1. Customer Relationship Management
Further CRM
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2. Types of Customer Relationship Management
Operational CRM
Analytical CRM
Collaborative CRM
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3. Operational CRM
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4. 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.
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5. 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
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6. Components of Operational CRM
Sales force automation (SFA)  
Enterprise marketing automation (EMA) 
Customer service and support (CSS)
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7. 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.
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8. 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.
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9. 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)
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10. 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
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11. Example
Help Desk
Accident and emergency units
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12. 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.
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13. 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.
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14. 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.
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15. 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
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16. Analytical CRM
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17. 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.
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18. Benefits to Business
Segmentation of customers to feed into enterprise marketing (EMA) systems
Identifies customers in danger of churning
Aids Decision Making
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19. 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)
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20. 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)
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21. Collaborative CRM
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22. 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.
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23. 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
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24. 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.
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25. 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.
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26. 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.
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27. 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.
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28. 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
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