CRM has been defined in a multiple ways - A way to identify, acquire, and retain customers - A way of automating the front office functions of sales, marketing, and customer services - Vendors: whatever their current product may be

Meeting Customer-Knowledge Management Objectives - Segment the customer base - Prioritize customer - Know what your customer want to know - Understand your customer behavior - Engender customer loyalty - Innovate existing products - Extend products or services - Improve success in cross-selling

Data Mining It is the search for actionable patterns in data It rest on three legs: - Business Needs - Data - Data Mining Techniques

Data Mining Tools There are a handful of leading tool vendors that offer powerful algorithms (decision trees, neural networks, and clustering: Silicon Graphics (Mineset) SAS (Enterprise Miner) IBM (Intelligent Miner) ISL (Clementine) Angoss (KnoledgeSTUDIO) Thinking Machines (Darwin)

CRM Is a technology-enabled business strategy whereby companies leverage increased customer knowledge to build profitable relationships, based on optimizing value delivered to and realized from their customers.

CRM - It is a strategy, not an application, technology, or suite of products - It is not a grassroots initiative - It is for B2B and B2C - No one vendor provides all needed applications

A great CRM strategy includes: - Realign / reinvent business processes - Use the full range of technology - Sell the company as well your wares - Use technology to maximize customer contacts - Put current application to strategic use

A Strategic Framework for CRM Implement targeted customer care relationship program Increased value-added for the customer Increased prices Offer targeted products/ services Capture/ integrate customer information Increased customer loyalty Increased customer revenues Implement targeted marketing programs Create customer profile Increased customer knowledge Increased customer base Create flexible integrated channel architecture Increased profits Increased marketing/sales/ customer care effectiveness Segment customers by potential/ profitability Improved customer acquisition Implement targeted sales campaigns LEGEND Knowing your customer Divesting customers Increasing value-add Capturing increased value Customer interaction Customer base Ultimate benefits Increased marketing/sales/ customer care efficiency Decreased costs Divest unprofitable customers

Technological Underpinnings of CRM - Database --not simply storage capacity, but the ability to analyze and map data - Interactivity --Websites, call centers, and any other means used to interact with customers - Mass customization --or standardization, enabling to break products/services into modules or templates

Who Needs CRM? III IV Airlines Pharmacies Packaged goods mfrs. Computer firms I II Gas stations Bookstores differentiated Uniform Highly CUSTOMER VALUATIONS CUSTOMER NEED Uniform Highly differentiated

Interesting Resources CRM UNIVERSE http://www.crmuniverse.com/ CRM FORUM http://www.crm-forum.com/ ECRM GUIDE http://www.ecrmguide.com/

Changing Customer Expectations FROM TO Focused on making/selling Sensing customer needs and products responding with products Mass marketing (e.g. TV) Marketing to segments of one Business-centric interactions Customer-centric interactions designed for efficiency and designed for customer’s convenience efficiency and convenience