Transcript XHTML Essentials: Level 1 Chapter 8

Essentials of Customer Relationship
Management:
A People, Process, and Technology
Approach
William Wagner and Michael Zubey
Chapter 1: Basics of CRM
Customer Relationship Management
CopyrightCopyright
2007 Thomson
Publishing: All Rights
Wagner & Zubey (2007)
(c) 2006 Prentice-Hall. All rights reserved.
Reserved
1
Objectives
Define and understand Customer
Relationship Management (CRM)
Define CRM and place it in a historical
context
Describe how CRM benefits organizations
Outline the major CRM processes
Describe the IT framework for CRM
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Objectives (cont.)
Identify databases involved in CRM
applications
Describe CRM's relationship to ERP
applications
Outline possible future directions for CRM
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CRM in Action
 CRM at Huntington Bank
Personal banking vs. mortgage banking
2 months for long-term client to get approval for
mortgage
All of the information is already there
360 degree view of customer
CRM should provide better service and cut costs
at the same time
May lead to other value-added services also
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CRM Defined
Customer Relationship Management
(CRM) is the systematic combination
of people, processes and technology
that is designed to enable an
enterprise to find, acquire, and retain
customers. (Wagner & Zubey)
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Why firms invest in CRM…
 Cost of acquiring customers
Ex. Of AOL giveaways
Generally costs 5X as much to attract new
customers as it does to keep existing ones
Reducing customer churn rate 5% can increase
profits 25-95%
Satisfied customers are great source of improved
ROI
Number 1 reason for customer defections is poor
customer service
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Benefits of CRM
 Reducing the cost of sales
 Identifying and targeting customers better.
 Decreasing cost of marketing campaigns
 Increasing customer loyalty
 Increasing customer retention
 Identifying customer trends and patterns of
consumption
 Help the right information flow to wherever it's
needed throughout the organization.
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CRM and People
 Roles of Executives
CEO, CMO, CFO, CIO, VP of Sales
 Operational level Roles
Marketing manager, customer service, sales
person, IT manager, Database administrator
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CRM Processes
 Marketing
 Sales
 Customer Service
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CRM and the Marketing Process
 Focused on lead generation and awareness
of the products and services being offered by
a firm
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CRM and the Sales Process
 sales process can be very different based
upon locality and type industry
some firms may have multiple sales channels
includes web, direct sales, or distributors to sell their
products and services in the market
 A multi-channel sales model is a very
challenging effort to coordinate from a CRM
perspective.
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CRM and Customer Support Process
 The customer support process is often
overlooked
customer support is not perceived as a revenue
generating activity
may not receive the same amount of investment
as a sales process because of the “cost center”
perception by a firm’s management.
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CRM Technology Framework
 One of several “enterprise” applications
Think in terms of infrastructure necessary
Also in terms of CRM applications
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Infrastructure for CRM
 Hardware
 Input/Output devices, servers, cables, channels
 Software
 Applications
 OS, NOS
 “Middleware”
 Networks
 LAN, WAN
 C/S main architecture
 Inet is considered to be an example of C/S
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CRM and Client/Server
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N-Tier Client/Server
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CRM and Software
 Common OS and H/W configurations define an IT
“platform”
 Databases
 Database servers
 DBMS software
 Relational DBMS
 Structured Query Language (SQL)
 “legacy” databases
 Text database - XML
 Operational and analytic databases
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CRM Applications
Sales Force Automation
Call or Service Center Integration
Market automation
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Major CRM Software Vendors
 Oracle/Seibel/PeopleSoft
 SAP
 Onyx
 Baan/Invensys
 Vantive
 Clarify
 Salesforce.com
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Summary
 In this chapter you learned:
 Basics of CRM
 Using a people, process technology approach
 Importance for businesses today
 Core processes involved in CRM
 Roles of people involved in CRM
 Key technologies that support CRM
 Future directions of CRM
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Questions?
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