BUSINESS DRIVEN TECHNOLOGY

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BUSINESS DRIVEN TECHNOLOGY Chapter Eleven
Building a Customer-Centric Organization
Customer Relationship Management
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LEARNING OUTCOMES

• 11.1 Compare operational and analytical customer
  relationship management
• 11.2 Identify the primary forces driving the
  explosive growth of customer relationship
  management
• 11.3 Define the relationship between decision
  making and analytical customer relationship
  management
• 11.4 Summarize the best practices for
  implementing a successful customer relationship
  management system

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CHAPTER ELEVEN OVERVIEW

• CRM is a business philosophy based on the premise
  that those organizations that understand the
  needs of individual customers are best positioned
  to achieve sustainable competitive advantages in
  the future
• This chapter discusses
• The reasons for CRMs explosive growth
• Using CRM to enhance decision making
• CRM success factors

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CHAPTER ELEVEN OVERVIEW

• CRM enables an organization to
• Provide better customer service
• Make call centers more efficient
• Cross sell products more effectively
• Help sales staff close deals faster
• Simplify marketing and sales processes
• Discover new customers
• Increase customer revenues

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CUSTOMER RELATIONSHIP MANAGEMENTS EXPLOSIVE
GROWTH

• CRM Business Drivers

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CUSTOMER RELATIONSHIP MANAGEMENTS EXPLOSIVE
GROWTH

• Forecasts for CRM Spending (in billions)

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USING ANALYTICAL CRM TO ENHANCE DECISIONS

• Operational CRM supports traditional
  transactional processing for day-to-day
  front-office operations or systems that deal
  directly with the customers
• Analytical CRM supports back-office operations
  and strategic analysis and includes all systems
  that do not deal directly with the customers

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USING ANALYTICAL CRM TO ENHANCE DECISIONS

• Operational CRM and analytical CRM

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CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

• CRM Success factors include
• Clearly communicate the CRM strategy
• Define information needs and flows
• Build an integrated view of the customer
• Implement in iterations
• Scalability for organizational growth

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OPENING CASE STUDY QUESTIONSRevving Up Sales at
Harley-Davidson

• Assess the impact on Harley-Davidsons business
  if it decided to sell accessories directly to its
  online customers, be sure to include a brief
  discussion of the ethics involved in this
  decision
• Evaluate the HOG CRM strategy and recommend an
  additional benefit Harley-Davidson could provide
  to its HOG members to increase customer
  satisfaction

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CHAPTER ELEVEN CASEGearing Up at REI

• REI deserves recognition as an industry leader
  for its best practice multichannel CRM
  strategy, which allows customers to seamlessly
  purchase products at the companys 70 retail
  stores as well as by telephone, mail order, and
  on the Internet
• REIs CRM system benefits
• Minimizes maintenance costs
• Scales easily as company grows
• Provides sophisticated data warehouse for
  business intelligence
• Provides high availability

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CHAPTER ELEVEN CASE QUESTIONS

• Summarize why it is important for REI to use CRM
  strategies to consolidate its customer
  information
• Determine two pieces of customer information that
  REI could extrapolate from its CRM system that
  would help it manage its business more
  effectively
• Explain how REI could use personalization to give
  its customers a more satisfying shopping
  experience