1. Customer Relationship Management
(CRM)
Introduction
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2. Contents MEDFORIST Customer focus issues CRM Definitions CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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3. MEDFORIST A definition of marketing
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
“The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization goals.”
American Marketing Association
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4. MEDFORIST How to define Customers? BUSINESS CONSUMER TO CHANNEL
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
CONSUMER
BUSINESS TO
CHANNEL
DISTRIBUTOR
FRANCHISEE
INTERNAL
CUSTOMER
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5. It costs 6x more to sell to a new customer than to sell to an existing
One dissatisfied customer will tell 8-10 others on his experience
By increasing the customer retention rate by 5%, profits could increase by by 85%
There is 50% chance of making a sale to an existing customer while only a 15% chance of selling to a new customer
70% of customers will do business with the company again if their complaint is successfully resolved
90% of companies (in 2000) didn’t have the necessary sales and service integration to support e-commerce
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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6. Customer Loyalty: MEDFORIST
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
Customer Loyalty is a deeply held commitment to rebuy or repatronize a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behavior.
Source : « Satisfaction: A Behavioral Perspective On The Consumer”
Richard L. Oliver Mc Graw-Hill Editions
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7. CRM Definition: MEDFORIST
An integrated sales, marketing & service strategy
An approach which effectively manages customer relationships
“A business strategy to select and manage the most valuable customer relationships. CRM requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes”
IT definition
“Methodologies, software and usually internet capabilities that help an organisation manage customer relationships in an organised manner”
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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8. Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
Customer Relationship Management is an enterprise approach to understanding and influencing customer behavior through meaningful communications in order to improve customer acquisition, customer retention, customer loyalty and customer profitability
Source
“Accelerating Customer Relationships”, Ronald S. Swift Prentice Hall
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9. CRM Functions MEDFORIST The concept of CRM in theory is simple:
Listen to your customers and act on what they are saying to create a mutually beneficial relationship.
Companies with current implementations of CRM technology can usually hear their customers; however, because they are only focusing on the operational and collaborative component of CRM, they cannot really understand them. They must also consider analytical CRM to optimize their customer relationships.
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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10. MEDFORIST Customer focus issues CRM Definitions CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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11. MEDFORIST Operational CRM
designed to get the right mix of the company’s products and services in front of each customer at the right time
MARKETING
AUTOMATION
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
SALES FORCE
AUTOMATION
Collaborative tools that enable all parties to the transaction to interact with one another
Serving existing customer base through problem resolution systems, workflow automation and field service dispatch systems
CUSTOMER
SERVICE
AND
SELF-SERVICE
Capabilities that can be directly invoked by the customer on the internet via PC and wireless devices
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12. MEDFORIST Analytical CRM
A process of assembling disparate data from all over the company transforming it to a consistent state for business decision making and empowering users by providing them with access to this information from multiple applications
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
DATA
WAREHOUSE
The process of extracting and presenting new Knowledge, previously unpredictable, selected from databases for actionable decisions.
The process of analyzing detailed data, to
extract and present actionable, implicit and
novel information to solve a business problem
DATA
MINING
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13. MEDFORIST CRM - Stages Customer Acquisition:
Promotion of products – build a relationship – first date
Customer Extension:
An established relationship – cross-selling & up-selling
Customer Retention:
Adapt to customer requirements – requires a complex
understanding of customer needs.
Can an organisation pursue all 3 objectives ?
extremely difficult
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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14. MEDFORIST CRM Business Process with a Customer Focus
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
Need to have consistent dependable and convenient interactions with customers in every interaction
Need to efficiently create new delivery channels
Need to capture & analyse large amounts of customer data
Overall attempt to produce a unique/different business experience for the customer.
CRM is all about changing processes and therefore change management
What is the company’s experience in change? Does it have a successful track record?
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15. MEDFORIST CRM Technology CRM and e-CRM
e-CRM : extending CRM through the Web
e-CRM is the customer-facing internet portion
of CRM
e-CRM is a real designation, but it is not a
revolutionary new system or set of processes.
e-CRM is CRM online
CRM is a strategy, the web is a channel
CRM is inherently a multi-channel strategy.
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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16. MEDFORIST eCRM Traditional CRM eCRM E-Mail Blasts Web Registration
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
Blasts
Web Registration
Online Reply
Instant Messaging
Online Customer Service
Web Demo’s
Video Conference
Online Prospect Database
Telemarketing
Direct Mail
B.R.C. Responses
Trade Shows
Inbound Calls
Press releases
Meetings
Product Demo’s
Referrals
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17. MEDFORIST CRM Challenges Integrating customer content
All interactions and knowledge about customers must be synthesised and stored in a way that anyone in the organization with a need to know can access that information in real-time and in a way that supports that current problem. Currently most organizations cannot do this or are even close to this
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
Contact management
The channels that customers use to contact an organization are increasing – Web, call centre, fax, , voice message etc. These technologies must be integrated so that staff can access the details regardless of channel.
Consistent business rules need to be applied across all channels of contact
End-to end business processes
Business processes must be integrated and consistent eg. sales and service. The service staff must have access to sales details and commitments and apply consistent rules of dealing with the customers. This requires much more integration between processes than is current.
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18. MEDFORIST CRM Difficulties
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
CRM requires major integration of systems which
few companies have
CRM requires turning round existing systems to
store, record and retrieve on a customer-centric basis
CRM requires people to stop thinking about
departmental boundaries and to start thinking about
how as a team the company can help the customer
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19. MEDFORIST CRM Architecture Customer focus issues CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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20. MEDFORIST Step 1 – Determining current abilities
- Do we have a call/contact center?
- What are the capacities of the call/contact center?
- Are customers’ questions being answered?
- Why do we have customer complaints? How can
they be minimized?
- What additional infrastructure do we need?
- What are current costs?
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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21. MEDFORIST Step 2 – Building capabilities
- What technologies are in the call/contact
centers and is more technology needed
- Calls are routed based on incoming call
information (e.g. incoming call phone number)
- Employees are empowered to make and keep
promises to customer
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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22. MEDFORIST Step 3 – Information utilization
- Customer information and contact history is
tracked in a knowledge base and used in future
contacts
- Customer information can be linked to contact
history from all channels
- Customer patterns (e.g. seasonal patterns) are
discovered and used for marketing purposes
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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23. MEDFORIST Step 4 – Determination of “what we do”
- Shift from data collection and analysis to strategy
- Enterprise goals revolve around customer
relationships
- Customers receive support based on their value
to the company
- All corporate divisions share the same information
on the customer and focus on customer’s
relationship with the company
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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24. MEDFORIST Step 5 – CRM becomes a core competency
- Maintaining customer relationships is a core
competency of the business, ensuring a greater
retention rate
- The focus centers around redefining markets to
position the company as the best of breed in the
industry
Customer focus issues
CRM Definitions
CRM Functions
CRM Stages
CRM Business Process & Technology
CRM challenges & Difficulties
Building a CRM Solution
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25. The End
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