Lecture # 05 CRM

Lecture 5: Get Set: Organizing for Success

Finance & BankingJahangirnagar University

Mahfuza KhatunLecturer, F & B,JU

Defining the Organizational ScopeCRM results can be delivered by working together across functions and organizations to bridge gaps.Organization: What parts of the organization need to involved, and how?Sponsorship: How do we find a sponsor and keep him/her engaged? Leadership: How we govern a program that crosses so many independent functions?



Defining the Organizational Scope (contd..)Partnership: How do we strengthen relationships and build partnerships between functions and between the business team and IT?Unless the CRM program includes all the organizational parts that face customers, their experience will not be integrated. If its not cross-functional, its not CRM.



New Organizational Roles



DepartmentTraditional RoleNew CRM RoleMarketingCommunication and BrandingCustomer advocateSalesSelling productsSelling customer solutionsServiceDelivering productsDelivering customer partnershipSupportSupporting productsSupporting customersIT DepartmentEnabling business activitiesEnabling customer activities

The Marketing Department's Role in CRMTraditionally, The marketing department has been responsible for communications and branding. Brand management makes a promise to customers, and customer satisfaction and brand equity measure how well the company meets its promise. As a customer advocate, marketing is responsible for leading the overall CRM program and keeping it focused on the customer.Marketing's role as customer advocate it means that marketing is responsible for managing and monitoring the overall plan that governs how the various touch points work



Marketing Department's Role in CRM (contd..)together to influence the total customer experience. Several implications for the marketing community:CRM has a significant technology component.CRM requires a shift in marketing resource allocation. Marketing must both organize the effort and model the behavior of being customer-centric.



Sales Department's Role in CRMSales interactions are critical to building positive customer relationships. The new role for Sales in CRM is still about selling and is actually designing the sales experience about what the customer wants it to be. The sales organization is an integral member of the overall CRM program team. As a solution seller, sales will focus on understanding and meeting the customers real need, even when it means sharing some commission.



Customer Service Department's Role in CRM Customer Service is often a profit-generating unit that must watch costs and meet financial expectations. To be successful, customer service organizations need to really understand their customer requirements. As a partner with the customer, Service will measure its results based on the success of the customer's business.



Product Support Department's Role in CRM The product support organization has traditionally been focused on resolving any product problems that occur. As a customer support provider, support focuses on solving customer problems and meeting customer needs. Support has a tremendous opportunity to influence the customer experience. It has the opportunity to turn frustrated and angry customers into loyal customers.



The IT Department's Role in CRM The IT function provides the technology and information components without which CRM cannot succeed. IT has become much more tightly integrated into the rest of the organization, and IT people understand that their responsibility is to support the business and solve business issues. As a customer enabler, IT is responsible for implementing the tools that make it easier for customers to do business with the company.



Benefits of New CRM Roles



DepartmentNew CRM RoleCustomer GetsYou getMarketingCustomer advocateAn internal championThe customer's viewpointSalesSell customer solutionsA problem solvedHappier customers, increased salesServiceDeliver customer partnershipAn extension of their company's capabilitiesHappier customers, increased salesSupportSupport customersThe help they needBest mix of cost saving and satisfied customersITEnable customer activitiesTools and processes matched to the way they do businessTechnology that helps them meet customer expectations

Bridging Organizational GapsOperating Across Business Functions Set up an organization and leadership structure that clearly defines roles, responsibilities, and communication paths. Each core function will be contributed through member participation in the steering committee, program council, and project teams. Members take ownership for communicating, gathering information, and managing compliance within their respective functional areas.



Bridging Organizational Gaps (contd..) Business / IT Relationship Marketing managers dont need to learn to write computer code, but they certainly need to understand the basic capabilities of some of the new technologies they depend on. The business function is responsible for business requirements for information and process automation, IT needs to validate its understanding of the business need and purpose the best technological solution to meet the needs.



Marrying Organization and governanceOrganization: In order to bridge all the organizational gap, the organization will set up a tiered CRM organization structure.Customer Steering Committee: The steering committee should be comprised of senior representative from each of four core CRM business functions, plus the IT function.



Marrying Organization and Governance (contd..)Program Core Team: The CRM core team includes representatives from each of the key constituencies: CRM functions, IT Department, geographic areas, etc. The core team provides consistent leadership and guidance to the overall CRM program.Project Teams: Project teams are assigned to complete the deliverables specified in each project plan .



Garnering Leaderships Support Sponsorship: Not sufficient, but necessary to lead steering committee. Chief Customer Officer: Is part of the CEOs staff and is responsible for the total customer experience. Program Manager: The Program Manager brings good business perspective and continuity across all the projects that make up the program. Project Manager: Brings a specific perspective and relevant experience to the management of each individual project.



Adding Adjunct Team Members (Consultants and Contractors)

Provide specific services but are not employeesThere are two reasons to hire a consultant: Need the consultants knowledge and experience to help identifying what the organization needs in a specific area of expertise, and the organization wants the consultant to pass the knowledge and experience on so the organization can learn to take care of things itself. The organization needs the consultants resources to help it actually do the work that it has already decided it need to do.



Thank You



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Lecture # 05 CRM