00_Customer Relationship Management

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Customer Relationship Management

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Touch Points

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What can CRM do?

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What Can CRM do?

Processing Transactions

Enterprise Collaboration

Reporting Dashboard

Decision Support

Expert System

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Critical Factors of Relationship Management

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Why CRM Systems are Being Used

Identifying prospects

Acquiring customers

Developing customers

Cross-selling and up-selling

Managing migration

Servicing

Retaining

Increasing loyalty

Winning back defectors

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Four Basic Steps in CRM

ID your customers in detail.

Differentiate the

most and least

profitable.

Interact.

Customize your

offerings to fit each customer’s

needs.

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Which Companies Benefit Most from CRM?

Companies serving large numbers of customers through complex and frequent interactions: Communications companies Retail banks Insurance companies Healthcare organizations Utilities

Companies with a steep skewCompanies in “lost for good” markets

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TYPES OF CRM technology

Operational CRM

Analytical CRM

Collaborative CRM

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Types of CRM technology

CRM TECHNOLOGY FRAMEWORK

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CRM Decisions

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CRM Decisions

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Business Model

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SG and SAM

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Customer Life Cycle Management

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Customer life cycle

The stages a customer goes through from the time before deciding to do business with an organization until he/she decides to stop being a customer.

The progression of steps a customer goes through when considering, purchasing, using, and maintaining loyalty to a product or service.

The goal of effective CRM is to get the customer to move through the cycle again and again.

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Completing a process

Maruti Udyog Limited runs a campaign Lead is generated from Mr. Ram Pratap, who is a Government

Servant and wants to buy Estilo on EMI from SBI Lead is transferred to Bharat Motors Sales Manager of Bharat motors assigns the task of calling up customer

and initiating sales to Jasmin with instructions to upgrade if possible

Jasmin calls the customer and offers “secret” discount to upgrade him to go for “Forest Black” SX4. Jasmin logs the call

Manager assigns the responsibility of test drive to Wilfred and fixes the schedule

Wilfred conducts the test and tells manager to qualify lead to negotiation state.

Manager now fixes meeting with the client and finalizes the and marks lead as closed won…….Happy ending!

QlikView: Gartner 2012 BI Magic Quadrant Leader

• Data Discovery momentum continues to accelerate

• QlikTech only Data Discovery vendor in leader quadrant

• Customers report strong delivery of business benefits

• #1 in ease of use

• Increased global and enterprise adoption

Magic Quadrant for Business Intelligence Platforms: February 2012

QlikView’s Associative Experience Puts Users in Control

Region

State

Product

Sales Person

IT Driven• Linear, pre-defined thinking• Insights missed in hidden

data• Months to change• Data-centric

User Driven• User decides where to

start• All data, always visible• Minutes to change• Insight driven

Traditional Associative

Region

Product

StateSales Person

QlikView Shows You What’s Associated — and Not

Selections: green

Unassociated: gray

Associated: white

QlikView’s Core Technology: The Basics

1. Easily consolidates multiple data sources

2. Loads all data into memory (millions of rows)

3. Massive (10-to-1) data compression

4. Enables real-time associative search and analysis

5. Connectors to applications like SAP and Salesforce.com

Quiz About CRM Analytics

How many opportunities with the existing customers were lost in Q1-13?(Dashboard)

What is the top pending opportunity under the category of new customers in Q1-13? What is the win rate in Sweden vs Spain for Q1-13? What are the number of opportunities in quarters Q1,Q2,Q3,Q4 of the year 2012?

(Trend) What is the average deal size of Abdul Doughan? How many opportunities are in “negotiating” state? What is the highest value of opportunity in negotiating state? (opps) Which opportunity was lost after almost 83 months? Where is account “Curtis Dante” located? (Account) Who is the highest revenue fetching end user customer? What are the three products which are under “negotiations” ? (Products) What was the quantity sold of product “users” in 2011? Mention at least one sales person who has never lost a sales? Describe the performance of Abe Hayslip? Should he continue? If you were to select ONE person as the top performer, whom would you select and

why?

Answers

184 Eugene Hogar 39% and 33% 1246,1547,1239,1420 5107 133 Lenny Traycheff 1,988,265 Curtis Dante Sweden Austin Andulis Authors, Users, Consumers 493106 Alex Caraker

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Customer Life Time Value

Amount of money a customer spends while doing business with a firm in his entire lifetime as the firm’s customer. It may also include money spent by his referrals.

CLTV in quantitative terms is defined as the net present value(NPV) of the future profits to be received from a given no. of newly acquired or existing customers during a specified time frame.

Some customers have low LTV so org. may not want to reestablish relationships with those who demand too much service without corresponding amt of revenue.

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Case Study and Basic Business Intelligence

with RFM

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Look at the data and….

Business customers constitute what proportion of customers in the database? __________

 Within the personal group, what is the ratio of male to female customers? __________

 What proportion of customers purchased tickets in the most recent year? __________

 What is the average number of seats per customer per game? __________  If we divided the database into customers that attended between 1-3

games, 4-6 games, 7-9 games and 10+ games, then, which group has the highest customers? __________

 What proportion of customers are fan club members? __________  What proportion of personal customers have cars? __________  Create a new variable (in Column U), Price per Ticket by dividing Total

Sales (K) by the product of Number of Games (I) * Average Number of Seats (J). What is the range (maximum and minimum) for Price per Ticket? __________

 Most customers pay __________ per ticket.

What does RFM stand for?

RFM stands for Recency, Frequency & Monetary Analysis

Recency: When did the customer make their last purchase?

Frequency: How often does the customer make a purchase?

Monetary: How much money does the customer spend?

Collaboration Exercises #2, pg. 366

What is RFM Analysis?

RFM Analysis helps companies decide which customers to give select offers and promotional items.

It is a way for companies to find ways to increase customer spending.

Companies can use it to target lost customers and give them incentives to purchase items

RFM Analysis can help companies keep track of their customers and build a relationship that can increase sales and productivity.

It also identifies minimal losses – customers spend low dollar amounts in small quantities

Collaboration Exercises #2, pg. 366

How does RFM Analysis work?

First, customers are divided into 5 equal sized groups (20% in each group)

Customers are then given an R, F, & M scoreUsing a score of 1 to 5, 20% of the most

recent customers get an R score of 1.The second most recent get an R score of 2

and this continues until all 5 groups receive a score.

The 5 groups are reorganized to repeat the procedure for the F & M scores.

(see spreadsheet – Supplier Rankings)

Collaboration Exercises #2, pg. 366

MARKET BASKET ANALYSIS

INPUT: list of purchases by purchaser do not have names

identify purchase patterns what items tend to be purchased together

obvious: steak-potatoes; beer-pretzels what items are purchased sequentially

obvious: house-furniture; car-tires what items tend to be purchased by season

Market Basket Analysis

Categorize customer purchase behavioridentify actionable information

purchase profiles profitability of each purchase profile use for marketing

layout or catalogs select products for promotion space allocation, product placement

Market Basket Analysis

Steve Schmidt - president of ACNielsen-USMarket Basket Benefits

selection of promotions, merchandising strategy sensitive to price: Italian entrees, pizza, pies, Oriental

entrees, orange juice uncover consumer spending patterns

correlations: orange juice & waffles joint promotional opportunities

Market Basket Analysis

Retail outletsTelecommunicationsBanksInsurance

link analysis for fraudMedical

symptom analysis

Market Basket Analysis

Chain Store Age Executive (1995)1) Associate products by category2) what % of each category was in each market basket

Customers shop on personal needs, not on product groupings

Possible Market Baskets

Customer 1: beer, pretzels, potato chips, aspirin

Customer 2: diapers, baby lotion, grapefruit juice, baby food, milk

Customer 3: soda, potato chips, milkCustomer 4: soup, beer, milk, ice creamCustomer 5: soda, coffee, milk, breadCustomer 6: beer, potato chips

Co-occurrence Table

Beer Pot. Milk Diap.Soda

ChipsBeer 3 2 1 0 0Pot. Chips 2 3 1 0 1Milk 1 2 4 1 2Diapers 0 0 1 1 0Soda 0 1 2 0 2beer & potato chips - makes sense milk & soda - probably

noise

Purchase Profiles

beauty conscious kids’ play convenience food

health conscious pet loverwomen’s fashion

sports conscious gardener kid’s fashion

smoker automotive hobbyistcasual drinker photographer student/home officenew family tv/stereo enthusiast illness (prescription)illness over-the-counter seasonal/traditional personal carecasual reader homemakerhome handyman home comfortmen’s image conscious fashion footwearsentimental men’s fashion

Purchase Profiles

Beauty conscious cotton balls hair dye cologne nail polish

Purchase Profiles

Each profile has an average profit per basket Kids’ fashion $15.24 push these Men’s fashion $13.41 …. Smoker $2.88 don’t push Student/home office $2.55 these

Market Basket Analysis

Affinity Positioning coffee, coffee makers in close proximity

Cross-Selling cold medicines, kleenex, orange juice Monday Night Football kiosks on Monday p.m.

Market Basket Analysis

LIMITATIONS takes over 18 months to implement market basket analysis only identifies hypotheses,

which need to be tested neural network, regression, decision tree analyses

measurement of impact needed difficult to identify product groupings complexity grows exponentially

Market Basket Analysis

BENEFITS: simple computations can be undirected (don’t have to have hypotheses

before analysis) different data forms can be analyzed

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CRM and Marketing Strategy

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What we Know about Customer Satisfaction

Satisfied customers may not remain loyal

Dissatisfied customers tell more people than satisfied customers

Only a small percent of customers ever complain

Relationships based on satisfaction are, in fact, weak

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There are three Types of Relationships Companies Have with

Customers

Acquaintance: Based on satisfaction

Friendly: Based on trustPartner: Based on commitment

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Factors Intervening between Satisfaction and Loyalty

Shear number of competitors’ offerings

Novelty seekingLack of personal attachment

with brandLack of consistency in

performanceNew competitors offering better

value or a greater variety of ancillary services

Customer expectation of future use

Customers may not want a relationship with your firm

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Developing a Loyalty Profile of Your Customers

Customer loyalty is based on favorable attitudes and behavioral responses such as repeat purchase. It is both Behavioral Attitudinal

Customers may be emotive loyalists or deliberative loyalists.

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Are Loyal Customers Always More Profitable?

Five reasons many say yes:1. Increased number of purchases2. Tendency to “Trade-Up”3. Tendency to become less price sensitive because of

focus on convenience and purchase efficiencies4. Word-of-mouth referrals 5. Lower cost of servicing them

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Customer Touch Points

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Customer Touch Points

Points within an organization where seller and buyer interaction occurs Happen daily in the sales and customer service

functions of a business Happen less frequently in accounting, R&D, supply

chain management, and marketing This activity is essential to record within a CRM

system for the customer management purposes

Customer Journey Maps:Charting a Course for An

Engaging Customer Experience

Customer Journey Maps:Charting a Course for An

Engaging Customer Experience

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Daniel Kahneman

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Peak End Rule

The peak-end rule is a psychological heuristic in which people judge experiences largely based on how they were at their peak and at their end.

Extension neglectDuration neglect

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Importance of Touch Points

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Customer Journey Maps Are…

Visual representations of customer’s experience with product or service.

Product is a generic reference.

Systematic exploration of customer interactions with your product.

A framework for customer actions, motivations, questions.

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Customer Journey Maps Are…

Customer-centric, not provider-centric.

Frame-by-frame review of customer journey.

Customer needs, interactions, and emotions as they use your product.

Holistic view of all touch points w/product.

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Another Example

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When to Customer Journey Map

Costly: High cost of product, high risk or waste.

Complex: Multiple customer groups, channels, or departments.

Changeable: Evolving customer experience.

Challenged: High dissatisfaction now. Expectations are high.

Climatic: Key moments of truth, emotions are high.

(Oxford Strategic Marketing, (Section 2))

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Typical Customer Journey Map Components

1. Customer actions in chronological steps.

2. Customer goals or needs at each step in process.

3. Moment of truth/areas of significant importance.

4. Pain points, gaps, and disconnects.

Kalbach

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Typical Customer Journey Map Components

5. Brand impact , satisfaction, and emotional responses.

6. Business or product touch points, including roles and systems.

7. Opportunities for improvement.

8. Descriptive and contextual elements, quote/photo (optional).

Kalbach

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Creating Customer Journey Maps

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Creating CJM

Salesforce

Campaigns Best Practices

Business DriverBest Practice OverviewBest Practices: Campaign Management

Campaign Preparation Campaign Execution Campaign Tracking

Tools & Resources

NOTE: Campaigns are included with Enterprise Edition, and available for an additional cost with Professional Edition. In the Professional Edition, one campaign license is consumed for each user that has the "Marketing User" box checked.

Best Practice:Campaign Management for

Marketing Professionals

Salesforce.com Customer Success

Existing Customers Your Marketing and Sales organizations should collaborate to capture essential customer

information in the application to assist with defining your targets Define and configure the necessary custom fields to help with segmentation definitions;

consider using picklists, dependent picklists etc. to make your targeting, customer segmentation and reporting more effective

Existing Leads Consider lead scoring and lead status with customer segmentation in mind

For example, a series of archived status definitions (e.g. No Interest, Future Interest, Nurture)

New Leads - Adding 3rd Party Lists in Salesforce Some companies incorporate 3rd party prospect/lead lists inside of Salesforce with a

specific 3rd party designation (e.g. by record type, or assign to queue, or specific pre-qualification process before passed to Sales)

De-dupe against existing records in your Salesforce database to determine which are existing Customers, existing Prospects or Net New names

Some companies purchase 3rd party lists containing “suspect” names which are not added to your Salesforce application until a response has been received or the name has been qualified

Consider de-duping this list outside of Salesforce with partner tools (e.g. PeopleImport by CRM Fusion) then importing into Salesforce

Campaign Preparation How to target campaigns: Define who you want to target

Website

Phone/Telemarketing

Search Engine/ Google Ad Words

PR/Events

Email

Events

Campaign PreparationDetermine campaign programs: Decide your channels and process

Inside Opportunities

Field Opportunities

Lead Capture/Lead Qualify

Tips & Tricks

Be sure to have a process

defined for your programs

and Campaigns

Campaign PreparationDefine campaign access: Who should have access to campaigns?

Determine who should have access to Campaigns Be default, all users have view access to campaigns, advanced setup and

run campaign reports

The Marketing User check box on the user profile page indicates whether or not a user has the right to create and manage campaigns including: Create a new campaign Edit or delete an existing campaign Update campaign statistics Import leads into a campaign** Mass update the status for members of a campaign** Configure advanced campaign setup to define member status values Run campaign reports across multiple campaigns

** In order to use the campaign import wizards, Marketing Users must also have the Marketing User profile (or the "Import Leads" permission in Enterprise Edition organizations).

Agenda Campaign Preparation

Goal of the Campaigns How to Target Campaigns Determine Campaign Programs Define Campaign Responses Define Campaign Access

Campaign Execution Build Campaign Campaign Tools Campaign Members Mass E-mail

Campaign Tracking Campaign Responses Campaign Measurement

Campaign ExecutionBuild campaign: Include key fields for tracking

Tips & Tricks

Have a naming convention:

e.g. EMEA – FY08Q3 –

Success Tour - Brussels

Tips & Tricks

Define your lead sourcevalues so they tie back to budget dollars

Tips & Tricks

Tie campaigns together

with the “Parent

Campaign” field

Tips & Tricks

Update the Type picklist field

and keep the total number of

values to no more than 10 and

include general types

Campaign Execution Build campaign: Categorizing for campaign measurement

Products and services Create a campaign picklist field for Product or Focus Area

Advertisements and publications/media Create a picklist field for Ad Type with values such as

Magazine, Newspaper, Online, etc. Create another picklist for specific publication so you can

report on both levels Agencies creating materials

Track which agencies are tied to your successful campaigns by creating a Creative Source or Creative Piece picklist field

Offers made in campaigns Track the different types of high-level offers (e.g. whitepapers,

demos, web seminars) to track overall effectiveness

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Campaign ExecutionBuild campaign: Set up member response status values

Tips & Tricks

Member Status tells Sales

exactly what their prospect or

customer did

Tips & Tricks

You can have more than one

“Responded” value!

Tips & Tricks

# Responses metric is the sum

of all members with a status

checked as “responded”

Campaign TrackingCampaign measurement: Measure overall campaign effectiveness

Build your own

Leverage

for Pre-built Dashboards

Marketing Metrics Dashboard 1.0

Marketing Targets Dashboard 1.1

100% increase in lead conversion

rate.

100% increase in lead conversion

rate.

Increased lead conversion by 400%.

Increased lead conversion by 400%.

Reduced time for preparing email

campaigns by 95%.

Reduced time for preparing email

campaigns by 95%.

Went from managing 1 to 16

simultaneous campaigns.

Went from managing 1 to 16

simultaneous campaigns.

Measuring and Improving Business

Leads Analysis

Campaign ROI

Lead Tracking

Campaign Analysis

Campaign RevenueLead

Management

Campaign TrackingCampaign measurement: Proven customer success

“40 percent reduction in time to build email marketing sends”

“Increased lead generation by 20 percent and reduced follow-up time by 50 percent”

“40 percent reduction in time to build email marketing sends”

Contacts

Sales and Marketing: Tools and TerminologyBelow you’ll find the tools and terminology used in the application and online training. For more information visit Salesforce Community, the Salesforce.com Online User Community. You can search the site, browse around, and see what the community is interested in.

Accounts

Opportunities

Accounts are your organization's customers, competitors, and partners. Each account stores information such as name, address, and phone numbers. For each account, you can store related information such as opportunities, activities, cases, partners, contracts, and notes.

Contacts are all of the individuals associated with your business accounts that you need to track in Salesforce. You can store various information for a contact, such as phone numbers, addresses, titles, and roles in a deal.

Opportunities are the sales and pending deals that you want to track. By adding opportunities, you are also building your “pipeline,” which will contribute to your forecast. You can also link opportunities to campaigns to help measure the ROI of your marketing programs.

A lead is a prospect or potential opportunity - a person you met at a conference who expressed interest, or someone who filled out a form on your company’s website.

A campaign is an outbound marketing project that you want to plan, manage, and track within Salesforce. It can be a direct mail program, seminar, print advertisement, email, or other type of marketing initiative.

Leads

Campaigns

Google AdWords™ is an online advertising service used to create advertisements that display on major search engines, including Google. Many Salesforce customers advertise online with Google AdWords as a mechanism to generate leads.Google AdWords

With Web-to-Lead, you can gather information from your company’s website and automatically generate leads. Web-to-Lead form can be used for contact me requests, registration pages, or campaign landing pages.

Products are the individual items that you sell on your opportunities. You can create a product and associate it with a price in a price book. Each product can exist in many different price books with many different prices. A product that is listed in a price book with an associated price is called a price book entry.

Products

Web-to-Lead Form

Sales and Marketing: Tools and Terminology

A forecast is your best estimate of how much revenue you can generate in a quarter. This amount is divided between Commit Amount - the amount you can confidently close - and Best Case Amount - the total amount of revenue you might possibly generate. A manager’s forecast should include the amount of revenue the entire team can generate together.

Forecasts

A contract is a written agreement between two or more parties. Many companies use contracts to define the terms for doing business with other companies. Track the contract through your organization’s approval process and use workflow alerts to notify yourself when to initiate contract renewals.

Contracts

Group calendaring will helps you better collaborate as a team, and arrange meetings with prospects and customers.

Task

Activities

Tasks are to-do items that need to be followed up on. They can be associated with accounts, contacts, leads, or other custom objects. You can follow up on the task yourself, or assign it to another user.

Maintain a historical record of all activities related to an account, contact, or opportunity. Your activity history includes emails, call notes, and calendar events, so everyone is on the same page.

Calendar Events

Reports are lists, summaries, and analyses of your data, which you can display or print. To help you monitor your organization, Salesforce offers a wide range of standard reports, accessible in the Reports tab. You can also create new custom reports to access exactly the information you need. You can subtotal and limit your data to help you analyze trends and get a concise picture of what is happening in your organization.

Reports

Dashboards give you a real-time snapshot of corporate metrics and key performance indicators. A dashboard is a group of different charts (or components) that graphically display your custom report data. You can select up to 20 different custom reports to display data graphically as charts in each dashboard.

Dashboards

A document library is a place to store files without attaching them to accounts, contacts, opportunities, or other records. Each document in the document library resides in a folder. The folder’s attributes determine the accessibility of the folder and the documents within it.

Documents

Below you’ll find the tools and terminology used in the application and online training. For more information visit Salesforce Community, the Salesforce.com Online User Community. You can search the site, browse around, and see what the community is interested in.

Make searching data and interacting with the results of your searches simple, smooth, and highly effective. Inline paging and sorting features simplify the task of working with large sets of search results. Powerful filtering and scoping functions narrow searches and results. Customization options enable users to design search results layouts that are tailored for the way they work.

Sales and Marketing: Tools and Terminology

With computer-telephony integration (CTI) capabilities, you can directly integrate your telephone network into Salesforce and access it entirely through the familiar, browser-based Salesforce interface. With the combined power of CTI and the new Salesforce Console, salesforce.com delivers unlimited productivity to your call centers.

Outlook users enjoy high levels of productivity with Apex Connect Outlook—formerly called Outlook Edition—which makes it easy to synchronize important customer data between two commonly used applications. With Connect Outlook 3.0 in Spring ’07, productivity for Outlook users gets another boost with several enhancements. Users can add emails with attachments, create contacts and leads directly in Outlook, and create relationships between calendar events and associated objects such as accounts and opportunities.

CTI Integration

Connect Outlook

You can set up a Web-to-Lead form to capture contact me requests from your company’s website. With a lead de-dupe solution you can automatically route those requests to the person who owns the account.Web-to-Lead Form

With Salesforce you can create email templates for common emails such as web-to-lead responses, sales prospecting, announcements, and internal workflow. You can even personalize parts of the email with information from the contact or account record.

Email Templates

Plan and execute email campaigns targeted at prospects and customers. Enterprise Edition customers can send 500 emails per mass mailing, while Unlimited Edition customers can send 1,000 emails per mass mailing. Salesforce can also integrate with third-party marketing solutions and offers out-of-the-box integration with several top email marketing vendors.

Mass Email

Evaluate the success of email campaigns with integrated response tracking and easy monitoring of key campaign metrics, such as whether recipients open the messages, when they open them, and more.

Email Tracking

Search

Import Wizard

The ability to easily import data into Salesforce is one of the application's key benefits. Import excel worksheets or CSV (comma separated value) files. Map the information to leads, contacts, accounts, solutions, and custom objects. Search Import Tools on Salesforce Community for more information.

Below you’ll find the tools and terminology used in the application and online training. For more information visit Salesforce Community, the Salesforce.com Online User Community. You can search the site, browse around, and see what the community is interested in.

Parallel Sets- Campaign Analysis

For which category campaign was more successful?

Which Industry shows more success ratio in this campaign?

What is the least preferred method of contact amongst the successful customers?

Are the referrals working for Wholesale ?What is the ration of Customers to Prospects

those who search for your campaigns?

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Gartner Hype CycleContract management• Title• Risk of loss• Seller/Buyer Refusal• Warranty Implied