1. Customer Relationship Management..a strategy used to learn more about customers' needs and behaviours in order to develop stronger relationships with them...a process that will brings together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends... 1

2. Why Bother? Companies, as they grow, lose the personal relationship they once had with their customers. Customers make buying decision based on how a business treats them. More information on customers can help improve business treatment of customers 2

3. What is the goal of CRM? to use technology and human resources to gain insight into the behaviour of customers and the value of those customers and thus:- – Provide better customer service – Identify the most profitable customers – Target marketing – Cross-sell and up-sell products more effectively – Help sales staff close deals faster – Simplify marketing and sales processes – Discover new customers and keep old ones. – Increase customer revenues. 3

4. Questions before implementing CRM What kind of customer information are you looking for and what will you do with that information? e.g. customers' life stages used to market appropriate banking products (e.g. mortgages, savings deals, health insurance) at the right time to fit their needs. What ways do customer information come into the business and where and how is this data is stored and used? – e.g. mail campaigns, websites, bricks-and-mortar stores, call centres, mobile sales force staff, marketing and advertising efforts How many channels can a customer can use to access the company? – The more channels, the greater need for the type of single, centralised customer view a CRM system can provide 4

5. What Happens? Data collected from operational systems flows into analytical systems. Analysts can then comb through the data to obtain a view of each customer and pinpoint areas where better services are needed. E.g.if someone has a mortgage, a business loan and a large commercial account with one bank, it is advantageous if the bank is aware of this each time it has any contact with him or her 5

6. Modes of Implementation On premises vs 6 CRM purchased and customised and implemented in-house. integrated with existing systems – CRM vendor owns and operates the software application and the servers that run the application. – application is available to customers everywhere via the Internet, either in a browser or through some sort of "thin client." – The CRM vendor bills for the application either on a per-use basis or on a monthly/annual fee basis. On-demand, Cloud –based (Software as a Service)

7. Which to Choose? – Good choice for companies that want to implement standard CRM processes, – out-of-the-box data structures, with little or no internal IT support, – and don’t require complex or real-time integration with back office systems quicker to get up and running. reduces the need for in-house technical support software upgrades can cause problems. Easier to customise Easier to integrate More control e.g of sensitive customer data. 7 On premises vs On-demand, Cloud –based (Software as a Service)

8. CRM Adding Value Early CRM were sales automation tools E.g. kept contact information in a database to be used by salespeople. Helped operations. Modern CRM Use data mining and OLAP to analysis data from customer. Find relationships between customer behaviour, demographics, products and other factors. Integrate CRM with other systems (Enterprise CRM) Helps with strategic decisions. 8

9. Examples of how Data can be used Call centres prioritise calls based on a customer profile. Web sites that offer a personnal page suggesting products or services which may be of interest. (personalisation) Target marketing campaigns. 9

10. Operational versus Analytical CRM Operational: – Helps operations. – Improves customer service at an individual level Analytical: – Drives decision making at a strategic and tactical level in the organisation. What products/packages should be offered. How to segment customers. Predicative analysis for marketing campaigns. 10

11. Sources of Customer Data Responses to marketing campaigns – Redemption of coupons. Shipping and fulfilment dates Sales and purchase data Account information Service and support records Demographic data Web sales data Web registration data 11

12. Example : Continental Airways Created a data warehouse to store and enable analysis of customer data, and the effects of promotions. – Flight attendants get a list with detailed information on passengers. – Company apologises and gives a free drink or air miles to customers who experience delays – thus increasing business. – Gate attendants can reroute certain passengers in the event of a delay, depending on what type of customer they are. the most valuable customers get the best service which leads to increased revenue from them 12

13. But ….. A lot of CRM projects have failed. 13

14. What Causes CRM projects to fail? Lack of communication between everyone in the customer relationship chain can lead to an incomplete picture of the customer. Poor communication and not involving staff can lead to technology being implemented without proper support or buy-in from them. – E.g. if the sales force is not sold on the system's benefits, they may not input the kind of demographic data essential to success. Cultural change in the company, particularly among frontline staff. – E.g. retail firm staff focused on managing accounts and contracts, not customers and the software is complex to use. 14

15. Problems with CRM : Time &Cost Objectives of CRM are incompatible with seeking a quick return Improving relationships involves repeated positive experiences, which take place over a long period of time. Projects are too large and take too long to implement. Customer information needs to be collected from many sources which takes time. Underestimation of costs – cultural change, redesigning business processes & technology. 15

16. Keys to successful CRM implementation Use a step-by-step approach. Break the CRM project down into manageable pieces by setting up pilot programmes and short- term milestones. Include a scalable architecture framework. Early and consistent sponsorship from senior management 16

17. Things to Do to Help Succeed. Analyse business needs- establish current position and assess competitors. Identify the customer needs and what you want to achieve through improved interaction. Determine how employees will use the information. Involve staff in the decision-making process and strategy formulation. Communicate the value of customer data. Determine the business case early- identify and prioritise issues and benefits. Articulate overall objectives and identify the measurements of success – ensure employees are working towards targets that reflect the business goals. Consider carefully what data is collected and stored. 17

18. CRM requires Business Change CRM should be regarded primarily as a business strategy and not a software solution. The key principles that are common to this approach are – the alignment of the organisation around customers (rather than products or channels) – the sharing of information across all segments of the business leveraging data from disparate sources to better understand the customer and anticipate his or her needs with the objective of maximising customer profitability 18

19. And … Don’t forget the human touch. It’s ultimately up to the customer-facing employee to make the difference in each and every interaction – with the help of a well- thought out business strategy bolstered by the appropriate technology. 19

20. Companies with CRM products Salesforce.com Sage Microsoft Dynamics SAP Rightnow Oracle SAS 20

21. 21 Have a nice day!!!