Bi crm presentation - Using Business Intelligence to Improve Customer Relations
Post on 24-May-2015
237 Views
Preview:
DESCRIPTION
Transcript
1Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Vispi MunshiFounder - ERP Indiavmunshi@erp-india.comhttp://www.erp-india.com
2Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Today’s Agenda
- Introduction
- What is Customer Relationship Management (CRM)
- Key CRM Functions
- What is Business Intelligence
- Data Analytics, Dashboards
- Data Mining, Predictive Analytics
- Examples of using BI in CRM
- Blueprint of a Customer Intelligence System
- Measuring Customer Relations performance, Scorecard
- Conclusion, Q&A
3Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Ground Rules
- Please turn mobile ringer to SILENT MODE
- If you have to take a call, please leave the room and then start talking
- Questions can be asked any time
- Before asking question, raise your hand
- No talking with each other
- Disagreements allowed, but no disrespect
- Timeframe awareness
- Lets learn from each other and increase our knowledge
4Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Introductions
- Full Name
- Where do you work (Company/Consultant/Student etc)
- Your job designation and responsibilities
- Any BI tool you have already used?
- Any CRM experience?
- Expectation from this workshop
5Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
What is Customer Relationship Management
CRM is about identifying and acquiring new customers, and maintaining and enhancing relations with valued customers.
Customer
DemandCreation
LeadGeneration
Lead Mgnt
OrderMgnt
Quoting
Contracts
ServiceMgmt
Opportunity Mgnt
6Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Key CRM functions
- Demand Creation (Marketing Campaigns, Promotions)
- Identify and Acquire customers (Sales Lead management)
- Proposal/Quotation and Order processing
- Order Management
- Contract Management
- Service Management
- Sales Channel Management
- Loyalty Programs
- Surveys (for feedback)
7Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Identifying and Acquiring Customers
Call Center
Field Staff
Your Web Site
Partners
External Sources
Suspects
Prospects
Leads
SALE
Referral
Repeat
8Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
What is business intelligence?
Business Intelligence is a term generally used to identify a class of Information System applications useful for supporting operational, tactical and strategic decision making of a organization.
BI deals with producing (and presenting) Accurate, Relevant and Timely (ART) INFORMATION from integrated data.
Not Accurate: Users loose faith in system
Not Relevant: Users ignore the system
Not Timely: Users find alternatives to the system
9Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Benefits- Sales Optimization
- Cost Reduction, Planning and Budgeting
- Inventory Optimization
- Purchase Optimization
- HR Optimization
- Production / Manufacturing Optimization
- Demand Forecasting
- Market Competitive Analysis and Customer Relationship Optimization
- Supply Chain (Sales and Distribution) Optimization
- Most Important is ART Information to support all levels of Decision Making
- Aim is to replace/reduce Excel based Analysis
10Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
BI System Anatomy
BACK-ENDData Collection and
Integration Tools
ERP
Ecomm
CRM
Files
….
Data Mart
Forecasting, Mining
PRESENTATION
FRONT-END
Analytics, Visualization, Dashboards, …
DISTRIBUTION
Alerts, Email, Mobile, Intranet ….
11Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Backend BI Tools: Used for collection, integration and consolidation of data from various sources.
Intermediate BI Tools: Allows users to create forecasts and identify trends (data mining) from the data.
Frontend BI Tools: Provides users with a interactive and intuitive interface to view the information generated.
12Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
- Based on multi-dimensional view of data (cubes)
- Pivot Table demo
- Features for drilling in and across data
- Slicing and dicing of data
- Graphics capabilities
- Similar to Excel
- Exception reporting
- Data Analyst would use such tools and create Reports/Analysis/Graphs (objects)
- These objects would be supplied to Executives using Dashboards, Alerts etc.
Data Analytics (New Age Decision Support Systems)
13Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Multi-dimensional Data
14Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
High-end: Business Objects, OBIEE, Microstrategy, …
Open Source: http://en.wikipedia.org/wiki/Business_intelligence_tools
Data Analytics Tools in Market
15Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Dashboards and Alerts
- Dashboards are collection of reports/analysis/graphs
- Alerts are specific events that the system finds and sends a email/sms etc to the executive
- Key Performance Indicators (KPI’s) can be set and linked to alerts
- Linking across objects provides executive with ability to go through the generated information in a very intuitive manner
16Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
17Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Data Mining
- Also known as KDD (Knowledge Discovery in Databases)
- Involves use of large data sets
- Involves uses of Statistical Methods, Database Systems and Artificial Intelligence
- The objective is to discover patterns or knowledge from existing data
- Involves four step process: Data Preparation (classification), Hypothesis (user provided guidance), Discovery (of knowledge) and Validation (of discovered knowledge against hypothesis)
- Techniques: Classification, Clustering, Association Rules, Regression
- High end tools: SPSS, SAS, …
- Open Source: http://en.wikipedia.org/wiki/Data_mining
18Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Big Data - Very large datasets (peta bytes), which cannot be handled by regular
database systems
- Applications such as bio-informatics, space research, large banks, large ecommerce portals etc. require big data systems
- Data mining requires big data systems to generate meaningful knowledge
- Hadoop is a leader in this area
19Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Data Visualization- Presents a intuitive graphic representation of the data and generated
knowledge
- The visualization is a embedded feature in most Analytics and Mining tools
20Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Predictive Analytics - Combines Data Analytics and Statistical techniques to provide a interactive
tool
- encompasses a variety of statistical techniques from modeling, machine learning, and data mining that analyze current and historical facts to make predictions about future, or otherwise unknown, events
- Recency, Frequency, Transaction Value, Demographics
- Classification, Clustering, Association Rules, Regression
- http://en.wikipedia.org/wiki/Predictive_analytics
21Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Case Study 1: Bank using Data Mining (decision tree classification technique) to predict credit risk
Job
Income
Job
Income Income
CarpenterEngineer Doctor
Bad Good Bad Good Bad Good
<30K
<40K
<50K
>50K
>90K
>100K
Predicting credit risk of a person with the jobs specified.
22Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Case Study 2: Determining odd transactions using Clustering technique
Insurance frauds, manufacturing defects, Customer Extension ….
Clustering algorithms find groups of items that are similar. … It divides
a data set so that records with similar
content are in the same group, and groups are as different as possible
from each other.
23Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Case Study 3: Market Basket Analysis using Association Rules
• “An association algorithm creates rules that describe how often events have occurred together.”
Example: When a customer buys a hammer, then 90% of the time they will buy nails. HIGH SUPPORT
Example: When a customer buys a hanger set, then 3% of the time they will buy nails. LOW SUPPORT
If SUPPORT between item pair is more than say 30% then the item pairs can be placed on same shelf.
If SUPPORT between item pair is more than say 50% then they can be packaged together.
24Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
More Ways to Improve Customer Relations
- Customer Profitability Analysis: which customers to value?
- Targeting Marketing Promotions: identifying suspects using data mining (clustering)
- Ecommerce Site User behavior analysis: Make special offers to convert suspects to prospects and leads, depending on which pages of the site the suspect has visited
- Call Center Log Analysis: identifying leads using data mining or predictive analysis
- Customer Retention: identify potential leads, renewal offers
- Customer Relation Extension: identify potential leads based on service records
25Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Customer Intelligence System
BACK-ENDData Collection and
Integration Tools
ERP, CRM
Industry data
Sales
….
Customer Data Mart
Acquisition
Lead Closing
Retention
Relation Extension
Demand Creation
Relation Recovery
26Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
Measuring CRM Performance: Customer Relation Scorecard
New Relations: 5678, 7%
Acquisition Cost: 2500/-
Lead Closing %: 34%
Renewal %: 77%
Extended Relations: 345, 1.3M
Recovered Relations: 45
27Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence to Improve Customer Relations
ConclusionQ&A
Thank You
vmunshi@erp-india.com
98250 11489
top related