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Learning Objectives
1. Traditional Marketing vs. RM 2. Evolution and Growth of CRM 3. Importance of CRM 4. Some definitions of CRM; Our
definition 5. Several common misunderstandings about CRM 6. Four major perspectives on CRM: strategic, operational, analytical and collaborative
N.Karami; CRM
14 September 2013
T Traditional diti l marketing k ti h has f failed il d i in th that t customers t have been put last, not first. This inherent lack of customer focus on behalf of organizations led many consumers to conclude that organizations generally over-promise and under-deliver .
Traditional Marketing
Relationship Marketing
N.Karami; CRM
14 September 2013
The shift in business focus from transactional marketing to relationship marketing The realization that customers are a business asset and not simply i l a commercial i l audience di The transition in structuring organizations, on a strategic basis, from functions to processes The recognition of the benefits of using information proactively rather than solely reactively The g greater utilization of technology gy in managing g g and maximizing the value of information The acceptance of the need for trade-off between delivering and extracting customer value The development of one-to-one marketing approaches.
Strategic CRM
Campaign Management S Scope: Service function Sales function Goals: Improve service operations Increase sales efficiency
Marketing function Service function Sales function Reduce cost of interaction Improve customer experience Increase customer retention
N.Karami; CRM
14 September 2013
Why Customers?
There is only one boss-the customer. And he can fire everybody y y in the company p y from the chairman on down, simply by spending his money somewhere else.
Individual, differentiable customer relationships will be the ultimate software of businesses in the 1:1 future. All your products are ephemeral. Only your customers are real.
Don Peppers & Martha Rogers; The One-To-One Future
Why Customers?
Continued
In the 1980s, we saw in every individual a customer In the 1990s and beyond customer. beyond, we ought to see in every customer an individual.
Jack Welch, CEO, General Electric
N.Karami; CRM
14 September 2013
Our Customers
Suspect Prospect
First-time Customers
Disqualified
Ex-customers
Repeat Customers
Partners
If a company loses 10% of its inventory to Theft, - swift action would be taken to stop the loss,
But
If a company loses 10% of its customers, - no one might even notice it, - not many things could be done to stop it! 80/20 rule 20% of the customers contribute 80% of the revenue
N.Karami; CRM
14 September 2013
CRM Definition
It is a comprehensive set of processes and technologies for managing the relationships with potential and current customers and business partners across marketing, sales, and service regardless of the communication channel.
Brent Frei, President and CEO, Onyx Software
Customer Relationship Management is the commitment of the company to place the customer t experience i at t the th center t of f its it priorities i iti and to ensure that incentive systems, processes, and information resources leverage the relationship by enhancing the experience.
Peter Keen, Chairman, Keen Innovations
CRM Definition
Continued
The management approach that involves identifying, g developing p g and maintaining g successful attracting, customer relationships over time in order to increase retention of profitable customers.
Bradshaw & Brash
CRM is a disciplined business strategy to create and sustain long-term, profitable customer relationships.
Robert Thompson, Thompson President, President Front Line Sol Solutions, tions Inc Inc.
Customer Relationship Management (CRM) is a business strategy to select and manage customers to optimize long-term value.
CRMGuru.com
N.Karami; CRM
14 September 2013
CRM Definition
Continued
CRM relates to strategy, managing the dual-creation or value value, the intelligent use of data and technology technology, the acquisition of customer knowledge and the diffusion of this knowledge to the appropriate stakeholders, the development of appropriate (longterm) relationships with specific customers and/or customer groups, and the integration of processes across the many areas of the firm and across the network of firms that collaborate to generate customer value Payne, 2006
growing business by effectively managing the relationship with future, past, and present customers achieving business goals by defining objectives, implementing a plan, and then measuring results via a system the infrastructure that enables the delineation of and increase in customer value, and the correct means by which to motivate valuable customers to remain loyal software, hardware, process, and workflow Marketing, Sales, Support, etc.
N.Karami; CRM
14 September 2013
Our Definition
CRM = Customer Relationship Management Attracting, Attracting developing and maintaining successful customer relationships over time A strategy for identifying, satisfying, retaining and maximizing the value of a companys best customers All processes and technologies that organizations use to identify, select, acquire, develop, retain, and better serve customers
N.Karami; CRM
14 September 2013
CRM is NOT watching the customer behind his back and g what he does in his browser recording CRM is NOT grouping a bunch of customers together and assuming their wants and needs are the same for every member of the group CRM is NOT statistical models that help to develop marketing strategy CRM is NOT a DB application that records all customer information
CRM Clustering
CRM is NOT part of the human resources issues i involving l i salespeople l l CRM is NOT managing contacts means of customers CRM is NOT a tool for agent assessment which allows the call centre to provide a better service CRM is NOT a technology to access customers through different channels
N.Karami; CRM
14 September 2013
Source: Improving customer interaction with customer knowledge management ; Adrian Buren
N.Karami; CRM
14 September 2013
Means supporting the so-called "front office business processes, which include customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to employees responsible, information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference.
N.Karami; CRM
14 September 2013
An essential part of many CRM implementations. Customer perspective - delivers better, more timely, personalized customized solutions. Company C perspective ti - enables bl cross-selling lli and d up-selling lli programs, and more effective customer retention and acquisition. Data gathered within operational CRM are analyzed to segment customers or to identify cross- and up-selling potential Data collection and analysis is viewed as a continuing and iterative process Analytical CRM is inextricably tied to a Data Warehouse architecture, hit t and d use analytical l ti l applications li ti t to l leverage optimized functionality for analysis and reporting
Event Monitoring
for example, when a customer reaches a certain dollar volume of purchases how likely is a customer or customer category that bought one product to buy a similar one for example, comparing various product development plans in terms of likely future success, given the customer knowledge base
What-if Scenarios
Profitability Analysis
Personalization
Predictive Modeling
N.Karami; CRM
14 September 2013
Collaborative CRM
Facilitates interactions with customers through all channels (personal, letter, fax, phone, web, email) and supports coordination of employee teams and channels. A solution that brings People People, Processes and Data together so companies can better serve and retain their customers. The data/activities can be structured, unstructured, conversational, and/or transactional in nature. Benefits of Collaborative CRM
Enables web collaboration to reduce customer service costs Enables efficient productive customer interactions across all communications channels Integrates view of the customer while interaction at the transaction level Integrates call centers enabling multi-channel personal customer interaction
THANK YOU For LISTENING Customer Relationship Management SESSION ONE Presented by N.Karami
N.Karami; CRM