customer relationship management (2)

8/8/2019 Customer Relationship Management (2)

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Customer Relationship

ManagementProf Ajay Mody


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What is a CRM ? It is a business Strategy to select and manage

customers to optimize long term value. A CRM requirescustomer centric business philosophy and culture tosupport effective marketing ,sales and service

processes. CRM applications can enable effectiveCustomer Relationship Management ,provided that anenterprise has the right leadership ,strategy and culture


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Why CRM has become popular? Power has shifted to customer due to the convergence of three powerful

trends : ERP systems are no longer a source of competitive advantage for most

companies. The back office is fully automated ,now what ? The cycle of innovation to production to obsolescence has accelerated,

leading to an abundance of options for customers and a shrinking marketwindow for vendors.

The internet has made it far easier for customers to decide which supplier tobuy from and, if necessary ,to switch to another vendor at a click of amouse.


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CRM is not just a software !

Business

strategy

People and process

InformationTechnology


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Business Process

CRM

PRM

eCRM

Enterprise employs

Channel Partners

Online Customers

USERSMarketing Sales E commerce Service

MarketingAutomation

SalesAutomation

ServiceAutomation

Partner relationship management

Corporate website E-commerce Stores Self Service


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Approaches to CRM

Sales force Automation Lead Tracking Opportunity Management Contact Management Order booking and follow up till delivery Customer Service Call Centre management Online help

Internal help desk Knowledge based expert system Marketing Automation System Email response management E-commerce Web enabled ordering system Information sharing with internal and external customer Partners relationship management (Enterprise Channel management) Planning manager

Relationship Manager Partners Report Market Sell Service Post sales support manager


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Business Process supported byCRM

Marketing : Targeting prospect and acquiring new customers through data mining,campaign management and leads distribution

Sales :Closing business with effective ,selling processes ,using proposal generators ,configurators, knowledge management tools, contact managers and forecasting aids

E-commerce : In the internet age selling processes should transfer seamlessly in topurchasing transactions ,done quickly , conveniently and at a lower cost.

Service : Handling post sales service and support issues with sophisticated callcentre applications or WEB based customer self service products.


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Data Driven CRM Model

Customer Data

Analysis

andprocessing

Customer

Intelligence

EvolveCRM

Strategies

Implement

strategies

Evaluateandmodify


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Process driven CRM Model

Initiation of

serviceTransition to Service Pre Service

ServicePost

Service

EvaluateKNOWLEDGEMANAGEMENT SYSTEMCUSTOMER

KNOWLEDGEDATABASE


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Three legs of CRM

ERP/ERM

Order Mgmt

Supply ChainMgmt.

Order Prom.

LegacySystems

`

SalesAutomation

ServiceAutomation

MarketingAutomation

FieldServiceMobile Sales

Vertical Apps.

Category Mgmt.

MarketingAutomation

Campaign Mgmt.

Customer Activity

Customers Products

DataWarehouse

Voice(IVR, ACD)

Conferencing

WebConferencing

E-mail

ResponseManagement

FaxLetter

DirectInteraction

Operational CRM Analytical CRM

Collaborative CRM

Back

c

Front

Mobile

Office

Customer

Interaction

Closed-LoopProcessing

(E

AIToolkits, Embedded/MobileAgents


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CRM Technology

Operational CRM Analytical CRM

Collaborative CRM


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Analytic CRM

Courtesy : SAS CRM Analytics

Customer Inbound Outbound

Interaction Management

Email , Telemarketing ATM , WEB , wireless , DirectMail

Reporting CampaignManagementAnalytics

ROIPerformance

Customer Segmentation

AnalyticsPerformance

CampaignPlanning

CampaignCreation

ResponseManagement

Segmentation

Profiling

Predictive

Modeling

DataManagement

Learning loop

MDDB OLAP CUBES DATA WARE HOUSE DATA MARTS

Extract , Transform Cleanse, Match and Load

Enterprise System External Data


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Customer Acquisition Cost

Type Of Business Cost Per customer Internet Only Retailers $82-$95

All online retailers $32 Brick and Mortar retailers $31 Catalog Retailers $11

Multichannel Retailers $30

Courtesy : Boston Consulting ANDMcKinsey Consultants


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What are Analytics ?

Analytics are collection, extraction,modification, measurement, identificationand reporting of information designed to

be useful to the party using the analytics.It uses multi dimensional On LineAnalytical Processing (OLAP) tools andtechniques as well as calculations, logic,formulae and analytical routines/algorithms against data extracted fromoperational (OLTP) systems


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Descriptive Analytics /Performance analytics /Effectiveness analytics/Operational analytics

No matter what it is known the analyticsgives information of the past and up topresent.

Customer and corporate performance aredescribed and Success or failure of marketing campaign can be identified


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Predictive Analytics

This analytics interesting and dicey It helps to maximize the return on

campaign


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The Analytic Process

Customer Segmentation Segmentation is the process of identifying finite set of data clusters e.g. Buying behavior , Value of purchase, Preference of high Value, preference of discount /bargain purchase

LINK ANALYSIS Link analysis is a process of finding the links between two sets of variables. It shows Lag-Lead - Sale of Umbrella lags the rainfall

Moving together (Shows affinities) Bread and Butter Configured links- (Purchased as a set of Items) Drinks, Fish and chips, Chips and cola, Bread milk and eggs

REGRESSION Regression is the process of finding a value of a variable dependent upon another variable Regression

process succeeds when a significant relationship between variable and dependent variable is a tested one. e.g. For grocery chain store value of business / day time spent, frequency of visit ,class of customer

DEVIATION DETECTION Deviation detection is the process of identifying the deviation from confirmed prior trend or expectation. Theanalysis of deviation shows whether there is shift in the pattern due to certain changes in the dependentvariable or its a random occurrence


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The Analytic Processcont

Modeling and Scoring Modeling use data mining. It begins to identify the customers that fit the

profile that is best for the planned campaign .Modeling is finding relevantcustomer segment characteristics that create the best chances to for thesuccess of the campaign. -neural networks

Scoring Scoring is a process of applying the model (which is really a complex

arithmetic equation to your target audience and associating a number ( Score) with each individual

Risk analysis Risk analysis is Risky. One needs to use the appropriate questions and use

of right methods to figure out possibility to apply risk analysis successfully.


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PITFALLS OF ANALYTICS

Analytics are the automated form of alimited type of cognition. It is not acreativity and it is not human. It is a linear or non linear automated form of decisionplanning . Simple in comparision to humanmind ,so it is used a tool and a not a

substitute to human mind.


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Sales Force Automation:The Purpose

Increased Revenue Reduction in Cost of Sales

Customer Retention Due to Company,notProduct or Service Sales force Increasing Mobility

Easy available Customer Information withsingle view


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Sales Force Automation:Functionality

Contact management Opportunity Management Accounts management Proposal management

Quote Generation

Order tracking Sales forecasting Pipeline Analysis Sales Quote management

Commission Management Territory Management


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SFA:ADDITIONAL APPLICATION

Incentive Compensation Program Competitive Information System Telesales Campaign management Sales Assistant Expense Reporting Learning management/content delivery tool Marketing Encyclopedia Partner management Capabilities

Integration with Service, Marketing and Internet application Mobile applications


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Partner Relationship Management

Planning Manager Business planning Demand planning

Relationship Manager Recruitment and renewal manager Recruitment advisor Program Manager Agreement Manager Certification Manager

Market Communication Manager Collateral Distribution Manager Survey manager Content manager Events manager Campaign Manager Solution advisor Literature Fulfillment Incentive manager Marketing Funds manager Market Reports


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Partner Relationship Managementcont

Market Communication Manager Collateral Distribution Manager Survey manager Content manager Events manager Campaign Manager Solution advisor Literature Fulfillment Incentive manager

Marketing Funds manager Market Reports


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Sell Opportunity Management

Lead management Opportunity forecasting RFP management Team selling

Order Management

Sales Report


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Service Training and education Self service Problem diagnostic advisor Service Bulletin Distribution

FAQ Manager Content manager Channel Support Manager Support Request Manager Peer support Post sales Support Manager

RMA Manager Warranty Manger Survey Manager Service reports

customer relationship management (2)

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