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7/30/2019 Chapter10_ MGT300
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Learning Outcomes Leave blank
Learning Outcomes
1. Compare operational and analytical
customer relationship management
2. Identify the primary forces driving
the explosive growth of customer
relationship management
3. Define the relationship between
decision making and analytical
customer relationship management
4. Summarize the best practices for
implementing a successful customer
relationship management system
Chapter 10: Building a Customer-Centric Organization CRM
1
CHAPTER 10B U I L D I N G A C U S T O M E R - C E N T R I C
O R G A N I Z A T I O N
C U S T O M E R
R E L A T I O N S H I P M A N A G E M E N T
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Leave blankChapter 10: Building a Customer-Centric Organization CRM Customer Relationship Management (CRM)
CRM enables an organization to:
Provide better customer service
Make call centers more efficient
Cross sell products more effectively
Help sales staff close deals faster
Simplify marketing and sales processes
Discover new customers
Increase customer revenues2
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Leave blankChapter 10: Building a Customer-Centric Organization CRM Customer Relationship Management (CRM)
Organizations can find their most
valuable customers through RFM
Recency,
How recently a customer
purchased items
Frequency,
How frequently a customer
purchased items
Monetary value
How much a customer spends
on each purchase
3
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Chapter 10: Building a Customer-Centric Organization CRM Leave blankThe Evolution of CRM
Three phases in the evolution of CRM:-
CRM report ing technolog y helporganizations identify their customersacross other applications
report ing
analyzing predicting
4
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Chapter 10: Building a Customer-Centric Organization CRM Leave blankThe Evolution of CRM
Three phases in the evolution of CRM:-
CRM analysis technolog ies helporganization segment their customersinto categories such as best and worstcustomers
reporting
analyzing predicting
5
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Chapter 10: Building a Customer-Centric Organization CRM Leave blankThe Evolution of CRM
Three phases in the evolution of CRM:-
CRM predict ing technolog ies helporganizations make predictions regardingcustomer behavior such as whichcustomers are at risk of leaving
reporting
analyzing predict ing
6
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Chapter 10: Building a Customer-Centric Organization CRM Leave blankThe Evolution of CRM
Three phases in the evolution of CRM:-
7
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Chapter 10: Building a Customer-Centric Organization CRM Leave blankCRMs Explosive Growth
CRM Business Drivers
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Chapter 10: Building a Customer-Centric Organization CRM Leave blankUsing Analytical CRM to Enhance Decisions
Operat ional CRM
supports traditional transactional
processing for day-to-day front-officeoperations or systems that dealdirectly with the customers
Example: customer service, sales,billing
Analyt ical CRM
supports back-office operations andstrategic analysis and includes allsystems that do not deal directly with
the customers
Example: Accounting, Finance,Human resources, Data warehouses
Which systems
are more
important to an
organization?
front-office or
back-office
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Chapter 10: Building a Customer-Centric Organization CRM Leave blankCustomer Relationship Management Success
Factors
CRM success factors
1. Clearly communicate the CRM strategy ensuring that all departments and employees understand exactly what CRM means
and how it will add value to the organization is critical to the success of the
implementation
2. Define information needs and flows the organization must understand all of the different ways that information flows into
and out of the organization to implement a successful CRM system.
If the organization misses one of the information flows, such as a customer service
Web site, then none of that information from that Web site will be integrated into the
CRM system and the company will not have a complete view of its customers
3. Build an integrated view of the customer the CRM system must support the organization's strategies and goals
4. Implement in iterations avoid the big-bang approach and implement in small, manageable, pieces
5. Scalability for organizational growth ensure the system can support the organization's future growth 10
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Leave blank
Compare
operational and
analytical
customer
relationship
management
Operational CRM supports traditional
transactional processing for day-to-day
front-office operations or systems thatdeal 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.
The primary difference between
operational CRM and analytical CRM is
the direct interaction between the
organization and its customers.
SummaryChapter 10: Building a Customer-Centric Organization CRM
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Leave blank
Identify the primary
forces driving the
explosive growth of
customer
relationship
management
Summary
The primary forces driving the
explosive growth of CRM:-
Automation/Productivity/Efficiency
Competitive advantage,
Customer demands/requirements, Increase revenues,
Decrease costs,
Customer support,
Inventory control,
Accessibility
Chapter 10: Building a Customer-Centric Organization CRM
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Leave blank
Define the
relationship
between decision
making andanalytical customer
relationship
management
Summary
Analytical CRM solutions are
designed to dig deep into a
companys historical customer
information and expose patterns of
behavior on which a company can
capitalize.
Analytical CRM is primarily used to
enhance and support decision
making and works by identifying
patterns in customer information
collected form the variousoperational CRM systems.
Chapter 10: Building a Customer-Centric Organization CRM
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Leave blank
Summarize the best
practices for
implementing asuccessful CRM
system
Summary
CRM success factors include:-
clearly communicate the CRM
strategy ,
define information needs andflows,
build an integrated view of the
customer,
implement in iterations,
scalability for organizational
growth
Chapter 10: Building a Customer-Centric Organization CRM
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