1. Presented by Team JJEMS
A Framework for
Customer Relationship
Management
by Russell S. Winer
Presented by Team JJEMS
John Follett Article Synopsis
Matt Baker The Business Case for CRM
Judi DeBord How to Implement CRM
Eric Nill Infrastructure and Examples

2. What is Customer Relationship Management (CRM)?
Some say the new “mantra” of Marketing
Tracking Customer Behavior
Predicting Future Customer
Communicating with Customers
Results:
Allows Management to better focus marketing effort
1:1 Marketing
LCV “Lifetime Customer Value”
“The essence of the information technology revolution and, in particular, the World Wide Web is the opportunity afforded companies to choose how they interact with their customers.” Russell Winer

3. Customer Relationship Management Model (7 basic components)
Create a Database
Analysis
Customer Selection
Customer Targeting
Relationship Marketing
Privacy Issues
Metrics

4. Tools for Building Customer Relationships
The Business Case for CRM
Who Are Our
Profitable Customers?
Data Driven Approach !
Retention = Net Profits
Customer Buying Data 
LCV Analysis 
Customer Segmentation 
Customer Focus Strategy
CRM
Reichheld
Repeat vs. New Customer
2X Gross Income
Mckinsey
Tools for Building Customer Relationships
1:1 Marketing
Develop Relationship
Cost Effective
Begin Dialog
Customer
Service
Proactive v. Reactive
Touch Points
Customers have Choices
Loyalty
Programs
Cost Effectiveness
Switching Costs
Web Shopping – Loyal Behavior
Community
Connect to Peoples Interests
Support Communities

5. The Business Case for CRM
You can’t manage what you can’t measure;
If you can’t see it, you can’t measure it;
If you can’t measure it, you can’t understand it;
If you can’t understand it, you can’t improve it.
The First Axiom about Improvement
CRM enables the systemization of a sales process
Unconscious  Conscious, Repeatable, Predicable
Sales Process
Visibility
Predictability
Consistency
Scaleability
Sustainability
Visibility
Drives sales execution and discipline
Visibility enables performance coaching
Visibility and ubiquity of information drives predicability along with a formal process
Consistency is the ability to review performance across the sales organization
Scalability. A process based upon CRM will be more easily scalable than a process without the CRM.
Sustainable. Ingrain the process into the sales culture.
moving to a process mentality should force the sharing of best practices across the sales organization. This should have the effect of raising the effectiveness of the middle 60% of the organization into higher performance regions.

6. How to “Do” CRM Develop a customer-centric strategy
You’ll be listening to your customer rather than ‘telling’ them
Reorganize internal functions and systems to support your customer (ERP)
Cultivate cross-functional cooperation within your business
Overcome the inevitable internal resistance to change
Although the article focused primarily on the benefits of Web-based CRM initiatives, JJEMS identified several implications for a senior management team to consider when looking at launching a CRM program.
As Jim mentioned several times, don’t even dream of a wildly successful CRM program if you don’t have the infrastructure to support and exploit it. ERP is just one of those supporting structures. Business strategy, marketing strategy and sales operations also are supporting infrastructure. Budgeting for CRM is another infrastructure component.
JJEMS found several strategic prerequisites for a successful CRM program. In some companies, the entire workflow of customer identification, recruitment, sales and support could be changed by a CRM program.

7. How to “Do” CRM Assess technical capabilities
Define the desired outcome of your CRM initiative – establish metrics
Define your programs:
Reward, Community, Loyalty, etc.
Build teams to select and implement the software to get you to your destination
After orienting your processes toward the customer, plenty of important planning activities remain.
Assessing your technical capabilities, the current and desired states of your information systems and infrastructure, and the gap analysis.
Defining the desired outcomes and functional requirements, and metrics.
Notice that the last item on the list is to go out shopping for your new system.

8. How CRM Gets “Done” Physical Layer (Hardware) Data Source
Internally Managed
Hosted Externally
(Application Service Provider)
Data Source
Sales History
Opt-in Lists
Surveys/Kiosks
Purchased List

9. How CRM Gets “Done” Contact Types 3rd Party Services
Marketing campaign
(Broad coverage vs. Spam)
B2C <--> B2B
Portal, Affinity Site
3rd Party Services
Clickstream analysis
(Customer metrics)
AdWords/banner ads
(Customer acquisition)

10. How CRM gets “Done” System Security Data Management External Threats
“You sold us on the price, mileage, and safety features… it’s the company’s IT performance we’re still mulling over”.
System Security
External Threats
(Hackers, ID Theft)
Internal Threats
(Info as Co. Asset)
Data Management
Organization of Desired Info.
Back up & Restore
Business Continuity

11. How CRM gets “Done”

12. How CRM gets “Done”
As part of integrated part of data base management.
Primary for close customer contact and business retention tool.
Cost effectiveness of technology and growth of Internet makes Customer Acquisition through this electronic media something to consider.

13. Questions?