1. BUSINESS DRIVEN TECHNOLOGY
Chapter Eleven:
Building a Customer-Centric Organization – Customer Relationship Management

2. LEARNING OUTCOMES
11.1 Compare operational and analytical customer relationship management
11.2 Identify the primary forces driving the explosive growth of customer relationship management
11.3 Define the relationship between decision making and analytical customer relationship management
11.4 Summarize the best practices for implementing a successful customer relationship management system

3. Enterprise Minder (SAS) to
1-800-flower
Enterprise Minder (SAS) to
reveal trends,
explain outcomes,
predict results
Revenue increase 7.5%
$124 million

4. New York Time
Find similarities among groups of readers
How to appeal to those groups
National Newspaper
Reach it offers to advertiser
Achieve a customer retention rate of 94% while
industry rate is at 60%

5. National Basketball Association’s New York Knicks
Better than ever communicating with their fans
Which seasons ticket holders like which players
Which merchandise they buy and where they buy

6. Brother International Corporation
Skyrocket growth in its sales of multifunction centers, fax machines, printers labeling system
Increase in customer service calls
Failed to answer the phone fast enough, product return started to increase
Upping call center capacity, return began to drop
CIO realize that the company losing a world of valuable market intelligence

7. Brother International Corporation (2)
Deploy SAP’s CRM,
Reduce calls handle from 1.8 to 1.57 million calls
Reduce agents from 180 to 160 agents
Customer demographic info is now stored and display on the agents screen based on incoming telephone number
Reduced call duration by 1 minutes
Reduced cost by $600,000/year

8. CHAPTER ELEVEN OVERVIEW
CRM is a business philosophy based on
the premise that those organizations that understand the needs of individual customers are best positioned to achieve sustainable competitive advantages in the future
This chapter discusses
The reasons for CRM’s explosive growth
Using CRM to enhance decision making
CRM success factors

9. CHAPTER ELEVEN OVERVIEW
CRM enables an organization to:
Provide better customer service
Make call centers more efficient
Cross sell products more effectively
Help sales staff close deals faster
Simplify marketing and sales processes
Discover new customers
Increase customer revenues

10. CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH
CRM Business Drivers

11. CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH
Forecasts for CRM Spending (in billions)

12. USING ANALYTICAL CRM TO ENHANCE DECISIONS
Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers
Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers

13. USING ANALYTICAL CRM TO ENHANCE DECISIONS (2)
Operational CRM and analytical CRM

14. USING ANALYTICAL CRM TO ENHANCE DECISIONS (3)
Operational CRM
Automates call centers and sales forces with the aim of enhancing customer transactions
Analytical CRM
Designed to dig deep into a company’s historical customer information and expose patterns of behavior on which a company can capitalize
Use to enhance and support decision making and works by identifying patterns in customer information collected from the various operational CRM

15. CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS
CRM Success factors include:
Clearly communicate the CRM strategy
to both employee at all level and customers
Define information needs and flows
Build an integrated view of the customer
Implement in iterations
In pieces
Scalability for organizational growth
Estimate future needs is the hardest part
How the organization is going to grow
How technology is going to change
How customers are going to evolve

16. OPENING CASE STUDY QUESTIONS Revving Up Sales at Harley-Davidson
Assess the impact on Harley-Davidson’s business if it decided to sell accessories directly to its online customers, be sure to include a brief discussion of the ethics involved in this decision
Evaluate the HOG CRM strategy and recommend an additional benefit Harley-Davidson could provide to its HOG members to increase customer satisfaction

17. CHAPTER ELEVEN CASE Gearing Up at REI
REI deserves recognition as an industry leader for its “best practice” multichannel CRM strategy, which allows customers to seamlessly purchase products at the company’s 70 retail stores as well as by telephone, mail order, and on the Internet
REI’s CRM system benefits:
Minimizes maintenance costs
Scales easily as company grows
Provides sophisticated data warehouse for business intelligence
Provides high availability

18. CHAPTER ELEVEN CASE QUESTIONS
Summarize why it is important for REI to use CRM strategies to consolidate its customer information
Determine two pieces of customer information that REI could extrapolate from its CRM system that would help it manage its business more effectively
Explain how REI could use personalization to give its customers a more satisfying shopping experience