1. Customer Relationship Management Wagner & Zubey (2007) 11 Copyright (c) 2006 Prentice-Hall. All rights reserved. Copyright 2007 Thomson Publishing: All Rights Reserved Chapter 2: Functional CRM Customer Relationship Management: A People, Process, and Technology Approach William Wagner and Michael Zubey

2. Customer Relationship Management Wagner & Zubey (2007) 2 Objectives  Explain the use of Sales Force Automation (SFA) technologies  Describe the areas of operational excellence and supporting technologies  within support centers  List and describe the marketing automation tools that have optimized the performance of many marketing organizations  Describe the impact of the Internet on CRM

3. Customer Relationship Management Wagner & Zubey (2007) 3 CRM in Action  CRM at Brother International  Manufacturer of office products for home and work; includes printers, faxes, multi-function devices.  2001 revenue of about $1B from US  Good projected growth for home offices and the “value” niche  Sells mainly through retailers but maintains the after sale service functions  National Service Division handles returns, service, parts, and customer contact center

4. Customer Relationship Management Wagner & Zubey (2007) 4 CRM in Action (cont.)  Ex. of Brother International  Implemented SAP ERP in 1994  Goal was to integrate all depts. in one system  MySAP CRM in 2000  Campaign Management, Interaction Center, and Customer Self-Service  goal to improve accuracy and speed of orders  Still wanted single, integrated system  Wanted to leverage ERP experience, training  Recently released new products so had a high number of service calls  web-based customer service application also reduced number of service calls

5. Customer Relationship Management Wagner & Zubey (2007) 5 CRM in Action (cont.)  KPIs to measure progress toward “total customer satisfaction”  Error Free Order Processing  On-time deliveries  Measure: orders with deliveries on time %  Volume Accuracy  Measure: orders with correct volumes %  Product Return Rate  Measure: returns among sales order lines  Speed of Order Processing  Sales Order Cycle Time  Measure: cycle time goods issue  Measure: cycle time invoicing

6. Customer Relationship Management Wagner & Zubey (2007) 6 CRM in Action (cont.)  Ex. of Brother International  Analyzed business requirements with various channel partners  Convert these into flow charts and scope documents  Began data migration from legacy systems and R/3  Customer, material and pricing master data from R/3  Some transaction and product registration data in Lotus Notes  Solution files created from flat files and FAQ files  Data warehouse created as definitive repository for CRM processes  Important for reporting on CSFs  Important for campaign management and segmenting

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8. Customer Relationship Management Wagner & Zubey (2007) 8 CRM in Action Results  Ex. of Brother International  Reported 129% ROI  Led to expanding CRM functionality  Internet sales catalog site  Telesales and telemarketing implemented  Call center scripting  Integrated web-based lead generation

9. Customer Relationship Management Wagner & Zubey (2007) 9 Three Main Functional Areas of CRM  Sales Force Automation (SFA)  Call or Service Center Operations  Marketing Automation *These are impacted by integration with other systems such as ERP, DW, analytics, e- Commerce, legacy, etc.

10. Customer Relationship Management Wagner & Zubey (2007) 10 Sales Force Automation  Was the first area for CRM  Started as a sales log or journal  Expanded to manage sales leads, email, wireless, create sales forecasts  Can link sales documents  Can generate revenue forecasts  Can be tailored with sales process best practices  Integration of global customer data (ex. Customer service calls)

11. Customer Relationship Management Wagner & Zubey (2007) 11 Sample SFA Screen

12. Customer Relationship Management Wagner & Zubey (2007) 12 Sales and Sales Management  Sales roles may differ widely depending on the sales channel involved  Could include:  Reseller partners  retail outlets  catalog sales  e-commerce websites  direct sales (possibly through web site)  Users of SFA could be sales force, sales support, sales management  Fat vs. light or “thin” client SFA technologies

13. Customer Relationship Management Wagner & Zubey (2007) 13 Common SFA Scenarios  Lead Management  Order processing  Contract processing  Territory creation  Campaign execution  Tour planning  Customer visit logs  Integrated sales planning for key accounts

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16. Customer Relationship Management Wagner & Zubey (2007) 16 Support Centers  Centralized call or service centers popular model  Tied to 800 numbers, warranty cards, web sites, email, etc.  Can be used to collect data, generate leads, up- sell, cross-sell, etc.  In-bound vs. outbound personnel  Usually levels of expertise involved

17. Customer Relationship Management Wagner & Zubey (2007) 17 Sample Screen for Service Representative

18. Customer Relationship Management Wagner & Zubey (2007) 18 Call Center Metrics  Call resolution time  First call resolution rate

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22. Customer Relationship Management Wagner & Zubey (2007) 22 Call Center Scenarios  Lead qualification  Inbound/outbound telesales  Help desk  Customer service  Complaints processing  Contract maintenance  Returns processing  Internet self service  Service confirmation  Service processing with contract level agreements

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24. Customer Relationship Management Wagner & Zubey (2007) 24 Marketing Automation  More strategic in terms of monitoring marketing plans, performance, trends  Includes:  Marketing Plan creation  Campaign management  Lead management  Target group creation  Product proposals  Predicting customer behavior  Customer profitability analysis

25. Customer Relationship Management Wagner & Zubey (2007) 25 Marketing Roles  Marketing Research  Analyze target markets  May require primary and secondary data  Marketing Communications  Produces collateral documents and graphics for products and services in market  Product or Program Marketing  Set product strategy for pricing, partners, value propositions, and competitive positioning

26. Customer Relationship Management Wagner & Zubey (2007) 26 Summary  In this chapter you learned:  About the three functional areas that make up CRM  SFA  Call or Support Centers  Marketing Automation  How people, processes and technologies enable these three areas  The importance of best practices  How the Internet has impacted CRM

27. Customer Relationship Management Wagner & Zubey (2007) 27 Questions?