CRM, Data and Information

Technology

BCO6604 Customer Relationship Management

Readings & Objectives

Readings
Buttle & Maklin (2015) Chapter 11 &12 and SAP Resources
Objectives
This lecture will examine issues associated with:
the range of CRM technologies
the role that technology plays in the achievement of CRM outcomes
the structure of the CRM ecosystem
the main application areas of CRM
the role that analytics play in CRM technology
the importance of integration to CRM outcomes.
Technology introduction examples
Smart Phone application in South Korea

"The Protection Ad" by Nivea

https://www.youtube.com/watch?v=nZ532wkhHYs

http://www.youtube.com/watch?v=o9zcs1dg8qo

Social Media: KLM Meet & Seat

http://www.youtube.com/watch?v=eL2lWn7oup4&feature=relmfu

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Origins of CRM technology

In the late 1980s, several organizations attempted to consolidate
some of these disparate technologies.
Case

Example: the Cost, Insurance and Freight that was central to many
companies started to be seen as a source of marketing information, rather
than a basic record of a customers financial accounts.

Case

Example 2: Call centres began being used for outbound calls for cross
and up-selling to customers rather than just responding to inbound service
calls.

The customer started to be recognized as a single entity across

all customer-facing departments, leading to the idea of a single
view of the customer whereby appropriate customer-related
data is made available at all customer touch points and
channels.
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Origins of CRM technology

CRM has evolved from a range of standalone
technologies including:
Call centres,
Sales-force automation systems and
Customer information files (CIF), some of which date
back to the 1970s and earlier

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CRM technology challenge

CRM technologies are much more than a simple suite of applications.

CRM must be flexible enough to stay in touch with a changing audience (the customer).
It must reflect different requirements in different industries.
It must be accessible to external stakeholders and mobile professionals, such as
salespeople and field technicians.
It must operate over any communication channel, and it must integrate with other
systems to provide a single view of, and for, the customer.
It must be implemented in such a way that appropriate work processes and skills are
deployed, as many of the objectives of CRM cannot be solved by technology alone.

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The CRM ecosystem

The CRM ecosystem is made up of

three major groups:
1. CRM solutions providers,
2. CRM hardware and the
3. CRM infrastructure vendors, and
service providers.

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The CRM ecosystem

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The CRM ecosystem

Enterprise CRM suites

Midmarket CRM suites
CRM speciality tools

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Hardware and infrastructure vendors

For CRM goals to be achieved there often needs to be a high level of
emphasis on hardware and infrastructure.
Hardware vendors such as IBM, Dell and Hewlett-Packard provide a
range of solutions across the hardware spectrum.
Infrastructure vendors such as Avaya, Genesys and Siemens provide
telephony and CRM-related infrastructure solutions.

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Hardware infrastructure- Case of Cox Communications

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The SAP Platform

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The SAP Platform

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The SAP Platform

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The SAP Platform

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The SAP Platform

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The SAP Platform

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The SAP Platform- Hybris

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The customer journey .and technology

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The customer journey .and technology

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The customer journey .and technology

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The customer journey .and technology

Continuous connection capability.

Smart, connected products create a permanently open link between company and
customer.
Providing companies with a continuous stream of data about how individuals use the
products and thereby helping firms customize and upgrade them.

New journey analysis and management tools.

Track customer behavior across online and offline touchpoints, helping companies to map
and optimize journeys.
Platforms such as Cloudera allow companies to analyze unstructured data, while machine
learning software such as R can mine huge amounts of customer data and predict
behaviors.

Widespread adoption of APIs.

Application programming interfaces permit disparate applications, including those from
different companies, to communicate.
Companies are only now starting to embrace them to build integrated cross-company
customer journeys. For example, APIs allow Delta Air Lines travel management app to
seamlessly connect its customers with Uber.
LOreal Make-up app: https://www.youtube.com/watch?v=G1z2Od5lIsA

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Case study: lOreal Makeup Genius App

The Makeup Genius app, which allows users to virtually test makeup, has been downloaded millions of times since
its launch in 2014 and has driven more than 250 million virtual product trials. By making experimenting,
sharing, and purchasing seamless and fun, the company is rolling out a highly sticky
journey that builds loyalty to LOreal products.

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Case study: lOreal Makeup Genius App

The Makeup Genius app, which allows users to virtually test makeup, has been downloaded 14 million times since
its launch in 2014 and has driven more than 250 million virtual product trials. By making experimenting,
sharing, and purchasing seamless and fun, the company is rolling out a highly sticky
journey that builds loyalty to LOreal products.

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Case study: lOreal Makeup Genius App

The Makeup Genius app, which allows users to virtually test makeup, has been downloaded 14 million times since
its launch in 2014 and has driven more than 250 million virtual product trials. By making experimenting,
sharing, and purchasing seamless and fun, the company is rolling out a highly sticky
journey that builds loyalty to LOreal products.

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Case study: lOreal Makeup Genius App

Technology & Proactive Personalization

LOral has created an enjoyable experience
that seamlessly leads the customer from
consideration to purchase. The degree of
personalization increases into the loyalty
loop.

The app has become an asset as channel to

promote the brand to customers and a
means of sourcing data on the customers
engagement with the company.
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The CRM ecosystem

CRM Service providers

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CRM Solutions

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CRM Solutions

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CRM Solutions: Marketing

CRM components marketing automation

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CRM Solutions: Sales

CRM components sales-force automation

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CRM Solutions: Service and support

CRM components service automation

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CRM Solutions: Partner relationship management(PRM

CRM components partner relationship management

PRM most often requires a portal to be established in order to give partners access to the CRM system
in a controlled, secure, yet collaborative way to do business.
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CRM Analytics

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A data value chain and CRM Analytics

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CRM Analytics
Analytics

can provide a deeper insight into

the customer, reflected in key CRM metrics
such as customer value, satisfaction, loyalty
and propensity to churn
The three levels of analysis in CRM systems
can be:
standard reporting
online analytical processing (OLAP)
data mining

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CRM Analytics
Standard Reporting
Reporting is an essential element of an effective CRM system and
depends on good customer-related information.
Reporting can be standardized (predefined), or query-based (ad
hoc).

Standardized reports are typically integrated into CRM

software applications, but often need customization to suit the
needs of the organization.

Query-based reporting presents the user with a selection of

tools which can then For example: Show me all of the
customers that have expired on their maintenance agreement,
in my territory, with annual revenues above $50K .

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CRM Analytics online analytical processing (OLAP) [BI]

Different users require different reports using OLAP (BI)

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CRM Analytics: SAP

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CRM Analytics: SAP

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CRM Analytics: SAP

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CRM Analytics data mining [BI]

Data mining
Data mining provides considerable CRM analytical power that is
highly valued in some industries. Banking, telecommunications,
insurance, public sector, retail and utilities all require analysis of
huge volumes of consumer data, a task that is very difficult
without data mining.
The data mining process seeks to identify patterns and
relationships in the data, using selection, exploration and
modelling processes. The results include, for example,
churn

scoring (likelihood that the customer will leave),

fraud propensity or
credit risk,
customer value scoring and
campaign effectiveness scoring.

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CRM Analytics Data mining case study

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CRM Analytics data volume variety & velocity

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CRM Analytics Sport data volume variety & velocity

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Big data and IT

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CRM Analytics Unstructured data

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(SAP example)

CRM Analytics Hybris

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(SAP example)

Predictive CRM
What do customers want?
Can we identify new opportunities?
And how do you use information to market and sell?

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Product Affinity and Bundling

Customer choices can suggest
affinity of products and services

Fast data mining methods allow

sophisticated processing of
large data sets; identification of
sequential affinities.

Mobile devices plus pervasive

computing infrastructures
opens opportunities for
location-aware product and
service bundles, and new
branding mechanisms
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Dynamic pricing
In many areas, the Internet has started
making the price-demand relationship more
transparent.
For example: recovering historical data from
on-line auctions such as eBay allow
computation of price-elasticity
relationships.
Sport has been a late adopter of dynamic
seat pricing.

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CRM Performance & engagement

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CRM architecture Integration

CRM systems challenges:
1.

Application integration

Links the CRM system to other business systems, such as accounting, billing, inventory and
human resources.

2. Email & Telephony integration

3.

Web integration

4.

Telephony integration ties the CRM application into the telephone system, allowing inbound calls
to be routed to the right person based on caller profile, and outbound calls to be automatically
made from the call centre desktop.
E-mail integration can involve both the generation of e-mails as a result of an internal workflow
process (e.g. once an order is ready for shipment, automatically e-mail the customer to advise
despatch details), and automated e-mail routing and response.
Most modern business have a website, and this website contains large amounts of content that is
duplicated in the CRM system (customer registration details, solution knowledge base, product
information, price lists, etc). The ideal position is for the website to draw this information from the
CRM system, using integration technologies, or for the web application to be part of the core CRM
system.

Social media integration

Most modern business have some form of social media presence capturing customer content in
real time. Needs to be captured and analysed.

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Conclusion- What to take away from this lecture

This lecture covered the following issues:

The CRM ecosystem is made up of three major groups: CRM solutions providers,
hardware and infrastructure vendors, and service providers.

Most CRM solutions are broadly aligned with the primary front-office functions of
marketing, sales and service.
CRM analytics has grown in importance over the last few years. Analytics can provide a
deeper insight into customers, for example, their value, satisfaction and propensity to churn.
Most CRM technologies allow users to receive a number of reports based, in order of
complexity, on standard reporting formats, online analytical processing (OLAP) and data
mining.
A key consideration in effective CRM is the systems architecture. CRM systems must be
able to operate in the office, out of the office, over the web, and they must tie together
multiple communication channels using technologies such as the web, e-mail and
telephone.
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CRM Questions

Multichannel CRM ensures:

The provision of analytical power that is highly valued by
the customers.
Customers are subjected to consistent experiences
across all channels and touch points.
Warehoused data to be subjected to analysis and ad hoc
inquiry.
Ensure emails from high value customers take priority.
Partner Relationship Management.

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CRM Questions

A portal can be established to give partners access to the

CRM system in a controlled, secure, yet collaborative way is
an example of:
Online Analytical Processing.
Customer and Product Management.
Partner Relationship Management.
Partner Segmentation.
Value Added Customer Service.

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