1. Customer Relationship Management (CRM)
BUSINESS B4
Customer Relationship Management (CRM)

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 CRM, supplier relationship management, partner relationship management, and employee relationship management
Summarize the future of customer relationship management
Summarize the future of supply chain 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

5. Introduction: RFM
Organizations can find their most valuable customers through “RFM”:
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. The Evolution of CRM

7. Operational CRM

8. Marketing and Operational CRM
List generators – compile customer information from a variety of sources and segment the information for different marketing campaigns
Campaign management systems – guide users through marketing campaigns
Cross-selling and up-selling
Cross-selling – selling additional products or services
Up-selling – increasing the value of the sale

9. Sales and Operational CRM
Sales force automation – a system that automatically tracks all of the steps in the sales process

10. Sales operational CRM technologies
Sales management systems – automate each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts
Contact management systems – maintains customer contact information and identifies prospective customers for future sales
Opportunity management systems – target sales opportunities by finding new customers or companies for future sales

12. Customer Service & Operational CRM
Contact center (call center) – where CSRs answer customer inquiries and respond to problems through different touchpoints
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
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

13. Customer Service & 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

14. 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. Current Trends: SRM, PRM, & ERM
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

17. CRM Future Trends
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

18. 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

19. 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
How will outsourcing contact centers (call centers) to Canada change as future CRM technologies replace current CRM technologies?