Customer Relationship Management - tej

8/14/2019 Customer Relationship Management - tej

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By:SHIKHA SEHGALRAJESH PUNIATEJ INDER SINGH

YOGESH DUBEY


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ContentsIntroduction.

CRM fundamentals.

Howitworks?CRM systemsandtechnology.

DefiningCRM objectives.

CRM goalsdifferentiatedbydepartments.

PurposeofCRM

CRM asbusinessstrategy.

MeasuringthesuccessofCRM.


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INTRODUCTION

CRM isabusinessphilosophythatdescribesastrategy

placingtheclientinthecenterofitsprocesses,itsactivitiesanditsculture.

IT applicationsarethetoolsthatallowanorganizationtoimplementtheCRM strategy. Thenew IT developmentscanhelpanorganizationregularlyadaptitsstrategies.


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Throughoutmany years,thecompanies focusedtheireffortsprimarilyonloweringthecostsandimprovingtheirinternalefficiency. Thustheyconcentratedmoreontheinternalprocesses,oftenautomatingback-office functionselementslikemanufacturing,logisticsand finance.

Incontrast,themanagementeffortinvestedinclientservice,forexamplesellingandmarketing,wasoftenrelegatedinalastplace.

Asthemarketgetsstrongerandtheprovidersbecomemoreefficientinofferingproductsorservices,itbecomesmoredifficulttodifferentiatebetweenrivals.

Whatisthetruedifferencebetweentwotypesoftoothpaste?


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Inthemeantime,asthe qualityofservicesandproductsimproves,clientexpectationsincrease.

Aslongastheclienthasthepossibilityofchanginghis

provider,itbecomeshardertokeephimloyal.

Inconclusion,itishighlyimportant foramoderncompanytoownasystemthatwillshortenthereactiontimeto

customers'requestsandcomplaints,thusofferingsupportand quality foritsservices.


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Ithasbeenproventhatnecessarycosts forclientmaintenancearesignificantlylowerthanthoseassociatedwithnewclientacquisition.

Whilebusinesseswillcontinuetoextendtheclientsdatabase,theyshouldalsoconcentrateonkeepingandmultiplyingthebestoftheseclients.

Inotherwordsthe quantityofbusinesseachclientgenerateshasbecomeimportant. Throughagoodadministrationofrelationship

withagoodclient,theprofitabilitywillcertainlygrow.

Essentially,theaboverepresentstheconceptofCustomerRelationship Management.


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The philosophy of CRM is the recognition that a long-termrelationship with customers can be one of the mostimportant assets of an organization, providing competitiveadvantage and increased profitability.

CRM FUNDAMENTALS


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Accordingtostudies,theaveragecompanylosesbetween20 and 50 percentofitscustomersevery year,andalsofindsithardtoretainitsbestcustomers.

Deregulation,diversificationandglobalizationhavestimulatedadramaticriseincompetition.

Thesemarketplacerealitieshave forcedcompaniestoswitch fromaproduct-centricapproachtoacustomer-

centricapproach. Accordingto IDC,theCRM industrygainedmomentuminthepast yearsandtheCRMapplicationmarketincreasedby 94 percent,to $46.2billionin 2008-09.


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HOW IT WORKS?

Customer Relationship Management (CRM) isacomplexsystem,consistingofprocedures,strategies,softwareand

webapplications,thatassistsacompanyinorganizingandmanagingtherelationshipwithitsclients.

CRM facilitatestheinteractionwithclientsthroughthe

mostefficient,the fastestandthemostsophisticatedchannelofcommunication- the Internet.


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Itisasolutionthatconcentratesonthepeople,theprocessesandtheinformation fromwithinacompany,andaimstosupportitsclientsbetterandincreasetheleveloffidelity/loyalty.

Thespectaculargrowthandthecontinuousre-evaluationoftheorganizationsthatusewebsitesbroughtthe Internettotheattentionoftoday'smanagementphilosophy.

The Internetoffersanotherinfrastructurethroughwhichtheorganizationscaninteractwithclientsinthesamewaytheyinteractthroughphone, faxoremail.


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Thecomplexityofthisinteractionthroughmultiplechannelsindicatessomeareasinwhichtechnologycanreducepersonneleffortandinvestments.

Atthismoment,manycompaniesconsiderthattheadvantageofthewebisactuallythe factthatvisitorscan

findanswersontheirown,thusminimizingtheeffortofthecompanies,reducingdirectcontactwiththeagentsandimprovingtheefficiency.

Generally,thisconsistsofpagesthatcontainanswerstothe

most frequentlyasked questions (FAQs).

Morecomplexsystemsanalyzethe questionsandsearchthedatabase forpossibleanswers.


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Mostofthewebbasedsystemswillhavethis feature,thatwillallowclientstobecontactedortocontacttheagentsdirectlyoverthephone,thusrespectingtherequestofreceivingservicesthroughthe favoritechannelof

communication.

Whenthis facilityisactivatedinanintegratedsystem,thecontactcenterwillhavethepossibilitytoidentifytheclientimmediatelyandtoaccesshisinteractionhistorywiththe

organization.


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CRM SYSTEMS AND TECHNOLOGY

DatasourcesthatareusedinCRM systemsarecustomerserviceinquiries,customersurveysorsales forceinputsuch

aspurchasehistory,shippinghistory,accountdata,demographicdataand Websalesdata.

Sinceapartofthisinformationisobtainedthrough

enterpriseresourceplanningsystems, ERP databasesmustbeintegratedwithsomeaspectsoftheCRM databases.


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Furthermore,CRM technologyincludesdifferentaspectsofinformationmanagement,includingintegrationwithotherenterprise-relatedsystemsandmethodsthatconvertdatatousableinformation.

CRM usestechnology,strategicplanningandpersonalmarketingtechniquestobuildarelationshipthatincreasesprofitmarginsandproductivity.

Itusesabusinessstrategythatputsthecustomeratthecoreofacompany'sprocessesandpractices.


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TheimplementationofCRM softwareshouldcomealongwithachangeofthecompany'smindsettobecomemorecustomeroriented.

Itrequiresthiscustomer focusedbusinessphilosophytosupporteffectivesales,marketing,andcustomerserviceandorder fulfillment.


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SomeexamplesofCRM initiativesare:

Adatabasethatspecificallytrackscustomerserviceissues.

Awebpagethatallowscustomerstocheckinventoryavailability,orderstatus,andplaceorders.

Datawarehousingtobuildaninformationdatabasetobetterunderstand yourcustomers.

Capturingvisitordataincludingtheirname,e-mail,location,andpurchasingpreferences.


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DEFINING CRM OBJECTIVESThebusinessobjectives fortheimplementationofCRMsoftwareare:

Increasedcustomernumberandcustomerprofitability.

Increaseinmarketshare

Increasedcampaignresponse.


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Highercustomersatisfactionratings.

Greaternumberofreturningcustomersonthe Website.

Simplifiedinternalorganization (shrinkworkflow,shortenscycletimes,andeliminatesnon-productiveinformationflow).


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Furthermore,The Conference Boardsurveyed 96 global firmsinordertoanalyzetheCRM programs. 52 percentoftheinterviewedcompanieshaveimplementedaCRM solutionand,amongothers,thetopthreestrategicmotiveswere :

toincreasecustomerretentionandloyalty,

torespondeffectivelytocompetitivepressureandtoachieveacompetitiveadvantage,

todifferentiatecompetitivelybasedoncustomerservicesuperiority.


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CRM GOALS DIFFERENTIATED BYDEPARTMENTS Customer Support - Customerserviceobjectives

are:

obtainbasicinformationaboutcustomersandtheircomplaints,

customersatisfactionmonitoringand fastercomplaintsresolutioninordertoraisecustomerretentionrates,

toincreaseself-serviceefficiencies,and

tomitigatetheneed forin-personassistance.


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Sales - Thesalesdepartmentobjectivesare :

todeploysales forceautomationacrossregions,

totrackcontacthistory,tostreamlinethesalesprocess,andto qualifyprospectsbasedonpastexperience.

Field Service - Fieldserviceimpliestheserviceorrepairofthecustomer'sequipmentonthecustomer'spremises. Fieldserviceengineersneedtomonitorcustomercomplaintsandrepairshistories.


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PURPOSES OF CUSTOMERRELATIONSHIP MANAGEMENTCRM,initsbroadestsense,meansmanagingallthe

interactionsandbusinessactivitiesbetweenacompany

anditscustomers.

Thisincludes,butisnotlimitedto,improvingcustomerservice.

AgoodCRM programwillallowabusinesstoacquirecustomers,servicethecustomer,increasethevalueofthecustomertothecompany,retaingoodcustomers,anddeterminewhichcustomerscanberetainedorgivenahigherlevelofservice.


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AgoodCRM programcanimprovecustomerservicebyfacilitatingcommunicationinseveralways:

Increasestheefficiencyofcustomerinteractionthroughallthecommunicationchannelsavailable.

Facilitatesthecollaborationbetweentheclientandtheproviderusingtheweb,thusreducingthecostsofcustomerrelationsmanagement.

Providesproductinformation,productuseinformationandtechnicalassistanceonwebsitesthatareaccessible 24hoursaday, 7 daysaweek.


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Identifieshoweachindividualcustomerdefines quality,andthendesignsaservicestrategy foreachcustomer,basedontheseindividualrequirementsandexpectations.

Providesa fastmechanism formanagingandscheduling

follow-upsalescallstoassesspost-purchasecognitivedissonance,repurchaseprobabilities,repurchasetimes,andrepurchase frequencies.

Providesamechanismtotrackallpointsofcontact

betweenacustomerandthecompany,anddoesitinanintegratedway,sothatallthesourcesandthetypesofcontactsareincluded,andalltheusersofthesystemseethesameviewofthecustomer (reducesconfusion).


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Helpstoidentifypotentialproblems quickly,beforetheyoccur.

Providesanuser-friendlymechanism forregisteringcustomercomplaints (complaintsthatarenotregistered

withthecompanycannotberesolved,andareamajorsourceofcustomerdissatisfaction).

Providesa fastmechanism forhandlingproblemsand

complaints (complaintsthatareresolved quicklycanincreasecustomersatisfaction).


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Providesa fastmechanism forcorrectingservicedeficiencies (correcttheproblembeforeothercustomersexperiencethesamedissatisfaction).

Usesinternetcookiestotrackcustomerinterestsandpersonalizesproductofferingsaccordingly.

Providesa fastmechanism formanagingandscheduling

maintenance,repairsandon-goingsupport (improvesefficiencyandeffectiveness).


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CRM as business strategy


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Customer Retention Re-purchase

Ourcustomerreturnsandbuys forasecondtime

Thisismostlikelytobethepurchaseofasimilar

productorservice,orthenextlevelofproductor

service.

Growth

Marketorientation,innovative IT &valuecreation

Aimistoincreasethenumberofcustomersthat

purchase fromusREGULARLY.


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Cust er xte si Additi al,supple e tarypurchases

Ourcust ersareregularlypurchasi g

Wei t r ducepr ductsa dservicest ourloyal

customersdiffere t from origi alpurchase

Oncepurchased, ourgoalisto retain them as

customers fortheextendedproducts orservices

Growth Market orientation,innovative IT &valuecreation

Aim isto increasethe number ofcustomersthat

purchaseADDITIONAL products


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Innovative I

Updated I

Efficient,speedyand focusupon customer needs

Whilst I and/orsoftwareare nottheentirestory for

CRM,itisvitalto itssuccess

CRM softwarecollectsdata on consumersandtheir

transactions

Organizationswilltrackindividuals,andtrytomarketproductsandservicesto thembasedupon

similarbuyerbehaviorseen in otherindividuals


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MEASURING THE SUCCESS OFCRM

Asmentioned,oneofthemostdifficultpartsofaCRMprojectisdefiningsuccessparameters.

Evenifthesuccess factorsaredifferent,intheendmanycompanieschoosethe ROI (Returnon Investment) astheonlysuccess factor,althoughthischoiceiscontroversial.

Sometimes,CRM systemsmeasurethe ROI simplyastheincrementalrevenueormarginreturn fromimplementingaCRM technology.


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Thishasonlylimitedapplicability,asitdoesntgivesufficientinsighttomakeongoingdecisionsthatimprovethecustomerrelationship.

Itconsiderstheproblemonly fromthebusinesspointofview,andseesthecustomeronlyasasourceofrevenue,whileCRM ROI shouldintegrateboththemarginandthecustomersatisfaction.


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AstudyconductedbytheresearchersattheUniversity ofDayton illustrates four major measurements for CRMsuccess: -

TheCRM'sabilitytoimpactcorporatestrategy

(accordingto 25 percentofrespondents); - Successfultechnologicalintegration (accordingto 23

percentofrespondents); -

Enhancedstrategicpartnerships (accordingto 20

percentofrespondents); -AssimilationofCRM-relatedtechnologies (accordingto

18 percentofrespondents).


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30%

25%

20%

15%

10%

5%

0%

TheCRM'sabilitytoimpactcorporatestrategySuccessfultechnologyintegrationEnhancedstrategicpartnershipsAssimilationofCRM-relatedtechnologies


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THANK YOU

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Customer Relationship Management - tej