CRM CRM

What Is 'CRM What Is 'CRM

Customer Relationship Management Customer Relationship Management
Becoming a common and important concept Becoming a common and important concept
in many industries in many industries
Beyond mere Contact Management` Beyond mere Contact Management`
Most industries have CRM soItware to help Most industries have CRM soItware to help
sales process, on sales process, on- -going service, and even going service, and even
accounting accounting
%he Value oI CRM %he Value oI CRM
Gain more control in interaction with Gain more control in interaction with
customers customers
Manage expectations better Manage expectations better
Understand what customers really want Understand what customers really want
Provide products that better serve customers Provide products that better serve customers
Increase trust Increase trust
Competitive advantage Competitive advantage
Working DeIinition. Working DeIinition.
'%he Plan and Practice oI managing the '%he Plan and Practice oI managing the
liIetime relationship with your customer. liIetime relationship with your customer.
'%he Plan: Every successIul endeavor '%he Plan: Every successIul endeavor
requires proper planning. SuccessIul requires proper planning. SuccessIul
CRM rarely happens by chance. Many CRM rarely happens by chance. Many
organizations jump to implementation organizations jump to implementation
w/o proper planning. w/o proper planning.
Working DeIinition. Working DeIinition.
'%he Plan and Practice oI managing the '%he Plan and Practice oI managing the
liIetime relationship with your customer. liIetime relationship with your customer.
'%he Practice: Systematic '%he Practice: Systematic
implementation oI your plans. Should implementation oI your plans. Should
produce measurable results. Should be produce measurable results. Should be
evaluated and reIined over time. evaluated and reIined over time.
Few Basic CRM Concepts. Few Basic CRM Concepts.
%ouch Points %ouch Points
Each time your company interacts with a Each time your company interacts with a
customer is a touch point. customer is a touch point.
Can we name a Iew Guest %ouch Points? Can we name a Iew Guest %ouch Points?
How about Owner %ouch Points? How about Owner %ouch Points?
Guest %ouch Points Guest %ouch Points
First Call/Internet Visit First Call/Internet Visit
Lease Lease
Pre Pre- -arrival arrival
Check Check- -In/Check In/Check- -Out Out
Post stay thank you Post stay thank you
Newsletters, Interest Lists Newsletters, Interest Lists
Housekeeping/Maintenance Housekeeping/Maintenance
ll marketing materials ll marketing materials
Owner %ouch Points Owner %ouch Points
First Call/Internet Visit First Call/Internet Visit
Original purchase oI property Original purchase oI property
Rental listing Rental listing
ny owner stays in property ny owner stays in property
Every month`s owner statement Every month`s owner statement
Newsletters Newsletters
Owner get Owner get- -togethers togethers
ny phone call ny phone call positive or negative positive or negative
ny marketing inIormation that the owner may ny marketing inIormation that the owner may
see see
%ouch Points %ouch Points
re they planned? Managed? Documented? re they planned? Managed? Documented?
re all 'touchers properly trained? Enroll re all 'touchers properly trained? Enroll
your complete staII in the vision. your complete staII in the vision.
ny way to increase the eIIectiveness oI the ny way to increase the eIIectiveness oI the
touch? touch?
ny way to increase the number oI touches? ny way to increase the number oI touches?
Few Basic CRM Concepts. Few Basic CRM Concepts.
Market Segmentation Market Segmentation
Do you treat all oI your guests the same? Do you treat all oI your guests the same?
re they? re they?
Consider the diIIerence between a guest that stays once Consider the diIIerence between a guest that stays once
ever in a 2 bedroom cottage and a guest that has stayed ever in a 2 bedroom cottage and a guest that has stayed
each oI the last 10 years in a 6 bedroom home each oI the last 10 years in a 6 bedroom home
We shouldn`t treat the one We shouldn`t treat the one- -timer badly, they may come back timer badly, they may come back
many more times many more times
We should realize that the higher value guest deserves the best We should realize that the higher value guest deserves the best
that we can oIIer. that we can oIIer.
Few Basic CRM Concepts. Few Basic CRM Concepts.
Market Segmentation Market Segmentation
Do you treat all oI your Owners the same? Do you treat all oI your Owners the same?
re they? re they?
Consider the diIIerence between an owner that has one Consider the diIIerence between an owner that has one
1970`s motiI 2 bedroom condo and an owner that has 3 1970`s motiI 2 bedroom condo and an owner that has 3
8 bedroom oceanIront homes 8 bedroom oceanIront homes
We shouldn`t treat the condo owner badly, they are in your We shouldn`t treat the condo owner badly, they are in your
program Ior a reason (right?) program Ior a reason (right?)
We should realize that the OF home owner deserves the best We should realize that the OF home owner deserves the best
that we can oIIer. that we can oIIer.
Customer Relationship Management Customer Relationship Management
'Process oI creating and maintaining relationships 'Process oI creating and maintaining relationships
with business customers or consumers with business customers or consumers
' holistic process oI identiIying, attracting, ' holistic process oI identiIying, attracting,
diIIerentiating, and retaining customers diIIerentiating, and retaining customers
'Integrating the Iirm`s value chain to create 'Integrating the Iirm`s value chain to create
enhanced customer value at every step enhanced customer value at every step
'n integrated cross 'n integrated cross- -Iunctional Iocus on Iunctional Iocus on
improving customer retention and proIitability Ior improving customer retention and proIitability Ior
the company. the company.
Customer Relationship Management Customer Relationship Management
Bottom Bottom- -line: line:
%he use oI inIormation %he use oI inIormation- -enabled systems Ior enabled systems Ior
enhancing individual customer relationships enhancing individual customer relationships
to ensure long to ensure long- -term customer loyalty and term customer loyalty and
retention retention
CRM Objectives CRM Objectives
LiIetime Value (L%V) LiIetime Value (L%V)
ReIers to the net present value oI the potential revenue ReIers to the net present value oI the potential revenue
stream Ior any particular customer over a # oI years stream Ior any particular customer over a # oI years
Starts with current purchase activity then extrapolates to Starts with current purchase activity then extrapolates to
include potential additions Irom cross include potential additions Irom cross- -selling, upgrades, selling, upgrades,
total ownership, etc. total ownership, etc.
Customer Ownership Customer Ownership
ttempts to 'own the lionshare oI customer spending ttempts to 'own the lionshare oI customer spending
and/or 'share oI mind in a particular product category and/or 'share oI mind in a particular product category
Building brand equity, maintaining vigilant customer Building brand equity, maintaining vigilant customer
contact, keeping current with the market trends is critical contact, keeping current with the market trends is critical
5 points increase in customer retention20 5 points increase in customer retention20- -125 125
increase in proIit increase in proIit
Is CRM New? Is CRM New?
4 4
Simply an extension oI Simply an extension oI
relationship marketing relationship marketing
Builds on customer Builds on customer
service and satisIaction service and satisIaction
concepts concepts
Just the latest buzzword Just the latest buzzword
Ior creating customer Ior creating customer
orientation orientation
Bottom Bottom- -line is still the line is still the
same same
08 08
shiIt in corporate shiIt in corporate
philosophy concerning the philosophy concerning the
approach to value delivery approach to value delivery
Customer Customer- -centric centric
approach to value chain approach to value chain
New and technology New and technology- -
enhanced processes enhanced processes
Focus is not just on Focus is not just on
bottom bottom- -line, but on top line, but on top- -
line line
Goal is to create satisIying Goal is to create satisIying
experiences across experiences across , ,
customer contact points customer contact points
CRM CRM
Rather than market to a mass oI people or Iirms, Rather than market to a mass oI people or Iirms,
market to each customer individually market to each customer individually
lso called one to one marketing lso called one to one marketing
InIormation about the customer (previous InIormation about the customer (previous
purchases, demographic proIile) is used to predict purchases, demographic proIile) is used to predict
Iuture behavior Iuture behavior
Reduce costs wherever possible Reduce costs wherever possible
pproach made possible by advances in pproach made possible by advances in
technology technology
Short: 1 to 1 Marketing Short: 1 to 1 Marketing www.1to1.com www.1to1.com
CRM DeIinition CRM DeIinition
CRM is a cross Iunctional process Ior achieving: CRM is a cross Iunctional process Ior achieving:
continuing dialogue with customers continuing dialogue with customers
cross all their contact and access points, with cross all their contact and access points, with
Personalized treatment Ior the most valuable customers Personalized treatment Ior the most valuable customers
%o increase customer retention and the eIIectiveness oI %o increase customer retention and the eIIectiveness oI
marketing initiatives marketing initiatives
-- -- George S. Day 'Capabilities for Forging Customer Relationships, George S. Day 'Capabilities for Forging Customer Relationships,
MSI Report 00 MSI Report 00- -118 118
CRM and the Internet CRM and the Internet
Internet can be used Ior a more personalized Internet can be used Ior a more personalized
experience experience
Customers can get more help and support online Customers can get more help and support online
Increased customer selI Increased customer selI- -service (e.g. ordering) service (e.g. ordering)
Quicker turnaround Ior customer problems Quicker turnaround Ior customer problems
More Ieedback, customer suggestions More Ieedback, customer suggestions
Customers can be tracked and data collected Iairly Customers can be tracked and data collected Iairly
easily online easily online
BU%, it`s another channel and 'touch point to BU%, it`s another channel and 'touch point to
manage manage
Why CRM? Why CRM?
Loyal customers are the source oI most proIits Loyal customers are the source oI most proIits
relatively small percentage oI customers may relatively small percentage oI customers may
generate most oI the proIits generate most oI the proIits
Marketing cost and eIIorts are less Ior existing Marketing cost and eIIorts are less Ior existing
customers customers
DissatisIied customers tell others about their DissatisIied customers tell others about their
experiences experiences
So do satisIied customers So do satisIied customers
Slowing the rate oI deIection grows the customer Slowing the rate oI deIection grows the customer
base base
Reducing costs (e.g. through selI Reducing costs (e.g. through selI- -service) service)
Why CRM? Why CRM?
Recent advances in computing and database Recent advances in computing and database
management technologies have provided management technologies have provided
means oI getting closer to valuable means oI getting closer to valuable
customers customers
Short: Why people are talking about 1 to 1 Short: Why people are talking about 1 to 1
www.1to1.com www.1to1.com
EE- -Commerce increases competition Commerce increases competition
CRM Programs Can Potentially Improve CRM Programs Can Potentially Improve
Analytical CRM Analytical CRM
Customer Segmentation Customer Segmentation
%rend nalysis %rend nalysis
507ati4nal CRM 507ati4nal CRM
Campaign Management Campaign Management
%ele %ele- -Marketing/%ele Marketing/%ele- -Sales Sales
ctivity and %ime Management ctivity and %ime Management
Quotation and Order Processing Quotation and Order Processing
Delivery and Order FulIillment Delivery and Order FulIillment
Customer Service and Support Customer Service and Support
Remote ccess Remote ccess
C4llab47ativ0 CRM C4llab47ativ0 CRM
Enterprise Portals Enterprise Portals
Customer ccess Customer ccess
Supplier ccess Supplier ccess
Personalization Personalization
Making CRM Happen Making CRM Happen
Evaluate products and processes customers` terms. Evaluate products and processes customers` terms.
nalyze the multiple channels through which the nalyze the multiple channels through which the
company interacts with customers. company interacts with customers.
Examine how the company understands its Examine how the company understands its
customers. Does it keep good data? How does it get customers. Does it keep good data? How does it get
that data? Does inIormation Ilow between Iunctional that data? Does inIormation Ilow between Iunctional
areas? areas?
Provide Iingertip access to all inIormation. Provide Iingertip access to all inIormation.
nalyze human resources and ensure that everyone nalyze human resources and ensure that everyone
has an understanding oI philosophy oI CRM has an understanding oI philosophy oI CRM