1. Customer Relationship Management
BUSINESS PLUG-IN B9
Customer Relationship Management

2. LEARNING OUTCOMES
Describe the three CRM technologies used by marketing departments
Describe and differentiate the CRM technologies used by sales departments and customer service departments
Compare customer relationship management, supplier relationship management, partner relationship management, and employee relationship management
Summarize the future of customer relationship management

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. INTRODUCTION

5. USING IT TO DRIVE OPERATIONAL CRM

6. MARKETING AND OPERATIONAL CRM
Three marketing operational CRM technologies:
List generator – compiles customer information from a variety of sources and segment the information for different marketing campaigns
Campaign management system – guides users through marketing campaigns
Cross-selling and up-selling
Cross-selling – selling additional products or services
Up-selling – increasing the value of the sale

7. 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

8. SALES AND OPERATIONAL CRM
Three sales operational CRM technologies:
Sales management CRM system – automates each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts
Contact management CRM system – maintains customer contact information and identifies prospective customers for future sales
Opportunity management CRM system – targets sales opportunities by finding new customers or companies for future sales

9. SALES AND OPERATIONAL CRM
Get their attention
Value their time
Overdeliver
Contact frequently
Generate a trustworthy mailing list
Follow up

10. CUSTOMER SERVICE AND OPERATIONAL CRM
Three customer service operational CRM technologies:
Contact center (call center)
Web-based self-service system
Click-to-talk
Call scripting system

11. CUSTOMER SERVICE AND OPERATIONAL CRM

12. Analytical CRM
Personalization – when a website knows enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person
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

13. Analytical CRM Give customers more of what they want Value their time
Overdeliver
Contact frequently
Generate a trustworthy mailing list
Follow up

14. 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

15. 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

16. 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

17. CLOSING CASE ONE QUESTIONS
How could the ACS’s marketing department use operational CRM to strengthen its relationships with its customers?
How could the ACS’s customer service department use operational CRM to strengthen its relationships with its customers?
Review all of the operational CRM technologies and determine which one would add the greatest value to ACS’s business

18. CLOSING CASE ONE QUESTIONS
Describe the benefits ACS could gain from using analytical CRM
Summarize SRM and describe how ACS could use it to increase efficiency in its business

19. 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

20. CLOSING CASE TWO QUESTIONS
What are the two different types of CRM and how can they be used to help an organization gain a competitive advantage?
Explain how a contact center (or call center) can help an organization achieve its CRM goals
Describe three ways an organization can perform CRM functions over the Internet

21. CLOSING CASE TWO QUESTIONS
How will outsourcing contact centers (call centers) to Canada change as future CRM technologies replace current CRM technologies?
Do you believe that call centers in the future will be replaced by Robot technology? Why or why not.