1. CUSTOMER RELATIONSHIP MANAGEMENT

2. LEARNING OUTCOMES
Compare operational and analytical customer relationship management
Explain the formula an organization can use to find its most valuable customers
Describe and differentiate the CRM technologies used by sales departments and customer service departments
Describe and differentiate the CRM technologies used by marketing departments and sales departments

3. BUSINESS BENEFITS OF CRM
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

4. CRM BASICS
Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value
How recently a customer purchased items (Recency)
How frequently a customer purchased items (Frequency)
How much a customer spends on each purchase (Monetary Value)

5. The Evolution of CRM
CRM reporting technology – help organizations identify their customers across other applications
CRM analysis technologies – help organization segment their customers into categories such as best and worst customers
CRM predicting technologies – help organizations make predictions regarding customer behavior such as which customers are at risk of leaving

6. The Evolution of CRM
Three phases in the evolution of CRM include reporting, analyzing, and predicting

7. The Evolution of CRM

8. Operational and Analytical CRM
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

9. Operational and Analytical CRM

10. Using IT to Drive Operational CRM

11. Marketing and Operational CRM
Three marketing operational CRM technologies:
List generator – compiles customer information from a variety of sources and segment the information for different marketing campaigns
Campaign management system – guides users through marketing campaigns
Cross-selling and up-selling
Cross-selling – selling additional products or services
Up-selling – increasing the value of the sale

12. Sales and Operational CRM
The sales department was the first to begin developing CRM systems with sales force automation – a system that automatically tracks all of the steps in the sales process

13. Sales and Operational CRM
Sales and operational CRM technologies
Sales management CRM system – automates each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts
Contact management CRM system – maintains customer contact information and identifies prospective customers for future sales
Opportunity management CRM system – targets sales opportunities by finding new customers or companies for future sales

14. Sales and Operational CRM
CRM Pointers for Gaining Prospective Customer
Get their attention
Value their time
Overdeliver
Contact frequently
Generate a trustworthy mailing list
Follow up

15. Customer Service and Operational CRM
Three customer service operational CRM technologies:
Contact center (call center)
Web-based self-service system
Click-to-talk
Call scripting system

16. Customer Service and Operational CRM

17. USING IT TO DRIVE ANALYTICAL CRM
Personalization – when a Web site knows enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person
Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior
These systems quickly aggregate, analyze, and disseminate customer information throughout an organization

18. USING IT TO DRIVE ANALYTICAL CRM
Analytical CRM information examples
Give customers more of what they want
Value their time
Overdeliver
Contact frequently
Generate a trustworthy mailing list
Follow up

19. Closing CASE QUESTIONS
Summarize the evolution of CRM and provide an example of a reporting, analyzing, and predicting question Progressive might ask its customers
How could Progressive’s marketing department use CRM technology to improve its operations?
How could Mini’s sales department use CRM technology to improve its operations?

20. CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES

21. LEARNING OUTCOMES
Identify the primary forces driving the explosive growth of customer relationship management
Summarize the best practices for implementing a successful customer relationship management system
Compare customer relationship management, supplier relationship management, partner relationship management, and employee relationship management

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

23. CUSTOMER RELATIONSHIP MANAGEMENT’S SUCCESS FACTORS
CRM success factors include:
Clearly communicate the CRM strategy
Define information needs and flows
Build an integrated view of the customer
Implement in iterations
Scalability for organizational growth

24. CURRENT TRENDS: SRM, PRM, AND ERM
Current trends include:
Supplier relationship management (SRM) – focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection
Partner relationship management (PRM) – focuses on keeping vendors satisfied by managing alliance partner and reseller relationship that provide customers with the optimal sales channel
Employee relationship management (ERM) – provides employees with a subset of CRM applications available through a Web browser

25. CRM TRENDS Mobile CRM Archi. CRM 1 www.resonatesolutions.com.au
Management
Analytics
Sales
PDA
Marketing
CRM
Knowledgebase
ERP Back Office
Customers
Products
One of the most valuable aspects of CRM – centralising and sharing knowledge. Marketing can get information from the field. Sales can get promotional and pricing information quickly and efficiently. Orders are visible to all, perhaps including customers. Claims and commitments can be automated. Management can analyse to make better decisions.
Support
Customer
Pricing 1
Promotions
Competitors
Internet /
Consumers
Complaints
Campaigns
History

26. FUTURE CRM TRENDS CRM future trends include:
CRM applications will change from employee-only tools to tools used by suppliers, partners, and even customers
CRM will continue to be a major strategic focus for companies
CRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customers
CRM suites will incorporate PRM and SRM modules