1. McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Business Plug-in B9 CUSTOMER RELATIONSHIP MANAGEMENT

2. 9-2 BUSINESS BENEFITS OF CRM CRM enables an organization to: –Provide better customer service –Make _____ centers more efficient –Cross sell products more effectively –Help sales staff close deals faster –Simplify marketing and sales processes –Discover new __________ –Increase customer revenues

3. 9-3 CRM BASICS Organizations can find their most valuable customers through “RFM”: –How recently a customer purchased items (Recency) –How frequently a customer purchased items (___________) –How much a customer spends on each purchase (Monetary Value)

4. 9-4 The Evolution of CRM CRM reporting technology – help organizations identify their customers across other applications CRM __________ technologies – help organization segment their customers into categories such as best and worst customers CRM predicting technologies – help organizations make predictions regarding customer behavior such as which customers are at risk of leaving

5. 9-5 The Evolution of CRM Three phases in the evolution of CRM include reporting, analyzing, and predicting

6. 9-6 The Evolution of CRM

7. 9-7 Operational and Analytical CRM Operational CRM – supports traditional transactional processing for day-to-day ______-office operations or systems that deal directly with the customers Analytical CRM – supports ______-office operations and strategic analysis and includes all systems that do not deal directly with the customers

8. 9-8 Operational and Analytical CRM

9. 9-9 Using IT to Drive Operational CRM

10. 9-10 Marketing and Operational CRM Three marketing operational CRM technologies: 1.List generator – compiles customer information from a variety of sources and segment the information for different marketing campaigns 2.Campaign management system – guides users through marketing campaigns 3.Cross-selling and up-selling Cross-selling – selling additional products or services Up-selling – increasing the value of the sale

11. 9-11 Sales and Operational CRM The sales department was the first to begin developing CRM systems with sales force ____________ – a system that automatically tracks all of the steps in the sales process

12. 9-12 Sales and Operational CRM Sales and operational CRM technologies 1.Sales management CRM system – automates each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts 2.Contact management CRM system – maintains customer contact information and identifies __________ customers for future sales 3.Opportunity management CRM system – targets sales opportunities by finding _____ customers or companies for future sales

13. 9-13 Customer Service and Operational CRM Three customer service operational CRM technologies: 1.Contact center (call center) 2.Web-based self-service system Click-to-talk 3.Call scripting system Access DB to automatically generate details for the CSR

14. 9-14 Customer Service and Operational CRM

15. 9-15 USING IT TO DRIVE ANALYTICAL CRM Personalization – when a Web site knows enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person Analytical CRM relies heavily on data ____________ technologies and business intelligence to glean insights into customer behavior These systems quickly aggregate, analyze, and disseminate customer information throughout an organization

16. 9-16 CURRENT TRENDS: SRM, PRM, AND ERM Supplier relationship management (SRM) – focuses on keeping suppliers satisfied by evaluating and __________ suppliers for different projects Partner relationship management (PRM) – focuses on keeping _______ satisfied by managing alliance partner and reseller relationships Employee relationship management (ERM) – provides employees (as customers) with a subset of CRM applications available through a ____________

17. 9-17 FUTURE CRM TRENDS CRM applications will change from employee- only tools to tools used by suppliers, partners, and even ____________ CRM will continue to be a major ________ focus for companies CRM applications will continue to adapt ________ capabilities supporting mobile sales and mobile customers CRM suites will incorporate PRM and SRM modules