Operational and Analytical CRM
- 1. ANALYTICAL & Operational CRM
- 2. THREE ASPECTS OF CRM • Operational - automation of customer processes that offers support to a company’s sales or service representative • Collaborative - the program communicates to customers without a company’s sales or service representative (self service) • Analytical - analysis of customer information for multiple purposes
- 3. Operational CRM • Operational CRM streamlines the business process of an organization. • It mainly focuses on automation and improvement of customer facing and customer touching business processes. • It includes Sales automation, Marketing automation and Service automation. • Main purpose of Operational CRM system is to generate leads, convert them into contacts, capture all required details and provide support throughout customer lifecycle.
- 4. Operational CRM includes • Sales Force Automation • Customer Service & Support (Automation) • Marketing Automation (Cycles within CRM process)
- 6. Sales force Automation ● Sales Force Automation (SFA) helps an organization to automate sales process from lead generation to closing sale. ● Main purpose of sales automation is to set business standard within the organization to acquire new customers and deal with existing customers. It includes various CRM sales modules like Lead Management Contact Management Account Management Customer MIS, Demographics, Preferences, history Campaign Manager Quote-to-Order management Sales Forecasting
- 7. Customer Service & Support • This involves automation and coordination of all the service operations and customer support processes which include service requests, product returns, customer complaints, and enquiries. These services and support can be provided through contact center, call center, web portal, or face-to-face interaction at a remote location in the field. • Call Management automation helps to route customer call to the most appropriate help desk person and retrieve all required information related to the call.
- 8. Customer Service & Support Case/Incident Management helps the organization to assign customers’ problems to the right person, provide solution within the time limit, capture customer response and analyze effectiveness. Knowledge Management captures information from various sources and makes a pro active approach to give value addition to customers. Service Level Management enables business to analyze quality of service based on key performance indicators.
- 10. Marketing Automation contd Marketing Automation helps the organization to streamline marketing process, automate and measure marketing task to increase sales and earn revenue faster. It includes various CRM marketing modules like Campaign Management, Event Based Marketing. Campaign Management helps business to design campaign, decide communication channels (like email, call, website, social media, TV ads), segment contacts, allocate budget and analyze effectiveness or quality of the campaign. Event based marketing helps to reach out customers with more relevant products or services based upon what’s going on in their lives at that moment, like first job or buying new car or getting married. Marketing Automation can automate response to customer queries, inform sales team about new opportunities.
- 11. Analytical CRM • Analytical CRM includes a sound analytical infrastructure that help to gather all the relevant information about the customers and organize it consistently. • It help in achieving a 360-degree view of customers, through which company can maintain and build truly interactive, mutually beneficial, and profitable relationships. • It helps the company to identify the new trends in the market. • It help in gaining further insights into customer needs and preferences.
- 12. Impact of Analytical CRM • Customer Acquisition – Cross Selling – Up Selling • Customer Retention – Retain Customers , renewals • Customer Information – Dashboards – Reports
- 14. Analytical CRM analyzes customer data for a variety of purposes: • Design and execution of targeted marketing campaigns to optimize marketing effectiveness • Design and execution of specific customer campaigns, including customer acquisition, cross-selling, up-selling, retention .. • Management decisions, e.g. financial forecasting and customer profitability analysis. • Prediction of the probability of customer defection (churn analysis) . • Analytical CRM generally makes heavy use of data mining.
- 15. Analytical CRM ‘Power Tools’ Capabilities that Companies Must Have • Broad range of actionable analysis and predictive modeling capabilities • Holistic view of customer interactions to understand the whole customer • Means to understand and automate the event rules that drive the business and communicate with individual customers
- 16. Manage the Total Communications Environment with Analytical CRM • • Direct Mail E-Mail/Fax ATM/Kiosk Call Center Agent Store /Branch Analytical CRM
- 17. THE VALUE ANALYTICAL CRM ADDS TO BUSINESS DESIGN • Acquire new profitable customers by cloning best customers. • Improve relationships with existing customers by addressing their individual needs • Optimize cross-selling and up-selling opportunities • Improve customer loyalty and reduce customers' propensity to churn
- 18. Scope of Analytical CRM • Customer behavior modeling • Customer value assessment • Customer profitability • Customer lifetime value • Customer profiling and scoring • Customer portfolio optimization • customer interaction.
- 19. Applications of Analytical CRM • Programme Evaluation •Financial Forecasting • Price Optimization • Customer Satisfaction Evaluation • Customer Satisfaction Growth • Product Development • Fraud Detection • Risk Management • Contact Optimization • Sales Coverage Optimization
- 20. Achieve Positive Business Results … Over Time CRM is an ongoing, scientific process … …not an isolated campaign or marketing plan
- 21. CRM Process Must Balance Quality of Customer Experiences Achieve Positive Business Results
- 22. CIGNA Case Study
- 23. Cigna Corporation is one of the largest health insurance companies in the United States. In 2002, Cigna undertook a $1 billion initiative to overhaul their technology infrastructure and implement a CRM system. The impetus behind the initiative was to improve enrollment, eligibility, and claims processing with integrated processes and systems. With such systems in place, Cigna would hypothetically be able to process medical claims more quickly and efficiently, while also providing their customer service agents with a unified view of Cigna members. Such changes would require integrating back-end processes with the CRM applications on the front end, as well as implementing new processes to accommodate the new enrollment, eligibility, and claims procedures that Cigna wanted to implement. This, in turn, would necessitate training staff on how these new processes would work and a revamp of customer service procedures to complement the new systems being put in place.
- 24. Though the Chief Information Officer for Cigna, Andrea Anania, carefully monitored the progress of the Cigna CRM implementation project, problems sprang up almost immediately. A mass migration to the new infrastructure was carried out, which resulted in Cigna members being unable to access information about their coverage, which then led to an inundation of customer inquiries that the customer service department was unprepared and unable to respond to. As a result, membership dropped from 13.3 million to 12.5 million with Cigna suffering a net loss of $398 million in revenue.
- 25. Questions i. With respect to above discuss why the CRM implementation went wrong ? ii. Explain what could have been the strategy that Cigna should have used to roll out its CRM change program? iii. Explain the aspects to be considered in project management steps and the steps that Cigna should have adopted for its CRM roll out?