2 crm concepts
TRANSCRIPT
-
8/2/2019 2 CRM Concepts
1/25
CRMCRM
CONCEPTSCONCEPTSDr. Vandana KhannaDr. Vandana Khanna
-
8/2/2019 2 CRM Concepts
2/25
W
hat is CRM??W
hat is CRM??ItIt isis aa comprehensivecomprehensive setset ofof processesprocesses andandtechnologiestechnologies forfor managingmanaging thethe relationshipsrelationshipswithwith potentialpotential andand currentcurrent customerscustomers andandbusinessbusiness partnerspartners acrossacross marketing,marketing, sales,sales,andand serviceservice regardlessregardless ofof thethe communicationcommunication
channelchannel..BrentBrent FreiFrei, President and CEO, Onyx Software, President and CEO, Onyx Software
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 22
-
8/2/2019 2 CRM Concepts
3/25
W
hat is CRM??W
hat is CRM??CustomerCustomer RelationshipRelationship ManagementManagement isis thethecommitmentcommitment ofof thethe companycompany toto placeplace thethecustomercustomer experienceexperience atat thethe centercenter ofof itsitsprioritiespriorities andand toto ensureensure thatthat incentiveincentivesystems,systems, processes,processes, andand informationinformation
resourcesresources leverageleverage thethe relationshiprelationship bybyenhancingenhancing thethe experienceexperience..Peter Keen, Chairman, Keen InnovationsPeter Keen, Chairman, Keen Innovations
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 33
-
8/2/2019 2 CRM Concepts
4/25
W
hat is CRM??W
hat is CRM??CRMCRM isis anan enterpriseenterprise--widewide mindset,mindset, dogma,dogma, andandsetset ofof businessbusiness processesprocesses andand policiespolicies thatthat arearedesigneddesigned toto acquire,acquire, retain,retain, andand serviceservice customerscustomers..ScottScott Fletcher,Fletcher, PresidentPresident andand COO,COO, ePipelineePipeline
CRMCRM isis aa disciplineddisciplined businessbusiness strategystrategy toto createcreateandand sustainsustain longlong--term,term, profitableprofitable customercustomerrelationshipsrelationships.. RobertRobert Thompson,Thompson, President,President, FrontFront LineLine Solutions,Solutions, IncInc..
CustomerCustomer RelationshipRelationship ManagementManagement (CRM)(CRM) isis aa
businessbusiness strategystrategy toto selectselect andand managemanage customerscustomerstoto optimizeoptimize longlong--termterm valuevalue.. CRMGuruCRMGuru..comcom
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 44
-
8/2/2019 2 CRM Concepts
5/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 55
Objectives of CRMObjectives of CRMToTo identifyidentify andand establish,establish, maintainmaintain andandenhanceenhance andand ,, whenwhen necessary,necessary, terminateterminaterelationshipsrelationships withwith customerscustomers andand otherotherstakeholders,stakeholders, atat aa profitprofit soso thatthat thetheobjectivesobjectives ofof allall partiesparties involvedinvolved areare metmet;;
andand thisthis isis donedone byby mutualmutual exchangeexchange andandfulfillmentfulfillment ofof promisespromises..GrGrnroos 1994nroos 1994
-
8/2/2019 2 CRM Concepts
6/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 66
Competitive AdvantageCompetitive Advantage
TheThe abilityability toto learnlearn moremore aboutabout ourourcustomerscustomers fasterfaster thanthan thethe competitioncompetition
TheThe abilityability toto turnturn thatthat learninglearning intointo actionactionfasterfaster thanthan thethe competitioncompetition..
Jack WelchJack Welch
-
8/2/2019 2 CRM Concepts
7/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 77
Increasing Value of theIncreasing Value of the
Customer BaseCustomer BaseGet : Acquire Profitable Customer
Keep : 1. Retain Profitable Customers2. Win Back Profitable Customers3. Eliminate Unprofitable Customers
Grow : 1. Up sell Additional Products In A Solution2. Cross Sell Other Products To Customers3. ReferralAnd Word-of-mouth Benefits4. Reduce Service And Operational Costs
-
8/2/2019 2 CRM Concepts
8/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 88
CRM as a Hub ofCRM as a Hub of
Applied LearningApplied LearningRecognizeRecognize needs/wantsneeds/wants ofof defineddefined segmentssegments..
CultivateCultivate andand developdevelop interest,interest, trusttrust andand desiredesire..
AcquireAcquire customercustomer andand establishestablish aa relationshiprelationship..CustomizeCustomize promotion,promotion, information,information, interactionsinteractions..
CustomizeCustomize offers,offers, productsproducts andand servicesservices..
CustomizeCustomize channelchannel outletsoutlets andand locationslocations..
Collect,Collect, WarehouseWarehouse andand AnalysisAnalysis datadata..
A customer focus without accurate information issimilar to attempting to circumnavigate the planet
without a map.
-
8/2/2019 2 CRM Concepts
9/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 99
Architecture of CRMArchitecture of CRMTheThe applicationapplication architecturearchitecture ofof CRMCRM isisdivideddivided intointo threethree partsparts::
OperationalOperational CRMCRM
AnalyticalAnalytical CRMCRM
CollaborativeCollaborative CRMCRM
-
8/2/2019 2 CRM Concepts
10/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1010
Operational CRMOperational CRMOperationalOperational CRMCRM isis thethe automationautomation ofofhorizontallyhorizontally integratedintegrated businessbusiness processesprocesses
involvinginvolving frontfront--officeoffice customercustomer touchtouch pointspointsacrossacross sales,sales, marketingmarketing andand customercustomerserviceservice viavia multiplemultiple interconnectedinterconnected deliverydeliverychannelschannels..
MetagroupMetagroup
-
8/2/2019 2 CRM Concepts
11/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1111
Operational CRMOperational CRMItIt refersrefers toto thethe measuresmeasures supportingsupporting thethefrontfront officeoffice businessbusiness processes,processes, includingincluding
customercustomer contactcontact..ItIt focusesfocuses onon softwaresoftware andand installationsinstallations andandthethe changeschanges inin processprocess affectingaffecting dayday toto daydayoperationsoperations..
GivesGives informationinformation necessarynecessary forfor carryingcarrying outoutthethe taskstasks interfacesinterfaces withwith backback--endendapplicationsapplications..
-
8/2/2019 2 CRM Concepts
12/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1212
Operational CRMOperational CRMTechnologiesTechnologies suchsuch asas ERPERP (Enterprise(Enterprise ResourceResourcePlanning)Planning),, SCMSCM (Supply(Supply ChainChain ManagementManagement software)software),,
EAIEAI (Enterprise(Enterprise Application Application Integration)Integration),, DataDatawarehousing,warehousing, SFASFA (Sales(Sales ForceForce Automation)Automation) helpshelpscompaniescompanies toto massmass customizecustomize andand deliverdeliverthethe productsproducts toto customerscustomers..
-
8/2/2019 2 CRM Concepts
13/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1313
Analytical CRMAnalytical CRMAnalytical Analytical CRMCRM isis thethe analysisanalysis ofof datadatacreatedcreated onon thethe operationaloperational sideside ofof CRMCRM andandthroughthrough otherother relevantrelevant operationaloperational datadatasourcessources forfor thethe purposespurposes ofof businessbusinessperformance,performance, managementmanagement andand customercustomer--
specificspecific analysisanalysis.. MetagroupMetagroup
-
8/2/2019 2 CRM Concepts
14/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1414
Analytical CRMAnalytical CRMItIt focusesfocuses onon strategicstrategic planningplanning neededneeded totobuildbuild customercustomer value,value, asas wellwell asas culturalcultural
measurementmeasurement andand organizationalorganizational changeschangesrequiredrequired toto implementimplement strategystrategy successfullysuccessfully..
TheThe datadata gatheredgathered areare analyzedanalyzed toto segmentsegmentcustomerscustomers oror toto identifyidentify thethe potentialpotential forfor
enhancingenhancing relationshipsrelationships withwith customerscustomers..CustomerCustomer analysisanalysis leadsleads toto increaseincrease shareshare ofofthethe customerscustomers walletwallet..
-
8/2/2019 2 CRM Concepts
15/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1515
Collaborative CRMCollaborative CRMCollaborativeCollaborative CustomerCustomer RelationshipRelationshipManagementManagement isis toto coordinatecoordinate thethe multimulti--
channelchannel serviceservice andand supportsupport givengiven toto thethecustomercustomer byby providingproviding thethe infrastructureinfrastructure forforresponsiveresponsive andand effectiveeffective supportsupport toto
customercustomer issues,issues, questions,questions, complaints,complaints, etcetc..
-
8/2/2019 2 CRM Concepts
16/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1616
Collaborative CRMCollaborative CRM
ItIt facilitatesfacilitates effectiveeffective interactionsinteractions withwithcustomerscustomers throughthrough Varity Varity ofof channelschannels likelike
personal,personal, letters,letters, fax,fax, phone,phone, ee--mail,mail, etcetc..ItIt supportssupports thethe coco--ordinationordination betweenbetweenemployeeemployee teamsteams andand channelschannels..HelpsHelps inin integrationintegration ofof people,people, processesprocesses andand
datadata togethertogether..HelpsHelps inin offeringoffering betterbetter servicesservices toto customerscustomersandand inin retainingretaining themthem overover longerlonger periodsperiods..
-
8/2/2019 2 CRM Concepts
17/25
CRM ArchitectureCRM Architecture
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1717
-
8/2/2019 2 CRM Concepts
18/25
CRM Solution StructureCRM Solution Structure
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1818
-
8/2/2019 2 CRM Concepts
19/25
Objectives of Operational CRMObjectives of Operational CRM
HigherHigher customercustomer satisfactionsatisfaction byby improvedimprovedqualityquality ofof contactscontacts
CostCost savingssavings byby crosscross--functionalfunctional integrationintegrationofof processesprocesses andand processprocess supportsupportCostCost savingsaving byby deeperdeeper integrationintegration ofofcommunicationcommunication withwith customerscustomers withwith
companycompany--internalinternal processesprocesses
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 1919
-
8/2/2019 2 CRM Concepts
20/25
Benefits of Operational CRMBenefits of Operational CRM
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 2020
DeliversPersonalized &
efficientmarketing sales
and servicesthrough multi-
channelcollaboration
Sales people andservices engineers can
access complete history
of all customerinteraction with the
company regardless ofthe touch point
Enables a 360 degreeview of the customer(s)while interacting with
them
-
8/2/2019 2 CRM Concepts
21/25
Benefits of Analytical CRMBenefits of Analytical CRM
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 2121
Enablessegmentationby customer
value
Allows quickdesign and
developvalue-addedproducts andservices that
meetcustomer
needs
Increases salesper customer by
up-selling andcross-selling
Improves supply
chainmanagement,resulting in
lower costs andmore
competitive pricing
Increasesprofitability
andcontrol costs
Decreases Customerchurn rate by
identification ofcustomer which are
likely to quit andincrease loyalty &
efficient marketingsales and services
through multi-channel
collaboration
-
8/2/2019 2 CRM Concepts
22/25
Benefits of Collaborative CRMBenefits of Collaborative CRM
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 2222
Enables efficientproductive customerinteractions across
allcommunications
channels
Integrates view ofthe customer whileinteraction at the
transaction level
Integrates call
centers enablingmulti-channelpersonal customer
interaction
Enables webcollaboration toreduce customer
service costs
-
8/2/2019 2 CRM Concepts
23/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 2323
Potential BenefitsPotential Benefits
of CRM Systemof CRM SystemBenefitsBenefits forfor OrganizationOrganization
CustomerCustomer FocusFocus
CustomerCustomer RetentionRetentionShareShare ofof Customer/Customer/ ShareShare ofof walletwallet
LongLong--termterm ProfitabilityProfitability
CrossCross--sellingselling andand UpUp--sellingselling
-
8/2/2019 2 CRM Concepts
24/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 2424
Potential BenefitsPotential Benefits
of CRM Systemof CRM SystemCustomersCustomers BenefitsBenefits
ContinuityContinuity
ContactContact touchtouch pointspointsPersonalizedPersonalized serviceservice
EnhancedEnhanced satisfactionsatisfaction
SafetySafety
-
8/2/2019 2 CRM Concepts
25/25
3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 2525
Potential Costs of CRM SystemPotential Costs of CRM System
OrganizationsOrganizations CostsCostsInfrastructureInfrastructure
InvestmentsInvestmentsReactionReaction toto processprocess
CustomersCustomers CostsCosts
PrivacyPrivacy andand opportunityopportunityFutureFuture relationshipsrelationships