Presentation on theme: "Customer Relationship Management (CRM)"— Presentation transcript:
1 Customer Relationship Management (CRM) BUSINESS B4Customer Relationship Management (CRM)
2 Learning OutcomesDescribe the three CRM technologies used by marketing departmentsDescribe and differentiate the CRM technologies used by sales departments and customer service departmentsCompare CRM, supplier relationship management, partner relationship management, and employee relationship managementSummarize the future of customer relationship managementSummarize the future of supply chain management
3 IntroductionCustomer relationship management – involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitabilityOperational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customersAnalytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers
5 Introduction: RFMOrganizations 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)
8 Marketing and Operational CRM List generators – compile customer information from a variety of sources and segment the information for different marketing campaignsCampaign management systems – guide users through marketing campaignsCross-selling and up-sellingCross-selling – selling additional products or servicesUp-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 accountsContact management systems – maintains customer contact information and identifies prospective customers for future salesOpportunity 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 touchpointsWeb-based self-service – allow customers to use the Web to find answers to their questions or solutions to their problemsClick-to-talk –customers click on a button and talk with a CSR via the InternetCall 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 agentsInteractive voice response (IVR) – directs customers to use touch-tone phones or keywords to navigate or provide informationPredictive dialing – automatically dials outbound calls and when someone answers, the call is forwarded to an available agent
14 Analytical CRMAnalytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behaviorThese systems quickly aggregate, analyze, and disseminate customer information throughout an organizationAnalytical 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 selectionPartner relationship management (PRM) – focuses on keeping vendors satisfied by managing alliance partner and reseller relationship that provide customers with the optimal sales channelEmployee relationship management (ERM) – provides employees with a subset of CRM applications available through a Web browser
17 CRM Future TrendsCRM applications will change from employee-only tools to tools used by suppliers, partners, and even customersCRM will continue to be a major strategic focus for companiesCRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customersCRM 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. companiesNot 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 goalsDescribe three ways an organization can perform CRM functions over the InternetHow will outsourcing contact centers (call centers) to Canada change as future CRM technologies replace current CRM technologies?