Technology In Crm

TECHNOLOGY IN CRM Dr. D. ASHOK VIT Business School

CRM - DEFINITION  Customer

relationship management is a corporate level strategy which focuses on creating and maintaining lasting relationships with its customers.  Although there are several commercial CRM software packages on the market which support CRM strategy, it is not a technology itself.  It is a holistic change in an organisation's philosophy which places emphasis on the customer. 10/19/08

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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 10/19/08

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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 10/19/08

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CRM Strategies Customer Acquisition Gain the greatest number of new “Best” customers as early in their “lifespan” as possible  Customer Retention Retain and expand your business and relationships with your customers through up-selling, cross-selling and servicing  Customer Loyalty Offer programs to ensure that your customers happily buy what you offer only from you 

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Cost Reduction Reduce costs related to marketing, sales, customer service and support Customer Evangelism Enable loyal customers to become a volunteer sales force Improve productivity Enhance your e-business strategies VIT Business School.

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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, Subculture, Age, Family, Education, Hobbies, Interests…? 10/19/08

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CRM Applications

Email

Analytics

Web

Customer s

Call Center

Customer

BackOffic e

Information

Field Marketin g

Partner 10/19/08

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Components of CRM A

successful CRM strategy cannot be implemented by simply installing and integrating a software package and will not happen over night.  Changes must occur at all levels including Policies and Processes, Customer service, employee training, marketing, systems and information management; all aspects of the business must be reshaped to be customer driven. 10/19/08

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A good CRM program needs to  Identify

customer success factors  Create a customer-based culture  Adopt customer-based measures  Develop an end-to-end process to serve customers  Recommend what questions to ask to help a customer solve a problem  Recommend what to tell a customer with a complaint about a purchase  Track all aspects of selling to customers and prospects as well as customer support. 10/19/08

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CRM People Customer Segments: Suspects, Visitors, Prospects, Subscribers , Patrons, Members, Users, Consumers, VIP’s, Volunteers, Annual/ Major Donors, Advisors, Advocates, Legislators, Strategic Partners, Sponsors Users: Management, Employees and Visitors Suppliers: Services- Consultants (CRM/ Customer Development) Products- Technology ( Software, Hardware, Connectivity) 10/19/08

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CRM Technology Requirements Integration with other company applications Focus on the end user’s needs Support cross company collaboration Alignment with the specific requirements of individual industries

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Software Requirement  ERP

: Enterprise Resource Planning  SAP System application program  Focus from Satyam : e.g., ITC  People soft  Sibel  Oracle  Customized softwares available. 10/19/08

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Architecture of CRM TYPES 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 10/19/08

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I. Operational CRM  Operational

CRM means supporting the " front office" business processes, which include customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to resources responsible for them, as well as the information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference.

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CRM & IT

Customer Interaction Letter, Fax, Email, SMS, Phone, Personal Contact, web, XML

Monitor

Operation

CRM DB

Analyze 10/19/08

Call Center C R M

Help Desk

E N G I N

SFA

ERP VIT Business School.

IT A P P L I C A T I O N 15

Operational CRM provides the following benefits:  Delivers

personalized and efficient marketing, sales, and service through multi-channel collaboration  Enables a 360-degree view of your customer while you are interacting with them  Sales people and service engineers can access complete history of all customer interaction with your company, regardless of the touch point

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Three General areas of Business: The operational Part of CRM

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Ma rke t (EM ing Au tom A) atio n d An ce i rv e S ort r e p m up S) o S CS  Service Requests st ( u C

tion ma uto eA orc ) es F (SFA Sal

 Lead/ Account Management  Contact Management  Quote Management  Forecasting  Sales Administration  Customer Preference  Performance Management

Ent erp rise

 Business Environment Information  Competitors, Trends  Macro Environment Variables  Business Intelligence

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 Complaints  Product Returns  Information Request  Customer Interaction Center  Computer Telephony Integration

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II. Analytical CRM 

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In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to segment customers or to identify potential to enhance client relationship. Customer analysis typically can lead to targeted campaigns to increase share of customer's wallet. Examples of Campaigns directed towards customers are: Acquisition: Cross-sell, up-sell Retention: Retaining customers who leave due to maturity or attrition. Information: Providing timely and regular information to customers. Modification: Altering details of the transactional nature of the customers' relationship.

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Types of Analysis Used in Analytical DATA.             

Campaign management and analysis Contact channel optimization Contact Optimization Customer Acquisition / Reactivation / Retention Customer Segmentation Customer Satisfaction Measurement / Increase Sales Coverage Optimization Fraud Detection and analysis Financial Forecasts Pricing Optimization Product Development Program Evaluation Risk Assessment and Management

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Operational CRM Vs Analytical CRM

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III. Collaborative CRM  Collaborative

CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, e-mail) and supports coordination of employee teams and channels. It is a solution that brings people, processes and data together so companies can better serve and retain their customers. The data/activities can be structured, unstructured,conversational, and/or transactional in nature.

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CRM Implementation Process Planning Development Deployment Post Deployment

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Implementation Planning 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 10/19/08

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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 10/19/08

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Deployment & Post Deployment 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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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 Don’t 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 10/19/08

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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 More Reasons ………..like……….. Lack of communication between everyone in the

customer relationship chain

- Technology being implemented without proper

support

- Lack of training to the staff 10/19/08

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