Transcript Customer Relations Management

Customer Relations Management
Class 6 - LO205 - Jan. 24,2001
Lecture by Judith Molka-Danielsen
References (not required to read):
*“Electronic Commerce: A Manager’s Guide”, Ravi Kalkota
and Andrew B. Whinston, Addison-Wesley, chapter 11, 1999.
*Related power point notes from Michael Spring,
U.of.Pittsburgh, 2000.
*“The E-business Revolution”, Daniel Amor, Hewlitt-Packard
Professional books, ch.5, 1999.
Overview
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Summary of Turban Chapter 3, prelude to this.
Motivation of Customer Relations Management
CRM Subsystems – Marketing Management (MM),
– Sales Force Automation (SFA),
– Customer Service and Support (CSS)
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Web Design Rules
On-Line Measurement
Turban Ch.3 Summary
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1. Consumer behavior - Vendors control the
parts of Logistics, Support Technology, and
Customer Service and Support Systems
2. It is important to know customer
characteristics
3. It is important to understand the customer
decision making process
– to understand where you can influence customer
behavior
– Intelligent Agents can be used in some steps
Turban Ch.3 Summary
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4. Build One-to-One relationships with
customers.
– Boost loyalty
– boost trust
– One-to-One include software to trigger special offers
• BroadVision - recognizes customers and displays
products relevant to them.
• Cold Fusion - tool for rapid application development and
site design.
• GroupLens - collaborative filtering, with rating services,
for contents and products.
• WebObjects - serve data from legacy databases to online visitors.
Turban Ch.3 Summary
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5. Implement Customer Service to
– retain customers - Look at Web Site Design (Content
is King).
– satisfy new needs
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6. Doing Market Research involves
– understanding segments of products and groups
– classification of customers
Turban Ch.3 Summary
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6. (cont.)Doing Market Research involves
– using Data Mining tools to
• predict trends, find hidden patterns, find what is ordered
together
• Algorithms use association, sequences, classification,
clusters, and forecasting techniques.
– Collect samples on the Internet
• larger is better
• voluntary through surveys, data accuracy limitations
• involuntary through tracking movements, (ie. Cookies)
– Ernst & Young market research: on-line retailing
Turban Ch.3 Summary
– Ernst & Young market research: on-line retailing
Product
Segment
Clothes
Electronics Toys
Food
Beauty
Highest
Satisfaction
Rating %
Criteria with
Good Rating
.33
.41
.50
.44
.50
quality,
selection,
cust.svc.,
ease-use
quality,
selection,
cust.svc.,
ease-use
quality,
ease-use,
price,
selection,
offers,
cust.svc.
quality,
selection,
ease-use price,
ease-use,
quality
Turban Ch.3 Summary
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7. Intelligent Agents - provide
– auto replys
– analyze movements
– learn customer behavior and needs
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8. Organizationl buyer behavior model
– follow organizational purchasing guidelines and
constraints
– involve interpersonal influences (power, politics)
Overview



Summary of Turban Chapter 3, prelude to this.
Motivation of Customer Relations Management
CRM Subsystems – Marketing Management (MM),
– Sales Force Automation (SFA),
– Customer Service and Support (CSS)


Web Design Rules
On-Line Measurement
B2B Inputs
Logistics
Management
Manufacturing Process
Management
Support
Services
Financial
Management
Customer
Relations
Management
Customer Relations Management
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“Pull” supply chains are based on
linking customer information gathering
to the upstream business processes
CRM involves the integration of
traditionally separate systems
– Marketing Management
– Sales Force Automation
– Customer Service and Support
The Motivation of CRM
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Marketing and sales account for 15-35% of
costs
Customer input can lead to better products
Current customers are a predictable source
of future sales
Customer assets can be valued as a part of
acquisitions and mergers
Customers increasingly expect high quality
personalized service
CRM-MM
Marketing management
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Marketing has been based on product,
price, and promotion
Marketing in a global economy across
multiple product categories using
different channels requires better tools
Ultimately, customer driven marketing
makes it essential to gather customer
input
CRM-MM
Goals
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Provide data for data mining and
OnLine Analytic Processing(OLAP)
Provide real time accurate data
Allow for better inventory management
and input into promotions and sales
Provide trend analysis data across
channels to drive operation
CRM-MM
Local
Access
Modeling
Visualization
Statistics
Internet
Access
Profiling
OLTP
OLAP
Data analysis
Business
Intelligence
sales
System
Data
extraction
validation
integration
operations
customer
CRM-SFA
Sales Force Automation
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Two goals in sales force automation
– Support the sales person in the field
– Economically integrate sales information
increasing corporate wide coordination
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A good system will:
– Support salesperson and telemarketing
productivity
– Automate selected sales processes
– Maintain direct mail and email systems
– Support sales and marketing management
including compensation management
CRM-SFA
Support of Sales Representatives
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Provision of marketing materials, price
lists, business intelligence online
Provision of customer leads and
information captured from all sources
Prequalification of sales prospects and
classification of customers
Provision of real time product availability
and order entry information
CRM-SFA
Some basic examples
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Web information requests are processed
– Through a standard set of followups
– To the appropriate sales person
– Automated tickler systems
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Tracking of contacts
– Prospects stored for future use
– Datamining of prospects
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Provide information
– To sales people about current pricing inventory
etc,
– To other company support units to enhance sales
CRM-SFA
More sophisticated examples
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Develop intelligent-agents to acquire news
items and competitor information for
distribution to the sales force and
management
Develop analysis tools to detect trends in
customers and sales
Develop network based push promotion and
information dissemination
Provide online customer controlled input and
tracking information
CRM-CSS
Customer Service and Suppport
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Customers are increasingly defined as
an important company asset
The Web makes new forms of customer
support possible and cost-effective
The Web can serve both as a way to
reach out to customers and as a way for
them to reach into the company
CRM-CSS
Goals
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Lower support costs
Provide global access
Create proactive services
Empower customers to solve issues
independently
Provide an opportunity for customers to
input into the business process
CRM-CSS
Basic Processes
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Provide the customer with product
update information, fixes, new product
information
Provide a simple registration system
that gathers:
– User demographics
– Product satisfaction
– Agreement to receive targeting
notifications
CRM-CSS
Advanced Processes
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Link sales information and customer ID for
telephone help desk support
Use a workflow system to track resolution of
customer issues through involved
departments
Feed problem reports lead into research and
development operations for action
Use problem tracking data feed into manage
operations and field service personnel
Overview



Summary of Turban Chapter 3, prelude to this.
Motivation of Customer Relations Management
CRM Subsystems – Marketing Management (MM),
– Sales Force Automation (SFA),
– Customer Service and Support (CSS)


Web Design Rules
On-Line Measurement
Web Design Rules
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Content - focus first on content and then on design.
Never let users leave your site without giving them
information, so they will come back.
Consistency - design your site with consistent content
quality, do not bore the customer. Images should give
information, not irrelevant images.
Density - break content into small pieces, that fit
together. Short pages. Information over pages. No more
than 10 links from a page.
Design - use few colors, color theme for pages
connected with your site. If possible, give users a choice
of format for document download type. Let users decide
the sequence that they visit pages (escape from demos).
Size - use small graphics with large impact.
Overview



Summary of Turban Chapter 3, prelude to this.
Motivation of Customer Relations Management
CRM Subsystems – Marketing Management (MM),
– Sales Force Automation (SFA),
– Customer Service and Support (CSS)


Web Design Rules
On-Line Measurement
On-Line Measurement
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Counting can be done by web site owners. They
use web server log files. Can count visits to web
pages too.
– The counts can be inflated: visits from spiders, visits
from yourself, criteria to increase count after every
refresh even within the same session.
– The counts can be under-counted: ISPs save pages
in cache files, so the user might see an old copy
even between sessions (opening the browser). Proxy
servers relay requests from users making 1000
people appear like 1.
– Server can use cookies, but you cannot force users
to accept cookies from a web server.
On-Line Measurement
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Counting - Continued
– Page Views - are all the pages that were viewed by
on-line customers.
– Visits - are all page views by a single on-line
customer.
– Automated log file analyzers - can import data into a
propriatary database to analyze traffic. Can produce
graphical reports, tables, charts.
– On-line rating agencies - add software on the users
PC to monitor use, instead of at the server.
– Third Party Auditing - I/Pro http://www.ipro.com and
MatchLogic http://www.matchlogic.com/ offer
programs to address problems with firewalls and
proxy servers. (Java applets must be allowed
through.)