118'708 CRM session 3 CRM Designs

1
118.708 CRM session 3CRM Designs
Learning Coach Dr. Mohan Agrawal Principal
Strategy Consultant Marketing Aims
Inc. Canada www.marketingaims.com Email
magrawal_at_marketingaims.com
2
Agenda

• Recap and reinforcement of the major points in
  session 2
• Discussion on the relationship turn offs with
  the select customers and website as relationship
  marketing tool at Four seasons.
• Strategic Takeaways
• Uptrend in CRM software selling

3
1.1 Defining CRM Reported in the Meta Survey on
Global 2000 Companies)

• Offered multiple, conflicting and often
  incomplete definitions of CRM.
• 78 described CRM as a modern marketing
  imperative, the other 22 of respondents define
  CRM as a set of tools and technologies.
• 64 of respondents lacked techniques to measure
  the business value of CRM.

4
1.2 What is RM?

• Relationship Marketing is a process for using
  every marketing means especially the 4Ps or 4Cs
  Acquiring new customers, Developing both new and
  existing customers, and Retaining them (for
  building a loyal customer base) with the
  objective of maximizing customer value for the
  firm over the life of the relationship.

5
1.3 Moving towards Life-Long Association
RM starts with Customer Acquisition,followed by
Customer Development Retention.
Customer Acquisition
Customer Development
Customer Retention
6
Customer Relationships

7
1.4 Foundations of Customer Relationships

8
2 People Turn-Offs

• Lack of courtesy, friendliness, attention
• Employees who lack knowledge and are not helpful
• Employee appearance, mannerisms

9
2 Process Turn-Offs

• Slow service or access. Help not available
• Business place or website dirty, messy, cluttered
• Low selection/poor availability of product
• Inconvenient location/facilities layout

10
2 Value Turn-Offs

• Poor guarantee/failure to back up products
• Quality not as good as expected
• Price too high for value received

11
Customer Frustration vs. Appreciation The
heartbeat
From Studies from HeartMath

(For more information on this and other studies
like this go to www.heartmath.com)
12
3. Add Customer Attrition to the PL Sheet

13
3 Work like a sugar

• Sugar is made of three molecules Oxygen,
  Hydrogen and Carbon. Where does the sweetness
  lie? In the relationship.
• --Fritjof Capara- Tao of Physics

14
3 CRM Sweetness lies in connecting PPT

15
4 Components of Operational and Analytical CRM

• Operational CRM effective and efficient use and
  management of people, process and technology
• Analytical CRM the measurement of people,
  process and technology

16
Discussion Question

• Hilton HHonors
• Evaluate the concept and goals of the loyalty
  program and how did Hilton interpret them them?
• Requirements of a loyalty program to stay
  effective over the a period of time?
• Features of the HH Loyalty program.
• Performance of the program
• Challenge and responses to meet the Starwood
  program

17
5.1 Misconceptions About Customer Loyalty

• Incentives begins loyalty.
• Trial loyalty turns into continuity.
• Transaction satisfaction guarantees loyalty.
• Repeat buying proves loyalty

18
5.2 Real Customer Loyalty

• Overall satisfaction
• Willingness to commit to an ongoing relationship
• Willingness to recommend the company to others

19
5.3 The Type and Levels of RM

• The types could be financial, social or
  structural.
• The levels could be from Basic, Reactive,
  Accountable, Proactive, Participative,
  Membership, Profit-sharing, and Integrative.
• Decision criteria could include factors like
  number of customer accounts, profitability per
  account, customization needed, customer
  reputations etc.

20
Which Type of RM for Whom!
21
Which RM Level for Whom!
22
5.3 CRM is a Management Tool, encompassing all
functions, for focusing on the customer
Sales
Service
Marketing
Mfg
Product Planning
Purchasing
Spares
RD
CRM is a set of operating business processes
built around the customer
23
5.4 CRM is the front end (customer facing)
activity. It needs to be firmly supported by all
other back-end processes.
CRM
FAST FWD
ERP
SCM
RD
MFG
PURCHASING
All improvement initiatives under the CRM Umbrella
24
55 CRM needs Change Management

• Work Practices
• Facilitate decision making by extensive use of
  Database IT tools.
• E.g. A CRM package can perform a cost-benefit
  analysis of various events, thus helping us to
  choose the most appropriate event at a given
  time.
• Knowledge sharing across the organization.

• Organizational
• The entire Marketing organization has to
  re-orient itself to gear up for implementing CRM.
• CRM also requires that all functions align
  themselves for providing value to customers.
• CRM aims to provide the same experience to
  customers at all touch points

More than any other thing I wanted to know why
the guy didnt buy from me
The greatest difficulty is not to accept the new
ideas but to forget the old ones.
J.KEYNES
SAM WALTON
25
5.5 The Effect of Change on People

26
6 Up-trend in CRM Vending

• Siebel Systems, Oracle, PeopleSoft, Computer
  Associates International, and Cognos are the
  global major CRM vendors.
• Banks, insurance, telecom, travel and tourism,
  and pharmaceutical companies are the major buyers
  of CRM software.
• CRM software market has grown more than 50 a
  year since 1996.
• Contd

27
6 Up-trend in CRM Vendingcontd..

• The Meta Group predicts the size of the market
  will grow to 67 billion in 2004.
• A recent Gartner survey of 600 companies reports
  that 33 of the responding firms had plans to
  spend more than 1 million on CRM by 2002 (Byrd
  and Dillon, 2001).

28
THANK YOU