1 Developing and Measuring CRM

2 Outline  Developing and Implementing CRM  Customer satisfaction –The value of measuring Customer satisfaction –Objective vs. Subjective measures –Customer satisfaction survey  Satisfaction and Quality Measures  Measurement of Loyalty

3 Failure to develop in a proper way  Lack the required technology knowledge and skills  Fail to define all the risks  Selecting tools first rather than Functional requirements and system objects  Fail to recognize the importance of quality  Fail to follow a phased development methodology  Overlook the importance of privacy and security  Fail to perform a post-implementation evaluation

4 Phased development  Preliminary Investigation  Preliminary construction –Prototypes (Marketing, Manufacturing…) –Follow Analysis–Design-Construction  Final construction  Test and installation

5 Implementation Challenges  Top management  Coordination across functional units  Organizational change  Employee motivation for change  Strategic investment and capital expendition

6 Why measuring customer satisfaction?  An important step to build a positive relationship  Communicate a “We care” message  Feedback and control

7 Objective vs. Subjective measures  Hard data  handled by CRM  cost effective  May miss an understanding of detailed exchange and customer expectation Such as: time of waiting line, number of units sold, on- time flight arrival, percentage of baggage mishandled, average length of call, etc.  People’s perception of a brand, process, or experience with the organization  Relatively costly  Can be conducted quickly and inexpensively.  Making comparison overtime.

8 Customer satisfaction survey  Define the problem and objectives  Plan the survey design  Design the questionnaire  Select the sample  Collect the data  Analyze the data  Draw conclusion and prepare a report  Follow up

9 Satisfaction and Quality Measures  Satisfaction: a comparison between what customer expects from a product or service and the actual performance received. Affected by customer response to tangible aspects of the product, and intangible perception.  A perceptual driver identifies which issues seem to affect satisfaction the most. –Value equity –Brand equity –Relationship equity

10 Quality of Tangible Goods Conformity to customer requirements:  Performance  Features  Conformity to specification  Reliability  Durability  Aesthetic design  Serviceability

11 ServQual: Five dimension of service quality  Tangibles  Reliability  Responsiveness  Assurance  Empathy

12 Servqual Gap Analysis Model Identify possible causes of poor service quality: –Management perception-consumer expectation gap –Management perception-service quality specification gap –Service quality specification-service delivery gap –Service delivery-external communication gap

13 Measurement of Brand Loyalty Behavioral Measurement: CRM system can provide indication of purchase pattern Attitudinal measurement  Knowledge  Affect  Intention: willingness to repurchase or recommending

14 Measuring E-loyalty  Customerization  Contact interactivity  Cultivation  Care  Community  Choice  Convenience  Character