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C ustomer R elationship M anagement

C ustomer R elationship M anagement. Further CRM. Types of Customer Relationship Management. Operational CRM Analytical CRM Collaborative CRM. Operational CRM. Goal of Operational CRM.

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C ustomer R elationship M anagement

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  1. Customer Relationship Management • Further CRM CREATE THE DIFFERENCE

  2. Types of Customer Relationship Management • Operational CRM • Analytical CRM • Collaborative CRM CREATE THE DIFFERENCE

  3. Operational CRM CREATE THE DIFFERENCE

  4. Goal of Operational CRM • The goal of Operational CRM is to provide electronic support for the "front office" business processes, which include all customer contact (eg. sales, marketing and service). • it aims to deliver customer-centric business processes and operations. CREATE THE DIFFERENCE

  5. Business Benefits • Operational CRM provides the following benefits: • Enables a 360-degree view of each customer • Each employee from sales people to service engineers can access complete history of all customer interaction with the organisation regardless of the initial point of contact • Delivers personalised and efficient marketing, sales, and service CREATE THE DIFFERENCE

  6. Components of Operational CRM • Sales force automation (SFA)   • Enterprise marketing automation (EMA)  • Customer service and support (CSS) CREATE THE DIFFERENCE

  7. Sales force automation (SFA)   • SFA automates critical sales and sales force management functions eg • lead/account management • contact management • quote management • Forecasting • customer preference tracking • SFA requires a well designed database in order to store and retrieve customer details. CREATE THE DIFFERENCE

  8. Enterprise marketing automation (EMA)  • EMA provides information about the business including • Competitors • industry trends • EMA utilises Data Mining and OLAP Technologies which have been covered earlier in this module. CREATE THE DIFFERENCE

  9. Customer service and support (CSS) • CSS automates • service requests • Complaints • product returns • information requests. • call-centre support for customer inquiries has evolved into the customer interaction centre (CIC) - uses multiple channels (Web, phone/fax, face-to-face, kiosk, etc). • CSS technology is database oriented and is underpinned by Service Level Agreements (SLAs) CREATE THE DIFFERENCE

  10. Service Level Agreements A Service Level agreement: Is a contract with a customer which • Defines the Level of service to be provided thereby eliminating unrealistic expectations. • Enables the management of complaints /comments • Facilitates performance monitoring CREATE THE DIFFERENCE

  11. Example • Help Desk • Accident and emergency units CREATE THE DIFFERENCE

  12. Setting expectations: • Customers are happy when • a supplier under-promises and over-delivers • a supplier delivers the correct order on time • a supplier routinely exceeds expectations • Service level agreements mean that the customer knows what to expect and this sets a benchmark for their judgement of the service. CREATE THE DIFFERENCE

  13. Complaints • A complaint can be viewed as • a useful measure of performance • guidance for improving quality - an opportunity to increase customer loyalty • A complaint may be categorised based on how far outside of the service level agreement the service received was. • Expert handling of complaints can increase customer loyalty and referrals. CREATE THE DIFFERENCE

  14. Handling complaints • Once categorised, complaints can be handled electronically in a uniform way by a good CRM system. • They are viewed positively by organisations and MUST be responded to positively. • Usually response includes • An apology (for inconvenience caused) • An assurance that the complaint has been taken seriously and quality is being improved • A marketing gesture eg. Discount voucher. CREATE THE DIFFERENCE

  15. Performance monitoring • Ability to produce performance exception reports leading to the possibility of targeted marketing to reduce churn • Identification of problem areas leading to the possibility of quality improvement CREATE THE DIFFERENCE

  16. Analytical CRM CREATE THE DIFFERENCE

  17. Goal of Analytical CRM • To develop insight into customers’ needs. • To determine what other products and services you can sell to your customers in order to increase the Average Revenue Per User (customer) ARPU. CREATE THE DIFFERENCE

  18. Benefits to Business • Segmentation of customers to feed into enterprise marketing (EMA) systems • Identifies customers in danger of churning • Aids Decision Making CREATE THE DIFFERENCE

  19. Customer segmentation It is useful to segment customers for targeted marketing campaigns: • Customers most and least likely to repurchase product) • Profitability analysis (which customers lead to the most profit over time) • Personalisation (the ability to market to individual customers based on requirements) CREATE THE DIFFERENCE

  20. Other Analyses • Design and execution of specific customer campaigns, including cross-selling, up-selling • Analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development etc.) • Management decisions, e.g. financial forecasting and customer profitability analysis • Prediction of the probability of customer defection (churn analysis) CREATE THE DIFFERENCE

  21. Collaborative CRM CREATE THE DIFFERENCE

  22. Goal of Collaborative CRM • Collaborative CRM's ultimate goal is to use information collected from all departments to improve the quality of customer service • This requires a clear contact management strategy which enables everyone in an organisation to see who is talking to who. CREATE THE DIFFERENCE

  23. Business Benefits • Enables efficient productive customer interactions across all communications channels • Enables web collaboration to reduce customer service costs • Integrates call centres enabling multi-channel personal customer interaction CREATE THE DIFFERENCE

  24. Aim • Collaborative CRM aims to get various departments within a business, such as sales, services and marketing, to share the useful information that they collect from interactions with customers. • Feedback from a technical support center, for example, could be used to inform marketing about specific services and features requested by customers. CREATE THE DIFFERENCE

  25. Aims continued • Collaborative CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, e-mail) and supports co-ordination of employee teams and channels. It is a solution that brings people, processes and data together so companies can better serve and retain their customers. CREATE THE DIFFERENCE

  26. E-CRM and M-CRM • E-CRM allows customers to access company services electronically • M-CRM allows customers or managers to access the systems for instance from a mobile phone or PDA with internet access, resulting in high flexibility. • An example of a company that implemented M-CRM is Finnair, who made it possible for their customers to check in for their flights by SMS. CREATE THE DIFFERENCE

  27. CRM Strategy • CRM is a broad area which can be applied on an enterprise-wide basis. It could be introduced to parts of an organisation but is more effectively introduced as a strategy. CREATE THE DIFFERENCE

  28. What makes CRM fail? • The main risk factors of implementing a CRM strategy may be: • Lack of CRM planning – no strategy • Underestimating implementation costs, timeframes and organizational commitment • Poor front and back-end integration • Not being customer focused or customer centric • Political friction within the organization stifles the sharing of customer information • Initiatives are driven by technology rather than by customer strategy and service process design CREATE THE DIFFERENCE

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