Customer Relationship Management and IT

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Customer Relationship Management and IT
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What is CRM?

• CRM is a collective term for processes and
  strategies regarding individualized relationships
  between enterprises and customers, prospects, and
  business partners for marketing, sales and
  service with the goal of winning new customers,
  extending existing customer relationships across
  the entire customer life cycle, and improving
  competitiveness and business success by
  optimizing the profitability of individualized
  customer relationships.
• CRM is the integration of sales, marketing,
  service and support strategy, process, people and
  technology to maximize customer acquisition,
  value, relationships, retention and loyalty.

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What is CRM?
Analytics
Email
Web
BackOffice
Customers
Call Center
Customer Information
Field
Marketing
Partner
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The Four Aspects of CRM

• 1. Active CRM A centralized database for storing
  data, which can be used to automate business
  processes and common tasks.
• 2. Operational CRM The automation or support of
  customer processes involving sales or service
  representatives
• 3. Collaborative CRM Direct communication with
  customers not involving sales or service
  representatives (self service)
• 4. Analytical CRM The analysis of customer data
  for a broad range of purposes
• Source Wikipedia

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Active CRM

• Centralized Data Store
• Ordering Information Customer details, and
  Business Prospects all stored in a single system.
• IT department helps in creating new user
  accounts and maintaining the data store.
• Single centralized data store helps to organize
  data efficiently
• Segment
• Manage
• Track
• Analyze

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Active CRM

• Advantages
• Improved Customer Relationships
• Automated Business Tasks and Processes.
• Targeted Marketing Campaigns.

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Operational CRM

• Operational CRM generally refers to the products,
  services and operational capabilities that enable
  an organization to take care of its customers

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Operational CRM

• Customer care is essential to every company
• Tens of millions of dollars have been invested,
  yet management still cannot say what, if any,
  business benefits have resulted from CRM
  initiatives
• Many cant even say why they decided to
  implement a CRM strategy

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Goal of Operational CRM

• Should be to integrate people, processes and
  technology using the customers
  perspective and expectations as the key
  driver.
• Generally cuts across many organizational
  boundaries, making it high profile

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Benefits of Operational CRM

• Drive revenue growth
• Reduce costs
• Solve problems quicker
• Gain a 360-degree view of your customer while you
  are interacting with them

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Collaborative CRM

• Emphasis on direct Interaction with customers
• Internet
• Email
• Automated phone/ Interactive voice response
• Automated self-service type of relationship
• Customer interactions are mostly automated.
• Information can be directly captured by a CRM
  system without special formatting by a middle
  layer.

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Collaborative CRM

• IT department helps design customer interaction
  methods
• IT staff carefully designs web pages and email
  formats, so data can be directly entered into the
  system without reformatting.
• IT staff continuously scans for newer and better
  ways to automate customer interaction and data
  capture.

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Collaborative CRM

• Includes Partner Relationship Management
• Managing relationships with partners (resellers
  and distributors)
• Objectives
• Cost reduction by using automated systems.
• Service improvements through efficient consumer
  response.
• Better understanding of customer needs with
  various departments pooling data from different
  sales and communication channels.

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Analytical CRM

• Analytical CRM aids the preparation, support, and
  optimization of customer oriented decision
  processes
• Goals of Analytical CRMAnalysis of customer
  behavior to aid product and service decision
  making (pricing, new product development)
• Management decisions (Financial forecasting,
  Customer profitability analysis)Design and
  execution of specific customer campaigns
  including customer acquisition, up-selling,
  cross-selling, retention
• Design and execution of targeted marketing
  campaigns to optimize marketing effectiveness

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Analytical CRM Benefits

• Employees can quickly assign, manage and resolve
  incidents with automated routing, queuing and
  service request escalation
• Reports help identify common support issues,
  evaluate customer needs, track processes and
  measure service performance
• Employees can easily share sales and order
  information as well as support information and
  use it to identify top customers and prioritize
  service needs

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Analytical CRM Benefits

• Access to a centralized, customizable view of
  sales and support activity along with complete
  customer history either online or offline and
  from any location using a Web browser
• Shorter sales cycles and improved close rates
  with tools that enable lead and opportunity
  management, workflow rules customization for
  automated sales processes, quote creation and
  order management
• Comprehensive reports that forecast sales,
  measure business activity and performance, track
  sales and service success, as well as identify
  trends, problems and opportunities.

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Goal of CRM

• Gain insight into the behavior of the customers
  and the value of those customers
• Provide better customer service
• Increase business revenues
• Discover new customers
• Simplify marketing and sales processes
• Helps sales staff close deals faster
• Make call centers more efficient
• Company can get continuous feedback
• Cross selling products more effectively

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Need for CRM

• No accurate information on who your customers are
  and what their needs or desires are or will be at
  any given stage in their lives
• Losing customers to a competitor, lack of
  understanding of your customers
• Customers have different characteristics
• Having multiple offices and/or mobile workers and
  need to share and manage customer information
  from all sources

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Start with Strategy

• Must be practical, simple and easy to articulate
• Must be shared by all levels of the
  organization
• Should be measurable

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Start with Strategy

• A CRM initiative should help an
  organization generate more leads, convert a
  high proportion of them to customers, retain
  customers longer through enhanced service and
  ensure more profitability from the customers
  through the effective promotion of additional
  products and services.
• Subhomoy Sengupta, General Manager, Applications
  Sales, Oracle India

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CRM Strategies

• Customer AcquisitionGain the greatest number of
  new Best customers as early in their lifespan
  as possible
• Customer RetentionRetain and expand your
  business and relationships with your customers
  through up-selling, cross-selling and servicing
• Customer LoyaltyOffer programs to ensure that
  your customers happily buy what you offer only
  from you

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CRM Strategies

• Cost ReductionReduce costs related to marketing,
  sales, customer service and support
• Customer EvangelismEnable loyal customers to
  become a volunteer sales force
• Improve productivity
• Enhance your e-business strategies

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What data do you have on your customers ?

• Problems, Pains, Fears, Needs, Wants, Likes,
  Goals, Influences, Relationships, Affiliations,
  Alliances, Experiences, Aspirations, Options,
  Expectations, Questions, Knowledge, Skills,
  Activities, Attention, Communications,
  Interactions, Emotions, Memories, Satisfaction,
  Perceptions, Beliefs, Admirations, Attitudes,
  Opinions, Values, Learning, Ideas, Motivations,
  Objections, Priorities, Choices, Behaviors,
  Personality, Self-Concepts, Trust, Loyalty,
  Attention, Recognition, Time, Energy, Risks,
  Investments, Rewards, ROI, Lifestyle, Lifecycle
  Stage, Social Class, Culture, Sub-culture, Age,
  Family, Education, Hobbies, Interests?

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CRM People

• Customer SegmentsSuspects, Visitors, Prospects,
  Subscribers , Patrons, Members, Users, Consumers,
  VIPs, Volunteers, Annual/ Major Donors,
  Advisors, Advocates, Legislators, Strategic
  Partners, Sponsors
• UsersManagement, Employees and Visitors
• SuppliersServices- Consultants (CRM/ Customer
  Development)Products- Technology ( Software,
  Hardware, Connectivity)

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CRM Technology Requirements

• Integration with other company applications
• Focus on the end users needs
• Support cross company collaboration
• Alignment with the specific requirements of
  individual industries

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CRM Processes / Mapping

• Re-examine all of your customer management
  business processes
• Redefine where CRM provides the greatest value to
  your best customers and your organization
• Incrementally implement CRM to improve top
  targeted processes like Subscription Renewal
  Processes

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How CRM helps Business?

• Personalized customer contact
• Customer specific product catalog and catalog
  views
• Customer specific prices and conditions
• Customer specific product configuration
• Customer specific product recommendations
• Customer specific user interfaces in e-selling
  solutions

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CRM Architecture
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CRM and IT

• Biggest returns come from aligning business, CRM
  and IT strategies should run across all
  departments not just run on one group
• Business departments who use the software take
  ownership of the project, with IT and CIO playing
  an important advisory role.

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CRM and IT
Customer Interaction Letter, Fax, Email, SMS,
Phone, Personal Contact, EDI, web, XML
IT A P P L I C A T I O N
Call Center
Operation
C R M E N G I N
Monitor
Help Desk
CRM DB
SFA
Analyze
ERP
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CRM Implementation

• Planning
• Development
• Deployment
• Post Deployment

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Implementation Plan

• Creating the implementation strategy
• Identifying the implementation team
• Creating a schedule
• Analyzing your business processes
• Identifying hardware and software requirements in
  addition to current organizational resources and
  how any new resources are to be integrated into
  existing systems
• Determining customization needs and data import
  requirements
• Identifying reporting requirements
• Identifying training and ongoing support
  requirements

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Development

• Setting up hardware and installing software
• Installing CRM in a limited use and test
  environment
• Testing CRM
• Importing or migrating data
• Customizing the application and the reporting
  features
• Integrating CRM into existing systems
• Identify a group of users who can use and
  evaluate the product installation
• Perform the common activities
• Address difficulties during training

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Post Development

• Organization must develop processes and tools
  that will add long-term customer value
• Initial deployment period will affect
  productivity in the beginning
• Customer relationships are owned by the
  organization, not the individual
• Users must see CRM as a tool to help them

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Common Reasons for Failure

• Implementation costs
• Political Friction
• Initiatives driven by technology
• Tendency to push work to the customer
• No measures for success or accountability
• Poorly Implemented

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more Reasons for Failure

• Lack of communication between everyone in the
  customer relationship chain
• Technology being implemented without proper
  support
• Lack of training to the staff

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Ways to avoid failure

• Dont fall victim to anything mentioned in the
  previous slide
• Establish visible top-down support from the
  most senior levels
• Communicate strategy and buy-in

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Successful CRM Implementation

• Choose your vendor successfully
• Develop customer focused strategy before
  considering the technology
• Break the project into manageable pieces
• Make sure the CRM plans include a scalable
  architecture framework
• Dont underestimate the amount of data you might
  collect for easy expansion of systems in the
  future
• Be thoughtful about what data is collected and
  stored
• Spend time creating the best business processes

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Ways to Ensure Optimal Benefits

• Create a customer focused business strategy
• Have a CRM-friendly organizational structure
• Build a customer information
  environment

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Example Grocery Stores

• Many grocery stores offer customer reward
  cards to their customers
• These cards allow the stores to target specific
  customers
• Stores are laid out according to their
  demographics
• Marketing materials are sent using the data
  gathered

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Example Progressive Auto Insurance

• Created their niche through their CRM strategy
• Initially Progressive focused on a web-based
  consumer
• Differentiated themselves by quoting other car
  insurance companies

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References

• http//en.wikipedia.org/wiki/Customer_relationship
  _management
• Customer Relationship Management Key components
  for IT success
• Ranjit Bose, Industrial Management and Data
  Systems Journal Mar 2002
• CIO Magazine http//www.cio.com/topic/1465/CRM
• http//www.crm2day.com/editorial/50018.php
• http//www.tmcnet.com/channels/crm-solutions/crm-s
  olutions-articles/crm-can-work-for-you.htm
• http//www.microsoft.com/canada/smallbiz/themes/bu
  ild-your-business/what-can-crm-do-for-your-busines
  s.mspx