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Customer Relationship Management PowerPoint Presentation
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Customer Relationship Management

Customer Relationship Management

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Customer Relationship Management

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Presentation Transcript

  1. Customer Relationship Management

  2. INTRODUCTION Customer relationship management – involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability • Operational CRM– supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers • Analytical CRM– supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers

  3. Front Office vs. Back Office CRM

  4. RFM Organizations can find their most valuable customers through “RFM” - Recency, Frequency, and Monetary value • How recently a customer purchased items (Recency) • How frequently a customer purchased items (Frequency) • How much a customer spends on each purchase (Monetary Value)

  5. The Evolution of CRM • Three phases in the evolution of CRM include reporting, analyzing, and predicting

  6. The Evolution of CRM Reporting, analyzing, and predicting examples

  7. Operational CRM

  8. MARKETING CRM Three marketingCRM technologies: • List generators– compile customer information from a variety of sources and segment the information for different marketing campaigns • Campaign management systems– guide users through marketing campaigns • Cross-selling and up-selling • Cross-selling– selling additional products or services that are related to the original purchase • Up-selling – increasing the value of the sale by selling a more expensive version of the original purchase

  9. SALES CRM The sales department was the first to begin developing CRM systems with sales force automation – a system that automatically tracks all of the steps in the sales process

  10. SALES CRM Three sales operational CRM technologies: • Sales management systems– automate each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts, access databases, etc. • Contact management systems– maintains customer contact information and identifies prospective customers for future sales • Opportunity management systems– target sales opportunities by finding new customers or companies for future sales

  11. CUSTOMER SERVICE CRM Three customer service operational CRM technologies: • Contact center (call center)– where CSRs answer customer inquiries and respond to problems through different touch points • Web-based self-service – allow customers to use the Web to find answers to their questions or solutions to their problems • Click-to-talk –customers click on a button and talk with a CSR via the Internet • Call scripting– access organizational databases that track similar issues or questions and automatically generate the details to the CSR who can then relay them to the customer

  12. Analytical CRM • Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior • These systems quickly aggregate, analyze, and disseminate customer information throughout an organization • Analytical CRM has the ability to provide an organization with information about their customers that was previously impossible to locate, and the resulting payback can be tremendous.

  13. Analytical CRM

  14. Current Trends: SRM, PRM, and ERM Current trends include: • Supplier relationship management (SRM)– focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection • Partner relationship management (PRM)– focuses on keeping vendors satisfied by managing alliance partner and reseller relationship that provide customers with the optimal sales channel • Employee relationship management (ERM)– provides employees with a subset of CRM applications available through a Web browser