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Some examples of “customer” definition 1. “Recipient of a product provided by the supplier” and “the customer can be either internal or external to the organization” * internal refers to functional levels of the org vs.
individuals (AS/NZS ISO 8402:1994,p2) – GENERIC definition
2. “ The term (customer) applies in both the internal and external sense and means the recipient of an item or service” (Stebbing 1990: 172) – GENERIC definition 3. “Any person or enterprise who has valid expectations about the final outcomes of a building or construction project such as the building owner, building manager,tenants,.” (CIDA 1993:172) CONSTRUCTION definition
Customers and Customer’s Expectations
Some examples of “customer” contd… 4. “The customer may be: (project management definition) -the sponsor, or owner of the facility -the operators of the facility, or users of the services it provides -the consumers of the eventual product it produces -the media, or local community, or politicians” (Turner :
Other views: Customer as ultimate consumer, user beneficiary or purchases links the ISO definition to the previous 3 and this wider view of customers is similar to the RW TOPIC 4 2 concept of stakeholders
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Customers are: The most imp. People for any company - The imp. Stakeholder - Not dependent on us, we are dependent on them - Not an interruption in our work, but are purpose of it - Doing us a favor by coming to us - A part of our business not outsiders - They are flesh and blood creatures with feeling and emotions like us - People who come to us with needs and wants, it is our duty to fulfil them - People deserving of the most courteous and attentive treatment - The lifeblood of every business, without them we will have to close our office - Quality begins with customers and also end with them
• Customer satisfaction • Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. • Customer Delight The very favorable experience of the client of a business when they have received a good or service that significantly surpasses what they had initially anticipated. A marketing department can use instances of customer delight to a company's advantage by requesting referrals and obtaining testimonials from delighted customers that can help attract new customers. • Customer Intimacy • Customer intimacy is a concept from marketing, which describes the ability of a supplier to become accepted and known as the regular partner with its customer. Customer intimacy creates a virtuous circle: the better the supplier knows the customer company with its objectives and difficulties, the better able he is to provide an optimal solution. • The more adapted the supplier's product or service is, the happier the customer will be, and the stronger the "intimacy" between the two parties.
• CRM “is a business strategy that aims to understand, anticipate and manage the needs of an organisation’s current and potential customers” (1). • It is a “comprehensive approach which provides seamless integration of every area of business that touches the customer- namely marketing, sales, customer services and field support through the integration of people, process and technology” (1) • CRM is a shift from traditional marketing as it focuses on the retention of customers in addition to the acquisition of new customers (2) • “The expression Customer Relationship Management (CRM) is becoming standard terminology, replacing what is widely perceived to be a misleadingly narrow term, relationship marketing (RM)” (3).
What is CRM?
.Definition of CRM “CRM is concerned with the creation. development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value” (2).
2001) . at a profit to well identified existing and potential customers”. develops.What is Customer Relationship Management (CRM)? CRM is “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers” (Buttle. (Plakoyiannaki and Tzokas. 2000) CRM is “an IT enhanced value process. which identifies. integrates and focuses the various competencies of the firm to the ‘voice’ of the customer in order to deliver long-term superior customer value.
is being fuelled by a recognition that long-term relationships with customers are one of the most important assets of an organisation” (2) . alliances and partnerships of many kinds.Why is CRM important? • “Today’s businesses compete with multiproduct offerings created and delivered by networks. • “The adoption of C.R.M. Both retaining customers and building relationships with other value-adding allies is critical to corporate performance” (3).
functional and psychological terms. . temporal. integrity.Determinants of CRM Trust The willingness to rely on the ability. and motivation of one company to serve the needs of the other company as agreed upon implicitly and explicitly. Value The ability of a selling organisation to satisfy the needs of the customer at a comparatively lower cost or higher benefit than that offered by competitors and measured in monetary.
and Have a passionate interest in establishing and retaining a longterm relationship (e.Determinants of CRM In addition to trust and value. Provide superior after sales support. have long-term perspective). . salespeople must: Understand customer needs and problems..g. Make sure that the customer is always told the truth (must be honest). Meet their commitments.
Potential Benefits Of CRM • • • • Customer retention Share of customer or share of wallet Cross-selling Up-selling .
and time efficient • Brand names more quickly established • A central database so that everyone in your company can keep track of customer contacts • Sales and marketing teams can benefit from having all this inside knowledge about customers • Lets you set up rules for distributing work throughout your company • Lets you pick and choose the functionality that you want . and a quicker way • Sales force automated • Integrated customer information • Certain processes eliminated • Operation cost cut. customers are more satisfied as well • Service provided in a better way.Advantages of CRM • While company is quickly growing.
referrals. meeting and exceeding expectations) • ensuring that the focus of the organisation is external • growth in numbers of customers • maximisation of opportunities (eg. because they are getting exactly what they want (ie. etc. because the right things are being done (ie. increased services.) • increased access to a source of market and competitor information • highlighting poor operational processes • long term profitability and sustainability .Benefits of CRM Benefits of CRM include (8): • reduced costs.. effective and efficient operation) • increased customer satisfaction.
Customer Feedback Must be continually solicited and monitored Customers change all the time. as do their minds. expectations. and suppliers Customer feedback is an ongoing and active probing of customer’s mind .
Feedback enables the company to discover customer dissatisfaction discover the relative priorities of quality compare its performance with competition identify customer needs determine opportunities for improvement .
answer is better 4) It should not too lengthy 5) You should know how to analyze the data .-Survey A questionnaire is used on Likert scale Questions about the product features To make survey more useful pl. remember 1) Surveys raise the expectation of customers 2) Question should be clear and in simple language 3) More specific the question.
proposed and future products and services -Toll free telephone numbers .Customer visits Visit customer’s place is another way of gathering information .Moderator ask structured questions .questions focused on current.-Focus Groups A small group of customers is assembled in meeting room .
Internet .-Report cards basis Sent to each customer on a quarterly Data is analysed to determine areas for improvement .Employee feedback .
targeting. . iTV. wireless. databases) • To – acquire and retain customers (through a multi-channel buying process and customer lifecycle) • By – Improving customer knowledge.E-CRM – a definition E-CRM is: • Applying – Internet and other digital technology… (web. e-mail. service delivery and satisfaction.
Benefits of e-CRM • Targeting more cost-effectively • Achieve mass customization of the marketing messages • Increase depth. breadth and nature of relationship • A learning relationship can be achieved • Lower cost .
email and wireless) • Electronic Customer Relationship Management (e-CRM) is based on some basic principles such as. manage and analyze customer databases to provide you with detailed information you require for effective customer acquisition and retention. e-CRM uses the latest Web-technologies to read.E-CRM • A subset of CRM that focuses on enabling customer interactions via e-channels (The web. A satisfied customer tells 2 other people of your services while an unsatisfied customer tells 10 others of your shortcomings. 80% of your business comes from 20% of your customers and it is less expensive to retain an existing customer than get a new customer. .
and viable. and what their account balances are. via the Internet. They want to know when their orders were shipped. it is essential for a company to excel at every single customer contact point. or through sales and service agents.• The basic features of e-CRM therefore are: • Enables a personalized relationship with customers • Offers integrated customer information from all departments into one centralized knowledge base • Has a totally integrated. They want salespeople and call-centre representatives who can answer their questions right now. more than ever before. Today. e-CRM makes all this possible. . be it at the retail-point. in the call-centre. customer-centric approach • Employs e-business technologies to extend customer service and offers a variety of solutions tailored to your specific needs • What exactly can e-CRM do for you? • Today your customers want access to your company 24 hours a day.
and ultimately a greater return on your e-CRM investment. . E-CRM is relevant across the entire spectrum of businesses. anytime • Personalized service to each customer. identification and retention of the most profitable customers. based on individual wants • More ways than one to reach and service customers • Increased customer satisfaction.It enables: • The company's representatives across all contact points to retrieve customer data from anywhere. reduced costs of customer servicing . increased market share. where customer satisfaction is critical. leading to higher customer retention • Customized solution for your customers business requirements • Hence e-CRM can lead to enhances customer experience.
consumer`s loyalty can only be commanded by providing better portfolio of services. • speed of response and understanding each individual one of the major key issues CRM has become the central focus area around which the entire gamut of organizational activity has to revolve round.e-CRM • With the abundance of product and services offerings. .
respecting individual's preferences regarding how and whether they wish to communicate with you and it focuses on the understanding how the economics of the customers relationships affects the business.What is e-CRM ? In simplest terms e-crm provides company to conduct interactive. . personalized and relevant communications across the globe with their customers by utilizing the traditional and electronic channels both. It adheres to permission based practices.
Why employ e-CRM ? • To optimize the value of the interactive relationships • Enable the business to extends its personalized reach in the hand of customers • Co-ordinating marketing initiatives across the all customers channels • Leverage the customer`s information for more effective emarketing and e-business • Focus the business on improving the customers relationship and earning a greater share of each customer`s business through consistent measurement. assessment and actionable customer strategy. .
The six “E`s” of e-CRM • The ‘e’ not only stands for “electronic” but also perceived to have many other connotations. The six “E” of e-CRM are briefly explained in the next slides. . Through the core of CRM remains to be cross channel integration and optimization.
“Economics” E.“electronic channels” E.“empowerment” E.“ Evaluation” E“Extern al Informa tion” .E.“enterprise” E.
. services and corners offices whose occupants need to understand and assess the customers behavior. economic communication . challenging company to keep pace with the increased velocity.CRM the company gains the mean to touch and shape a customers experience through sales.messaging have become a medium for fast and interactive .The six “E`s” of e-CRM 1) Electronic channels: new electronic channels such as web and personalized e. 2) Enterprise : through e. E – crm thrives on these electronic channels.
valuable information that consumers accepts in exchange of his/her attention.which channel . An e. at what frequency. Empowerment: it must be structured to accommodate consumers who now have the power to decide when and how to communicate with the company. Through .CRM must be structured to deliver timely pertinent.The six “E`s” of e-CRM 3. .
which drives smart asset allocation decisions. .The six “E`s” of e-CRM 4.communication initiatives. Economics : an e-CRM strategy ideally should concentrate on the consumer economics. directing efforts at individuals likely to provide the greatest return on customer.
Evaluation: understanding the customers relies on a company`s ability to attribute customers behavior to market programs. evaluate customer interactions along various customers touch points channels and compare anticipate ROI against actual returns through analytic reporting. .The six “E`s” of e-CRM 5.
• Acquisition (increasing the no.The six “E`s” of e-CRM 6. making a long-term relationship) . of customers) • Expansion (increasing the profitability by encouraging customers to purchase more products and services) • Retention (increase the amount of time in which the customers stays with company. EXTERNAL INFORMATION : the e-CRM solution should be able to gain and leverage information from such sources as third party information networks and webpage profiler application.
KEY FEATURES OF e-CRM • Regardless of an company objectives e-CRM solution must posses certain key characteristics. It must be: • driven by a DATA WAREHOUSE • Focused on the consistent metrics to asses customers actions across the channels • Structured to identify a customer profitability or profit potential .
. which are more profitable.KEY FEATURES OF e-CRM • To determine the effective allocation decisions accordingly. so that most profitable customers could be indentified and retained and the resource could be invested in the relationships.
data mining and one-to-one marketing can assist organisations to increase customer value and their own profitability (2) • This type of technology can be used to keep a record of customers names and contact details in addition to their history of buying products or using services (2) • This information can be used to target customers in a personalised way and offer them services to meet their specific needs (2) • This personalised communication provides value for the customer and increases customers loyalty to the provider (2) . • Technological approaches involving the use of databases.Information Technology and CRM • Technology plays a pivotal role in CRM (2).
the website retains the customers details and their purchase history. similar or alternative services or products . or WAP services (2): Having access to customers contact details and their service or purchase preferences through databases etc can enable organisations to alert customers to new. mobile phone text messages. .Illustration: When tickets are purchased online via Lastminute. The website regularly send emails to previous customers to inform them of similar upcoming events or special discounts. emails.Information Technology and CRM: Examples Here are examples of how technology can be used to create personalised services to increase loyalty in customers: • Phone calls.com. This helps to ensure that customers will continue to purchase tickets from Lastminute.com in the future.
Amazon. “Hello John”). When registered customers log in to Amazon at a later time.g. uses “cookies” to provide a personalised service for its customers. they are ‘greeted’ with a welcome message which uses their name (for e. such as site preferences and the contents of their electronic shopping carts” (5). HTTP cookies are used for authenticating. and maintaining specific information about users. . Amazon requires customers to register with the service when they purchase items. In addition. .Information Technology and CRM: Examples • Cookies “A “cookie” is a parcel of text sent by a server to a web browser and then sent back unchanged by the browser each time it accesses that server. their previous purchases are highlighted and a list of similar items that the customer may wish to purchase are also highlighted. tracking.Illustration: The online store.
a company aims to make cost savings. This in turn leads to customer comprehension and cost insights (e. By serving the customer quickly and efficiently. The aim of this is to encourage customers to continually return to Tescos to do their shopping - • - CRM software. Tescos.g. offers loyalty cards to its customers.Information Technology and CRM: Examples • Loyalty cards “the primary role of a retailer loyalty card is to gather data about customers. customer retention rates at different spending levels. the system can be used to retrieve and store information relevant to the customer.“Front office” solutions “Many call centres use CRM software to store all of their customer's details. new customer conversion rates. details of the purchases are stored in a database which enables Tescos to keep track of all the purchases that their customers make. When customers use the loyalty cards during pay transactions for goods. followed by appropriate marketing action and follow-up analysis” (6) Illustration: The supermarket chain. At regular intervals. and where money is being wasted on circulars). response rates to offers. When a customer calls. and also keeping all information on a customer in one place. and also encourage new customers” (7) . Tescos sends its customers money saving coupons by post for the products that the customers have bought in the past.
Delivering Customer Service in Cyberspace: CRM Applications and Tools • Classifications of CRM Applications – Customer-facing applications – Customer-touching applications – Customer-centric intelligence applications – Online networking and other applications 13-40 .
Delivering Customer Service in Cyberspace: CRM Applications and Tools • Customer-Facing Applications – customer interaction center (CIC) A comprehensive service entity in which EC vendors address customer-service issues communicated through various contact channels – telewebs Call centers that combine Web channels with portal-like self-service 13-41 .
Delivering Customer Service in Cyberspace: CRM Applications and Tools – Intelligent agents in customer service and call centers – Automated response to e-mail • autoresponders Automated e-mail reply systems (text files returned via e-mail) that provide answers to commonly asked questions 13-42 .
Delivering Customer Service in Cyberspace: CRM Applications and Tools • sales force automation (SFA) Software that automates the tasks performed by salespeople in the field. such as data collection and its transmission – Field service automation 13-43 .
Delivering Customer Service in Cyberspace: CRM Applications and Tools • Customer-Touching Applications – Personalized Web Pages – E-Commerce Applications – Web self-service Activities conducted by users on the Web to find answers to their questions (e.. tracking) or for product configuration 13-44 .g.
Delivering Customer Service in Cyberspace: CRM Applications and Tools – Web self-service • Self-tracking • Customer self-service through FAQs – FAQ page A Web page that lists questions that are frequently asked by customers and the answers to those questions • Self-configuration and customization 13-45 .
and control over the data – Data analysis and mining 13-46 . server-based data repository that allows centralized analysis.Delivering Customer Service in Cyberspace: CRM Applications and Tools • Customer-Centric Applications – Data reporting and warehousing • Data reports • data warehouse A single. security.
Delivering Customer Service in Cyberspace: CRM Applications and Tools • Online Networking – Forums – Chat rooms – Usenet groups – Blogs and Wikis – E-mail newsletters – Discussion lists 13-47 .
Delivering Customer Service in Cyberspace: CRM Applications and Tools • mobile CRM The delivery of CRM applications to any user. whenever and wherever needed. by use of the wireless infrastructure and mobile devices – Voice communication and understanding by machines – Language translation – The role of knowledge management and intelligent agents in CRM 13-48 .
Other EC Support Services • Consulting Services • CRM Suites – Directory services – Newsletters – Search engines and news aggregators 13-49 .
Other EC Support Services More EC Support Services • Trust services • Trademark and domain names • Digital photos • Global business communities • Access to commercial databases • Online consulting • • • • Knowledge management Client matching E-business rating sites Security and encryption sites • Web research services • Coupon-generating sites 13-50 .
seven days a week • Some classifications of E-commerce systems are: – B2C (Business to Consumer) – B2B (Business to Business) – B2E (Business to Employee) • The major components of Web-based EC are: – Electronic storefronts – Electronic markets – Mobile commerce 51 .E-commerce Systems • Web-based systems that enable business transactions to be conducted seamlessly twenty-four hours a day.
inventory management systems.• Electronic commerce. Electronic commerce draws on technologies such as mobile commerce. commonly known as e-commerce. • Electronic commerce is generally considered to be the sales aspect of e-business. online transaction processing. Internet marketing. electronic funds transfer. supply chain management. although it may encompass a wider range of technologies such as e-mail. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. and telephones as well. . Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle. mobile devices social media. is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. electronic data interchange (EDI). and automated data collection systems.
E-commerce can be divided into: • E-tailing or "virtual storefronts" on websites with online catalogs. the businessto-business exchange of data • E-mail and fax and their use as media for reaching prospective and established customers (for example. with newsletters) • Business-to-business buying and selling • The security of business transactions . sometimes gathered into a "virtual mall" • The gathering and use of demographic data through Web contacts and social media • Electronic Data Interchange (EDI).
E-Commerce and CRM are tools designed to learn more about customers. However. most importantly. . their preferences and a clever way to market and re-market to them. these tools are and should be a convenience for your customer. not your company.• e-Commerce & CRM • Harnessing the power of the Internet to drive a closer relationship with customers should be the goal of every business. many companies who invested in CRM and e-Commerce technology lost their way as they believed it was an electronic panacea designed to eliminate the need to talk to their customers and orders would just flow in because they had a shopping cart on their website with colorful product images. Over the last several years.
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