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Customer Relations Management Judith Molka-Danielsen

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1 Customer Relations Management Judith Molka-Danielsen

2 Overview n Global value model for B2B systems (all) n Logistics management/supply chain (ch10) n Human Resource/support services (+ch10) n Customer Relations Management (ch11) n Manufacturing and process management (ch12) n Financial management/EDI (+ch12)

3 B2B Inputs Manufacturing Process Management Logistics Management Customer Management Support Services Financial Management

4 Customer Relations Management n Pull supply chains are based on linking customer information gathering to the upstream business processes n CRM involves the integration of traditionally separate systems –Marketing management –Sales –Customer service

5 The Rationale for CRM n Marketing and sales account for 15-35% of costs n Customer input can lead to better products n Current customers are a predictable source of future sales n Customer assets can be valued as a part of acquisitions and mergers n Customers increasingly expect high quality personalized service

6 CRM Marketing management n Marketing has been based on product, price, and promotion n Marketing in a global economy across multiple product categories using different channels requires better tools n Ultimately, customer driven marketing makes it essential to gather their input

7 CRM-MM Goals n Provide data for data mining and OnLine Analytic Processing(OLAP) n Provide real time accurate data n Allow for better inventory management and input into promotions and sales n Provide trend analysis data across channels to drive operation

8 CRM-MM sales operations customer OLTP System Data extraction validation integration OLAP Data analysis Business Intelligence Modeling Visualization Statistics Profiling Local Access Internet Access

9 CRM Sales Force Automation n Two goals in sales force automation –Support the sales person in the field –Economically integrate sales information increasing corporate wide coordination n A good system will: –Support salesperson and telemarketing productivity –Automate selected sales processes –Maintain direct mail and email systems –Support sales and marketing management including compensation management

10 CRM-SFA Support of Sales Representatives n Provision of marketing materials, price lists, business intelligence online n Provision of customer leads and information captured from all sources n Triage/prequalification of sales prospects and classification of customers n Provision of real time product availability and order entry information

11 CRM-SFA Some basic examples n Web information requests are processed –Through a standard set of followups –To the appropriate sales person –Automated tickler systems n Tracking of contacts –Prospects stored for future use –Datamining of prospects n Provide information –To sales people about current pricing inventory etc, –To other company support units to enhance sales

12 CRM-SFA More sophisticated examples n Develop agents to acquire news items and competitor information for distribution to the sales force and management n Develop analysis tools to detect trends in customers and sales n Develop network based push promotion and information dissemination n Provide online customer controlled input and tracking information

13 CRM Customer Service and Suppport n Customers are increasingly defined as an important company asset n The Web makes new forms of customer support possible and cost-effective n The Web can serve both as a way to reach out to customers and as a way for them to reach into the company

14 CRM-CSS Goals n Lower support costs n Provide global access n Create proactive services n Empower customers to solve issues independently n Provide an opportunity for customers to input into the business process

15 CRM-CSS Basic Processes n Provide the customer with product update information, fixes, new product information n Provide a simple registration system that gathers: –User demographics –Product satisfaction –Agreement to receive targeting notifications

16 CRM-CSS Advanced Processes n Link sales information and customer ID for telephone help desk support n Use a workflow system to track resolution of customer issues through involved departments n Feed problem reports into research and development operations for action n Use problem tracking data to manage field service personnel

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