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
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
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
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
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