peelen, customer relationship management powerpoints on the web, 2 nd edition © pearson education...

Peelen, Customer Relationship Management Powerpoints on the web, 2nd edition © Pearson Education Limited 2014

Slide 6.1

Chapter 6

Customer Data management


Slide 6.2

consumer insight lies at the heart of all marketing and communication strategy,and that consumers are multi-faceted and complex creatures,and that true consumer insight comes only with

a 360° view.


Slide 6.3

Targeting Acquisition Retention Expansion

Customer Relationship Management can be simply defined as everything involved with managing the customer relationship.

Customer Relationship Management can be simply defined as everything involved with managing the customer relationship.

The Value of the Relationship

• Who Do we target• What segments are most

profitable• What segments match our

Value Proposition• What is the best

segmentation strategy for us / our industry

• What is the best channel for each segment

• What is the acquisition cost for a channel / segment

• Do certain channels deliver certain types of customers

• Cost effective acquisition

• How can we improve retention

• What is our average customer relationship length

• How can we hold customer for as long as possible

• What is the most cost effective method of retention

• How many products does our average customer buy

• How can we induce our current base to buy more products

• Who are the prime targets for expansion

• What is the cost of expansion

Customer Relationship Management Definition

Duration of Customer Relationship

Va

lue

( $

)


Slide 6.4

Current

Current

Every Company’s Big Unknown ... Customer Value Full

Potential

Current Customer

Value

Relat

ions

hip

Profit

abili

ty

Nu

mb

er o

f R

elat

ion

ship

s

Relationship Duration


Slide 6.5

Why CRM? It costs six times more to sell to new customer than

to sell to an existing one. A typical dissatisfied customer will tell 8-10 people By increasing the customer retention rate by 5%,

profits could increase by by 85% Odds of selling to new customers = 15%, as

compared to those for existing customers (50%) 70% of the complaining customers will remain loyal

if problem is solved 90% of companies do not have the sales and service

integration to support e-commerce


Slide 6.6

Implementing CRM must be approached from an Integrated Perspective

All areas must be implemented, to some degree, to effectively manage the customer relationship. When pieces are implemented in isolation, the benefits are less than

overwhelming.

All areas must be implemented, to some degree, to effectively manage the customer relationship. When pieces are implemented in isolation, the benefits are less than

overwhelming.

Capture Customer Data and Measure

Results

The Customer


Results

Take Action to Enrich the Customer

Relationship Capture Customer Data and Measure

Results

Build and Manage Customer Value


Results


Results


Results

Store Data, Mine and Make

information Accessible

CRM CRM without an without an Integrated Integrated ApproachApproach

A data warehouse full of data without the tools to extract knowledge is nothing more than expensive inventory.Sophisticated mining tools only produce results only as good as the data they mine.

Developing insights on how to improve the value of the customer relationship without having the infrastructure to take action has no impact on the bottom line. In addition, there is no opportunity to test the ‘theoretical’ analysis.

Implementing new technologies without the knowledge on how to enrich the relationship is likely to yield a return below the cost of the capital expenditure.

Taking action to improve the relationship without measuring the results provides no evidence of success or failure and limits the opportunity for learning.

Capturing gigabytes of customer data in disparate operational systems that are next to impossible to access may render the data useless.


Slide 6.7

Relationship data used to identify a customer include: * the basic data consisting of name,adress,

sex and company name; * supplementary data on the date of birth,

or incorporation date, nationality or industry, telephone number, legal form, company registration number.

data are input into the system from a reply slip that comes in as a result of a direct response advertisement, a mailing or a telephone call from a customer to the call centre or via the internet.


Slide 6.8

Data quality Mergen defines (2003), “quality is

something which gives us a good feeling” however this feeling is difficult to define in

concrete terms, since it covers so many different aspects.

ın order to understand better we may define in terms of three perspective what it is:


Slide 6.9

Quality: A technical point of viewthe use of standards and norms which must

be satisfied by a production process and the product to be manufactured.

Quality: A customer point of viewValue perception and needs are criteria that

the customer applies to determine quality. a very basic need for anyone is to have

relationship data being used,written, and pronounced appropriately.

Quality: A supplier’s point of viewWhat is the commercial value of the name,adress,

city. Etc.?


Slide 6.10

Essential Quality Quality Customer Database= Current x Complete x Correct x Unique.

* Current: To what extent does the database represent current reality?

Complete: The availability of a value as well as completeness thereof. When the customer database is designed, each item of data must be examined to determine to what extent it is necessary, highly desirable, or just would be “nice to include”.

Correct:The data are correct, and if applicable, meet the standard or are valid within a collection of possible values.

Unique: In principle, each customer should only appear once in the customer database.


Slide 6.11


Slide 6.12Duplication occurs: when there are several sources of customer data are recorded independently without being properly matched to current data.


Slide 6.13


Slide 6.14


Slide 6.15


Slide 6.16

Expanding the size of customer database Response to external lists: the growth may come

from the responses to lists ( with names, adresses, cities, email adresses, telephone numbers) which have been rented or purchased from third parties. list brokers can create these external lists

)Response via own channel:The website is an easy source of costumer data if

it requires some from of registration social media : customers identify themselves on

the Facebook page of a brand community. The profile of the friend data is accessible to the brand.


Slide 6.17


Slide 6.18


Slide 6.19

Deployment and Support

The Building Blocks of CRM

e-Business

Sales Process Automation

Call Centres

EnablingTechnologies

DataWarehousing

MetaData

Data Cleansing

OLAP

EIS

DataCapture

ExternalDatabases

MarketResearch

Customer Touch Point Integration

People

Organization

KnowledgeManagement

Statistical Modeling

Data Mining

Customer Profitability

Segmentation

The building blocks of CRM are the things that need to be in place for an effective Customer Relationship management program

The building blocks of CRM are the things that need to be in place for an effective Customer Relationship management program


Slide 6.20

Data Capture and Warehouse

Customer Behaviour

Product Portfolio Householding

Usa

ge P

rofil

e

Mig

ratio

n in

U

sage

Loya

lty /

Sw

itchi

ng

Customer Interactions

Acq

uisi

tion

Info

rmat

ion

Inbo

und

Con

tact

Out

boun

d C

onta

ct

Base Data

Segments Profitability Life Time Value

Customer Profile

Dem

ogra

phic

s /

Firm

grap

hics

Atti

tude

s

Pro

duct

/ S

ervi

ce

Pre

fere

nces

Intentions

External Data

Geo

-de

mog

raph

ics

Cam

paig

n H

isto

ry

Derived Data

The Customer Data Model

Cen

sus

What Data do we capture on Customers?


Slide 6.21

Sales Force AutomationC

all C

entr

e

Ele

ctro

nic

Bu

sin

ess• Automatic Call Distribution (ACD)

• Incoming Call Queuing• Performance Statistics• Integrated Voice Response (IVR)• Automated Inquiry & Transactions• Automated screen “pop” on agent’s

screen• Integration with company legacy

platforms• Billing & Meter Reading• Direct Access to Customer Data

CRMTechnologies

Techniques: ACD, IVR, CTI Techniques: WEB based application, e-mail processing

• Automated product and service information

• WEB based sales and support through standard menus and automated help screens.

• WEB based training • Reaching the global market

Techniques: Relationship marketing, automated packaging and pricing, knowledge-based selling• Increase revenue from your customer base • Customer satisfaction measure

• Consultative selling• Responsiveness to market conditions

The Enabling Technologies Call Centre Sales Force Automation e-Business


Slide 6.22

CRM Technologies on the Rise

““The overall use of technology for selling is The overall use of technology for selling is growing by more than 50% annually.”growing by more than 50% annually.”

– – Gartner GroupGartner Group

““Sales Force Automation is the fastest Sales Force Automation is the fastest growing segment of the high-growth growing segment of the high-growth Client/server market, estimated to represent Client/server market, estimated to represent $3 billion in revenues by 1997.”$3 billion in revenues by 1997.”

– – Market Intelligence Research Corp.Market Intelligence Research Corp.

““Sales Force Automation will become a major Sales Force Automation will become a major driver behind enterprise-wide BPR driver behind enterprise-wide BPR (inexorably linked to development of the (inexorably linked to development of the customer-focused organization)”customer-focused organization)”

– – META GroupMETA Group

““Customer Management is a major initiative at Customer Management is a major initiative at nearly 80% of Fortune 500 companies and nearly 80% of Fortune 500 companies and will grow to a $4.8 billion market by 1999.”will grow to a $4.8 billion market by 1999.”

– – Aberdeen Group, Aberdeen Group, Inc.Inc.

Source: IDC 1996

(Do

llars

In M

illio

ns)

CRM Revenue

The implementation of CRM technologies is projected to accelerate over the next few years

1996 1997 1998 1999

$1,000

$1,400

$1,960

$2,744

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

1996 1997 1998 1999


Slide 6.23

People Process

External customer Internal customer Sales Force Support team Back-office Technical staff

Data Warehouse

Marketing / up-selling Technical support Product support Service support 7 x 24 support

IVR ACD

CTI

• Customer history, billing, purchases, value, profile

• Product & service information, packages, prices

• Marketing hints, reports, promotions

• Customer data updates, purchase information

• Leads tracking update, customer tracking updates

• Call statistics, inquiries, etc.

Info

rmat

ion

Call Centres - DefinitionCall centres are a key enabling arm of Customer Relationship Management. A well designed call centre will integrate people, process, and technology to improve operational efficiency and maximize the value of the customer relationship for both inbound and outbound contact.

Call CentreTechnologies


Slide 6.24

• Customized Agent Desktop Applications by Customer & Call Type

• Automated Scripting of Call Handling & Wrap-up

• Flexibility to Add New Products, Services, and Customer Service Opportunities

• Scripted Cross-Selling• Legacy Integration• Billing & Meter Reading• Direct Access

Data Warehouse

Call Centres - Architecture


Slide 6.25

There is a major transition to integrated delivery channels and to provide “one face” to

the customer.Old RuleOld Rule New RuleNew Rule

Paradigm ShiftsParadigm Shifts

Minimal technologyMinimal technology Leading edge and integrated technology

Leading edge and integrated technology

Single productSingle product Multiple productsand cross selling

Multiple productsand cross selling

ReactiveReactive ProactiveProactive

Low skilled CSR’sLow skilled CSR’s Multi-skilled CSR’sMulti-skilled CSR’s

Backroom operationBackroom operation Front Office operationFront Office operation

Stand-alone operation& information

Stand-alone operation& information

Distribution channel & information integrationDistribution channel & information integration

TacticalTactical StrategicStrategic

Customer InquiriesCustomer InquiriesCost of BusinessCost of Business

Enhanced Customer Satisfaction Enhanced Customer Satisfaction and Retention Revenue Growthand Retention Revenue GrowthLower Cost DistributionLower Cost Distribution

Call Centre Call Centre of the Future


Slide 6.26

• Intranet - as an alternative sales channel • Electronic catalog - On-line self served service

ordering• Commission - Effective tracking of performances

and accurate commissioning• Opportunity Management - tools such as

automated customer data analysis and pop-up screens will assist in up-selling

• Competitor Data - effective analysis of competitive data and automated access for sales force

• Contact Management - Effective tracking and follow-up of leads

• Customer Data - Sales people will have a complete analysis of the customer before their eyes when attending to a customer. No wait, no repeated questions, no frustrated customers

• News Service - Optional news sorting and reporting will result in informed sales people

• Order Entry Quoting - On the spot quoting will not give the client a chance to shop around and be hunted

• Proposal Development - Automated document creation based on corporate standards

• Pricing - Automated on-line prices based on company rules

• Product - On-line and easily accessed • Just-in-Time Training - Automated training, WEB

based training, and self training through information sharing

• Electronic Kiosk - WEB page shopping.

Basic Features Basic Features

Sales Process Automation - Definition

Sales Process Automation (SPA) is the approach for helping organizations dramatically improve their sales and marketing effectiveness through the reengineering and automation of their sales and marketing processes, with the ultimate goal of increasing revenues. SPA combines a working knowledge of the market’s best ideas, technologies, and vendors with a practical, relentless focus on implementation to deliver outstanding shareholder and customer value.


Slide 6.27

0% 10% 20% 30% 40% 50% 60% 70%

Current Information

Improve Forecasts

Increase Sell Time

Reduce Administration

Improve Margins

Decrease Costs

Team Selling

Improve Management Effectiveness

Improve Communications

Reduce Sell Cycle

Increase Revenues

Increase Customer Satisfaction

Improve Sales Effectiveness

Source: © Insight Technology Group

PERCEIVED BENEFITS OF SPA FIELD TECHNOLOGY

% of Survey Responses (N=295)

Sales Process Automation - Benefits

Improving sales force productivity and effectiveness by implementing field technology is a key goal for many organizations

Improving sales force productivity and effectiveness by implementing field technology is a key goal for many organizations


Slide 6.28

Business Processes

Profiles & Preferences

Business PartnerBusiness Partner

Business to CustomerBusiness to Customer

Business to BusinessBusiness to Business

The ValueThe ValueProposition Proposition

of of ElectronicElectronicBusinessBusinessSolutionsSolutions

Integrating more directly with the business processes of customers and partners

Tailoring products and services to customers needs and values

Business Processes

Extending key business applications to clients and business partners

Business PartnerBusiness Partner

e-Business is all about integrating the internal and external processes between business partners and

customers.

e-Business is all about integrating the internal and external processes between business partners and

customers.

e-Business - Definition


Slide 6.29

Internet technology can improve the level of customer care, while reducing the cost of maintaining the customer base.

Internet technology can improve the level of customer care, while reducing the cost of maintaining the customer base.

e-Business - Benefits On average, it costs about $5 - $50 per

query to support via phone On average, it costs about $1 - $3 per

query to support via E-mail On average, it cost less than $1 per query

to support via WWW


Slide 6.30

Internet and

World Wide Web

3. Payment Processing

5. Product Fulfillment

Order entry Tax calculation Validation Confirmation

Payment information

Security Link with

finance

Pick and pack Integration/configuration

of third party products Ship products or deliver services Inventory management Order tracking

Customer preferences Products and availability Pricing and promotions Adaptive selling Build/configure to order

1. AdaptiveProduct Offer

A B$X,XXX $X,XXX

Link with third parties Create pick list Consolidate orders

2. Order Capture and Validation 4. Order

Management

For both business-to-business and business-to-consumer sales, there are five key elements to e-Business — product offer, order capture and

validation, payment processing, ordermanagement, and product fulfillment.

For both business-to-business and business-to-consumer sales, there are five key elements to e-Business — product offer, order capture and

validation, payment processing, ordermanagement, and product fulfillment.

e-Business - Architecture


Slide 6.31


Slide 6.32

Figure 6.2 Social environments in EuropeSource: Motivaction. © Motivaction International B.V. 1999 www.motivaction.nl.


Slide 6.33

peelen, customer relationship management powerpoints on the web, 2 nd edition © pearson education...

Documents

customer capture customer

customer data management

customer retention rate

typical dissatisfied

ecommerce slide

data warehouse

measure results store

value proposition