Transcript CRM - dbmanagement.info

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Customer relationship management (CRM)

Term applied to processes implemented by a company
to handle its contact with its customers

CRM is a software-based approach to handling
customer relationships
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Store information on current and prospective
customers
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Control over buying process
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Best possible price
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Delivery (free), quality
All payment options
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Information, comparison, selection, easy to find
Secure
Communication designed to suit needs
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Computerized, complex, caring
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All forms of trading
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Direct
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Traditional
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Retail
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E-commerce
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Wholesale
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Combination
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New convergence
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Telephony & telemarketing
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Internet
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Mobile, SMS
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Digital TV
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Cable & satellite
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Customer relationship management (CRM)
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From the outside, customers interacting with a
company perceive the business as a single entity,
despite often interacting with a variety of employees in
different roles and departments
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CRM is a combination of policies, processes, and
strategies implemented by a company that unify its
customer interaction and provides a mechanism for
tracking customer information
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Information in the system can be accessed and
entered by employees in different departments)
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Sales
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Marketing
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Customer service
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Training
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Professional development
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Performance management
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Human resource development
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Details on any customer contacts can also be
stored in the system
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The rationale behind this approach is to improve
services provided directly to customers
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To use the information in the system for targeted
marketing and sales purposes
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Many inter-related aspects
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Front office operation
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Back office operations
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Business relationships
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Analysis
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Direct interaction with customers
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Face to face meetings
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Phone calls
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E-mail
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Online services etc
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Operations that ultimately affect the activities of
the front office
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Billing
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Maintenance
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Planning
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Marketing
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Advertising
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Finance
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Manufacturing
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Interaction with other companies and partners
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Suppliers/vendors
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Retail outlets/distributors
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Industry networks (lobbying groups, trade assn’)
This external network supports front and back
office activities
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Key CRM data can be analyzed in order to plan
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Target-marketing campaigns
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Conceive business strategies
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Judge the success of CRM activities (e.g., market share,
number and types of customers, revenue, profitability)
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CRM initiatives often fail
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Implementation was limited to software installation
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Inadequate motivations for employees to learn,
provide input, and take full advantage of the
information systems
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Three key phases
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1. Customer Acquisition
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2. Customer Retention
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3. Customer Extension
Three contextual factors
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4. Marketing Orientation
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5. Value Creation
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6. Innovative IT.
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Attracting our customer
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For the first purchase
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We have acquired our customer
Growth
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Market orientation, innovative IT & value creation
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Aim is to increase the number of customers that
purchase from us for the FIRST TIME
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Re-purchase
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Our customer returns and buys for a second time
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This is most likely to be the purchase of a similar
product or service, or the next level of product or
service.
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Growth
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Market orientation, innovative IT & value creation
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Aim is to increase the number of customers that
purchase from us REGULARLY
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Additional, supplementary purchases
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Our customers are regularly purchasing
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We introduce products and services to our loyal
customers different from original purchase
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Once purchased, our goal is to retain them as
customers for the extended products or services
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Growth
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Market orientation, innovative IT & value creation
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Aim is to increase the number of customers that
purchase ADDITIONAL products
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Focused upon the three levels of needs of
customers
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Actual, tangible product
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Core product and its benefit
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Also the augmented product such as a warranty and
customer service
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Core
Benefit
Basic
Product
Expected
Product
Augmented
product
Potential
Product
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Generation of shareholder value
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Based upon the satisfaction of customer needs (as with
marketing orientation)
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Delivery of a sustainable competitive advantage
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Updated IT
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Efficient, speedy and focus upon customer needs
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Whilst IT and/or software are not the entire story for
CRM, it is vital to its success
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CRM software collects data on consumers and their
transactions
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Organizations will track individuals, and try to market
products and services to them based upon similar
buyer behavior seen in other individuals
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1. Validation
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2. Discovery
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3. Action
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1. Validation
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2. Discovery
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3. Action
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Correct data
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Ensuring that the data you have on your customers is
not only correct
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Also, in a suitable state for targeting communications
programs
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Use of data mining techniques
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To find relationships that you did not know existed
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Sometimes conventional analysis is impaired by your
own natural assumptions and prejudices
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Discovery techniques help to solve these issues by
starting from ground zero
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They simply search for relationships in the database
against a set of objectives
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Right communication
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Your customers and prospects need to have the right
messages communicated to them
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Quality Inter-Action drives quality Trans-Action
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This is done with a Campaign Management tool that
can automatically select the right targets and the right
messages via the right channels
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The responses are then fed back into the Validation
process for evaluation and refinement
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CRM is corporate strategy composed of
applications, technology and products that fulfill
three essential requirements
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1. Organization perspective
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2. Customer perspective
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3. Front office staff perspective
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360° view of each customer
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For consistent and unified contact with that customer
whenever anyone anywhere in the enterprise deals
with that customer
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This knowledge increases the opportunities for sales
and the effectiveness of customer service
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2. Customer perspective
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Customers to have a consistent view
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To enable your customers to have a consistent view of
your enterprise, regardless of the way the customer
contacts you
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This improves customer satisfaction and customer
retention
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Staff performance
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To enable front office staff to perform sales, service
and marketing tasks more efficiently as a team
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Increasing expertise and reducing costs
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Important
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Business starts with the acquisition of customers
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However, any successful CRM initiative is highly
dependent on a solid understanding of customers
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Understand
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Demographics, purchase patterns & channels
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Segmentation to identify logical unique groups
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Primary research to capture needs and attitudes
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Customer valuation to understand profitability
Differentiate
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Based on the value customers
expected to deliver
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are
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Develop
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Products, services, channels and media can be
customized based on the needs of quantitative
customer segments
Customize
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Based on the potential value
customer segment
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delivered by
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Interact
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Not just through marketing, sales and media
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Distribution, shipping, customer service & online
Deliver
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Delivering value is a cornerstone
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Factors including quality,
speed,
responsiveness
excellence
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convenience,
ease of use,
and service
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Acquire
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Learning about customers makes it easy to identify
those producing the greatest value
Retain
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Maintain interaction;
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Deliver on value
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Customers change as they
differing life stages
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Modify the service
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move through
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Subconscious Expectations
 Pizza with specified toppings
 Take 10 minutes
 Come in a packed box
 Remain warm till you reach home
 Charges – standard and acceptable price
 Pizza will taste reasonably good
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You will come back is all the above are met
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If you go regularly
 Rapport with employees
 You forgive if they mess up with one or two
expectations

Degree of confidence determines
tolerance
 If using first time, and even one expectation is
not met
 You will never go again
 Exceeded
expectations
 Deliver on all expectations
 Give you a garlic bread FREE !
 You
will tell everyone about it