Customer relationship management

Customer Relationship Management

www.profmanishparihar.blogspot.com

The Basics of Customer Relationship

Management (CRM)

Have more choices than ever

Expect immediate, high quality, personalized 24-7 service

Are expected

to do MORE…

with the same or FEWER

resources

Plan, program, market, sell and

serviceSMARTER

With faster, better, more personalized

service?

Good Information

CRM is about…

finding customerscollecting info about them along the way

using that info to enhance their experience and foster long-term relationships

What are their needs?

Do you offer programs/products in response to their needs?

…or your organization’s convenience?

Source: OSAT

Positioning Your Organization for CRM

Information flow

Customer contact

Decision-making

Many organizations place customers in the hands of entry-level staff who are…

Poorly trainedPoorly paidLacking information to do their jobs

No longer just a communication channel

Customers interacting with your site are interacting with your business

Are the people creating your website’s content poorly trained, poorly paid and lacking information?

The Role of Technology in CRM

CRM is a philosophy that issupported and enhanced by technology

CRM, Marketing Strategy and Measurement

AWARENESS

PURCHASE

SHOPPING

INFO SEEKING

What do they know about you?

Will you be on their short list?

Consider the 4 CsCustomer, cost, convenience, communication

How difficult do you make it?

Traditional Marketing Funnel

Goal is to move people through the funnel

Success measured by conversion rate

# people at one stage/ # people at the priorConversion rates higher as you move downMay vary by segment, program, strategy,etc.

On avg 0.5% of strangers become customers

The new age customer is much more informed and much better connected with OTHER customers through the new age WEB 2.0 technologies(eg. Social media)..

This has given rise to the concept of Social CRM..

Social Media – Social CRM

Source: Rick Mans - Social Media Evangelist

A paradigm shift in internet…

Publishing is complex and limited to few traditional media and online

merchants

Value is created by aggregating content

(portals)Easy and free publication for all

Value is generated by tools allowing to publish easily

Mai

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and

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nly

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2004 2005

Traditional media

Alternative media

Google search

Flickr

Wikipedia

netvibes

Web 1.0 Web 2.0

Technology and social factors have converged over the past few years to create a phenomenon called social computing

TECHNOLOGY Cheap hardware and software reach the masses. Simple devices that anyone can operate.

SOCIAL CHANGE Consumers look for cost and time efficient technologies, ways to make their voices heard. Younger techno savvy generations pioneer the use of personal networks and viral communication.

Source: Forrester (2006) – Social Computing.

Internet statistics

100 billion – The number clicks per day 55 trillion – links on the Internet 5% - The percentage of global electricity used for the Internet 90 trillion – The number of emails sent in 2009 81% – The percentage of emails that were spam. 200 billion – The number of spam emails per day (assuming 81% are

spam).

1 million - IM messages per second 8 terabytes – Traffic per seconde 234 million – The number of websites as of December 2009. 47 million – Added websites in 2009.

Social Media statistics

24 – Hours of video uploaded every minute onto YouTube

600k - new members on Facebook per day

900.000 -The number of blogs posts put up every day

700 million – The number of photos uploaded per day on Facebook

400 million – People on Facebook. 50% – Percentage of Facebook

users that log in every day. 500,000 – The number of active

Facebook applications. 84% – Percent of social network

sites with more women than men.

1,73 billion – Internet users worldwide (September 2009).

18% – Increase in Internet users since the previous year.

126 million – The number of blogs on the Internet (as tracked by BlogPulse).

27.3 million – Number of tweets on Twitter per day (November, 2009)

57% – Percentage of Twitter’s user base located in the United States.

4.25 million – People following @aplusk (Ashton Kutcher, Twitter’s most followed user).

1800 – only this many people are following Rick Mans

The Intelligence is in the Connections

Connections between people

Conn

ectio

ns b

etw

een

Info

rmati

on

Email

Social Networks

Groupware

JavascriptBlogging

Databases

File Systems

HTTPKeyword Search

USENET

Wikis

Websites

Directory Portals

2009

Web 1.0

1999

1989

PC Era1977

RSS Widgets

PC’s

2018

Office 2.0

XML

RDF

SPARQLAJAX

FTP IRC

SOAP

Mashups

File Servers

Social Media

Lightweight Collaboration

ATOM

Web 3.0

Web 4.0

Semantic SearchLifestreaming

Natural Language Search

Intelligent personal agents

JavaSaaS

Web 2.0 Flash

OWL

HTML

SGMLSQL

Gopher

P2P

The Web

The DesktopWindows

MacOS

SWRL

OpenID

BBS

VR

Semantic Web

The Internet

Social Web

Web OS

Real-Time Web

Intelligent Web

Microblogging

Memetrackers

Online ServicesConsumer online services

Multimedia CDROMs

Activity streams

Virtual worlds

HUMAN INTERACTION IN A VIRTUAL WORLD

Social Media is

http://www.flickr.com/photos/greenboy/416052683/

who are you? who are you? (as a customer)(as a customer)

A new generation

Generation Y, The Millenials, Digital Natives… the future generations are infinately

connected, born and raised digital, and favour values such

as connectedness / community, environmental awareness, authenticity,

freedom and friendship above all else.

What does this mean for a company

Generation Y, The Millenials, Digital Natives… the future generations are infinately

connected, born and raised digital, and favour values such

as connectedness / community, environmental awareness, authenticity,

freedom and friendship above all else.

What does this mean for a company

Cut and paste Generation: Today’s youth create their own authentic style but combining different styles. Generation Search: S=searching and sharing, E=equilibrium, A=achieving, R=rules, C=commitment, H=harmony. Digitale Generatie: Todays youth … Jongeren van nu vinden het leven in de virtuele wereld even vanzelfsprekend als daarbuiten; de

eerste generatie die opgroeit met digitale media. My Media Generation: Today’s youth have three basic needs: community, selfexpression and personalisation; the first 'global'

generation That can customize everything to its own taste and wants. Generatie Einstein: Todays youth is smarter, stronger and more social: the first positive generation!

Generation V

Generation Virtual is used to describe a growing online culture in

which people participate, often anonymously, through

personas in a flat, virtual environment. Generation Virtual is not

defined by age, gender, social demographics or geographic

location. It is based on demonstrated accomplishments

(merit) and an increasing preference for the use of digital

media channels to discover information, build knowledge

and share insights.

Generation Virtual is used to describe a growing online culture in

which people participate, often anonymously, through

personas in a flat, virtual environment. Generation Virtual is not

defined by age, gender, social demographics or geographic

location. It is based on demonstrated accomplishments

(merit) and an increasing preference for the use of digital

media channels to discover information, build knowledge

and share insights.

The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ – Gartner ID Number: G00158087

Or in a more visual wayMultiple Online Personas

http://www.flickr.com/photos/naturalturn/3264726560/

THE END THE END OF THE WEB OF THE WEB AS WE KNOWAS WE KNOW

The Internet and its attendant array of consumer devices, networks and content sources have fundamentally changed how customers, employees and partners expect to interact with the enterprise (Gartner CIO survey 2008/2009).

INTERNET RETAILING IS RESPONSIBLE FOR CIRCA 10% OF TOTAL SALES, THIS IS EXPECTED TO GROW NOT SHRINK

HOWEVER, SOCIAL MEDIA AND NETWORKS INFLUENCE A VERY SIGNIFICANT PORTION (GREATER THAN 40%) OF ALL OFFLINE SALES.

The Historic Focus of CRM projects vs How Customers buy things today

Social CRM

Social CRM is your existing CRM plus the ability to leverage the social web and kick start, manage and ultimately automate the conversation process. Its power lies in the ability for all parts of the organisation but mostly customer services and sales/marketing teams to listen in on conversations (social voyeurism), craft compelling messages, join in on customer conversations (Twitter is being increasingly used in this context) and offer people added value information in real time.

Social CRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment.

It’s the company’s response to the customer’s ownership of the conversation

Building meaningful relationships

With your friends and colleaguesWith people you don’t know (yet)Build trust

www.profmanishparihar.blogspot.com

Source:Rick Mans

rick.mans@capgemini.com+31 6 512 10 144

http://twitter.com/rickmanshttp://www.linkedin.com/in/rickmans