CRM
CRM
CRM
Agenda
Operational Analytical
Lab component:
Defining ERP
In 1990, research firm Gartner Group coined the term Enterprise Resource Planning, or ERP. It quickly became a catchall for back office enterprise functions that included financials, human resources, accounting, purchasing, ordering and costing. ERP II takes the ERP foundation and extends it outward, to position the enterprise in the supply an value chains (e.g., Supply Chain Management (SCM), Customer Relationship Management (CRM), Product Life Cycle Management (PLM) .
Conceptual Overview
Sales?
Conceptual Overview
A shift in thinking
Transaction Learning relationship Mass Marketing Individual marketing Transaction Value Life time value Conquest Marketing Retention marketing Product Life Cycle Customer Life Cycle Customer Satisfaction Customer Loyalty Share of the market Share of the customer Product differentiation Customer differentiation
Whats a relationship?
Can an organization have a relationship with a person? Emphasis on CRM is the notion of a learning relationship
Knowledge Intent Trust
The Death of Customer Satisfaction: CRM in the Internet Age by Tony Zingale
Fulfillment The company has what I want. Value The price meets my expectations. Convenience The product is easy to get. Trust Im reasonably confident the product is reliable.
PeopleSoft CRM
Consider the front-facing CRM application developed by PeopleSoft (not a product line of Oracle). A front-facing application is an application that the customer sees.
Contrast with back-office operations like we have been working with using GP Dynamics 9.0
Customer centric, can see all interactions with this insurance company, customer-driven, is an example of mass customization and personalization
The Death of Customer Satisfaction: CRM in the Internet Age by Tony Zingale
Satisfaction My basic transactional needs are met Bonding The company is acting in my best interests. Personalization The company demonstrates that it understands and anticipates my needs. Empowerment The relationship is on my terms and under my control.
Research by Professors Cooper and Kaplan at the Harvard Business School has shown that in a large number of companies 20 percent of customers account for 225 percent of profits and the 80 percent `lose 125 percent of profits. But the trouble is that most companies do not know which customers make up the 20 percent and which make up the 80 percent.
Interacting
Customers addressed only in mass media C u s
Standard products
Tailoring
Tailored products
Source: Pepper / Rogers, Enterprise One to One, New York: Doubleday/Currency, 1997.
Needs Satisfied
Themes
Customers as assets
Market based assets, including customer relationships Companies executives will need to report their customer relationship management performance to investors Holistic view of the customer Analysis out of the hands of the statisticians
IDIC
Identify Differentiate Interact Customize
IDIC
Identify Differentiate Interact Customize
Identify
Must be able to identify your customers individually and recognize them when interacting with them Without identification, you cannot understand who they are and what their needs are. Difficult to do, can be almost impossible if channels of communication involve intermediaries How much customer identification does a company already have (what info do you need) Get customers to identify themselves
Steps
1. 2.
IDIC
Identify Differentiate Interact Customize
Differentiate
80/20 rule Want to better understand customer needs vs. demographics Want to better understand the value of that customer to the enterprise
Lifetime value (LTV) net present value of the stream of expected future contributions from the customer. Most valuable customers, most growable customers, belowzeros, migrators Refers to why customer buys rather than what they buy.
What support is provided by the company to help the Customer Support Agent
What information does this agent have about the client? Where does it come from? How useful is it? What information does the agent have about their own performance? What information has the claimant provided to the Insurance Company? How does this interaction reflect a partnership How much trust is there?
Consider
IDIC
Identify Differentiate Interact Customize
Interact
Goal of interaction is to get more information directly from a customer in order to serve him in a way no competitor can who doesnt have the information Want to turn the interaction into a collaboration in which the enterprise and customer work together to make transactions beneficial to both parties a learning relationship Important issue in the interaction is privacy. Research has indicated that individuals are willing to provide information
IDIC
Identify Differentiate Interact Customize
Customize
Use knowledge of customer to figure out what he/she needs Key term is mass customization
Can be product based Or service based on standard products Use of information technologies key
What support is provided by the company to help the Sales Agents Response
Are we wasting the Sales Agents time? Why not? When the Sales Agent calls the client, will it be consider intrusive? How are gaining share of the customer (in contrast to share of the market?) What information has the claimant provided to the Insurance Company? How does this interaction reflect a partnership How much trust is there?
Again consider
Enabler . Managing all touch points with the customer to develop knowledge so that the relationship part of the interaction becomes meaningful. Note, technology is only an enabler, people and organizational design play critical roles in CRM success
Operational CRM
Operational CRM is the automation of horizontally integrated business processes involving front-office customer touch points across sales, marketing and customer service via multiple, interconnected delivery channels. Meta Group
SUPPORT
Installed Product
HELPDESK
Agreement Warranty
SALES
FIELD SERVICE
ANALYTICS
INTERACTION MANAGEMENT
Lead Generation
Manage Leads
Measure Campaign Measure Opportunity Performance Generate Forecasts and Rollup Forecasts
Create Opportunity
Embedded Analytics
Interaction Management
Analytical CRM
Analytical CRM is the analysis of data created on the operational side of CRM and through other relevant operational data sources for the purposes of business performance management and customer-specific analysis. Meta Group
CRM Portal Pack CRM Warehouse Customer Behavior Modeling Customer Scorecard EPM Portal Pack Predictive Analytics
Which customers are most likely to purchase your product Which customer segment will maximize your ROI on marketing campaigns Which personalized, targeted offers your call center reps should present Which customers are at risk of attrition
Predictive analytics
An application that leverages a companies operational data about customers and past events and uses it to predict a customers future behavior. Goal is to distribute the value of statistical analysis to non-statisticians in the organization.
http://www.salesforce.com/us/products/demo-center.jsp
Avaya:
http://www1.avaya.com/enterprise/resourcelibrary/demos/crm _callcenter.html
CRM Resources
http://crm-daily.newsfactor.com/
http://www.destinationcrm.com/
http://searchcrm.techtarget.com/
http://crm.ittoolbox.com/
http://www.crmguru.com/
CRM Lab
Summary
CRM is an exciting application that provides an integrated view of critical business processes and allows the student to develop a real-world understanding Integration with other modules like Supply Chain Management, Financials, and HR is critical for a complete view of the customer