Transcript Chapter 9 - Customer Relationship Management and Business

McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship Management and Business Intelligence
Chapter 9
SECTION 9.1
Chapter 9
CUSTOMER
RELATIONSHIP
MANAGEMENT
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CRM FUNDAMENTALS
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CRM AS A BUSINESS STRATEGY
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• CRM is not just technology, but a strategy, process,
and business goal that an organization must
embrace on an enterprisewide level.
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CRM ENABLES ORGANIZATIONS TO
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• Identify types of customers
• Design individual customer marketing campaigns
• Treat each customer as an individual
• Understand customer buying behaviors
RFM
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• How recently a customer purchased items
• How frequently a customer purchased items
• How much a customer spends on each purchase
(monetary value)
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BUSINESS BENEFITS OF CRM
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• Provide better customer service
• Make call centers more efficient
• Cross sell products more effectively
• Help sales staff close deals faster
• Simplify marketing and sales processes
• Discover new customers
• Increase customer revenues
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CRM TECHNOLOGIES
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• Reporting technology
• Analysis technologies
• Predicting technologies
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EVOLUTION OF CRM
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OPERATIONAL & ANALYTICAL CRM
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OPERATIONAL CRM
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MARKETING & OPERATIONAL CRM
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• List generator
• Campaign management system
• Cross-selling and up-selling
 Cross-selling
 Up-selling
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SALES & OPERATIONAL CRM
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• Sales force automation
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SALES & OPERATIONAL CRM
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• Sales management CRM system
• Contact management CRM system
• Opportunity management CRM system
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CUSTOMER SERVICE &
OPERATIONAL CRM
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• Contact center (call center)
• Web-based self-service system
 Click-to-talk
• Call scripting system
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CUSTOMER SERVICE &
OPERATIONAL CRM
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• Automatic call distribution
• Interactive voice response
• Predictive dialing
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USING IT TO DRIVE ANALYTICAL
CRM
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• Personalization
• Analytical CRM relies heavily on data warehousing
technologies and business intelligence to glean
insights into customer behavior
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USING IT TO DRIVE ANALYTICAL
CRM
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• Give customers more of what they want
• Value their time
• Overdeliver
• Contact frequently
• Generate a trustworthy mailing list
• Follow up
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CRM TRENDS: SRM, PRM, AND ERM
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• Supplier relationship management (SRM)
• Partner relationship management (PRM)
• Employee relationship management (ERM)
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SECTION 9.2
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BUSINESS
INTELLIGENCE
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DATA RICH, INFORMATION POOR
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• The amount of data generated doubles every year
• Improving the quality of business decisions has a
direct impact on costs and revenue
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THE SOLUTION: BUSINESS INTELLIGENCE
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• Reliable
• Consistent
• Understandable
• Easily manipulated
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THE SOLUTION: BUSINESS INTELLIGENCE
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OPERATIONAL, TACTICAL, AND
STRATEGIC BI
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Focus
Users
Time Frame
Data
Operational
Tactical
Daily
Short term to
operations
achieve
strategic
goals
Managers,
Executives,
operational Managers
users
Days
Months
Realtime
Historical
Strategic
Long term
goals
Executives,
Managers
Years
Historical
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DATA MINING
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• Data mining
• Data-mining tools
 Classification
 Estimation
 Affinity grouping
 Clustering
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DATA MINING CAPABILITIES
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• Cluster analysis
• Association detection
• Statistical analysis
 Forecast
 Time-series information
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BUSINESS BENEFITS OF BI
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• Single point of access to information for all users
• BI across organizational departments
• Up-to-the-minute information for everyone
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Chapter 9