MBA in Pharmaceutical Industry Management

INFORMATION TECHNOLOGY

Customer Relationship Customer Relationship ManagementManagement

Presented by: ALEEZA R. BISWALPresented by: ALEEZA R. BISWAL

ROLL NO: MBA-PH-09021ROLL NO: MBA-PH-09021

Customer relationship Customer relationship managementmanagement ( (CRMCRM) is basically the ) is basically the function of building a long standing function of building a long standing relationship with a customer.relationship with a customer.

Goals are to improve services Goals are to improve services provided to customers, and to use provided to customers, and to use customer contact information for customer contact information for targeted marketing.targeted marketing.

Tools for CRM should be implemented Tools for CRM should be implemented "only after a well-devised strategy and "only after a well-devised strategy and operational plan are put in place".operational plan are put in place".

CRM is a combination of policies, CRM is a combination of policies, processes, and strategies implemented by processes, and strategies implemented by an organization to unify its customer an organization to unify its customer interactions and provide a means to track interactions and provide a means to track customer information.customer information.

CRM includes many aspects which CRM includes many aspects which related directly to one another:related directly to one another:

Front office operationsFront office operations Back office operationsBack office operations Business relationshipsBusiness relationships AnalysisAnalysis

Types/variations in CRMTypes/variations in CRM

There are There are severalseveral different different approaches to CRM, with different approaches to CRM, with different software packages focusing on software packages focusing on different aspects.different aspects.

In general, In general, Customer Service, Campaign Management and Sales Force Automation (SFA) form the core of the system.

Operational CRMOperational CRM

Operational CRM processes customer Operational CRM processes customer data for a variety of purposes:data for a variety of purposes:

Managing campaigns Enterprise Marketing Automation Sales Force Automation Sales Management System

Analytical CRMAnalytical CRM

Analytical CRM analyzes customer data for a Analytical CRM analyzes customer data for a variety of purposes:variety of purposes:

Designing and executing targeted marketing Designing and executing targeted marketing campaigns campaigns

Designing and executing campaigns, e.g. Designing and executing campaigns, e.g. customer acquisition, customer acquisition, cross-selling, , up-selling, , addon-selling

Analyzing customer behavior in order to make Analyzing customer behavior in order to make decisions relating to products and services (e.g. decisions relating to products and services (e.g. pricing, , product development) )

Management information system (e.g. financial (e.g. financial forecasting and customer profitability analysis) forecasting and customer profitability analysis)

Sales Intelligence CRM Sales Intelligence CRM Sales Intelligence CRM is similar to Sales Intelligence CRM is similar to

Analytical CRM, but is intended as a more Analytical CRM, but is intended as a more direct sales tool. Features include alerts direct sales tool. Features include alerts sent to sales staff regarding:sent to sales staff regarding:

Cross-selling/Up-selling/Switch-selling Cross-selling/Up-selling/Switch-selling opportunities opportunities

Customer drift Sales performance Sales performance Customer trends Customer trends Customer margins Customer margins Customer alignment Customer alignment

Campaign Management Campaign Management

Campaign management functions include:Campaign management functions include: Target groups formed from the client base Target groups formed from the client base

according to selected criteria according to selected criteria Sending campaign-related material (e.g. Sending campaign-related material (e.g.

on special offers) to selected recipients on special offers) to selected recipients using various channels (e.g. e-mail, using various channels (e.g. e-mail, telephone, SMS, post) telephone, SMS, post)

Tracking, storing, and analyzing campaign Tracking, storing, and analyzing campaign statistics, including tracking responses and statistics, including tracking responses and analyzing trends analyzing trends

Collaborative CRMCollaborative CRM

Collaborative CRM covers aspects of a Collaborative CRM covers aspects of a company's dealings with customers that company's dealings with customers that are handled by various departments within are handled by various departments within a company, such as sales, technical a company, such as sales, technical support and marketing.support and marketing.

For example, feedback received by For example, feedback received by customer support agents can provide customer support agents can provide other staff members with information on other staff members with information on the services and features requested by the services and features requested by customers. customers.

Consumer Relationship CRMConsumer Relationship CRM

Consumer Relationship System (CRS) Consumer Relationship System (CRS) covers aspects of a company's covers aspects of a company's dealing with customers handled by dealing with customers handled by the Consumer Affairs and Customer the Consumer Affairs and Customer Relations contact centers within a Relations contact centers within a company.company.

Simple CRMSimple CRM

Simple CRM systems breakdown the Simple CRM systems breakdown the traditional CRM system to focus on traditional CRM system to focus on the core values managing contacts the core values managing contacts and activities with customers and and activities with customers and prospects.prospects.

Social CRMSocial CRM

Some of the first features added are social Some of the first features added are social network monitoring feeds (i.e. Twitter network monitoring feeds (i.e. Twitter timeline), typically built into the system timeline), typically built into the system dashboard. Other emerging capabilities dashboard. Other emerging capabilities include messaging, sentiment analysis, include messaging, sentiment analysis, and other analytics.and other analytics.

They must be monitored for real-time They must be monitored for real-time marketplace feedback and trends.marketplace feedback and trends.

Strategy Strategy

Information gained through CRM initiatives Information gained through CRM initiatives can support the development of marketing can support the development of marketing strategy by developing the organization's strategy by developing the organization's knowledge in areas such as identifying knowledge in areas such as identifying customer segments, improving customer customer segments, improving customer retention, improving product offerings (by retention, improving product offerings (by better understanding customer needs), better understanding customer needs), and by identifying the organization's most and by identifying the organization's most profitable customers.profitable customers.

Implementation Issues Implementation Issues Many CRM project "failures" are also Many CRM project "failures" are also

related to data quality and availability. related to data quality and availability. Data cleaning is a major issue.Data cleaning is a major issue.

Data from other systems can be Data from other systems can be transferred to CRM systems using transferred to CRM systems using appropriate interfaces.appropriate interfaces.

An effective tool for identifying technical An effective tool for identifying technical and human factors before beginning a and human factors before beginning a CRM project is a pre-implementation CRM project is a pre-implementation checklist. A checklist can help ensure any checklist. A checklist can help ensure any potential problems are identified early in potential problems are identified early in the process.the process.

Privacy and data security system Privacy and data security system

One of the primary functions of CRM One of the primary functions of CRM software is to collect information software is to collect information about customers. When gathering about customers. When gathering data as part of a CRM solution, a data as part of a CRM solution, a company must consider the desire company must consider the desire for customer privacy and data for customer privacy and data security, as well as the legislative security, as well as the legislative and cultural norms. and cultural norms.

A 2007 Datamonitor report lists A 2007 Datamonitor report lists Oracle (including Siebel) and SAP as Oracle (including Siebel) and SAP as the top CRM vendors, with Chordiant, the top CRM vendors, with Chordiant, Infor, and SalesForce.com as Infor, and SalesForce.com as significant, smaller vendors.significant, smaller vendors.

REFERENCESREFERENCES

http://en.wikipedia.orghttp://en.wikipedia.org