CUSTOMER RELATIONSHIP MANAGEMENT

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CUSTOMER RELATIONSHIP MANAGEMENT
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Learning Outcomes

• Understand the customer relationship management
  (CRM)
• Define CRM
• Explore CRM

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Introduction

• Customer Relationship Management (CRM) concept
  giving organizations to plan, design and control
  strategy aiming to maintain customer relationship
  efficiently.
• Globalization phenomena needs organizations to
  sustain competitive advantage and use CRM as a
  tool to distinguish them from competitors.
• Enable organizations to create communication with
  customers at a new level.
• Internet concept, e-CRM to overcome barriers.

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Introduction

• the best organization in the world will be
  ineffective if the focus on customers is lost.
  First and foremost is the treatment of individual
  students, alumni, parents, friends, and each
  other (internal customers). Every contact
  counts!
• The focus is currently shifting from improving
  internal operations to concentrating more on
  customers.

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Customer Relationship Management (CRM)

• CRM is a business strategy to select and manage
  customers to optimize long-term value.
• CRM requires a customer-centric business
  philosophy and culture to support effective
  marketing, sales, and service processes.
• CRM applications can enable effective customer
  relationship management, and shows that there is
  a right leadership, strategy and culture that
  persists in the organization.

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Customer Relationship Management (CRM)

• Refers to the methodologies and tools that help
  businesses manage customer relationships in an
  organized way.
• CRM processes identify and target the best
  customers, generate quality sales, and help
  organizations to plan and implement marketing
  campaigns with clear goals and objectives.
• Individualized relationships with customers and
  provide the highest level of customer service to
  the most profitable customers.
• Aim to improve customer satisfaction.

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Customer Relationship Management (CRM)

• Customer Relationship Management is a
  comprehensive strategy and process of acquiring,
  retaining, and partnering with selective
  customers to create superior value for the
  company and the customer. It involves the
  integration of marketing, sales, customer
  service, and the supply-chain functions of the
  organization to achieve greater efficiencies and
  effectiveness in delivering customer value.
• The purpose is to improve marketing productivity.
• Atul Parvatiyar Jagdish N. Sheth (2001)

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Customer Relationship Management (CRM)

• Example a comparison of a local grocery store
  where the seller has a good understanding of the
  needs of individual customers and maintain a
  long-term relationships.
• How about in education sector? Can you give
  example about this?

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Review of literature

• For practitioners, CRM represents an enterprise
  approach to developing full-knowledge about
  customer behavior and preferences and to
  developing programs and strategies that encourage
  customers to continually enhance their business
  relationship with the company.
• Marketing scholars are studying the nature and
  scope of CRM to formulate strategies and
  processes for customer classification and
  selectivity one-to one relationships with
  individual customers key account management and
  customer business development processes
  frequency marketing, loyalty programs,
  cross-selling and up-selling opportunities and
  various forms of partnering with customers
  including co-branding, joint-marketing, and other
  forms of strategic alliances.
• Atul Parvatiyar Jagdish N. Sheth (2001)

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The Emergence of CRM Practice

• Growing de-intermediation process in many
  industries due to the advent of sophisticated
  computer and telecommunication technologies that
  allow producers to directly interact with
  end-customers.
• For example, in many industries such as the
  airline, banking, insurance, computer software,
  or household appliances industries and even
  consumables, the de-intermediation process is
  fast changing the nature of marketing and
  consequently making relationship marketing more
  popular.

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The Emergence of CRM Practice

• Total quality movement. When companies embraced
  the Total Quality Management (TQM) philosophy to
  improve quality and reduce costs, it became
  necessary to involve suppliers and customers in
  implementing the program at all levels of the
  value chain.
• In the current era of hyper-competition,
  marketers are forced to be more concerned with
  customer retention and loyalty.

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The Emergence of CRM Practice

• Customer expectations have been changing rapidly.
  Consumers are less willing to make compromises or
  trade-offs in product and service quality.
• Internationally oriented companies trying to
  become global by integrating their worldwide
  operations.

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The Emergence of CRM Practice

• CRM focuses on automating and improving the
  institutional processes associated with managing
  customer relationships in the areas of
  recruitment, marketing, communication management,
  service, and support.
• In the case of a student, this might be seen
  through the interaction with and between the
  admissions, registration, financial aid, student
  accounts, and housing offices.

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The Emergence of CRM Practice

• For a faculty or staff member, a CRM business
  strategy would optimize interaction with
  departments administering benefits, payroll,
  staff training, information technology (IT), or
  facilities.
• From the perspective of the college or
  university, the CRM business strategy provides a
  clear and complete picture of each individual and
  all the activities pertaining to the individual.

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A CRM Process Framework

• A four-stage CRM process framework.
• Comprised of the following four sub-processes a
  customer relationship formation process a
  relationship management and governance process a
  relational performance evaluation process, and a
  CRM evolution or enhancement process.

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Figure 1 The CRM Process Framework
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The Purpose of CRM and Its Operational Goals

• To improve marketing productivity and to enhance
  mutual value for the parties involved in the
  relationship.
• To enhance marketing effectiveness by carefully
  selecting customers for their various programs,
  by individualizing and personalizing their market
  offerings to anticipate and serve the emerging
  needs of individual customers.
• To fulfill consumers expectations and their goals
  related to efficiencies and effectiveness in
  their purchase and consumption behavior.
• To build customer loyalty and commitment and to
  develop new products, and to redefine the
  competitive playing field for the company.

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Customer Relationship Management (CRM)

• Two categories
• Operational CRM
• Analytical CRM

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Operational CRM

• Products, services and operational capabilities
  that enable the organization to take care of its
  customers.
• Examples contact centers, data aggregation
  system, and web sites.

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Analytical CRM

• Strategies and tools that drive customer-centric
  business decisions.
• Examples business intelligent systems, data
  mining tools, and customer-tier strategies.

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Categories of CRM

• Marketing automation
• Sales automation
• Service and service fulfillment
• Customer self-service
• E-commerce

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Marketing Automation

• Bringing technology to the marketing process.
• CRM generates personalization, profiling,
  telemarketing, e-mail marketing, and campaign
  management.
• Involves understanding what customers do and
  want, matching that knowledge with product and
  service information, presenting opportunities to
  customers and measuring success.
• Can you give examples in our education
  environment?

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Sales Automation

• Sales involve direct transferring of products and
  services to customers.
• Put sales representatives in direct contact with
  customers.
• Campaign management, pricing.
• Can you give examples in our education
  environment?

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Service and service fulfillment

• Encompasses the ability of the organizations to
  serve customers that they already have.
• E-mail response management, telephony
  capabilities, computer telephony integration,
  interactive voice response, and predictive
  dialing.
• Can you give examples in our education
  environment?

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Customer self-service

• Aims to make the customer more active in
  self-service through web self-service, search,
  interactive chat, e-mail, call-me capabilities.
• Also known as e-CRM (electronic customer
  relationship management), involving internet
  access and wireless devices.
• Can you give examples in our education
  environment?

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E-commerce

• Capabilities such as shopping, marketplace,
  transaction and payment processing, and security
  of transactions are the prime focus.
• Involving internet access and wireless devices.
• Can you give examples in our education
  environment?

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e-CRM

• Two components
• The use of direct-to-customer channels,
  principally e-mail and web. Emerging trends are
  the use of ATMs and kiosks.
• Using IT to select relevant material to be
  presented to the customer, in terms of content,
  offers, and support information.
• Can you give examples in our education
  environment? Paying fees through internet.

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e-CRM

• The key points to e-CRM
• Fast service customers are supposed to find
  adequate information immediately.
• Meaningful customers expect content will be
  presented in an interesting interactive and
  focused manner.
• Customer driven information provided should be
  what customers want to know, not what the
  organization thinks customers might be interested
  in.
• Lets try on UPM web page and check.

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e-CRM Technology

• The channels to e-CRM
• E-mail however, can be voluminous and may not
  be answered timely and in accurate fashion.
• Web-form technology web forms are structured,
  pre-formatted static web pages with inputs fields
  that allow customers to fill out information.
  Simple and inexpensive interaction. However,
  there is a privacy intrusion.
• Chat technology allows real time interactions
  with customers and is becoming more popular to
  replace the traditional phone call.
• Can you give examples?

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8 Rules For Good Customer Service

1. Answer your phone.
2. Dont make promises unless you WILL keep them.
3. Listen to your customers.
4. Deal with complaints.
5. Be helpful - even if theres no immediate profit
   in it.
6. Train staff to be ALWAYS helpful, courteous, and
   knowledgeable.
7. Take the extra step.
8. Throw in something extra.

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Good Customer Service Is No Longer Enough

• Customers have more options than ever before-and
  feel less loyalty.
• They want products and services fast, cheap,
  quick-from whoever will provide them.
• The competitive advantage is now in our ability
  to KEEP customers and build repeat business and
  this applies in education sector as well.

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Good Customer Service Is No Longer Enough

• It has to be superior, WOW, unexpected service.
  In a nutshell, it means doing what you say you
  will, when you say you will, how you say you
  will, at the price you promised-plus a little
  extra tossed.

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Conclusion

• CRM refers to a conceptually broad phenomenon of
  business activity, and if the phenomenon of
  cooperation and collaboration with customers
  becomes the dominant paradigm of marketing
  practice and research, CRM has the potential to
  emerge as the predominant perspective of
  marketing which is also applicable to the
  education sector especially the higher education
  sector.