Crm
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This document provides an overview of a lecture on Customer Relationship Management (CRM). It begins with an agenda that includes defining ERP, an overview and demos of CRM from an application perspective, and a hands-on lab component using Microsoft CRM. It then discusses key CRM concepts like the shift from transactions to long-term customer relationships and learning. Implementation tasks for CRM like identifying, differentiating, interacting with, and customizing for individual customers are presented. Examples of operational and analytical CRM software from PeopleSoft are demonstrated. The role of predictive analytics in CRM is also explained.
Crm
- 1. Customer Relationship Management Small Business Information Systems Professor Barry Floyd
- 2. Agenda Defining ERP Implementation tasks for CRM CRM Overview / Demos Conceptual Overview An application perspective of CRM Operational Analytical Lab component: Hands on use of CRM with Microsoft
- 3. Use of ERP software in the curriculum – Defining ERP? Defining ERP “In 1990, research firm Gartner Group coined the term Enterprise Resource Planning, or ERP. It quickly became a catchall for back office enterprise functions that included financials, human resources, accounting, purchasing, ordering and costing.” “ERP II takes the ERP foundation and extends it outward, to position the enterprise in the supply an value chains (e.g., Supply Chain Management (SCM), Customer Relationship Management (CRM), Product Life Cycle Management (PLM) .”
- 5. Conceptual Overview A shift in thinking … Transaction Learning relationship Mass Marketing Individual marketing Transaction Value Life time value Conquest Marketing Retention marketing Product Life Cycle Customer Life Cycle Customer Satisfaction Customer Loyalty Share of the market Share of the customer Product differentiation Customer differentiation
- 6. What’s a relationship? Can an organization have a ‘relationship’ with a person? Emphasis on CRM is the notion of a ‘learning relationship’ Knowledge Intent Trust
- 7. Customer Satisfaction Customer Loyalty The Death of Customer Satisfaction: CRM in the Internet Age by Tony Zingale Fulfillment – The company has what I want. Value – The price meets my expectations. Convenience – The product is easy to get. Trust – I’m reasonably confident the product is reliable.
- 8. PeopleSoft CRM Consider the ‘front-facing’ CRM application developed by PeopleSoft (not a product line of Oracle). A ‘front-facing’ application is an application that the customer sees. Contrast with ‘back-office’ operations like we have been working with using GP Dynamics 9.0 In this clip, a customer wishes to file a damage claim. Key points: Customer centric, can see all interactions with this ‘insurance company’, customer-driven, is an example of mass customization and personalization
- 10. Customer Satisfaction Customer Loyalty The Death of Customer Satisfaction: CRM in the Internet Age by Tony Zingale Satisfaction – My basic transactional needs are met Bonding – The company is acting in my best interests. Personalization – The company demonstrates that it understands and anticipates my needs. Empowerment – The relationship is on my terms and under my control.
- 11. Customer Differentiation vs. Product Differentiation Research by Professors Cooper and Kaplan at the Harvard Business School has shown that in a large number of companies 20 percent of customers account for 225 percent of profits and the 80 percent `lose’ 125 percent of profits. But the trouble is that most companies do not know which customers make up the 20 percent and which make up the 80 percent.
- 12. Enterprise Strategy Map Ability to Interact with Customers Individually Interacting Customers addressed only in mass media C u s Database Marketing 1 to 1 learning relationship Mass Marketing Niche Marketing Standard products Tailoring Source: Pepper / Rogers, Enterprise One to One, New York: Doubleday/Currency, 1997. Tailored products
- 13. Needs Satisfied Needs Satisfied Share of the Market vs. Share of the Customer Customers Reached Customers Reached
- 14. Themes Customers as assets Market based assets, including customer relationships Companies executives will need to report their customer relationship management performance to investors Holistic view of the customer Analysis out of the hands of the statisticians
- 15. Four implementation tasks for creating and managing customer relationships IDIC Identify Differentiate Interact Customize Reference: Peppers and Rogers, Managing Customer Relationships, A Strategic Framework
- 16. Four implementation tasks for creating and managing customer relationships IDIC Identify Differentiate Interact Customize Reference: Peppers and Rogers, Managing Customer Relationships, A Strategic Framework
- 17. Identify Relationships are individualistic, not with markets or groups of people Must be able to identify your customers individually and recognize them when interacting with them Without identification, you cannot understand who they are and what their needs are. Difficult to do, can be almost impossible if channels of communication involve intermediaries Steps 1. 2. How much customer identification does a company already have (what info do you need) Get customers to identify themselves
- 18. Four implementation tasks for creating and managing customer relationships IDIC Identify Differentiate Interact Customize Reference: Peppers and Rogers, Managing Customer Relationships, A Strategic Framework
- 19. Differentiate Some customers are worth more than others Knowing value of customer to the enterprise allows prioritization 80/20 rule Want to better understand customer ‘needs’ vs. demographics Want to better understand the value of that customer to the enterprise Lifetime value (LTV) … net present value of the stream of expected future contributions from the customer. Most valuable customers, most growable customers, belowzeros, migrators Differentiate customers based on needs Refers to why customer buys rather than what they buy.
- 20. PeopleSoft CRM – Insurance Company’s Response What support is provided by the company to help the “Customer Support Agent” What information does this agent have about the client? Where does it come from? How useful is it? What information does the agent have about their own performance? Consider What information has the claimant provided to the Insurance Company? How does this interaction reflect a ‘partnership’ How much trust is there?
- 21. PeopleSoft – Customer Support Agent Response
- 22. Four implementation tasks for creating and managing customer relationships IDIC Identify Differentiate Interact Customize Reference: Peppers and Rogers, Managing Customer Relationships, A Strategic Framework
- 23. Interact Goal of interaction is ‘to get more information directly from a customer in order to serve him in a way no competitor can who doesn’t have the information’ Want to turn the interaction into a collaboration in which the enterprise and customer work together to make transactions beneficial to both parties … a learning relationship Important issue in the interaction is privacy. Research has indicated that individuals are willing to provide information
- 24. Four implementation tasks for creating and managing customer relationships IDIC Identify Differentiate Interact Customize Reference: Peppers and Rogers, Managing Customer Relationships, A Strategic Framework
- 25. Customize Use knowledge of customer to figure out what he/she needs Key term is ‘mass customization’ Can be product based Or service based on standard products Use of information technologies key
- 26. PeopleSoft CRM – Insurance Company’s Response What support is provided by the company to help the “Sales Agent’s Response” Are we wasting the Sales Agent’s time? Why not? When the Sales Agent calls the client, will it be consider intrusive? How are gaining ‘share of the customer’ (in contrast to ‘share of the market’?) Again consider … What information has the claimant provided to the Insurance Company? How does this interaction reflect a ‘partnership’ How much trust is there?
- 27. PeopleSoft – Sales Agent Response
- 28. How does technology play a role? Enabler …. Managing all touch points with the customer to develop knowledge so that the ‘relationship’ part of the interaction becomes meaningful. Note, technology is only an enabler, people and organizational design play critical roles in CRM success
- 29. CRM Overview / Demos – An application perspective of CRM PeopleSoft CRM View PeopleSoft® Enterprise Customer Relationship Management (CRM) is a comprehensive solution offering greater user adoption, an improved user experience, and real-time intelligence for your enterprise to make smarter decisions. Every customer interaction can now be an opportunity to build business value with your customers.
- 30. CRM Overview / Demos – An application perspective of CRM PeopleSoft CRM View “Get immediate, seamless integration among your customer, financial, supply chain, and employee management systems.” CRM Analytics Marketing Solution Sales Solution Service Solution CRM Industry Solutions Operational CRM Analytics CRM
- 31. CRM Overview / Demos – An application perspective of CRM Operational CRM “Operational CRM is the automation of horizontally integrated business processes involving front-office customer touch points across sales, marketing and customer service via multiple, interconnected delivery channels. ” Meta Group
- 32. CRM Overview / Demos – An application perspective of CRM PeopleSoft CRM View MARKETING New product campaign Email wave Telesales wave Free software offer SUPPORT Installed Product Agreement Warranty Specialist Competencies Call Center Agent Resolution Database HELPDESK Call Center Agent Resolution Database SALES Forecasts Leads/Opportunities Sales Reps FIELD SERVICE ANALYTICS Service Order Technician Competencies INTERACTION MANAGEMENT
- 33. CRM Overview / Demos – An application perspective of CRM CRM Demos – User Perspective Customer Perspective Customer Support Agent Sales Representative Sales Manager
- 34. CRM Overview / Demos – An application perspective of CRM Example Business Process: CRM Marketing and Sales Business Process Flow Analyze Customer Performance and Generate Target Audience List Create Campaign Create Wave CRM Marketing Business Process CRM Sales Business Process Measure Campaign Measure Opportunity Performance Generate Forecasts and Rollup Forecasts Lead Generation Manage Leads Create Opportunity
- 35. CRM Overview / Demos – An application perspective of CRM Two key features of business process Embedded Analytics Allows for data analysis within the business process stream Interaction Management Provides a 360-degree view of the customer’s interactions (cases, leads, installed products, service orders, agreements, returned materials, interactions)
- 36. CRM Overview / Demos – An application perspective of CRM Analytical CRM ”Analytical CRM is the analysis of data created on the operational side of CRM and through other relevant operational data sources for the purposes of business performance management and customer-specific analysis. ” Meta Group
- 37. CRM Overview / Demos – An application perspective of CRM CRM Analytics Solution CRM Portal Pack CRM Warehouse Customer Behavior Modeling Customer Scorecard EPM Portal Pack Predictive Analytics
- 38. CRM Overview / Demos – An application perspective of CRM Customer Behavior Marketing Which customers are most likely to purchase your product Which customer segment will maximize your ROI on marketing campaigns Which personalized, targeted offers your call center reps should present Which customers are at risk of attrition
- 39. PeopleSoft – Sales Manager
- 40. Predictive analytics An application that leverages a companies’ operational data about customers and past events and uses it to predict a customer’s future behavior. Goal is to distribute the value of statistical analysis to non-statisticians in the organization.
- 41. CRM Demo Resources Siebel: http://www.siebel.com/bestpractices/examples.shtm SalesForce.com: http://www.salesforce.com/us/products/demo-center.jsp Microsoft: http://www.microsoft.com/dynamics/crm/default.mspx http://mscrm.demoservers.com/ Avaya: http://www1.avaya.com/enterprise/resourcelibrary/demos/crm_callc
- 43. CRM Lab Go to the following web site: http://mscrm.demoservers.com/ Register Once you’ve registered, log in and do the SALES CRM lab. I’ve given you a handout on this.
- 44. Summary CRM is an exciting application that provides an integrated view of critical business processes and allows the student to develop a real-world understanding Integration with other modules like Supply Chain Management, Financials, and HR is critical for a complete view of the customer
Editor's Notes
- #8: If a company makes it through these stages, the result is a satisfied customer. This leads to transaction-based, or market-share returns, in which customers buy something from a vendor. Vendors seek a greater share of the customer's wallet through repeat transactions for the same product, through an upgrade, or through incremental "accessory" sales and service fees. Customer satisfaction was a fine goal in the Industrial era. However, companies that stop at satisfaction are vulnerable today. Competition is now just one mouse click away. If, for some reason, the product that kept customers returning is discontinued, undercut or outclassed by a competitor, the company pretty much loses its investment in that customer. Toyota is a great example of a company that knew how to groom returning customers from a Corolla to a Camry to a Lexus.
- #11: Starbucks didn't just brew a good cup of coffee. It learned what kind of music its customers like, what books they read and what kind of chairs they like to sit in, and it publishes a magazine targeted to them. In fact, I pulled up the Starbucks Web site the other day, and the headline was, "Pour Yourself an Experience."