Crm objectives

1. Customer Relationship ManagementCustomer Relationship Management
““Process of creating and maintaining relationships Process of creating and maintaining relationships
with business customers or consumers”with business customers or consumers”
““A holistic process of identifying, attracting, A holistic process of identifying, attracting,
differentiating, and retaining customers”differentiating, and retaining customers”
““Integrating the firm’s value chain to create Integrating the firm’s value chain to create
enhanced customer value at every step”enhanced customer value at every step”
““An integrated cross-functional focus on An integrated cross-functional focus on
improving customer retention and profitability for improving customer retention and profitability for
the company.”the company.”

2. Customer Relationship ManagementCustomer Relationship Management
Bottom-line:Bottom-line:
The use of information-enabled systems for The use of information-enabled systems for
enhancing individual customer relationships enhancing individual customer relationships
to ensure long-term customer loyalty and to ensure long-term customer loyalty and
retentionretention

3. CRM ObjectivesCRM Objectives
Lifetime Value (LTV)Lifetime Value (LTV)
–Refers to the net present value of the potential revenue Refers to the net present value of the potential revenue
stream for any particular customer over a # of yearsstream for any particular customer over a # of years
–Starts with current purchase activity then extrapolates to Starts with current purchase activity then extrapolates to
include potential additions from cross-selling, upgrades, include potential additions from cross-selling, upgrades,
total ownership, etc.total ownership, etc.
Customer OwnershipCustomer Ownership
–Attempts to “own” the lionshare of customer spending Attempts to “own” the lionshare of customer spending
and/or “share of mind” in a particular product categoryand/or “share of mind” in a particular product category
–Building brand equity, maintaining vigilant customer Building brand equity, maintaining vigilant customer
contact, keeping current with the market trends is criticalcontact, keeping current with the market trends is critical
–5% points increase in customer retention=20-125% 5% points increase in customer retention=20-125%
increase in profitincrease in profit

4. Is CRM New?Is CRM New?
NoNo!!
•Simply an extension of Simply an extension of
relationship marketingrelationship marketing
•Builds on customer Builds on customer
service and satisfaction service and satisfaction
conceptsconcepts
•Just the latest buzzword Just the latest buzzword
for creating customer for creating customer
orientationorientation
•Bottom-line is still the Bottom-line is still the
samesame
YesYes!!
•A shift in corporate A shift in corporate
philosophy concerning the philosophy concerning the
approach to value deliveryapproach to value delivery
•Customer-centric Customer-centric
approach to value chainapproach to value chain
•New and technology-New and technology-
enhanced processesenhanced processes
•Focus is not just on Focus is not just on
bottom-line, but on top-bottom-line, but on top-
lineline
•Goal is to create satisfying Goal is to create satisfying
experiences across experiences across allall
customer contact pointscustomer contact points

5. CRM Programs Can Potentially ImproveCRM Programs Can Potentially Improve
Analytical CRMAnalytical CRM
–Customer SegmentationCustomer Segmentation
–Trend AnalysisTrend Analysis
Operational CRMOperational CRM
–Campaign ManagementCampaign Management
–Tele-Marketing/Tele-SalesTele-Marketing/Tele-Sales
–Activity and Time ManagementActivity and Time Management
–Quotation and Order ProcessingQuotation and Order Processing
–Delivery and Order FulfillmentDelivery and Order Fulfillment
–Customer Service and SupportCustomer Service and Support
–Remote AccessRemote Access
Collaborative CRMCollaborative CRM
–Enterprise PortalsEnterprise Portals
–Customer AccessCustomer Access
–Supplier AccessSupplier Access
–PersonalizationPersonalization

6. Areas of CRM ActivityAreas of CRM Activity
Sales Force Automation (SFA)Sales Force Automation (SFA)
 Customer Service and Support (CSS)Customer Service and Support (CSS)
Help DeskHelp Desk
Field ServiceField Service
Marketing AutomationMarketing Automation

7. Areas of CRM Activity:Areas of CRM Activity:
Sales Force AutomationSales Force Automation
35-40% of all CRM activity35-40% of all CRM activity
Manages lead generation, tracks movement of leads Manages lead generation, tracks movement of leads
through the pipeline, allows better usage of through the pipeline, allows better usage of
customer data, integrates activities across sales customer data, integrates activities across sales
channels, simplifies relationship management, channels, simplifies relationship management,
forecasts for opportunities (SWOT) forecasts for opportunities (SWOT)
GoldmineGoldmine and and SalesLogixSalesLogix are examples of are examples of
prepackaged SFA solutions.prepackaged SFA solutions.
Ex. Ex. StaplesStaples used SFA to integrate catalog, online, used SFA to integrate catalog, online,
in-store sales efforts directed at its best customersin-store sales efforts directed at its best customers

8. Areas of CRM Activity:Areas of CRM Activity:
Customer Service and Support (CSS) Customer Service and Support (CSS)
20-25% of CRM20-25% of CRM
Assign, escalate, and track trouble tickets, inquiries, Assign, escalate, and track trouble tickets, inquiries,
solution attempts through resolutionsolution attempts through resolution
Provides information to support customer call Provides information to support customer call
center activitycenter activity
Gleans customer data from those interactions and Gleans customer data from those interactions and
records it in SFA for later userecords it in SFA for later use
RemedyRemedy, , SiebelSiebel, Vantive, and Clarify are major , Vantive, and Clarify are major
vendorsvendors
Ex., 3M Adhesive Products divisionEx., 3M Adhesive Products division

9. Areas of CRM Activity:Areas of CRM Activity:
Help Desk Help Desk
15-20% of all CRM15-20% of all CRM
Allows individuals to access network database to Allows individuals to access network database to
solve their own problems or find information. solve their own problems or find information.
Can be internal or externalCan be internal or external
Offers many bottom-line savingsOffers many bottom-line savings
Human ClickHuman Click, Tivoli, , Tivoli, LivePersonLivePerson, are providers, are providers
Ex., Ex., Land’s End Live Land’s End Live allows customers browse allows customers browse
FAQ’s but also click a link to talk directly with live FAQ’s but also click a link to talk directly with live
representative.representative.

10. Areas of CRM Activity:Areas of CRM Activity:
Field Service CRMField Service CRM
3-5% of all CRM activity3-5% of all CRM activity
Mobile service technicians can log information about Mobile service technicians can log information about
work orders and service calls, as well as access work orders and service calls, as well as access
information from the remote site.information from the remote site.
Can feed information from customer problems into Can feed information from customer problems into
SFA for salesperson leads.SFA for salesperson leads.
Market information can be gathered and logged into Market information can be gathered and logged into
central database.central database.
Ensures appropriate resource allocation by matching Ensures appropriate resource allocation by matching
available resources to job requirementsavailable resources to job requirements
Major vendors are RTS, Metrix, Major vendors are RTS, Metrix, eDispatcheDispatch

11. Areas of CRM Activity:Areas of CRM Activity:
Marketing AutomationMarketing Automation
3-5% of CRM, but growing 5X faster than all others3-5% of CRM, but growing 5X faster than all others
Interfaces with data warehouses and data mining Interfaces with data warehouses and data mining
activities to tailor page views, products, and activities to tailor page views, products, and
promotions, so that the right offer goes to the right promotions, so that the right offer goes to the right
person at the right time.person at the right time.
Can interact with SFA to support field sales effortsCan interact with SFA to support field sales efforts
Provides customized customer interactions critical to Provides customized customer interactions critical to
segment of one marketing, mass customization, segment of one marketing, mass customization,
customerization, etc. customerization, etc.
www.webgroove.comwww.webgroove.com, , EpiphanyEpiphany, Oracle, Siebel, and , Oracle, Siebel, and
Personify are leadersPersonify are leaders

12. New Frontiers in CRMNew Frontiers in CRM
Commercial E-CommunitiesCommercial E-Communities
–What are people loyal to?What are people loyal to?
»Families Families
»Football teams Football teams
»Schools Schools
»Clubs Clubs
»Cultures Cultures
»Countries Countries
»I.E.: Communities not CorporationsI.E.: Communities not Corporations

13. Commercial E-CommunitiesCommercial E-Communities
Goal is to create an environment where people get Goal is to create an environment where people get
meaningful interactions with the company and meaningful interactions with the company and
other users so that they feel part of the enterprise.other users so that they feel part of the enterprise.
Adds human component and engages customers.Adds human component and engages customers.
Creates more stickiness and “ownership”Creates more stickiness and “ownership”
Ex. User Groups for software products (Oracle, Ex. User Groups for software products (Oracle,
Intergraph)Intergraph)
Ex. Ex. DellDell / / SonySony technical support communities technical support communities
Can be run internally or by an external Can be run internally or by an external
organization such as organization such as SiftSift

14. Components of Commercial E-CommunitiesComponents of Commercial E-Communities
Customer-focused transactionsCustomer-focused transactions
Ex. IKEA Stock Query, Amazon rare book finderEx. IKEA Stock Query, Amazon rare book finder
Community InteractionsCommunity Interactions
User product ratings, User alerts/Newswires, Dell User product ratings, User alerts/Newswires, Dell
technical supporttechnical support
Access to Relevant InformationAccess to Relevant Information
Dell technical library, Customer chat rooms, Zero-time Dell technical library, Customer chat rooms, Zero-time
search facilitysearch facility
Value-added Services Based on Customer DataValue-added Services Based on Customer Data

15. New Frontiers in CRMNew Frontiers in CRM
CustomerizationCustomerization
–Mass Customization – Using flexible processes and Mass Customization – Using flexible processes and
organizational structures to produce varied and organizational structures to produce varied and
individualized products and services at the price of individualized products and services at the price of
standard mass-produced offerings.standard mass-produced offerings.
–Personalization – Customization of some features of a Personalization – Customization of some features of a
product or services so that the customer enjoys more product or services so that the customer enjoys more
convenience, lower costs, or some other benefit.convenience, lower costs, or some other benefit.
–Segment-of-One Marketing – Based on the idea of the firm Segment-of-One Marketing – Based on the idea of the firm
learning individual reactions to marketing strategies, then learning individual reactions to marketing strategies, then
treating this customer differently than other customers.treating this customer differently than other customers.
–Customerization – Mass customization + personalization + Customerization – Mass customization + personalization +
segment-of-one, dependent on a web-based or electronic segment-of-one, dependent on a web-based or electronic
interactioninteraction

16. Distinctions in CustomerizationDistinctions in Customerization
Direct (online)Mix of direct and
indirect
Distribution
Integrated, interactiveAdvertising and PRCommunication
Value based pricing;
customer determined
Fixed prices with
discounting
Price
Customized based on
customer interactions
Marketing and R&D
drive offering
Product and service
offering
May not be
articulated
Researched and
articulated
Customer needs
Customer is active
co-producer,
Customer is passive
participant in process
Relationship
with customers
CustomerizationMass Marketing

17. Making CRM HappenMaking CRM Happen
Evaluate products and processes customers’ terms.Evaluate products and processes customers’ terms.
Analyze the multiple channels through which the Analyze the multiple channels through which the
company interacts with customers.company interacts with customers.
Examine how the company understands its Examine how the company understands its
customers. Does it keep good data? How does it get customers. Does it keep good data? How does it get
that data? Does information flow between functional that data? Does information flow between functional
areas?areas?
Provide fingertip access to all information.Provide fingertip access to all information.
Analyze human resources and ensure that everyone Analyze human resources and ensure that everyone
has an understanding of philosophy of CRMhas an understanding of philosophy of CRM