CRM Applications Read Kalakota pp 169-202. What is CRM CRM (Customer Relationship Management) is a long term, customer-centric business strategy whose.

CRM Applications

Read Kalakota pp 169-202

What is CRM

CRM (Customer Relationship Management) is a long term, customer-centric business strategy whose goal is to maximize profitability through customer loyalty.

Why bother with CRM software?

New Customer demands for more self-service

High cost of presales (the cost of doing business)

High cost of order errors Increasing competition (the Internet has a

long reach) Complexity of products (repair or just

replace) Cheap & powerful CRM software

Growth of “Open Source” free software

E-business Application Architecture

Customer Relationship Management – some statistics

It costs six times more to sell to a new customer than to an existing one

A typical dissatisfied customer will tell eight to ten people about their experience

A company can boost its profits by 85% by increasing its annual customer retention by only 5%

The odds of selling a product to a new customer are 15%; an existing customer 50%

CRM Cycle

Acquire New Customers

Enhance profitability of new customers

Retain profitable customers for life

Increase customer profitability and retain for lifee.g.,• bundling• cross-selling, up-selling• maximizing high-value /low-cost customers

Increase customer profitability and retain for lifee.g.,• bundling• cross-selling, up-selling• maximizing high-value /low-cost customers

Retain customerse.g.,• listening • adaptability• new products • customer service• loyalty program

Retain customerse.g.,• listening • adaptability• new products • customer service• loyalty program

Acquire new customerse.g.,• differentiation• innovation

Acquire new customerse.g.,• differentiation• innovation

1. Acquiring new customers Marketing

Email, snail mail Company Website

Online catalogue Intelligent agents

Website data capture/ analysis Analyze traffic on your Web site

Log files Web bugs Cookies to track preferences

CRM: Three Phases

Not as popular as

they used to be.

2. Enhancing profitability Better understand what existing

customers want Increase up-sell (do you want cheese on

that burger?) and cross-sell (Do you want fries with that?) opportunities

Understand non-profitable customers Reduce returns and service requirements Sales Force Automation (on-line ordering,

laptops, blackberries, etc. for sales staff)

CRM: Three Phases

3. Retaining profitable customers for life

Increase customer satisfaction Create customer loyalty Improve service to existing customers

Provide more self-service opportunities Intelligent agents, chat, email, helpdesk,

FAQ Give access to online knowledge base

Ensure priority attention for profitable customers

CRM: Three Phases

Product and Customer Strategies

Mission

Competition

Environment

Organization

Acquire

customers

Increasecustomerprofitabilit

y

Retaincustomers

Increaseproductoffering

Reduce cost,

cycle time

Improve

quality

Product-centric strategies

Customer-centric strategies

CRM: Integration with back-end applications

Back Office:Integrate customerdata from:• Accounts Rec. (A/R)• Sales History• Supply Chain• Staff entered data (e.g. market research)• External data (e.g. credit checks)•Out sourced surveys

CRM: Integration with front-end applications

SalesBase is very user-friendly, with that familiar Windows based feel

Navigate between Companies

All SalesBase features and functions are accessible from the Toolbar and Menu

Company View

ActivitiesContact Management

Activities can be viewed in a list. Overdue Activities are immediately obvious as they are listed in red. The list shows the type of activity.

The activities list enables you to filter activity types, date or user

From the activities list you can quickly complete activities by right mouse clicking on the required activity

When any activity is completed the information is transferred to the contact or company history and a new activity is prompted for

Customer Activities

SalesBase allows you to record your sales opportunities and develop quotations

Quotations can be verbal or written using Word templates

Written quotations produce a quotation document that can be revised and gives a full audit trail of any revisions enabling roll-back at any stage

SalesBase allows you to filter the quotations list by Active, Completed and by User

Full reporting enables you to gain an accurate picture of success or failure rates and the reasons why, to help you produce sales forecasts

Quotation Management

Sales Management

The Accounts tab in SalesBase links to your accounting package to provide you with current information about your customers and suppliers payment and order status

You can also see information from the Sales Ledger and the Purchase Ledger, view live orders and order history

The Ledger transactions can but filtered to show All, Open or Closed transactions

Stock drill down capabilities enable viewing of Stock

Full user security at all levels

Accounts Management

CRM Challenges

Up-selling and Cross-Selling

Any opportunity to turn a customer interaction into a sale

The role of CRM: to allow sales people to better understand their customer’s needs and to take advantage of sales opportunities the instant they occur

CRM Challenges (cont)

Marketing and fulfillment

- Customer requests for product and service information must be delivered in a timely manner

* The challenge for CRM: how to deliver product info tailored to individual needs?

CRM Challenges (cont)

On line Billing Customers still prefer paper bills and receipts Some innovative companies (Fido for

example) offer incentives to switch to online bills

• Challenge for CRM: Generate and deliver customer receipts when sales occur

CRM Challenges (cont)

Field sales and Services Customers increasingly demand instant

solutions to their problems Challenge for CRM: to enable Field sales

people with access to information that will enable them to instantly solve customer problems.

WAP enabled phones becoming popular

CRM – the next Generation…

1) Integrated customer content- (web access, phone conversations, fax etc)

2) Centralized contact information repository- one easy accessible database for ALL customer contact details

3) Sales and service integration- serving the customer BEFORE they make a purchase

CRM – the next Generation…

4) Partner integration- one point of contact for all customer enquiries/complaints

5) Integrating technologies- Legacy systems. Telephones systems,

Data warehousing, DSS

Journal Question

Choose a business based in Doha and

discuss how effective it is in dealing with

its customers. How does this business use

technology to maintain customer loyalty?