Transcript PPT
Database Systems – CRM DEFINITIONS CRM - Customer Relationship Management CRM usually refers to a strategic solution that helps businesses identify the most profitable customers, customer needs and buying habits, and helps pinpoint problems in the sales and fulfillment cycle. In short, CRM is designed to build and maintain relationships with customers. CRM is the strategic use of information, processes, technology, and people to manage the customer’s relationship with your company across the whole customer lifecycle. CRM presents a single view of a customer – a customer centric approach Database Systems – CRM Direct Mail Targeting Database Systems – CRM USES AND REASONS CRM software packages (solutions) are made to solve business problems. The business problem usually isn't a lack of information;but the inability to take action that is based on that information. There is not one single software package that can force business to take action on the information that they have gathered. Software is there to facilitate that action and allow for the information to be used in meaningful and actionable programs, that establishes and builds customer relationships. Who should implement CRM? – Any business that needs to do the following should implement CRM: understand their customers respond to their customer needs apply sales and retention dollars to the right places offer products and services that are valuable to their customers Database Systems – CRM HYPE VS. REALITY CRM does not always live up to it’s hype. This is often because: Lack of Planning – Some companies fall for a hard sales pitch and buy packages that do not include features they really need Lack of understanding – Others buy systems and features that are more complex than what they were led to believe these applications would be Implementation Issues Lack of Skills – Not having right skills in IT and marketing Database Systems – CRM HYPE VS. REALITY Company Culture and Philosophy – Product Centric vs. Customer Centric – Desire for quick results – Search for silver bullet Cost – – High cost of CRM implementation (if you buy everything) Longer ROI Complexity – Systems are too flexible, therefore, are complicated at same time Database Systems – CRM HOW TO AVOID THE TRAP? The best method is simply to assess the firm's needs realistically – Let business needs drive technology, not the other way around – Ask questions before making a decision – Hire experts to evaluate the needs and recommend right solution Compare those needs with the features of the CRM application being considered – Don’t let sales team dictate business solution – Don’t let internal IT decide features that they think are important Check references and consult with them Don’t buy more than you can handle Database Systems – CRM WHAT’S IMPORTANT TODAY? In terms of features: 1. Applications' ease of use by business users 2. Advanced analytics 3. Ability to support a centralized master customer data system Database Systems – CRM CURRENT CRM AT PEP BOYS Campaign Management – About 7 million pieces of mail – Ongoing direct mail using single or two stage segmentation – Ad-hoc direct mail Campaign Reporting – Tracking responses – Developing data for analysis Learning from “doing it” Database Systems – CRM FUTURE OF CRM AT PEP BOYS Smarter Customer Segmentation – Target better - Get more from less – Use analytics to learn about customers – Use campaign management to take action Advanced Analytics – Develop customer profiles – Develop tracking of customer behavior – Update campaigns based on analytics Loyalty Programs – Reward customers who improve and change behavior – Reward customers who maintain spending Database Systems – CRM DRM SOFTWARE BUNDLE AT PEP BOYS Siebel eMarketing 7.5.2 Siebel Analytics 7.5 Informatica (ETL Tool) 5.1 SPSS Predictive Analytics Bundle Data Cleansing Service Database Systems – CRM CHALLENGES FOR THE “OUT OF THE BOX” SOLUTION Will the software work in my environment? Multiple Platforms Multiple Vendors What are the hardware requirements? How much data do we need to keep? How can I get all these vendors on the same page? How can I satisfy all requirements in the allotted time within my budget? Database Systems – CRM CRM DATA FLOW Data Sources Data Warehouse Data Cleansing (Contacts) Orders Line Items Vehicles 60% CRM Data Mining Database Systems – CRM FUTURE TECHNICAL INITITIVES Stay Current / Upgrade Real-Time Cleansing Mining the Data Centralized Data Source Database Systems – CRM LESSONS LEARNED Lesson • Engage all stakeholders at beginning • Know Your Partners(Low Cost not best) • Start Small, Learn, Then Grow Impact • No Store, Service input • Inexperience, mistakes = delays • No quick hits, I.e. No quick Returns • No Substitute for Experience • Have a Technical and Business Plan • Know Your Data • No In-House CRM Expertise • Technology in Place; how do we use it? • Campaigns yielding unexpected results Lessons Learned Lesson Impact •Engage all stakeholders at beginning •No Store, Service input •Know Your Partners(Low Cost not best) •Inexperience, mistakes = delays •Start Small, Learn, Then Grow •No quick hits, I.e. No quick Returns •No Substitute for Experience •No In-House CRM Expertise •Have a Technical and Business Plan •Technology in Place; how do we use it? •Know Your Data •Campaigns yielding unexpected results