Customer Relationship

Management (CRM)
by
Abhishek Tatachar
 Highlights
Evolution of CRM
What is CRM
CRM Phases
Integrated Architecture
How does Data Mining help CRM
Leading CRM Vendors
Limits
Conclusion
 Evolution
Initially, there were Door-to-Door sales forces
to approach the customers.
Then, Mass marketing replaced the intimacy
of a direct sales force.
Later, Targeted marketing evolved. Use of
direct mail and telemarketing.
Latest is Customer Relationship Management
(CRM), the next step in Evolution. A concept
supported by latest technologies.
 What is CRM ?
Layman Definition of CRM

The process includes collecting customer data, analyzing this data to

make decisions which helps to make new customers and satisfy the
existing ones.
A Customer-centric business strategy which
Focuses on Managing and optimizing entire customer life cycle.
Demand re-engineering of work processes with customer in focus.
It consists of 3 phases
 Planning Phase
 Assessment Phase
 Execution Phase
Planning Phase

Plan to approach the customers

Plan for making new campaigns
This phase includes
 Marketing tools
 Various Softwares
Marketing & Sales personnel are
involved in this phase
Assessment Phase

Select customer base for analysis

Analyze customer requirements
This phase includes technologies like
 Data warehousing
 Data Mining
 Online analytical processing (OLAP)
A certified personnel sets up the CRM
package while a business analyst analyzes the
data
Execution Phase

Customer interaction
Executes campaigns
Track customer feedback
This phase uses
 Internet
 Call centers
 Direct mails etc.
Technology behind Assessment
Phase
Integrates with Data Warehouse &
Data OLAP to implement intelligent
Mining algorithms to discover patterns.

Data
Warehouse

Warehouse
containing
OLAP
Customer data.
Server
User analyzes these
patterns to take decisions
Multidimensional Structures
suitable for his business.
to facilitate better and fast
analysis of data.
 DATA WAREHOUSING
A data warehouse is a copy of transactional data.
Data is specifically structured for querying and reporting
A data warehouse can be a relational, multidimensional
hierarchical database or a flat file.

DISTINGUISHABLE FEATURES
• Contains historical data
• No frequent updates
• Data stored is subject oriented

TERMINOLOGY
Data Mart- Contains data about a specific subject.
Metadata- Describes the data stored in data warehouse.
Data Cleansing- The process of ensuring that all values in a dataset
are consistent and correctly recorded
ETL- Extraction, Transformation and Loading of Data.
A Typical Data Warehouse

Data Warehouse
Summarized Data Data about data.
Meta Data Facilitates in firing
queries on
detailed data.
Detailed Data
Data marts contain
Data Data Data data specific to a
Mart Mart Mart subject.

customer campaign sales

 OLAP
•Online analytical processing is the name given to database and
user interface tools that allow to quickly navigate within data.

•Provides a mechanism to store the data in multidimensional

cubes.

DISTINGUISHABLE FEATURES

•Multidimensional Cubes- To store data which are multidimensional in

nature.

•Calculation Intensive- Allows complex calculations on database.

Data Model Of OLAP

The central table in

an OLAP star data
model is called the
fact table .
The surrounding
tables are called the
dimensions
The values of fact
table are known as
measures.
Data Model Of OLAP
The supervisor that gave
the most discounts.
The quantity shipped on
a particular date, month,
year or quarter.
In which zip code did
product A sell the most?

To obtain answers to the above shown

queries from a data model, OLAP cubes are
created.
OLAP cubes are not strictly cuboids-it is a
name given to the process of linking data
from different dimensions.
Interaction b/n Warehouse & OLAP

Transform and Import to Produce

Extract Data from Standardize OLAP Build Cubes
Warehouse Reports
Data Database

Process of transforming warehouse data

How does Data Mining help CRM

CRM systems typically collect a great deal of

data
Data Mining is used to search through this
information
Identify patterns that can help to predict buyer
behavior
Target specific customers with specific offers

This area of CRM is referred to as Analytical CRM

With CRM, a business can …

Provide better customer service

Make call centers more efficient
Increase customer revenues
Help sales staff close deals faster
Simplify marketing and sales processes
Discover new customers
Leading CRM Vendors

Siebel
mySAP
Oracle
PeopleSoft
Vantive
Clarify
Screenshots of mySAP
It supports:
Marketing
Sales
Service
Analytics
Screenshots of mySAP
Screenshots (continued)
Limits

Expensive
Hard to implement
Time consuming
It requires a lot of management and money
 Conclusion

CRM is a concept, implemented with the

support of various technologies.
Supporting technologies include Data
warehousing, Data Mining, OLAP etc.
A proper Data warehouse should be in place
for any CRM initiative.
Customer needs should be in focus while
implementing CRM.
 References
CRM by Kristin Anderson & Carol Kerr
www.crmguru.com
www.dwreview.com
sap.com
The Rushmore Group, LLC
Thank
You