Customer Relationship Management (CRM)

(1)

Customer Relationship

Management (CRM)

Dr A.

Albadvi

Asst. Prof. Of IT

Tarbiat

Tarbiat ModarresModarres UniversityUniversity

Information Technology Engineering Dept. Information Technology Engineering Dept.

Affiliate of

Affiliate of SharifSharif University of TechnologyUniversity of Technology School of Management & Economics School of Management & Economics

Sept. 2003 Sept. 2003

(2)

Session#2: Agenda

CRM Technologies

CRM solution structure

Operational CRM

Sales Force Automation (SFA) Sales Force Automation (SFA)

Customer Service & Support (CSS) Customer Service & Support (CSS)

Enterprise Marketing Automation (EMA) Enterprise Marketing Automation (EMA)

Analytical CRM

Tools & examples Tools & examples

Collaborative CRM

(3)

Analytical CRM Operational CRM Collaborative CRM Sales Marketing Service Sales Data Marketing data Customer Data Web Personalization Call Center Web Sales & Service

3 Types of CRM

(4)

Operational CRM Operational CRM

Customer

Customer--facing applications that integrate the front, back and facing applications that integrate the front, back and mobile offices, including sales

mobile offices, including sales--force automation, enterprise force automation, enterprise marketing automation, and customer service and support marketing automation, and customer service and support

Analytical CRM Analytical CRM

Applications that analyze customer data generated by operational Applications that analyze customer data generated by operational tools for the purpose of business performance management

tools for the purpose of business performance management

Collaborative/Communicational/Interactive CRM Collaborative/Communicational/Interactive CRM

Collaborative services that facilitate interactions between Collaborative services that facilitate interactions between customers and businesses

customers and businesses

Help to establish the lifetime value of customers beyond the Help to establish the lifetime value of customers beyond the transaction by creating a partnering relationship

transaction by creating a partnering relationship

3 Types of CRM

(5)

Operational CRM:

Touching the customer

Customers

Refined Business Actions Customer Touchpoints Call Center Web access Direct Sales Usage Fax E-mail Customers

(6)

Analytical CRM:

Understanding the Customer

Refined Business Actions

Business intelligence Process improvement Integrated Database Provisioning _Sales Analysis Information Business systems

(7)

Operational CRM

Also known as

Also known as “

“

front

-

office”

office

”

CRM, involves the

areas where direct customer contact occurs

---

---”

”

Touchpoints

”

Also known as “back-office”

or “strategic” CRM,

involves understanding the customer activities that

occurred in the front office

(8)

Operational CRM

Roles and workplaces

implementing best

implementing best- -business

business--practicespractices

Analytical CRM Analytical CRM Underlying business Underlying business warehouse and warehouse and knowledge knowledge management management Collaborati Collaborativeve CRMCRM

Collaboration across all

channels (mobile, phone,

Internet)

3 Types of CRM Technology

(9)

Communicationa l CRM Analytical CRM O p erat ional CRM Personal Contact InternetEmail Mailings Telephone WAP TV/Radio Customer Customer Interaction Center Interaction Center Marketing

Automation AutomationSales AutomationService

Front Front Office Office Data Mining OLAP Customer Data Warehouse Back Back Office Office Supply Chain

Management ERP Computer Integrated Manufacturing …

CRM Solution Structure

(10)

1.

1. Operational CRM

_{Operational CRM}

Means supporting the so

-

called "front office"

business processes, which include customer

contact (sales, marketing and service).

Tasks resulting from these processes are

forwarded to employees responsible, information

necessary for carrying out the tasks and

interfaces to back

interfaces to back-

-end applications are being

end applications are being

provided and activities with customers are being

documented for further reference.

(11)

Objectives of Operational CRM

Higher customer satisfaction by improved

quality of contacts

Cost savings by cross

-

functional

integration of processes and process

support

Cost saving by deeper integration of

communication with customers with

company

(12)

Benefits of Operational CRM

Deliver Delivers s personalized and personalized and efficient efficient marketing, sales, marketing, sales, and service and service through multi through multi- -channel channel collaboration collaboration Sales

Sales people and service people and service engineers

engineers can can access access complete history of all complete history of all customer interaction with customer interaction with your company

your company, , regardless regardless of the touch point

of the touch point

Enables a

Enables a 360360--degree degree view of your customer view of your customer

while you are while you are

interacting interacting

(13)

Sales

F

orce

A

utomation

(SFA)

Customer Service

and Support (CSS)

Enterprise

M

arketing

A

utomation

(EMA)

3 Areas in Operational CRM

(14)

Sales

F

_F

orce

_orce

A

_A

utomation

_utomation

(SFA)

_(SFA)

Sales

F

orce

A

utomation

(SFA):

Critical functions

Critical functions e.g.e.g. lead/account management, lead/account management, contact management, quote management,

contact management, quote management, forecasting, sales administration

forecasting, sales administration

Key infrastructure requirements are mobile Key infrastructure requirements are mobile

synchronization and integrated product configuration synchronization and integrated product configuration SFA tools are designed to improve field sales

SFA tools are designed to improve field sales productivity

(15)

Customer Service and Support

(CSS)

Customer Service and Support (CSS):

Internal help desk and traditional inbound call

Internal help desk and traditional inbound call--center center support for customer inquiries

support for customer inquiries Now

Now evolved into the "customer interaction center" evolved into the "customer interaction center" (CIC), using multiple channels (Web, phone/fax, face

(CIC), using multiple channels (Web, phone/fax, face-

-to

to--face, kiosk, etc)face, kiosk, etc)

Key infrastructure requirements include computer Key infrastructure requirements include computer telephony integration (CTI), high volume processing telephony integration (CTI), high volume processing capability, and reliability

(16)

Enterprise

M

arketing

A

utomation

(EMA)

Enterprise

M

arketing

A

utomation

(EMA):

The execution side of campaign and lead The execution side of campaign and lead

management. Demographic analysis, variable management. Demographic analysis, variable

segmentation, and predictive modeling occur on the segmentation, and predictive modeling occur on the analytical (Business Intelligence) side and are CPU analytical (Business Intelligence) side and are CPU intensive

intensive

The intent of EMA applications is to improve The intent of EMA applications is to improve marketing campaign efficiencies

(17)

CRM Solution Structure

(18)

2. Analytical CRM

Data gathered within operational CRM are

analyzed to segment customers or to identify

cross

-

and up

-

selling potential

Data collection and analysis is viewed as a

continuing and iterative process

Ideally, business decisions are refined over time, Ideally, business decisions are refined over time, based on feedback from earlier analysis and

based on feedback from earlier analysis and decisions decisions Graphic showing customer relationship lifecycle responding to analysis of acquisition, growth

(19)

Analytical CRM C

an

_an

P

_P

rovide

_rovide

…

Customer

Customer segmentation segmentation groupings

groupings

dividing customers into dividing customers into those most and least likely those most and least likely to repurchase a product to repurchase a product

Profitability

Profitability analysis analysis

which customers lead to which customers lead to the most profit over time the most profit over time

Personalization Personalization

the ability to market to the ability to market to

individual customers based individual customers based on the data collected about on the data collected about them

them

Event

Event monitoring monitoring

for example, when a for example, when a

customer reaches a certain customer reaches a certain dollar volume of purchases dollar volume of purchases

W

Whathat--ifif scenarios scenarios

how likely is a customer or how likely is a customer or customer category that customer category that bought one product to buy bought one product to buy a similar one

a similar one

Predictive

Predictive modeling modeling

for example, comparing for example, comparing various product

various product

development plans in terms development plans in terms of likely future success,

of likely future success, given the customer

(20)

Analytical

CRM

is inextricably tied to a

Data Warehouse architecture, and use

analytical applications to leverage

optimized functionality for analysis and

reporting

Ad

-

Hoc Query

Reporting

OLAP

Data Mining

Analytical CRM

(21)

Data Mining Defined

Data mining is

the non

the non--trivial extraction of implicit, previously trivial extraction of implicit, previously

unknown, and potentially useful knowledge from data unknown, and potentially useful knowledge from data a variety of techniques used to identify nuggets of a variety of techniques used to identify nuggets of information or decision

information or decision--making knowledge in bodies making knowledge in bodies of data, and extracting these in such a way that they of data, and extracting these in such a way that they can be put to use in areas such as decision support, can be put to use in areas such as decision support, prediction, forecasting, and estimation

prediction, forecasting, and estimation

(22)

Example of Analytical CRM

Tool: EIS

What is an EIS?

“

An EIS is a computer

-

based system that

serves the information needs of top

executives. It provides rapid access to timely

information and direct access to management

reports. EIS is very user

-

friendly, supported

by graphics, and provides exceptions

reporting and

“

drill

-

down

”

capabilities.

”

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Characteristics of EIS

Drill Down

Exception Reporting

Navigation of information under different formats

Critical Success Factors (CSF)

Strategic or operational Strategic or operational

Derived mainly from 3 sources: Derived mainly from 3 sources:

1

1-- Organizational factorsOrganizational factors 2

2-- Industry factorsIndustry factors 3

3-- Environmental factorsEnvironmental factors

90%

0 10 20 30 40 50 60 70 80 90 1er trim. 2e trim. 3e trim. 4e trim.

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EIS Benefits

Facilitating the attainment of

organizational objectives by

☺

Rendering the user (management) more

productive:

☺

☺Increasing the quality of decisionIncreasing the quality of decision--makingmaking

☺

☺Increasing communication capacity and qualityIncreasing communication capacity and quality

☺

☺Facilitating information accessFacilitating information access

☺

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Commander center

Commander EIS

SAS

PowerPlay

Media

Examples of EIS Products

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Example of Analytical CRM

Tool:

OLAP

On

-

Line Analytical Processing (OLAP)

a category of software technology a category of software technology

enables analysts, managers and executives to gain enables analysts, managers and executives to gain insight into data

insight into data

through fast, consistent, interactive access to a wide through fast, consistent, interactive access to a wide variety of possible views of information transformed variety of possible views of information transformed from raw data

from raw data

to reflect the real dimensionality of the enterprise as to reflect the real dimensionality of the enterprise as understood by the user

understood by the user

Combined EIS and DSS capabilities

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Benefits of Analytical CRM

Decrease Decreases s customer churn customer churn rate by rate by identification of identification of customer which customer which are likely to quit are likely to quit

and increase and increase

loyalty loyalty

Allows quick d

Allows quick designesign and and develop value

develop value--added added products and services that products and services that

meet customer needs meet customer needs Enables Enables s segmentationegmentation by customer by customer value value Increases sales Increases sales per customer by per customer by up

up--sellsellinging and and cross

cross--sellsellinging

Increase Increases s profitability and profitability and control costs control costs Improve

Improves s supply chain supply chain management, resulting in management, resulting in

lower costs and more lower costs and more

(28)

CRM Solution Structure

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3. Collaborative CRM

F

acilitates

interactions with customers through

all channels (personal, letter, fax, phone, web, e

-

-mail) and supports co

mail) and supports co

-

ordination of employee

teams and channels

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

(30)

Benefits of Collaborative CRM

Enabl

Enableses efficient efficient productive customer productive customer interactions across all interactions across all

communications communications

channels channels

Integrate

Integrates s call call centers enabling centers enabling

multi

multi--channel channel personal customer personal customer interaction interaction Enables w Enables webeb collaboration to collaboration to reduce customer reduce customer service costs service costs Integrate