Customer-Relationship-Management_2.ppt

7/28/2019 Customer-Relationship-Management_2.ppt

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Customer relationship management (CRM)

Term applied to processes implemented by a company to

handle its contact with its customers

CRM is a software-based approach to handling customer

relationships

Store information on current and prospective customers


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Control over buying process

Information, comparison, selection, easy to find

Best possible price

Delivery (free), quality

All payment options

Secure Communication designed to suit needs

Computerized, complex, caring


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All forms of trading

Direct

Traditional

Retail

E-commerce

Wholesale

Combination


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New convergence

Telephony & telemarketing

Internet

Mobile, SMS

Digital TV

Cable & satellite


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Control over buying process

Information, comparison, selection, easy to find

Best possible price

Delivery (free), quality

All payment options

Secure Communication designed to suit needs

Computerized, complex, caring


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All forms of trading

Direct

Traditional

Retail

E-commerce

Wholesale

Combination


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New convergence

Telephony & telemarketing

Internet

Mobile, SMS

Digital TV

Cable & satellite


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Customer relationship management (CRM)

From the outside, customers interacting with a company

perceive the business as a single entity, despite often

interacting with a variety of employees in different roles

and departments

CRM is a combination of policies, processes, andstrategies implemented by a company that unify its

customer interaction and provides a mechanism for

tracking customer information


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Information in the system can be accessed and

entered by employees in different departments)

Sales

Marketing

Customer service

Training

Professional development

Performance management

Human resource development


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Details on any customer contacts can also be

stored in the system

The rationale behind this approach is to improve services

provided directly to customers

To use the information in the system for targeted

marketing and sales purposes


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Many inter-related aspects

Front office operation

Back office operations

Business relationships

Analysis


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Direct interaction with customers

Face to face meetings

Phone calls

E-mail

Online services etc


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Operations that ultimately affect the activities of

the front office

Billing

Maintenance

Planning

Marketing

Advertising

Finance

Manufacturing


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Interaction with other companies and partners

Suppliers/vendors

Retail outlets/distributors

Industry networks (lobbying groups, trade assn)

This external network supports front and backoffice activities


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Key CRM data can be analyzed in order to plan

Target-marketing campaigns

Conceive business strategies

Judge the success of CRM activities (e.g., market share,

number and types of customers, revenue, profitability)


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CRM initiatives often fail

Implementation was limited to software installation

Inadequate motivations for employees to learn, provide

input, and take full advantage of the information systems


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Three key phases

1. Customer Acquisition

2. Customer Retention

3. Customer Extension

Three contextual factors

4. Marketing Orientation 5. Value Creation

6. Innovative IT.


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Attracting our customer

For the first purchase

We have acquired our customer

Growth

Market orientation, innovative IT & value creation

Aim is to increase the number of customers thatpurchase from us for the FIRST TIME


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Re-purchase

Our customer returns and buys for a second time

This is most likely to be the purchase of a similar product

or service, or the next level of product or service.

Growth


Aim is to increase the number of customers that

purchase from us REGULARLY


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Additional, supplementary purchases

Our customers are regularly purchasing

We introduce products and services to our loyal

customers different from original purchase

Once purchased, our goal is to retain them as customers

for the extended products or services

Growth


Aim is to increase the number of customers that

purchase ADDITIONAL products


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Focused upon the three levels of needs of

customers

Actual, tangible product

Core product and its benefit

Also the augmented product such as a warranty and

customer service


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CoreBenefit

BasicProduct

ExpectedProduct

Augmentedproduct

PotentialProduct


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Generation of shareholder value

Based upon the satisfaction of customer needs (as with

marketing orientation)

Delivery of a sustainable competitive advantage


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Updated IT

Efficient, speedy and focus upon customer needs

Whilst IT and/or software are not the entire story for

CRM, it is vital to its success

CRM software collects data on consumers and their

transactions

Organizations will track individuals, and try to market

products and services to them based upon similar buyerbehavior seen in other individuals


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1. Validation

2. Discovery

3. Action


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1. Validation

2. Discovery

3. Action


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Correct data

Ensuring that the data you have on your customers is not

only correct

Also, in a suitable state for targeting communications

programs


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Use of data mining techniques

To find relationships that you did not know existed

Sometimes conventional analysis is impaired by your

own natural assumptions and prejudices

Discovery techniques help to solve these issues by

starting from ground zero

They simply search for relationships in the databaseagainst a set of objectives


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Right communication

Your customers and prospects need to have the right

messages communicated to them

Quality Inter-Action drives quality Trans-Action

This is done with a Campaign Management tool that can

automatically select the right targets and the right

messages via the right channels

The responses are then fed back into the Validation

process for evaluation and refinement


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CRM is corporate strategy composed of

applications, technology and products that fulfill

three essential requirements

1. Organization perspective

2. Customer perspective

3. Front office staff perspective


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360 view of each customer

For consistent and unified contact with that customer

whenever anyone anywhere in the enterprise deals with

that customer

This knowledge increases the opportunities for sales and

the effectiveness of customer service


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Customers to have a consistent view

To enable your customers to have a consistent view of

your enterprise, regardless of the way the customer

contacts you

This improves customer satisfaction and customer

retention

2. Customer perspective


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Staff performance

To enable front office staff to perform sales, service and

marketing tasks more efficiently as a team

Increasing expertise and reducing costs


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Important

Business starts with the acquisition of customers

However, any successful CRM initiative is highly

dependent on a solid understanding of customers


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Understand

Demographics, purchase patterns & channels

Segmentation to identify logical unique groups

Primary research to capture needs and attitudes

Customer valuation to understand profitability

Differentiate Based on the value customers are

expected to deliver


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Develop

Products, services, channels and media can be

customized based on the needs of quantitative customer

segments

Customize

Based on the potential value delivered by

customer segment


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Interact

Not just through marketing, sales and media

Distribution, shipping, customer service & online

Deliver

Delivering value is a cornerstone

Factors including quality, convenience,speed, ease of use,

responsiveness and service

excellence


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Acquire

Learning about customers makes it easy to identify those

producing the greatest value

Retain

Maintain interaction;

Deliver on value

Customers change as they move through

differing life stages

Modify the service


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Subconscious Expectations

Pizza with specified toppings

Take 10 minutes

Come in a packed box

Remain warm till you reach home

Charges standard and acceptable price

Pizza will taste reasonably good

You will come back is all the above are met


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If you go regularly

Rapport with employees

You forgive if they mess up with one or two

expectations

Degree of confidence determines

tolerance If using first time, and even one expectation is

not met

You will never go again


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Exceeded expectations

Deliver on all expectations

Give you a garlic bread FREE !

You will tell everyone about it


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Customer-Relationship-Management_2.ppt

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