8 - 1 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved.

8 - 2 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Enterprise Business Systems Chapter 8

8 - 3 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Why Study Customer Relationship Management? It is easier than ever for customers to comparison shop and, with a click of the mouse, to switch companies. As a result, customer relationships have become a company’s most valued asset.

8 - 4 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Customer Relationship Management (CRM) Definition: The use of information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a company’s customers

8 - 5 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. CRM Application Clusters

8 - 6 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. CRM Application Components Contact and Account Management – helps sales, marketing, and service professionals capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of customers Sales – provides sales reps with tools and company data sources needed to support and manage sales activities, and optimize cross- selling and up-selling

8 - 7 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. CRM Application Components Marketing Fulfillment – help marketing professionals accomplish direct marketing campaigns by automating such tasks as qualifying leads for targeted marketing, and scheduling and tracking direct marketing mailings Customer Service and Support – provides service reps with software tools and real-time access to the common customer database shared by sales and marketing professionals

8 - 8 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. CRM Application Components Retention and Loyalty Programs – help a company identify, reward, and market to their most loyal and profitable customers

8 - 9 Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Three Phases of CRM

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Three Phases of CRM Acquire new customers by doing a superior job of contact management, sales prospecting, selling, direct marketing, and fulfillment Enhance relationship with customer by supporting superior service from a responsive networked team of sales and service specialists and business partners Retain and expand business with customers by proactively identifying and rewarding the most loyal and profitable customers

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Benefits of CRM CRM allows a business to identify and target their best customers so they can be retained as lifelong customers for greater and more profitable services. CRM makes possible real-time customization and personalization of products and services based on customer wants, needs, buying habits, and life cycles.

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Benefits of CRM CRM can keep track of when a customer contacts the company, regardless of the contact point. CRM systems can enable a company to provide a consistent customer experience and superior service and support across all the contact points a customer chooses.

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. CRM Failures Lack of understanding and preparation Rely on CRM to solve business problem without first developing the business process changes and change management programs that are required CRM projects implemented without the participation of the business stakeholders involved

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Trends in CRM Operational Analytical Collaborative

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Operational CRM Supports customer interaction with greater convenience through a variety of channels. Synchronizes customer interactions consistently across all channels Makes your company easier to do business with

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Analytical CRM Extracts in-depth customer history, preferences, and profitability information from your data warehouse and other databases Allows you to analyze, predict, and derive customer value and behavior and forecast demand Lets you approach your customers with relevant information and offers that are tailored to their needs

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. Collaborative CRM Enables easy collaboration with customers, suppliers, and partners Improves efficiency and integration throughout the supply chain Allows greater responsiveness to customer needs through sourcing of products and services outside of your enterprise

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. CRM Videos to Watch