual reactions to marketing strategies, then treating this customer differently than other customers. Customerization Mass customization + personalization + segment-ofsegment-of-one, dependent on a web-based or electronic webinteraction

Distinctions in Customerization
Mass Marketing Relationship with customers Customer needs Product and service offering Price Communication Distribution Customer is passive participant in process Researched and articulated Marketing and R&D drive offering Fixed prices with discounting Advertising and PR Mix of direct and indirect Customerization Customer is active co-producer, coMay not be articulated Customized based on customer interactions Value based pricing; customer determined Integrated, interactive Direct (online)

Making CRM Happen

 

 

Evaluate products and processes customers terms. Analyze the multiple channels through which the company interacts with customers. Examine how the company understands its customers. Does it keep good data? How does it get that data? Does information flow between functional areas? Provide fingertip access to all information. Analyze human resources and ensure that everyone has an understanding of philosophy of CRM