1. Customer Relationship Management Wagner & Zubey (2007) 11 Copyright (c) 2006 Prentice-Hall. All rights reserved. Copyright 2007 Thomson Publishing: All Rights Reserved Chapter 1: Basics of CRM Essentials of Customer Relationship Management: A People, Process, and Technology Approach William Wagner and Michael Zubey

2. Customer Relationship Management Wagner & Zubey (2007) 2 Objectives  Define and understand Customer Relationship Management (CRM)  Define CRM and place it in a historical context  Describe how CRM benefits organizations  Outline the major CRM processes  Describe the IT framework for CRM

3. Customer Relationship Management Wagner & Zubey (2007) 3 Objectives (cont.)  Identify databases involved in CRM applications  Describe CRM's relationship to ERP applications  Outline possible future directions for CRM

4. Customer Relationship Management Wagner & Zubey (2007) 4 CRM in Action  CRM at Huntington Bank  Personal banking vs. mortgage banking  2 months for long-term client to get approval for mortgage  All of the information is already there  360 degree view of customer  CRM should provide better service and cut costs at the same time  May lead to other value-added services also

5. Customer Relationship Management Wagner & Zubey (2007) 5 CRM Defined Customer Relationship Management (CRM) is the systematic combination of people, processes and technology that is designed to enable an enterprise to find, acquire, and retain customers. (Wagner & Zubey)

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7. Customer Relationship Management Wagner & Zubey (2007) 7 Why firms invest in CRM…  Cost of acquiring customers  Ex. Of AOL giveaways  Generally costs 5X as much to attract new customers as it does to keep existing ones  Reducing customer churn rate 5% can increase profits 25-95%  Satisfied customers are great source of improved ROI  Number 1 reason for customer defections is poor customer service

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9. Customer Relationship Management Wagner & Zubey (2007) 9 Benefits of CRM  Reducing the cost of sales  Identifying and targeting customers better.  Decreasing cost of marketing campaigns  Increasing customer loyalty  Increasing customer retention  Identifying customer trends and patterns of consumption  Help the right information flow to wherever it's needed throughout the organization.

10. Customer Relationship Management Wagner & Zubey (2007) 10 CRM and People  Roles of Executives  CEO, CMO, CFO, CIO, VP of Sales  Operational level Roles  Marketing manager, customer service, sales person, IT manager, Database administrator

11. Customer Relationship Management Wagner & Zubey (2007) 11 CRM Processes  Marketing  Sales  Customer Service

12. Customer Relationship Management Wagner & Zubey (2007) 12 CRM and the Marketing Process  Focused on lead generation and awareness of the products and services being offered by a firm

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14. Customer Relationship Management Wagner & Zubey (2007) 14 CRM and the Sales Process  sales process can be very different based upon locality and type industry  some firms may have multiple sales channels  includes web, direct sales, or distributors to sell their products and services in the market  A multi-channel sales model is a very challenging effort to coordinate from a CRM perspective.

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16. Customer Relationship Management Wagner & Zubey (2007) 16 CRM and Customer Support Process  The customer support process is often overlooked  customer support is not perceived as a revenue generating activity  may not receive the same amount of investment as a sales process because of the “cost center” perception by a firm’s management.

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18. Customer Relationship Management Wagner & Zubey (2007) 18 CRM Technology Framework  One of several “enterprise” applications  Think in terms of infrastructure necessary  Also in terms of CRM applications

19. Customer Relationship Management Wagner & Zubey (2007) 19 Infrastructure for CRM  Hardware  Input/Output devices, servers, cables, channels  Software  Applications  OS, NOS  “Middleware”  Networks  LAN, WAN  C/S main architecture  Inet is considered to be an example of C/S

20. Customer Relationship Management Wagner & Zubey (2007) 20 CRM and Client/Server

21. Customer Relationship Management Wagner & Zubey (2007) 21 N-Tier Client/Server

22. Customer Relationship Management Wagner & Zubey (2007) 22 CRM and Software  Common OS and H/W configurations define an IT “platform”  Databases  Database servers  DBMS software  Relational DBMS  Structured Query Language (SQL)  “legacy” databases  Text database - XML  Operational and analytic databases

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24. Customer Relationship Management Wagner & Zubey (2007) 24 CRM Applications  Sales Force Automation  Call or Service Center Integration  Market automation

25. Customer Relationship Management Wagner & Zubey (2007) 25 Major CRM Software Vendors  Oracle/Seibel/PeopleSoft  SAP  Onyx  Baan/Invensys  Vantive  Clarify  Salesforce.com

26. Customer Relationship Management Wagner & Zubey (2007) 26 Summary  In this chapter you learned:  Basics of CRM  Using a people, process technology approach  Importance for businesses today  Core processes involved in CRM  Roles of people involved in CRM  Key technologies that support CRM  Future directions of CRM

27. Customer Relationship Management Wagner & Zubey (2007) 27 Questions?