Types of CRM

Girish Mude
 Operational CRM

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 Goal of Operational CRM
• The goal of Operational CRM is to provide
electronic support for the "front office"
business processes, which include all
customer contact (eg. sales, marketing
and service).
• it aims to deliver customer-centric
business processes and operations.

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 Business Benefits
• Operational CRM provides the following
benefits:
– Enables a 360-degree view of each customer
– Each employee from sales people to service
engineers can access complete history of all
customer interaction with the organisation
regardless of the initial point of contact
– Delivers personalised and efficient marketing,
sales, and service

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 Components of Operational CRM
• Sales force automation (SFA)  

• Enterprise marketing automation (EMA) 

• Customer service and support (CSS)

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 Sales force automation (SFA)  

• SFA automates critical sales and sales force

management functions eg
– lead/account management
– contact management
– quote management
– Forecasting
– customer preference tracking
• SFA requires a well designed database in order to
store and retrieve customer details.

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 Enterprise marketing automation
(EMA) 
• EMA provides information about the business
including
– Competitors
– industry trends
• EMA utilises Data Mining and OLAP
Technologies which have been covered earlier
in this module.

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 Customer service and support (CSS)
• CSS automates
– service requests
– Complaints
– product returns
– information requests.
• call-centre support for customer inquiries has
evolved into the customer interaction centre (CIC) -
uses multiple channels (Web, phone/fax, face-to-
face, kiosk, etc).
• CSS technology is database oriented and is
underpinned by Service Level Agreements (SLAs)

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 Service Level Agreements
A Service Level agreement:
Is a contract with a customer which
• Defines the Level of service to be
provided thereby eliminating
unrealistic expectations.
• Enables the management of complaints
/comments
• Facilitates performance monitoring
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 Example
• Help Desk
• Accident and emergency units

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 Setting expectations:
• Customers are happy when
– a supplier under-promises and over-delivers
– a supplier delivers the correct order on time
– a supplier routinely exceeds expectations

• Service level agreements mean that the

customer knows what to expect and this sets
a benchmark for their judgement of the
service.

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 Complaints
• A complaint can be viewed as
- a useful measure of performance
- guidance for improving quality
- an opportunity to increase customer loyalty
• A complaint may be categorised based on how
far outside of the service level agreement the
service received was.
• Expert handling of complaints can increase
customer loyalty and referrals.

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 Handling complaints
• Once categorised, complaints can be handled
electronically in a uniform way by a good CRM
system.
• They are viewed positively by organisations and
MUST be responded to positively.
• Usually response includes
– An apology (for inconvenience caused)
– An assurance that the complaint has been taken seriously
and quality is being improved
– A marketing gesture eg. Discount voucher.
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 Performance monitoring
• Ability to produce performance exception
reports leading to the possibility of targeted
marketing to reduce churn
• Identification of problem areas leading to the
possibility of quality improvement

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 Analytical CRM

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 Goal of Analytical CRM
• To develop insight into customers’ needs.
• To determine what other products and
services you can sell to your customers in
order to increase the Average Revenue
Per User (customer) ARPU.

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 Benefits to Business
• Segmentation of customers to feed into
enterprise marketing (EMA) systems
• Identifies customers in danger of churning
• Aids Decision Making

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 Customer segmentation
It is useful to segment customers for
targeted marketing campaigns:
– Customers most and least likely to
repurchase product)
– Profitability analysis (which customers lead to
the most profit over time)
– Personalisation (the ability to market to
individual customers based on requirements)

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 Other Analyses
• Design and execution of specific customer
campaigns, including cross-selling, up-selling
• Analysis of customer behavior to aid product and
service decision making (e.g. pricing, new
product development etc.)
• Management decisions, e.g. financial forecasting
and customer profitability analysis
• Prediction of the probability of customer
defection (churn analysis)

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 Collaborative CRM

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 Goal of Collaborative CRM
• Collaborative CRM's ultimate goal is to
use information collected from all
departments to improve the quality of
customer service
• This requires a clear contact management
strategy which enables everyone in an
organisation to see who is talking to who.

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 Business Benefits
• Enables efficient productive customer
interactions across all communications
channels
• Enables web collaboration to reduce
customer service costs
• Integrates call centres enabling multi-
channel personal customer interaction

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 Aim
• Collaborative CRM aims to get various
departments within a business, such as
sales, services and marketing, to share
the useful information that they collect
from interactions with customers.
• Feedback from a technical support center,
for example, could be used to inform
marketing about specific services and
features requested by customers.

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 Aims continued
• Collaborative CRM facilitates interactions
with customers through all channels
(personal, letter, fax, phone, web, e-mail)
and supports co-ordination of employee
teams and channels. It is a solution that
brings people, processes and data
together so companies can better serve
and retain their customers.

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 E-CRM and M-CRM
• E-CRM allows customers to access company services
electronically
• M-CRM allows customers or managers to access the
systems for instance from a mobile phone or PDA
with internet access, resulting in high flexibility.
• An example of a company that implemented M-CRM
is Finnair, who made it possible for their customers
to check in for their flights by SMS.

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 CRM Strategy
• CRM is a broad area which can be applied on
an enterprise-wide basis. It could be
introduced to parts of an organisation but is
more effectively introduced as a strategy.

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 What makes CRM fail?
• The main risk factors of implementing a CRM
strategy may be:
– Lack of CRM planning – no strategy
– Underestimating implementation costs, timeframes and
organizational commitment
– Poor front and back-end integration
– Not being customer focused or customer centric
– Political friction within the organization stifles the sharing
of customer information
– Initiatives are driven by technology rather than by
customer strategy and service process design

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