CRM Applications Read Kalakota pp

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 life e.g., bundling cross-selling, up-selling maximizing high-value /low-cost customers Increase customer profitability and retain for life e.g., bundling cross-selling, up-selling maximizing high-value /low-cost customers Retain customers e.g., listening adaptability new products customer service loyalty program Retain customers e.g., listening adaptability new products customer service loyalty program Acquire new customers e.g., differentiation innovation Acquire new customers e.g., differentiation innovation

1. Acquiring new customers Marketing , 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, , 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 Increase customer profitabilit y Retain customers Increase product offering Reduce cost, cycle time Improve quality Product-centric strategies Customer-centric strategies

CRM: Integration with back-end applications Back Office: Integrate customer data 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

Activities Contact 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?