Customer Relationship Management

ƒ Definition
Š An approach
Š Supporting tools
CRM

CRM approach CRM approach

Š [Seybold 1998, 2000]
ƒ Integrated and structured process to
interact with customers
ƒ Goal: build with customer long term
relationship, increase his satisfaction,
increase value of company for him/her
and viceversa
ƒ Customer becomes core aspect of
commercial strategy
ƒ The company
Š Makes access to product/services as easy
as possible
Š Produces customized offers
Š Provides complete access, from pre-sale
to post-sale
Š Collects complaints and suggestions

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CRM - tools CRM paradigm
Š CRM approach not feasible without tool ƒ Multichannel
support Š Customer accesses company through any
channel
Š CRM starts with Siebel (1993) – Web, call center, counter, (mail)
ƒ Uniqueness of data and service
ERP
Š Access is consistent through all channels
– Data (on product, on customer) is the same and does
not depend on channel
ƒ End to end service chain
SCM ERP CRM
Š Front end: contact with customer (CRM)
Š Back end: service provision, delivery,
administration

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Service chains Ex.: reservations

ƒ Can be more or less complex ƒ Health services, flights, movies ..
Š Level 1: reservations ƒ Database with availability of
Š Level 2: product sale product/service + (multichannel) front
Š Level 3: customer care end
ƒ Simple service chain
Š Sale of right to a service (no
service/product itself)

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Ex.: E-commerce Ex. Customer care
ƒ Computers, books, music Š Telephone
ƒ Complete service chain services,
Š Complex service
Š Sale of product + delivery
chain to assist
– Amazon
customer after
Š Sale of product + production + delivery sale
– Dell

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Evolution of tools
ƒ 80’s ƒ 1995: WEB
Š Sales Force Automation (SFA): tools to Š Informational sites
support salesperson
Š Sales
ƒ 90’s – B2C ( www.Amazon.com )
Š Toll free numbers, call centers – B2B (CISCO)
Š Informational services ƒ 00
Š Reservation services
Š Integration of SFA, call center, web into
– Airlines, health services
CRM suites
Š After sales support (help desk)
Š Sales (tele selling, telemarketing)

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CRM, needs
ƒ Not all business domains have the
same need for CRM, that depends on
Frequency and contuinity of contact

Insurances
Utilities
PA Banks Š Intensity of relationship with customer
(frequency of contact, duration of
HEalth TLC
Number of customers

Transport
High
Turism
Consumer Market
contract)
Š Size of customer pool
Beni Strumentali
Commodities
Durable goods
Pharmaceutical
Hi Tech
Low Š Loyalty of customer
Š Multichannel or not
Low High

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CRM tools: key functions CRM : modules

Front-end Modules
• Support to contact w
+ + + customer, on all
lifecycle and all
channels
Logistica Commerciale Contatto cliente Supporto post - Analisi
Inbound & vendita + gestione comportamento
outbound lealtà del cliente (CRM
Salesperson Call center Internet
(telemarketing) analitico)
Customer care

ƒ Commercial logistics Data Clients, Products

Š Also offered by ERP tools
ƒ Support for multichannel interaction w back-end Analysis
customer modules (ERP) Campaigns (Analytic • Support to marketing
• Execute requests
and marketing CRM) processes
Š Inbound, outbound from customer
•Manage customer
ƒ After sales
ƒ Analysis of customers (analytic CRM) 16
CRM, db Sales Force Automation channel
Š Planning and
control
– Prospects, actual
Salespers Call Internet sales
Š Interaction
on center

Data
customer –
vendor
“back-end” Campaigns
Analytic CRM
– Offers
marketing
– Offer templates
– Offer validation
– History

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SFA: process Internet channel

ƒ Business vs Consumer
customers
ƒ General informations,
Catalogue of products
LISTE CLIENTI

Sono generati i moduli

CONTATTO
DIRETTO DEL
I moduli sono trasmessi al
Venditore
ƒ Purchase: suggestion of
Telefono Internet
products, configuration,
Call Center
CLIENTE

La Sede acquisisce il
shopping cart, checkout
Cliente L’Operatore di Call Dati Clienti e Prodotti ƒ Information on all
Center registra l’Offerta
transactions of the
customer, and their state
L’operatore di Sede E’ creato l’ordine Moduli “back- Gestione
Analisi cliente
(CRM
ƒ After sale: complaints and
registra l’anagrafica del
cliente
end” campagne e
analitico) suggestions
marketing
E’ generata ƒ Log of all customer actions
un’opportunità
per il venditore Customer
La Sede assegna il
cliente al venditore
Data
Invio SMS
Invio Il venditore sviluppa la
MAIL trattativa con il cliente

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Internet channel Call center channel
ƒ CTI - Computer Telephone
Integration)
Š IVR (Interactive Voice
Response)
Š ACD (Automatic Call
Venditore Telefono Internet Distribution)
Š Voice recognition
Dati Clienti e Prodotti Š Caller recognition
Š Speech to text
ƒ Functions
Gestione
Analisi cliente 1. Information on company
Moduli “back-
end” campagne e
(CRM and products
analitico)
marketing 2. Purchase
3. Status of purchases or
other transactions
4. Complaints
5. History of interactions with
customer
6. Telemarketing inbound
outbound, following scripts
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Ex.: Customer Care Analytic CRM

Invio comunicazioni
ƒ Data from data
Toolbar Telefonica
(gestione chiamate) Scheda
Dati
Cliente
enti interni/ esterni
warehouse
Cliente Fax
Telefono
Numero Customer Care
Numeri verdi
Fax
Server
Server ƒ Functions
1. Segmentation indexes
Call (profitability etc)
Venditore
Internet
Center
181
Telefono Internet
2. Data mining to compute
Scheda predictive indexes
Contatto Dati Clienti e Prodotti 3. Reports on customers,
ISP production of
Documentale Guasti,
O.L. DWH
dashboards
Moduli “back- Gestione
Analisi cliente 4. Definition of segments,
Emissione O.S.: in automatico tramite automa Sistemi
end” campagne e
(CRM
analitico)
customers per segments
Inoltro richieste non (ISDNmononumero/ on-line da operatore) Sistemi marketing
Stato avanzamento O.S. Legacy
evadibili in linea Legacy
(TGU, TLD,
(TGU,
GSRI)TLD,
Tracking GSRI)
Back Office
on line
Cap.
Richiesta O.S.
Reparto/Addetti

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 Analytic CRM: architecture
eMails Web Offers eChannel
eNewsletters

Sales Call Center Field Service

Campaign Segmenta-
Mngt zione
Campaign
Execution—Real
Time and Batch

Estrazione & Mining

Customer Data
Trasformazione
IL Data Warehouse
LU
ST
RA
T IV
A
Dati esterni
ERP / Back-office

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Campaign management Campaign management : flow

ƒ Planning and execution
• Contatti
Sistemi • Adesioni
Sistemi di
di Business
Business
of campaigns
• Comportamento rispetto
Intelligence
Intelligence al canale/contatto

ƒ Functions: • Profili

1. Selection of • Altre
informazioni:
customer lists
• Indici per
Venditore Telefono Internet reclami, scheda cliente
comportamenti,
• Liste contatti Gestione
Gestione
Dati Clienti e Prodotti 2. Design and plan ...
• Offerta Campagne
Campagne
campaign
3. Transfer data from Call
Call
• Contatti
• Liste contatti
• Offerta
anaytic CRM to
Analisi cliente • Adesioni
Moduli “back- Gestione Center
• Informazione
(CRM Center • Comportamento
al cliente
operational IS
end” campagne e rispetto
analitico) • Contatti
marketing • Adesioni
al canale/contatto
• Comportamento rispetto
al canale/contatto

Canali cliente
E-mail, Web, Sms,
Portali, ...

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Campaign: workflow functions CRM vendors

IL
LU
ST
RA
T IV
O
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CRM vendors Pure CRM Vendors

ƒ SIEBEL
ƒ Fullliners: suite ERP + CRM + BI Š Leader
Š Peoplesoft Š Vertical suites (TLC, Banks, etc)
ƒ AMDOCS
Š SAP, ORACLE Š Billing suite
ƒ Analytic CRM, Business Intelligence Š CRM (based on suite Clarify )
Š Targeted to TLC, Utilities
Š SAS ƒ KANA
Š Pure CRM (no billing)
Š BO Š Modules for campaigns, E-mail, ..
Š Others: Data Mining / Text Mining suites ƒ Epiphany
Š Pure CRM
ƒ Telephone technology vendors Š TLC, Banks, Hi-Tech, Mfg, Consumer ecc.
ƒ Onyx
Š Pure CRM
Š Financial + Hi tech
Š 3 portals:Customer, Employee, Partner

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