Customer Relationship Management IST 421 Spring 2004 Lecture 10
Customer Relationship Management • CRM allows companies to: • gather customer data swiftly, • identify the most valuable customers over time, • and increase customer loyalty by providing customized products and services. • Reduces the costs of serving these customers • Makes it easier to acquire similar customers down the road.
CRM as Corporate Strategy • Software used to identify customer needs - profile • Used to build long-term relationships • Build an integrated, company-wide profile of each customer • Present a single “face” to each customer • All customer contacts with the company are recorded in database
CRM as Set of Activities • Some companies use sub-set of features for specific activities • Segmenting customers • Data Warehouse / Data Mining • Analyze and manipulate data • Looking for patterns in information • Looking for relationships unknown • Look at customers by volume, profitability, or other measures
CRM as Set of Activities • One-to-One Marketing • Once a customer is categorized, products, promotions, and pricing are tailored • Cross-selling – related products • Upselling – higher-margin products in the same line
CRM as Set of Activities • SFA (sales-force automation) • Customer contacts logged into database • Also called “lead management software” • Track transaction from initial lead to post-sale • Sales Campaign Management Software • Organize a marketing campaign • Compile results
CRM as Set of Activities • Marketing Encyclopedias • Database of promotional literature about products • Routed to sales reps or customers as needed • Call Center Automation • Knowledge management database containing information about product • Customer service access to assist customers
Customer Relationship Management • Most successful CRM projects begin with specific goals and objectives. • Cost reduction, • Revenue production • Sales efficiency
Customer Relationship Management • Dell Computer Corp. • Customers enter orders for computers using web page. • Order goes to the shop floor, purchasing • Status of order is posted on web page for customer to see
Customer Relationship Management • BMG Music Service • Web site contacts the data warehouse upon customer login • Customer’s web page is configured to offer music based on customer’s preferences
Customer Relationship Management • Holophane Corp • Manufacture roadway lighting • Sales rep’s take orders, which are custom made • Implemented sales force automation software – order is uploaded to the home office • Customer queries can be answered by service representative using database
Customer Relationship Management • What are examples we encounter everyday? • How do you feel about companies building these massive profiles of you?