crm dw class

8/14/2019 Crm Dw Class

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CUSTOMERRELATIONSHIP

MANAGEMENT

Vinod Ramanathan


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What Is CRMWhat Is CRM

CRM is fundamentally a strategy

Aligned with the overriding corporate strategy

Ideally, CRM defines an enterprise-wide program that helps to align

business processes and functions against customer-driven priorities

CRM is implemented through various means

Organizational realignment

Process development

Cross-organizational functional alignment

Systems support


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Goal Of CRMGoal Of CRM

The idea of CRM is that it helps businesses usetechnology and human resources to gain insight into thebehavior of customers and the value of those customers.With an effective CRM strategy, a business can increaserevenues by: providing services and products that are exactly what

your customers want

offering better customer service

cross selling products more effectively

helping sales staff close deals faster

retaining existing customers and discovering new ones


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Customer LoyaltyCustomer Loyalty

Customer Loyalty Repeat customers costs lesser to service Word of Mouth Advertising increases customer base Branded experience leads to emotional attachment Willingness to pay higher price for good customer service

Loyalty Leaders Increased profitability and customer rentention Eg: Verizon, Nokia, WalMart, SouthWest Airlines, SONY

Facts: The cost to replace each defecting customer with a newone varies by industry but can range from about $330 percustomer in telecommunications, to $75 in banking and $14 foronline retailers, according to a study by Shop.org and BostonConsulting Group, and company reports.


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Types Of CRMTypes Of CRM

CRM application software canbe broadly divided into fiveareas

Customer interaction

management

Customer decisionsupport

Systems integration

Customer informationmanagement

Workflow


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Architecture of CRMArchitecture of CRM

There are three parts of application architecture of CRM:

operational - automation to the basic businessprocesses (marketing, sales, service)

analytical - support to analyze customer behavior,implements business intelligence alike technology

co-operational - ensures the contact with customers(phone, email, fax, web, sms, post, in person)


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Operational CRMOperational CRM

Operational CRM means supporting the so-called "frontoffice" business processes, which include customercontact (sales, marketing and service)

Operational part of CRM typically involves three generalareas of business:

Sales force automation (SFA)

Customer service and support (CSS)Enterprise marketing automation (EMA)


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Analytical CRMAnalytical CRM

Data gathered within operational CRM are analyzed tosegment customers or to identify cross- and up-sellingpotential.

Collaborative CRM

Collaborative CRM facilitates interactions with customersthrough all channels (personal, letter, fax, phone, web,e-mail) and supports co-ordination of employee teamsand channel.


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Categories Of CRM ToolsCategories Of CRM Tools

Marketing - product and brand management, databasemarketing, telemarketing, analytical tools, configurationmanagement, encyclopedias and marketing informationsystems.

Sales - contact management, mobile sales, accountmanagement, opportunity management, sales literature, pricelists and miscellaneous sales support materials.

Customer service - call centers, mobile service, inside sales,tools used to streamline and automate customer support and

help desks.Personalization - tools to build customer profiles and deliverpersonalized content.


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To be successful A CRM program must be strategy drivenTo be successful A CRM program must be strategy driven

CRM

Enterprise

Vision and

Strategic Priorities

Adaptable Value Proposition

Design and Delivery Capabilities

Customer Aligned Organization,

Infrastructure, and Business Processes

Enabling

Capabilities

CFO Organization Information systems Interface design Customer interaction process

design Organization structure Incentive systems

CRM DRIVERSCRM STAGE

Corporate strategy and objectives Customer vision CRM objectives & strategy

Customer marketing strategy Value proposition design Salesforce strategy Channel strategy Dynamic pricing Delivery stream/supply chain

strategy

Customer

Strategy

Value Creation

and Value

Capture


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Case Study World Changers ChurchCase Study World Changers Church

Business: Distribute the word of God through church services, CDs andbooks, and seminars and conventionsFinancials in 2004: $80 million in donations and product sales.

Challenge: To build individual relationships with 25,000 members viarefined tracking of their behavior, skills and needs.

GOALS:

Grow membership by 9 percent, from 25,000 members in 2005 to27,250 in 2007.

Reduce average length of time per call-center call by 9 percent, from 3minutes, 52 seconds in 2005 to 3 minutes, 30 seconds by mid-2006.

Replace existing homegrown church management system with moreflexible software based on a relational database in 2007.


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CRM - Key Success FactorsCRM - Key Success Factors

Developing Best Practices

Know Your Customers, All ofThem

Recognize that CRM is aboutchanging processes, notinstalling software

Avoid over-customizing

Develop IT Strategies forSpecific Customer Needs

Make Implementation Easyon Your Customers, Not YourCompany


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BUILD V/S BUYBUILD V/S BUY

Detailed Analysis of Enterprise needs and mission

Test off-the-shelf products

Level of skill available within the organization

Calculate impact on business and ROI sought

Median Total 5-Year Invest Median Return

Build $2,088,860 104%

Buy $1,807,656 140%


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Top CRM Product SuitesTop CRM Product Suites

ISM Top 15 CRM Enterprise WinnersAmdocs ClarifyCRM v.12-AmdocsC2 CRM v. 7.07-Clear TechnologiesEpiphany E.6 v.6.5-EphiphanyFirstwave CRM 2004-Firstwave TechnologiesCMS v.8.0-OnContact SoftwareOnyx Enterprise CRM 5.0-Onyx SoftwareExSellence 4.8-Optima TechnologiesPeopleSoft CRM 8.9-Oracle/PeopleSoftPivotal CRM Suite 5.1-PivotalMySAP CRM 4.0-SAP AGSaratoga iAvenue v.6.4-Saratoga SystemsSiebel 7.7-Siebel SystemsgrowBusiness Solutions v.2.5-Software InnovationSSA CRM-SSA GlobalTibco Process RM v. 9.0-Tibco


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ScoreCard- Enterprise CRM MarketScoreCard- Enterprise CRM Market

Source: http://www.nucleusresearch.com/


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ReferencesReferences

http://www.insightexec.com/http://projects.bus.lsu.edu/independent_study/vdhing1/crm/

http://www.onewwworld.com/crmtools.html

http://www.crmondemand.com/common/register.do

http://www.crmdaily.com

http://www.cognizant.com

http://www.dmreview.com/article_sub.cfm?articleId=6189

http://www.pcimag.com/CDA/ArticleInformation/features/BNP__Features__Item
http://www.insightexec.com/http://projects.bus.lsu.edu/independent_study/vdhing1/crm/http://www.onewwworld.com/crmtools.htmlhttp://www.crmondemand.com/common/register.dohttp://www.crmdaily.com/http://www.cognizant.com/http://www.dmreview.com/article_sub.cfm?articleId=6189http://www.pcimag.com/CDA/ArticleInformation/features/BNP__Features__Item/0,1846,29026,00.htmlhttp://www.pcimag.com/CDA/ArticleInformation/features/BNP__Features__Item/0,1846,29026,00.htmlhttp://www.dmreview.com/article_sub.cfm?articleId=6189http://www.cognizant.com/http://www.crmdaily.com/http://www.crmondemand.com/common/register.dohttp://www.onewwworld.com/crmtools.htmlhttp://projects.bus.lsu.edu/independent_study/vdhing1/crm/http://www.insightexec.com/


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THANK YOUTHANK YOU

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