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McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-1 BUSINESS DRIVEN TECHNOLOGY Business Plug-In B4 Customer Relationship.

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Presentation on theme: "McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-1 BUSINESS DRIVEN TECHNOLOGY Business Plug-In B4 Customer Relationship."— Presentation transcript:

1 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-1 BUSINESS DRIVEN TECHNOLOGY Business Plug-In B4 Customer Relationship Management

2 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-2 LEARNING OUTCOMES 1.Describe the three CRM technologies used by marketing departments 2.Describe and differentiate the CRM technologies used by sales departments and customer service departments 3.Compare customer relationship management, supplier relationship management, partner relationship management, and employee relationship management 4.Summarize the future of customer relationship management

3 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-3 INTRODUCTION Customer relationship management – involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability – Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers – Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers

4 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-4 INTRODUCTION

5 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-5 INTRODUCTION Organizations can find their most valuable customers through “RFM” - R ecency, F requency, and M onetary value – How recently a customer purchased items (Recency) – How frequently a customer purchased items (Frequency) – How much a customer spends on each purchase (Monetary Value)

6 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-6 The Evolution of CRM Three phases in the evolution of CRM include reporting, analyzing, and predicting

7 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-7 The Evolution of CRM Reporting, analyzing, and predicting examples

8 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-8 Operational CRM

9 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-9 MARKETING AND OPERATIONAL CRM Three marketing operational CRM technologies: 1. List generators – compile customer information from a variety of sources and segment the information for different marketing campaigns 2. Campaign management systems – guide users through marketing campaigns 3.Cross-selling and up-selling Cross-selling – selling additional products or services Up-selling – increasing the value of the sale

10 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved SALES AND OPERATIONAL CRM The sales department was the first to begin developing CRM systems with sales force automation – a system that automatically tracks all of the steps in the sales process

11 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved SALES AND OPERATIONAL CRM Three sales operational CRM technologies: 1. Sales management systems – automate each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts 2. Contact management systems – maintains customer contact information and identifies prospective customers for future sales 3. Opportunity management systems – target sales opportunities by finding new customers or companies for future sales

12 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved SALES AND OPERATIONAL CRM CRM pointers for gaining prospective customers

13 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved CUSTOMER SERVICE AND OPERATIONAL CRM Three customer service operational CRM technologies: 1. Contact center (call center) – where CSRs answer customer inquiries and respond to problems through different touchpoints 2. Web-based self-service – allow customers to use the Web to find answers to their questions or solutions to their problems Click-to-talk –customers click on a button and talk with a CSR via the Internet 3. Call scripting – access organizational databases that track similar issues or questions and automatically generate the details to the CSR who can then relay them to the customer

14 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved CUSTOMER SERVICE AND OPERATIONAL CRM Contact centers can include: – Automatic call distribution – a phone switch routes inbound calls to available agents – Interactive voice response (IVR) – directs customers to use touch-tone phones or keywords to navigate or provide information – Predictive dialing – automatically dials outbound calls and when someone answers, the call is forwarded to an available agent

15 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Analytical CRM Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior These systems quickly aggregate, analyze, and disseminate customer information throughout an organization Analytical CRM has the ability to provide an organization with information about their customers that was previously impossible to locate, and the resulting payback can be tremendous.

16 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Analytical CRM

17 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Current Trends: SRM, PRM, and ERM Current trends include: – Supplier relationship management (SRM) – focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection – Partner relationship management (PRM) – focuses on keeping vendors satisfied by managing alliance partner and reseller relationship that provide customers with the optimal sales channel – Employee relationship management (ERM) – provides employees with a subset of CRM applications available through a Web browser

18 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Future Trends CRM future trends include: – CRM applications will change from employee-only tools to tools used by suppliers, partners, and even customers – CRM will continue to be a major strategic focus for companies – CRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customers – CRM suites will incorporate PRM and SRM modules

19 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Closing Case One Fighting Cancer with Information The American Cancer Society (ACS) is a nationwide voluntary health organization dedicated to eliminating cancer The ACS choose to implement a CRM solution to solve its information issues Critical to the CRM system’s success was consolidating information from various databases across the organization to provide a single view of constituents

20 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Closing Case One Questions 1.Explain how the ACS’s marketing department could use operational CRM to strengthen its relationships with its customers 2.Explain how the ACS’s customer service department could use operational CRM to strengthen its relationships with its customers 3.Review all of the operational CRM technologies and determine which one would add the greatest value to ACS’s business

21 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Closing Case One Questions 4.Describe the benefits ACS could gain from using analytical CRM 5.Summarize SRM and describe how ACS could use it to increase efficiency in its business

22 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Two Calling All Canadians Canada has become one of the primary targets for outsourcing customer service centers by U.S. companies Not only are accent and time-zone issues nonexistent, but companies also receive a favorable exchange rate

23 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Two Questions 1.What are the two different types of CRM and how can they be used to help an organization gain a competitive advantage? 2.Explain how a contact center (or call center) can help an organization achieve its CRM goals 3.Describe three ways an organization can perform CRM functions over the Internet 4.How will outsourcing contact centers (call centers) to Canada change as future CRM technologies replace current CRM technologies?


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