The role of multi channel integration in customer relationship management Group 1 Members: Margaret Dlamini Ayman Mattar July Panoso Saumen Bhaumick

Introduction CRM is based on principles of relationship marketing, however it involves building relationships of mutual value between suppliers and customers. CRM is a management approach that seeks to create, develop and enhance relationships with carefully targeted customers to maximise customer value. Associated with utilising technology to implement relationship marketing, CRM unites new technologies and new marketing thinking to deliver profitable, long- term relationships. The paper tries to provide a structured approach to the development of an integrated multichannel strategy in an industrial market.

CRM and multichannel integration Advances in technology especially internet, have greatly enhanced the flow of dialogue and the capture, interpretation and dissemination of information. Internet has enabled the development and management of more complex multiple channel and cross-channel relationships.

There are many definitions of CRM provided by different writers, Payne and Frow utilise a process approach based on 5 key cross- functional CRM processes:  the strategy development process,  the value creation process,  the multichannel integration process,  the information management process,  the performance assessment process.

Industry channel structure Review - Industry structure - Channel participants Channel should best work together Part of the STRATEGY development process in CRM

CRM as a cross-functional activity

Channel participants Channel structure Approaches can best attract the final customers in the TARGET segment

Developing market structure maps The market map identifies: The volumes of product and services sold the sales values associated with them Quantification of the volumes or values at each of these stages is a key element in the process Market map help: Evaluate the success of existing channel participants Evaluate the amount of marketing Consider alternative future structures

Channel options Sales Force. Account management, service, and personal representation Outlets. Retail branches, stores, depots, and kiosks Telephony. Traditional telephone, facsimile, telex, and call center contact Direct Marketing. Direct , radio, traditional TV e-commerce. , internet, and interactive digital TV m-commerce. Mobile telephony, SMS and text messaging, and WAP and 3G

CRM Channel Strategies Starting point – who should dictate the strategy? A mono-channel provider strategy A customer segment channel strategy Different channel types for different segments A graduated account management strategy is based on the existing and future potential value of customers A channel migrator strategy An activity-based channel strategy An integrated multi-channel strategy Utilizing the full range of commercially viable channels “ To create the value by choosing the appropriate channel”

Strategic CRM The channels need to be considered in the context of the whole interaction over the life cycle (pre-sale, sale, post-sale) of the customer relationship (not just in terms of the sales activity). 3 stages of customer relationship: acquisition, consolidation, enhancement. Short product lifecycle -> offer stream of products tailored to most valuable customers

Customer Experience “Competitive advantage today is not just about selling products and service to customers; it is about delivering world class service, and building long-term and profitable relationship” Channel experience needs to be considered: Typical and perfect CE within channel Typical and perfect CE across channel How to sustain and improve the cusomer experience within channel, across channel, and substitute an existing channel for better ones

Technology in improving CE Caller line identification (CLI) Interactive voice response (IVR) Computer-telophony integration (CTI)

The Strategy Developing a Multi Channel strategy is essential for any effective implementation of CRM. Thus identified following six key points

Develop Strategic Multi channel Objectives: Which can improve the customer experience, improve revenue grow, utilize skills and resources to the maximum. Understand Customer and channel touch points to leverage advantage The needs, wants and concerns of customers should be a primary consideration in designing the marketing channels. Undertake review of Industry structure and Channel options This step involves review of channel alternatives currently being used and those used by the competitors

Understand shift in channel usage patterns to consider possible channel option To consider possible channel options, how shifts will occur in channel usage pattern…. e.g Web and Review Channel economics for possible cost To check options reduction Developing an integrated channel management strategy The Final step involves making decision regarding how to achieve the company’s strategic channel objectives

The Paper highlights the role of multi channel integration of CRM The role CRM effects marketing Long term customer relationship Adoption of multi channel approaches Identifying some promising area for future resources To cope up with the latest technology. Conclusion...

THANK YOU The slides were prepared from the papers of Industrial Marketing Management 33 (2004) 527– 538 The role of multichannel integration in customer relationship management By Adrian Payne*, Pennie Frow Cranfield School of Management, Cranfield University, Cranfield, Bedford MK430AL, UK