Customer Relationship Management (CRM) by Abhishek Tatachar
Nov 07, 2014
Customer Relationship Management (CRM)
byAbhishek Tatachar
HighlightsEvolution of CRMWhat is CRMCRM PhasesIntegrated ArchitectureHow does Data Mining help CRMLeading CRM VendorsLimitsConclusion
EvolutionInitially, there were Door-to-Door sales forces to approach the customers.Then, Mass marketing replaced the intimacy of a direct sales force.Later, Targeted marketing evolved. Use of direct mail and telemarketing.Latest is Customer Relationship Management (CRM), the next step in Evolution. A concept supported by latest technologies.
What is CRM ?
A Customer-centric business strategy whichFocuses on Managing and optimizing entire customer life cycle.Demand re-engineering of work processes with customer in focus.It consists of 3 phases
Planning Phase Assessment Phase Execution Phase
Layman Definition of CRM
The process includes collecting customer data, analyzing this data to make decisions which helps to make new customers and satisfy the existing ones.
Planning Phase
Plan to approach the customersPlan for making new campaignsThis phase includes Marketing tools Various Softwares
Marketing & Sales personnel are involved in this phase
Assessment Phase
Select customer base for analysisAnalyze customer requirements This phase includes technologies like Data warehousing Data Mining Online analytical processing (OLAP)
A certified personnel sets up the CRM package while a business analyst analyzes the data
Execution Phase
Customer interactionExecutes campaignsTrack customer feedbackThis phase uses Internet Call centers Direct mails etc.
Technology behind Assessment Phase
Data Mining
Data Warehouse
OLAP Server
Warehouse containing Customer data.
Multidimensional Structures to facilitate better and fast analysis of data.
Integrates with Data Warehouse & OLAP to implement intelligent algorithms to discover patterns.
User analyzes these patterns to take decisions suitable for his business.
DATA WAREHOUSING A data warehouse is a copy of transactional data. Data is specifically structured for querying and reporting A data warehouse can be a relational, multidimensional
hierarchical database or a flat file.
DISTINGUISHABLE FEATURES
• Contains historical data• No frequent updates• Data stored is subject oriented
TERMINOLOGY
Data Mart- Contains data about a specific subject.Metadata- Describes the data stored in data warehouse.Data Cleansing- The process of ensuring that all values in a dataset are consistent and correctly recordedETL- Extraction, Transformation and Loading of Data.
A Typical Data Warehouse
Data Warehouse
Detailed Data
DataMart
DataMart
DataMart
Summarized DataMeta Data
Data about data.Facilitates in firing queries on detailed data.Data marts contain data specific to a subject.
customer campaign sales
OLAP
•Online analytical processing is the name given to database and user interface tools that allow to quickly navigate within data.
•Provides a mechanism to store the data in multidimensional cubes.
DISTINGUISHABLE FEATURES
•Multidimensional Cubes- To store data which are multidimensional in nature.
•Calculation Intensive- Allows complex calculations on database.
Data Model Of OLAP
The central table in an OLAP star data model is called the fact table .The surrounding tables are called the dimensions The values of fact table are known as measures.
Data Model Of OLAPThe supervisor that gave the most discounts. The quantity shipped on a particular date, month, year or quarter. In which zip code did product A sell the most?
To obtain answers to the above shown queries from a data model, OLAP cubes are created.
OLAP cubes are not strictly cuboids-it is a name given to the process of linking data from different dimensions.
Interaction b/n Warehouse & OLAP
Extract Data from Warehouse
Transform and Standardize Data
Import to OLAP Database
Build Cubes Produce Reports
Process of transforming warehouse data
How does Data Mining help CRM
CRM systems typically collect a great deal of data Data Mining is used to search through this information Identify patterns that can help to predict buyer behavior Target specific customers with specific offers
This area of CRM is referred to as Analytical
CRM
With CRM, a business can …
Provide better customer serviceMake call centers more efficientIncrease customer revenuesHelp sales staff close deals fasterSimplify marketing and sales processes Discover new customers
Leading CRM Vendors
SiebelmySAP Oracle PeopleSoftVantiveClarify
Screenshots of mySAP
It supports:MarketingSalesServiceAnalytics
Screenshots of mySAP
Screenshots (continued)
Limits
ExpensiveHard to implementTime consuming It requires a lot of management and money
Conclusion
CRM is a concept, implemented with the support of various technologies. Supporting technologies include Data warehousing, Data Mining, OLAP etc.A proper Data warehouse should be in place for any CRM initiative.Customer needs should be in focus while implementing CRM.
References
CRM by Kristin Anderson & Carol Kerrwww.crmguru.comwww.dwreview.comsap.comThe Rushmore Group, LLC
ThankYou