Extending Customer Relationships Through the Web

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Extending Customer Relationships Through the Web
64157 ??????????? ????????? 2002 Spring, Week 7-1
??? ?? ????? 2002/05/11
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What is CRM?

• The art science of how companies deal with
  customers
• Distinguish your business from your peers
• Steer your industries most profitable
  customers to you
• Cement their loyalty with outrageous service
• Underlying Premise C-CAM
• Customer Capital Asset Mgmt (Lifetime Customer
  Value)
• Defined as Customer lifetime revenue lifetime
  costs customer cash flow. Express as net
  present value.
• New Idea? Not really
• The true business of every company is to make
  and keep The true business of every company is
  to make and keep customers Peter Drucker, 1954
• Some customers deserve to be fired - unknown

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What is CRM?

• CRM ties together all of a companys front office
  customer touchpoints
• sales (contact management, product
  configuration),
• marketing (campaign management, telemarketing),
• and customer service (call center, field service)
• Via multiple, interconnected delivery channels
  (telephony, email, Web, and direct interaction)
• YOU ARE TRYING TO TRACK ENTIRE HISTORY OF
  RELATIONSHIP WITH YOUR CUSTOMER OR CLIENT

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CRM is a Strategy, the Web is a Channel
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Extending Customer Relationships Through the Web

• Issue

The Web pushes CRM technology to the next
generation
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Issue The Web Pushes CRM Technology to the Next
Generation

• Discussion Overview
• Setting strategy Comparisons of user and end
  customer goals
• Market dynamics Discuss vendor approaches
• Leading edge practices Functionality to look
  for

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Companies want Web self-sales and service to
improve customer relationships

• Opportunity to sell more to each customer
• Cross sell and upsell
• Create customer convenience
• 7X24
• fast response
• flexibility cost savings
• Save internal costs
• faster problem resolution
• reduced processing time
• Seen as a competitive requirement

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Web visitors use self-service as a convenient way
to complete tasks

• Web visitors expect Web relationships to reflect
  in-person experiences
• Recognition
• Complete the business I came to do efficiently
• Give me help when I need it, fast

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Vendors approach self-service from two directions

• Web visitor
• Expectations
• Web
• Experience
• centric
• Recognition
• Complete tasks
• Get help

Customer Self-Sales and Service

• Company Goals
• System Centric
• Open up functionality
• for visitors to
• complete tasks

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Web vendors focused on the customer experience -
Recognition
Customer insight
Art Technology, Andromedia, BroadVision, Blue
Martini, Data Sage Epicenter, E.phipany, Hot
Socket, Manna, Net Perceptions,
Neuromedia, OneSoft Personify, Rightpoint,
Vignette
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Web vendors focused on completing business
transactions
Research Create Search Prepare
Check Dispatch products order
solutions order status engineers
Calico FirePond 2order.com On Link Selectica Trilo
gy
netDialog
IET eDispatch.com PointServe
iPlanet FourthShift InterWorld Ironside Open
Market SpaceWorks Saqqara
Allegis, BackWeb, Channel Web, Click
Interactive, Entigo, Hot Samba Haht, pcOrder,
Partnerware, viaLink WebBridge, WebEnable
Silknet
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Customer interaction is a Web vendor priority
Aptex Banter Brightware Kana Gen.
Interactive Mustang
eShare Business Evolution Sessio.com Valisoft
Effusion Active touch
Net Effects
Acuity FaceTime Inference Ventix
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ERP and CRM vendors let Web visitors touch the
Companys systems

• Open up functionality
• Search engines
• Configurators
• Order entry screens
• Order status screens

• Organize screens to show the internal data
  customers use most

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CRM and ERP Vendors extend functionality to a
Companys Website visitors
CRM Suite Vendors
Astea Metrix ServicePlus RTS
Epicor Great Plains PowerCerv SCT
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Few CRM or ERP vendors offer Web interaction
applications
Siebel
Epicor
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No one vendor meets the Web visitors
expectations

• Recognition
• Complete the business I came to do
• Get help when I need it

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There is no definitive model, youll have to
create one
Art Technology Andromedia, BroadVision, Blue
Martini, Data Sage Epicenter, E.phipany, Hot
Socket, Manna Net Perceptions,
Neuromedia, OneSoft Personify, Rightpoint, t
Vignette
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The Next Generation - Web-based
customer relationship

• CRM systems - Internally focused systems used to
  make the most of a customer base

• Next Gen CRM technologies -
• Include real-time customer interaction
• through the web

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Your Website has a personality

• Your Website is your representative
• Leading edge features
• Visitors do not interface with a companys
  internal systems
• An intelligent persona represents the company

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(No Transcript)
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Let visitors complete all the business they came
to do

• Leading edge features
• Broad range of business functions
• Span front office operations and other systems
  needed to complete the business at hand

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Answer visitors questions

• Self-service searches
• Leading edge collaboration features

Chat
Call Me
Browser Sharing
White board
Shop with me
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Recommendations for users

• Design CRM features from the customers point of
  view
• Be sure you clean up before opening up
• Compare your vision of Web relationships with the
  vendors
• Expect to patch applications together
• Dont wait to start, theres too much at stake

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Recommendations for Vendors

• Design products that will enhance the end
  customers Web experience
• Be creative - This is the time for one-upsmanship
• Acquire, merge, partner and build self- service
  functionality
• Be clear about your vision
• Deliver against an aggressive timeline, customers
  cant wait

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Just for a moment,
Imagine...
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What is Customer Relationship Management?
Objective
Touch
Process
Focus
Customer Information/Knowledge -e.g.
Customer Knowledge Database
...Customer Value Management Analyses
Infrastructure
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Customer Life Cycle Focus

• Who are your profitable customers?
• What are their needs?
• How do you attract them?

• How do you deliver
• What the customer wants?
• How they want it?
• When they want it?

Acquisition
Development
Retention

• How do you build and sustain customer loyalty?

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Customer Retention Drives Earnings

1. Software
2. Office Management
3. Industrial Distribution
4. Insurance Brokerage
5. Credit Insurance
6. Credit Card
7. Banking
8. Auto Service

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Support Different Business Models

• Segment

Business Value
Models
Functional Requirements

• Grow revenue through
• new customer reach
• Increase customer loyalty
• Improve operational efficiency

• Relationship Marketing
• Content Management
• Order Management

e-CRM e-Channel e-Procurement
Retail

• Grow revenue through new customer reach
• Strengthen business relationships by extending
  processes
• Reduce cost through automation

• Order management
• Business Integration
• Auction management

e-CRM e-Channel e-Supplier
Manuftg Dist.

• Support for various
• business models
• Quick time to market
• Scaleable

• Low cost of operations
• Grow business at net speed
• Reduce cost through automation

e-CRM e-Marketplace
Service Providers
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CRM Solution
Sales
Service
Marketing

• Target Marketing
• Reward Mgmt
• Customer Research
• Lead Mgmt
• Marketing material fulfillment

• Catalog Mgmt
• Order Mgmt
• Order Tracking
• Logistics Mgmt
• Auction Mgmt

• Relationship Mgmt
• Report Mgmt
• Account Mgmt
• Return Mgmt
• Asset Mgmt

• Solutions
• Customer relationships
• Entitlement catalog price
• Respond to changing markets
• B2B2C model
• Product bundling
• Campaign management
• Customer retention
• Customer knowledge Base

• Benefits
• Enhance customer loyalty
• Reduce cost of sell
• Reduce cost to serve
• Increase sales and market share
• Improve channel loyalty

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CRM Architecture
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Campaign Manager
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CRM System Components
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CRM Applications

• Marketing and Sales
• Campaign Management
• Mail Management
• Sales Force Automation
• Relationship Manager (Householding)
• Data Mining
• Behavioral Scoring
• Segmentation
• Fraud
• Risk And Profitability
• Business Intelligence
• Customer Service
• e-Service Suite
• TeleWeb Center

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e-CRM for Financial Services
Target Financial Services Segments
Investment Management
Investment Banking
Retail Banking

• Prospect Data Importing
• Investment Profiling
• Web Literature Fulfillment
• Collaborative Presentation Development
• Broker Relationship Management
• Sales Reporting
• Compliance Tracking

• Referral Tracking
• Pitch Book Creation
• Automated Research Mailings
• Daily Call Tracking
• Institutional Sales Process
• Investment Profiling
• IPO opportunity management
• Syndication Tracking

• Client Profiling
• Targeted Marketing
• Cross-Selling
• Account Management
• Trust Private Banking
• Client Service
• Interface with Online Trading

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How to Make Your CRM Initiative Succeed

1. Identify and set clear business requirements
2. Institute a common planning process
3. Obtain Senior- Management Buy- In and
   Understanding
4. Pinpoint functional differences in culture and
   success measures and bridge the gaps
5. CRM is a Business Philosophy

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Tap the Potential of eCRMWeb- based all the Way

1. Create Interactions decide if it is advantageous
   to be the creator of a new community or better to
   join forces integrate all sales and marketing
   channels with back office financials
2. Operate at Internet Speed real time data
   gathering, analysis and response is approaching
   as the standard
3. Analyze Data Turn massive amounts of data into
   insight to retain customers
4. Integrate Customer Information Access Across
   Systems

-- Montgomery Research, Inc. 2000
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Total Cost of Ownership

• Server Hardware Software
• Server w/ disks, RAID Fault Tolerance, Memory
• Backup software
• Basic Server Installation Integration
• Configuration of Server in Hours
• Service Agreement on Hardware
• Service Agreement on Network System

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Total Cost of Ownership

• Server Installation Maintenance
• Upgrades in a three- year period
• Man hours for upgrades
• Migration of platform issues
• Upgrades to Network Operating System
• Server Troubleshooting
• Emergency Service Actual Hours
• Consultant Assistance (one day every fourth week)
• Assistance w/ maintenance

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CRM Mainstream Migration
2002

• Sales Automation
• Marketing Automation
• Web-based
• Conferencing/Telephony
• Analytics

• Relationship Mgmt. In ASP format
• Synchronous Customer Management (multi-channel
  managed via web or wireless device)

2000
90s

• Personalization using web
• Customer Relationship Mgmt. - expensive, non-
  integrated software
• Database Tracking of Entries
• Call Centers (most not Internet- friendly)

80s

• Contact Mgmt. most offline

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Total Cost of Ownership

• End User Install Maintenance
• Upgrading old PCs
• User Administration
• Hidden downtime Support Costs
• Courses and Internal Training
• Software Licensing
• Security Telecommunications
• Employee Infrastructure

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Basic CRM Components
Campaign Management Sales Automation Customer Services Web Tools
Campaign Mgmt. Tools Response Analysis Predictive Modeling Segment, execute, improve Lead Mgmt. Proposal Generation Forecasting Product Config. Tools Real time interaction Web demos App sharing Voice over IP Automated email response Personalization Purchase recommendations
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CRM Issues

• Critical Success Factors
• Must have customer centered culture first
• Executive(s) championing the effort
• Remember Its the people, stupid
• Reasons for failures
• Reengineering is hard! Must manage change
  effectively
• System chosen before solution defined
• Dont pave over cow paths
• SFA apps cant build human relationships

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CRM Trends

• Right customer, message channel
• Industry Consolidation
• Focus on mid-size businesses
• Microsofts bCentral portion of .Net??
• Minimize data islands! Converge!
• Building customer loyalty will be prioritized,
  and Marketings status will increase

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Customer Lifetime Value Development
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CRM Marketers Break with Tradition

• Major Players Reinventing Product Line to Serve
  Lowend
• Web- based Solutions for all Industries
• New Technology Platforms Breed New CRM methods
  I. e. Release of Windows 2000 platform
• Free Is the Winner to Take All Plays
• Geography is Meaningful in Seizing Market Share
  and VC Dollars Look in Your Backyard for Answers
• ERPs Migrating to ASPs That Can Go Live Within
  Days

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High-End Marriages Outside the Product Class

• Example Siebel Mid- Edition (first shipped July
  19, 2000) andGreat Plains Partner Status
• Features Include
• Customer Applications including ecommerce
  functions, 24/ 7 self- service, and online
  marketing info
• Employee Applications including features for
  front- office employees
• and Partner Applications for partner
  organizations (i. e. sales channels)

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New Low-Cost Web Entries
Product Agillion.com Low- cost Web- based CRM with messaging functions. Product The company is aimed at small businesses
Product Offerings Personal Pages password- protected websites Shared Contacts Customer Interaction Database that allows users one secure, central place to store and access customer information and activity
29.95 per month/per user Activities and Notes Permanent searchability on customer activity Group Calendar Review and update daily, weekly or monthly on the web schedules
E- business Dashboard Free personal homepage. Keeps tabs on customers, includes personal organizer and headlines Tasks and Email Tracks Tasks and Personalized Email Acct.
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Moderate-Cost Entries

• Example Worldtrak. com
• Works with Microsoft Outlook
• Account Opportunity Mgmt.
• Enterprise Forecasting
• Activity Tracking
• Enterprise Lead Mgmt.
• Enterprise Data Synchronization Remote Access

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Verticals SoftWatch.com
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eCRM Free with Ads
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Consider Scalability for Community

• Onyx. com Products for Enterprise Users
• 30,000 concurrent users sub- second response
• High- Ticket Item

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Websites for Research on CRM

• Crmguru. com
• Searchcrm. com
• Crmassist. com
• CRMcommunity. com
• ASPNews. com
• ASPIsland. com
• www. microsoft. com/ europe/ industry/ crm