2. CRM: WEEK 2 (1/18 – 1/20) Last Week Highlights: Course Expectations & Learning Goals What is CRM? – see handout, course slides (below) and course notes: Customer Centric Strategies not software/hardware. Value of CRM to Enterprise Retention = Profitability

3. CRM: WEEK 2 (1/18 – 1/20) Wednesday (1/18) Objectives: Wachovia Exam: Single View of Customer CRM Modules/Components Salesforce Automation Systems Call Center Operations Marketing Automation Operational vs Analytical CRM Continuation of CRM vs. DBM

4. Sales Force Automation Grandmother of CRM Contact Management Access to Customer Purchase History Link to SCM/ERP Systems to track order status Sales Force Management Metrics, training, transition, pipeline forecasts

5. Call Centers – Service Centers Cost Center vs. Profit Center Image Satisfaction Retention Cross Sell/Up Sell Telephony Analytical CRM

6. Marketing Automation Integrated Marketing Communication All Touch Points Mass Customization Interactive Marketing Analytical CRM Metrics/ROI Acquisition/Grow/Reward/Retain

7. CRM: WEEK 2 (1/18 – 1/20) Friday (1/20) Objectives: Value Added of CRM Profits & Cost Reduction Evolution to CRM Relationship Marketing Trust Based Relationships Loyalty vs. Retention

8. Value Added of CRM Increased Revenues Cross sell/up sell Mass customization/effective targeting Acquisition, growth/reward, and retention more effective Cost Reduction Printing/mailing/contacts: targeted Automation Self-service: “Best Face Forward”

9. Evolution to CRM Mass Marketing Marketing is Exchange Segmentation Profiling Mass Customization/One-to-One Marketing Relationship Marketing Marketing Concept 40+ years old.

10. Relationship Marketing What constitutes a relationship? Mutuality –awareness of both parties Interaction Iterative Dimensions of Trust How does one build trust in a business relationship?

11. CRM Definitions: CRM is the aggregation of: 1.Customer-centric Strategies 2.Which drive new functional activity not only for sales, marketing and service, but often back office functions such as accounting, production, and shipping. 3.Which demand reengineered work processes for everyone affected. 4.Which require technology support to implement.

12. CRM Definitions-(cont.) Carlson Marketing Group defines CRM as “a business strategy which pro- actively builds a bias or preference for an organization with its individual employees, channels and customers resulting in increased retention and increased performance.”

13. Database Marketing vs. CRM DBM is company-centric,: the whole purpose of targeting customer segments was to help the sell more stuff for less cost. CRM is customer-centric: still concerned with profit but achieves profit by concentrating on customer benefits and values…strengthening the relationship.

14. CRM Tasks: 1.Identifying those customer values that are pertinent to a particular business. 2.Understanding the relative importance of those values to each customer segment. 3.Determining if delivery of those values will affect the bottom line positively.

15. CRM Tasks (cont.): 4.Communicating and delivering the appropriate values to each customer segment in ways the customer wants to receive the information. 5.Measuring results and proving return on investment.

16. Added Value Thoughts “Customers don’t want to be treated equally. They want to be treated individually.” – Peppers & Rogers Success or Failure of Loyalty Programs? PetsMart Loyalty Program vs. CRM CRM and building loyalty is a long-term process.