CRM in Marketing and Sales

SESSION-2
……..It is better to focus on relationships than
transactions………relationships create interactions and
transactions….
so if you grow in relationship, you keep the customers…
However, where does it all begin?
 Internal data sources
Market Research Data-Pain points/ grievance/ complaints/ feedback
Customer Survey Data
External consultant input

Define CRM Vision

Evolve CRM Planning a CRM

Strategy system based
Project
AS IS Processes
Process Modeling TO BE Processes

Develop Focus Areas

based on Priority of
Processes
CRM system aligns
Develop Requirement
Documents business processes with
Customer strategies to
Evaluate Vendors build customer loyalty
and Products and increase customer
profits over time
Develop
Implementation
Plan
 CRM for Customer Support in Airtel (2009)
• Bharti Airtel is operational in 20 countries world wide
• It operates in 22 circles in India and covers 82% of the Population.
• At this time, all customer support processes were manual and complaint resolution stood
at 40%.
• The subscriber base was growing at 15-20%
• However, the competition was increasing and it was losing market share
• Tariffs had hit all-time lows, with the telecom service providers competing to outbid each
other in launching the lowest fare in the country. 
• Customer survey revealed that the
– Inability of Airtel to provide a common brand experience and centralized service to all
customers irrespective of their location was a major problem.
– Problems in billing: there was no process in place to manage billing operations
– Customer retention was lower than competition
– Quality of service was perceived to be lower than the competition
 CRM for Customer Support in Airtel (2009)
• In 2009, Airtel initiated the “Airtel convergence project” with Vision
– “No matter which part of the country the customer is in or which service
they are subscribed to, their experience of interacting with the company
should be consistent throughout”
• Study of existing systems and processes (AS IS analysis) revealed
– Each process at Airtel (call center, direct marketing, sales billing and so on) had its own
application, each of which functioned independently of the other
– This did not allow the management to have a unified view of the customer data
• Airtel conducted a Gap Analysis by evaluating its current technology in light
of the problems it faced
• Simultaneously, it launched a pilot program to receive suggestions and
feedback from across the firm
Importance Vs Performance Matrix based on Customer Survey

Customer
Invoice and Billing Support
Quality of Service
Back office support to customers
 CRM for Customer Support in Airtel (2009)
• Several processes were re-engineered (To BE) and the company decided to
establish a centralized system for CRM.
• After evaluating vendors, Oracle’s e-business CRM suite was adopted.
– It offered services in campaign management, sales management, order entry and
management and customer service.
– These applications were deployed for all touch points
• Simultaneously, WAN was installed at all major locations. Extranet was
established at vendor and dealer outlets. This enabled easy communication
among the company, vendors, dealers and customers.
 CRM for Customer Support in Airtel (2009)
• Implementing the BI solution
– Which allowed for querying the OLTP (transaction databases) and OLAP (data marts
and data warehouses) to meet the day to day reporting and analysis requirements
• Airtel realized that the turnaround time for the queries was high because
of the heterogeneous nature of the databases-each having a different
underlying database schema, dependent relations, size and technology.
• To address the issue of high response time, Oracle decided to create a
separate centralized database to serve as common dedicated reporting
database.
– This was done by implementing Oracle Streams Replication (OSR).
– Through OSR, a replication environment (RE) was created for various types of databases in
operation at Airtel
– The new database allowed for sharing of data from individual application specific databases
– With this, any change in underlying objects in source database would keep replicating in
destination database
– The synchronized database environment served the purpose of reporting on
operational and analytical CRM queries.
 Unified View of Customer Data
• Airtel used the CRM feature called Oracle Discoverer to retrieve reports
from the synchronized dedicated database.
• This makes real time data available to users.
• Both Airtel and Oracle discourage the use of online reporting to prevent the
unnecessary loading of CRM system
• With the new system Airtel is able to achieve a unified view of the customer
data across all products and services
 CRM helps in Market Segmentation and one-to-one
relationship marketing
• Airtel is able to
– offer special loyalty programs and incentive schemes in a targeted manner
– Cross sell and up sell relevant products to customers based on usage of a certain
service etc
– If a customer reaches the threshold, discounts and other perks are offered.
– Generate leads from customer data for the purpose of SMS campaigns
• With CRM,
– Airtel has reduced the number of calls made to the customer
– And increased the number of services availed by the user
 CRM for Customer Support in Airtel (2009)
• Airtel’s electronic billing service enables
– customers make payments from anywhere.
– provides customers the option to customize their bills and simplify the
process of payment
• CRM Segregates billing application from consumer complaints.
– In 2010, Airtel had 8% faster resolution of customer faults
– 3% reduction in fault re-occurrence
• Automated escalation if the complaint is not resolved with in a set period of
time
• To aid in customer retention, the system automatically generates product
suggestions to a leaving customer
 Airtel CRM Implementation (2009)
• The Airtel CRM is divided into two types of solutions:
– Operational CRM to look after day to day call center activities
– The customer care cell is divided into four departments
• Hotline :handles new customers
• Care touch: deals exclusively with Corporates and executive class
• Retention: handles churn and retains existing customers on the verge of leaving
• Outbound: takes care of backend processes in customer care
– The analytical CRM is largely used for business development activities,
for example:
• To measure the success of its products and services in the market by tracking
customer acquisition costs, conversion rates, retention or churn rates and loyalty
measures.
• The analytical CRM
– Answers questions such as
• Which are the best customers
• Who are likely to leave
• What can be done to retain them
• What is the likelihood that the customers will churn
• Fraud detection by monitoring customer transactions
– The answers to such questions is based on parameters (CPI’s) such as
• Average bill value
• Payment pattern and usage etc
– A rating is assigned to the customer between 0 and 1 where 1 indicates
the highest probability of leaving
 Airtel CRM Implementation (2009)
• The Airtel CRM implementation has the following modules
– Marketing
– Campaign management
– Lead management
– Sales
– Activity/ account management
– Opportunity Management
– Knowledge management with FAQs
– Call Center Support
• Overall, the CRM system at Airtel has enabled the firm develop its retention
and loyalty plans, provide accurate bills and take feedback on all services.
 How would the CRM strategy vary/ what would the CPI’s be
for and where would you start?
• Healthcare website
• Real estate website
• Shaadi.com
 Internal data sources
Market Research Data-Pain points/ grievance/ complaints/ feedback
Customer Survey Data
External consultant input

Define CRM Vision

Evolve CRM Planning a CRM

Strategy system based
Project
AS IS Processes
Process Modeling TO BE Processes

Develop Focus Areas

based on Priority of
Processes
CRM system aligns
Develop Requirement
Documents business processes with
Customer strategies to
Evaluate Vendors build customer loyalty
and Products and increase customer
profits over time
Develop
Implementation
Plan
What are the Components of the CRM
System?
 Basic Functional Components of e-CRM solution
 Sales Force Automation (SFA) which addresses selling and marketing functions such as
managing leads and customer contacts, pipeline management, generating proposals,
configuring products for price quotations and telemarketing. SFA systems enable sales
people to find and retrieve product information far more quickly than they could by
consulting paper catalogs or datasheets.

 Customer Service and Support (CSS) Software which addresses after-sale activities
such as help-desks, call centers and field service operations. It also includes activities like
order tracking, repair scheduling and dispatching; service agreements and contracts and
service request management.

 Marketing Applications These applications complement SFA applications and provide

certain functionality’s such as web-based and traditional market campaign planning,
execution and analysis; list generation and management; budgeting and forecasting, lead
tracking.
An example

The Elements of CRM

Sales force Customer service/call center Marketing
automation management automation

Call center telephone sales Call Centers Campaign

Managing aspects management
E-commerce Of customer contact

Field sales
Web-based Content
Retail self service management

Data analysis
Field services
Distributors, agents And business
and dispatch
Intelligence tools

Data warehouse and data cleaning tools

*Source: Computerworld
Customer Relationship Management (CRM)

Figure 2-17
TYPES OF CRM SYSTEMS
CRM in Marketing
OUTPUT : CREATE PROSPECTS FOR THE COMPANY
Marketing and Sales

 Marketing is the process of generating leads or prospective customers. It could be

through ads, tele-marketing, campaigns, newspaper etc.
 When the marketing is successful, a prospect is generated.
Product Marketing Strategy
 From product focused marketing strategy to consumer focused
marketing strategy
All customers treated as if they have the
same needs and wants
Focus on availability and choice of
products to the customer
At product re-launch, the response to a
product and marketing campaign is
considered
Focus on product distribution strategies
based on data analysis practices such as
product revenue analysis and price
elasticity modeling.
Direct Marketing Strategy
 Promotional Mailings or Magazine Advertisements
 Focused on selling a mass produced product

Monitor response to ads

Refine campaigns
A 2% response rate considered a
smash!!
 Target Marketing Strategy (Associations)
 Associate Products to the demographic/ psychographic data
of Customers!
Dynamically defining segments,
 Promote product/ service to a subset of customers or
Temporarily grouping/ regrouping customers
prospects
for specific campaigns
 Using IT for analysis and segmentation Geography/ regionality
Psychographics (personality/ lifestyle/ hobbies)
Preferred sales channel
Demographics (age, race, sex)
Firmographics (B2B segmentation)
Number of products
Lifetime value
Risk score
Life stage
Privacy preferences
etc
 Target Marketing Strategy
 Focused communication about the product
depending upon the attributes of the target segment
All because of
 Cost saving-reduced communication (not sending
to all!)
Investment in IT and
Analytics to identify the
 Identify most desirable segment
Target Segment
 Identify undesirable segments!
 Steer clear of disinterested prospects
 Avoid over communicating to customers
From Target Marketing to Relationship Marketing
and One-to-One Marketing
 In 1993, Peppers and Rogers wrote a book: The One to One Future which
argued
“….you will not be trying to sell a single product to as many customers as
possible. Instead you’ll be trying to sell a single customer as many
products as possible-over a long period of time, and across different
product lines. To do this, you will need to concentrate on building unique
relationships with individual customers on a 1:1 basis.”
 One-to-One Marketing is now possible at low cost due to developments
in IT, scalable data warehouses and data mining products.
 From Target Marketing to Relationship Marketing
and One-to-One Marketing
 Less focus on Products
 More focus on customer relationships

Many Customers

One Product

Communicate with customers as individuals

Many Products
Develop custom products for them
Develop tailored messages for customers
Over a long period of
One Customer time based on 1:1 Cater to the spoken and unspoken needs of
relationship! customers!!
Profitable Customer
 A customer is profitable when the value of the customer is more than
the sales and marketing efforts put on them.
 The customer value is measured over the customer lifetime and is
strongly linked to customer loyalty.
 Determining the value of each customer is strongly aided by
data mining technique.
 The process can capture data of past prospects and the customers they
developed into and measure their profitability.
Step-1:
 Data mining can help to decide the current value and potential value
of customer profitability which can guide the company in its
marketing efforts
 If current value=potential value, the customer is as profitable as can be.
Target least cost actions that will keep customer at this value
 If current value < potential value, identify least expensive action that will
transition the customer to a higher value that represents he complete
potential.
 Improving RoI on Customer
 For example, if the ARPU before the promotion is Rs 1000
 And after a promotion is Rs 1100
 The marketing campaign is effective only if cost of promotion is less
than Rs 100 per user.
Data mining and Analytics can help in marketing initiatives
such as
 Cross sell and Up sell: selling more services to an existing customer increases
revenue from that customer and costs less that acquiring new.
 The art is to discern which product will increase the overall profitability of
customer

 Analyzing Customer Retention: understanding which customers have left, why

they left and applying that learning to existing customers
 Whether product give aways are helping: Amazon Prime one month free subscription : is it
helping?
 Churn Prediction
Data mining and Analytics can help in marketing initiatives
such as
 Behavior Prediction: using historical data and sophisticated modeling analyze
 Propensity to buy
 Next sequential purchase
 Product affinity analysis/ market basket analysis
 Price elasticity modeling and dynamic pricing for a particular customer
 Offer discounts or fee waivers based on Behavior prediction
Data mining and Analytics can help in marketing initiatives
such as
 Customer profitability and value modeling to derive
 Price sensitive customers: high volume/ not profitable
 Potential value customers: current low value/ high future value: college graduates
 Value modeling: relative worth to the company over a period of time
 However, value modeling requires data of historical customer behaviors, product
costs, support costs, customer profitability, channel use etc.
Data mining and Analytics can help in marketing initiatives
such as
 Channel Optimization:
 Determine the right channel as customers interaction preferences evolve
Data mining and Analytics can help in marketing initiatives
such as
 Personalization: based on customer profile, past purchase, click stream data, web
survey response
 Online messages tailored to a particular customer or customer segment.
 Example: suggestions on Netflix, Amazon etc
 Custom discount/ promotion based on past purchase
 Event based Marketing: react to customer events in real time
 A credit card company calls a customer who has made a purchase transaction far from
home for the first time confirming the purchase
Now, Relationship Marketing and One-to-One Marketing WITH
PERMISSION MARKETING

 Let Customers decide how and when they are contacted….!

 Greater reliance on IT to track individual customers, acknowledge
their interaction preferences
 Put in place business processes, organization structures and
technologies to treat them differently!
 Each customers privacy preference should be solicited and
incorporated into his customer profile and unequivocally
honored.
 Opt-in policies
 Post privacy policy on website
 Country delight example-frequency and channel
 GDPR/ DPA
 B2C
 B2B
Case 1: Eddie Bauer – 500 Stores, 49 States
 Retailer
 Integrating web, catalogue channels
 Remember the preferences & past purchases of customers

irrespective of stores and states -integrated view of customer

 Replaced disparate customer data & outdated legacy systems with

integrated data warehouse, decision support and data mining

 Personalized customer service
 Learning relationship with customers
 Building overall customer value
Case 1: Eddie Bauer – 500 Stores, 49 States
Major Insights:
 Customer who shop through all three of its channels can spend up to five times

more than customers who shop through only one channel.

 Which of the three channels contributes max to the bottom line

 Drive tailored content to customer on that channel

 CRM is more than technology
 CRM= Tech+ business process+ organizational change+ data
Enterprise Marketing Automation
CAMPAIGN MANAGEMENT
 CRM system helps in Campaign Lifecycle Management which
includes the following steps
 Campaign definition
 Planning
 Customer segmentation
 Scheduling
 Response management
 Opt-in vs. Opt-out processing
Launching a Market Campaign
 Objective: Create good prospect for the Company
 Compile list from multiple sources
 However, this leads to the problem of duplication
 List Management (managing the list of potential customers)
 De-duplication of the list of potential customers. Most CRM products allow you to pick data
from multiple sources in soft copy form. They can help in de-duping or de-duplication, thereby
leaving only one entry per customer in the database.
 Filtering. In this you query the database / original list to extract a shorter list depending on the
nature of the product/ campaign. This ensures that the campaigns are more targeted and
accurate.
 Designing and Running a Campaign
 The executive decides on the choice of instrument for the campaign (mailer, phone,
e-mail etc) and contacts potential customers.
 Wherever there is a positive response from the customer-it is now a lead
 These Leads are categorized carefully and each category of leads is handled
differently i.e. the seniority of the agents (sales executive/ sales managers) assigned
to a lead would depend on the nature of the lead--whether its an individual or
corporate Lead, the size of the lead etc.
 Similarly, the treatment of the lead (the choice of subsequent instruments-phone
call, face to face etc) would depend on the nature of the lead.
 A lead is an unqualified contact, while a prospect is a
qualified contact who has been moved into the sales process
 A prospect is a potential customer who has been qualified as
fitting certain criteria. 
 Prospects fit your target market, have the means to buy your product or
services, and are authorized to make buying decisions.
 Designing and Running the Campaign

Telemarketing Mailer Choice of Instrument

Cold Call
LEAD

Categorization of Leads
(individual/ corporate)

Assignment of Agents

Treatment of Leads

Customer
 Running a Campaign
 A lot of leads would be lost, if there isn’t a systematic process of managing them.
 The company needs to keep track of many, many responses to the campaign
 Each response requires a different series of actions. For instance, individuals and
companies need to be handled differently
 If someone forgot to take a required action, he needs to be reminded.
 If despite reminders, he did not take the required action, the matter needs to be escalated so
that the boss is aware of what's happening.
 Managing this in a high volume campaign needs automation of the workflow related to the
campaign.
Work Flow Automation

 The treatment of a LEAD needs to be automated based on certain pre-defined

criteria .
 The work flow needs to define the different steps, time between different steps,
agent assigned, responsibilities, escalations etc.
 These work flows are captured in the CRM system.
Enterprise Marketing Automation (EMA)
 EMA is the module that helps to plan and execute campaigns.
 It manages
 List of potential customers
 Filter this list to shortlist people to target for a specific campaign.
 Run a campaign.
 EMA can also help to create and manage the campaign budget, review it at the end of campaign
 OUTPUT : CREATE PROSPECTS FOR THE
COMPANY
 SALES FORCE AUTOMATION

 Marketing creates qualified prospects for the company.

 These PROSPECTS are passed on to a sales executive in SFA to convert them into
CUSTOMERS.
 Most commonly used module in CRM.
Thank You