CREATE THE DIFFERENCE Customer Relationship Management Further CRM

CREATE THE DIFFERENCE Types of Customer Relationship Management Operational CRM Analytical CRM Collaborative CRM

CREATE THE DIFFERENCE Operational CRM

CREATE THE DIFFERENCE Goal of Operational CRM The goal of Operational CRM is to provide electronic support for the "front office" business processes, which include all customer contact (eg. sales, marketing and service). it aims to deliver customer-centric business processes and operations.

CREATE THE DIFFERENCE Business Benefits Operational CRM provides the following benefits: –Enables a 360-degree view of each customer –Each employee from sales people to service engineers can access complete history of all customer interaction with the organisation regardless of the initial point of contact –Delivers personalised and efficient marketing, sales, and service

CREATE THE DIFFERENCE Components of Operational CRM Sales force automation (SFA) Enterprise marketing automation (EMA) Customer service and support (CSS)

CREATE THE DIFFERENCE Sales force automation (SFA) SFA automates critical sales and sales force management functions eg –lead/account management –contact management –quote management –Forecasting –customer preference tracking SFA requires a well designed database in order to store and retrieve customer details.

CREATE THE DIFFERENCE Enterprise marketing automation (EMA) EMA provides information about the business including –Competitors –industry trends EMA utilises Data Mining and OLAP Technologies which have been covered earlier in this module.

CREATE THE DIFFERENCE Customer service and support (CSS) CSS automates –service requests –Complaints –product returns –information requests. call-centre support for customer inquiries has evolved into the customer interaction centre (CIC) - uses multiple channels (Web, phone/fax, face-to-face, kiosk, etc). CSS technology is database oriented and is underpinned by Service Level Agreements (SLAs)

CREATE THE DIFFERENCE Service Level Agreements A Service Level agreement: Is a contract with a customer which Defines the Level of service to be provided thereby eliminating unrealistic expectations. Enables the management of complaints /comments Facilitates performance monitoring

CREATE THE DIFFERENCE Example Help Desk Accident and emergency units

CREATE THE DIFFERENCE Setting expectations: Customers are happy when –a supplier under-promises and over-delivers –a supplier delivers the correct order on time –a supplier routinely exceeds expectations Service level agreements mean that the customer knows what to expect and this sets a benchmark for their judgement of the service.

CREATE THE DIFFERENCE Complaints A complaint can be viewed as -a useful measure of performance -guidance for improving quality - an opportunity to increase customer loyalty A complaint may be categorised based on how far outside of the service level agreement the service received was. Expert handling of complaints can increase customer loyalty and referrals.

CREATE THE DIFFERENCE Handling complaints Once categorised, complaints can be handled electronically in a uniform way by a good CRM system. They are viewed positively by organisations and MUST be responded to positively. Usually response includes –An apology (for inconvenience caused) –An assurance that the complaint has been taken seriously and quality is being improved – A marketing gesture eg. Discount voucher.

CREATE THE DIFFERENCE Performance monitoring Ability to produce performance exception reports leading to the possibility of targeted marketing to reduce churn Identification of problem areas leading to the possibility of quality improvement

CREATE THE DIFFERENCE Analytical CRM

CREATE THE DIFFERENCE Goal of Analytical CRM To develop insight into customers’ needs. To determine what other products and services you can sell to your customers in order to increase the Average Revenue Per User (customer) ARPU.

CREATE THE DIFFERENCE Benefits to Business Segmentation of customers to feed into enterprise marketing (EMA) systems Identifies customers in danger of churning Aids Decision Making

CREATE THE DIFFERENCE Customer segmentation It is useful to segment customers for targeted marketing campaigns: –Customers most and least likely to repurchase product) –Profitability analysis (which customers lead to the most profit over time) –Personalisation (the ability to market to individual customers based on requirements)

CREATE THE DIFFERENCE Other Analyses Design and execution of specific customer campaigns, including cross-selling, up-selling Analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development etc.) Management decisions, e.g. financial forecasting and customer profitability analysis Prediction of the probability of customer defection (churn analysis)

CREATE THE DIFFERENCE Collaborative CRM

CREATE THE DIFFERENCE Goal of Collaborative CRM Collaborative CRM's ultimate goal is to use information collected from all departments to improve the quality of customer service This requires a clear contact management strategy which enables everyone in an organisation to see who is talking to who.

CREATE THE DIFFERENCE Business Benefits Enables efficient productive customer interactions across all communications channels Enables web collaboration to reduce customer service costs Integrates call centres enabling multi- channel personal customer interaction

CREATE THE DIFFERENCE Aim Collaborative CRM aims to get various departments within a business, such as sales, services and marketing, to share the useful information that they collect from interactions with customers. Feedback from a technical support center, for example, could be used to inform marketing about specific services and features requested by customers.

CREATE THE DIFFERENCE Aims continued Collaborative CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, ) and supports co-ordination of employee teams and channels. It is a solution that brings people, processes and data together so companies can better serve and retain their customers.

CREATE THE DIFFERENCE E-CRM and M-CRM E-CRM allows customers to access company services electronically M-CRM allows customers or managers to access the systems for instance from a mobile phone or PDA with internet access, resulting in high flexibility. An example of a company that implemented M- CRM is Finnair, who made it possible for their customers to check in for their flights by SMS.

CREATE THE DIFFERENCE CRM Strategy CRM is a broad area which can be applied on an enterprise-wide basis. It could be introduced to parts of an organisation but is more effectively introduced as a strategy.

CREATE THE DIFFERENCE What makes CRM fail? The main risk factors of implementing a CRM strategy may be: –Lack of CRM planning – no strategy –Underestimating implementation costs, timeframes and organizational commitment –Poor front and back-end integration –Not being customer focused or customer centric –Political friction within the organization stifles the sharing of customer information –Initiatives are driven by technology rather than by customer strategy and service process design