SEMESTER 2, 2013/2014 CUSTOMER RELATIONSHIP MANAGEMENT

SEMESTER 2, SEMESTER 2, 2013/20142013/2014

CUSTOMER RELATIONSHIP MANAGEMENT

CUSTOMER CUSTOMER RELATIONSHIP RELATIONSHIP MANAGEMENTMANAGEMENTPENGURUSAN PENGURUSAN

HUBUNGAN PELANGGANHUBUNGAN PELANGGAN

MAY 2014MAY 2014

Learning OutcomesLearning Outcomes

• Explain the concept and importance customer Explain the concept and importance customer relationship management (CRM)relationship management (CRM)

• Describe CRM componentsDescribe CRM components

• Explore CRMExplore CRM

IntroductionIntroduction

• Customer Relationship Management (CRM) – concept giving organizations to plan, design and control strategy aiming to maintain customer relationship efficiently.

• Globalization phenomena needs organizations to sustain competitive advantage and use CRM as a tool to distinguish them from competitors.

• Enable organizations to create communication with customers at a new level.

• Internet concept, e-CRM to overcome barriers.

IntroductionIntroduction

• “the best organization in the world will be ineffective if the focus on ‘customers’ is lost. First and foremost is the treatment of individual students, alumni, parents, friends, and each other (internal customers). Every contact counts!”

• The focus is currently shifting from improving internal operations to concentrating more on customers.

• (Grant & Anderson, 2002)

Customer Relationship Management (CRM)Customer Relationship Management (CRM)

• CRM is a business strategy to select and manage customers to optimize long-term value.

• CRM requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes.

• CRM applications can enable effective customer relationship management, and shows that there is a right leadership, strategy and culture that persists in the organization.

Perspectives

• CRM focuses on automating and improving the institutional processes associated with managing customer relationships.

• From students’ perspective, a CRM business strategy allows interaction with the college or university.

• From the perspective of the college or university, the CRM provides a clear and complete picture of each individual and all the activities pertaining to the individual.


• Refers to the methodologies and tools that help businesses manage customer relationships in an organized way.

• CRM processes identify and target the best CRM processes identify and target the best customers, generate quality sales, and help customers, generate quality sales, and help organizations to plan and implement marketing organizations to plan and implement marketing campaigns with clear goals and objectives. campaigns with clear goals and objectives.

• Individualized relationships with customers and Individualized relationships with customers and provide the highest level of customer service to provide the highest level of customer service to the most profitable customers.the most profitable customers.

• Aim to improve customer satisfaction.Aim to improve customer satisfaction.


• Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers to create superior value for the company and the customer. It involves the integration of marketing, sales, customer service, and the supply-chain functions of the organization to achieve greater efficiencies and effectiveness in delivering customer value.

• The purpose is to improve marketing productivity.

Atul Parvatiyar & Jagdish N. Sheth (2001)


• Example: a comparison of a local grocery store where the seller has a good understanding of the needs of individual customers and maintain a long-term relationships.

• How about in education sector? Can you give example about this?

Why Implement a Higher EducationCRM Business Strategy?

• Increase the effectiveness of staff members who Increase the effectiveness of staff members who interact with customers or prospects.interact with customers or prospects.

• Proactive customer interactionProactive customer interaction• Improved customer responsiveness and a more Improved customer responsiveness and a more

comprehensive view of the entire “cradle-to-comprehensive view of the entire “cradle-to-grave” customer life cycle.grave” customer life cycle.

• Track and manage interactions and transactions Track and manage interactions and transactions with various customers across multiple with various customers across multiple channels.channels.

An Example of CRM in Higher Education

• Marketing and campaign management processes and applications can support both targeted admission recruitment and fundraising.

• For example, the university may have an enrolment goal to recruit out-of-state students and minorities and to increase the number of students.

The Impact of CRM onthe Higher Education Enterprise

• Students

• Administrators

• Faculty Members

• Advancement

• Increased revenue through improved Increased revenue through improved recruitment and retentionrecruitment and retention

• • • Reduced recruitment costsReduced recruitment costs

• • • Improved customer serviceImproved customer service

• • • Quicker yield conversionsQuicker yield conversions

• • • Improved customer satisfactionImproved customer satisfaction

The Impact of CRM onthe Higher Education Enterprise

Review of literatureReview of literature

• For practitioners, CRM represents an enterprise approach to developing full-knowledge about customer behavior and preferences and to developing programs and strategies that encourage customers to continually enhance their business relationship with the company.

• Marketing scholars are studying the nature and scope of CRM to formulate strategies and processes for customer classification and selectivity; one-to one relationships with individual customers; key account management and customer business development processes; frequency marketing, loyalty programs, cross-selling and up-selling opportunities; and various forms of partnering with customers including co-branding, joint-marketing, and other forms of strategic alliances.

• Atul Parvatiyar & Jagdish N. Sheth (2001)

DISCUSSDISCUSS

• Identify one aspect about customer Identify one aspect about customer service in this university.service in this university.

• Discuss ways and strategies to Discuss ways and strategies to improve the customer service improve the customer service aspect.aspect.

• Choose one or two presenter(s) and Choose one or two presenter(s) and present to the class.present to the class.

The Emergence of CRM Practice

• Growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers to directly interact with end-customers.

• For example, in many industries such as the airline, banking, insurance, computer software, or household appliances industries and even consumables, the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular.


• Total quality movement. When companies embraced the Total Quality Management (TQM) philosophy to improve quality and reduce costs, it became necessary to involve suppliers and customers in implementing the program at all levels of the value chain.

• In the current era of hyper-competition, marketers are forced to be more concerned with customer retention and loyalty.


• Customer expectations have been changing rapidly. Consumers are less willing to make compromises or trade-offs in product and service quality.

• Internationally oriented companies trying to become global by integrating their worldwide operations.


• CRM focuses on automating and improving the institutional processes associated with managing customer relationships in the areas of recruitment, marketing, communication management, service, and support.

• In the case of a student, this might be seen through the interaction with and between the admissions, registration, financial aid, student accounts, and housing offices.


• For a faculty or staff member, a CRM business strategy would optimize interaction with departments administering benefits, payroll, staff training, information technology (IT), or facilities.

• From the perspective of the college or university, the CRM business strategy provides a clear and complete picture of each individual and all the activities pertaining to the individual.

A CRM Process Framework

• A four-stage CRM process framework.• Comprised of the following four sub-processes: a

customer relationship formation process; a relationship management and governance process; a relational performance evaluation process, and a CRM evolution or enhancement process.

Figure 1: The CRM Process Framework

Purpose- Increase Effectiveness- Improve Efficiency

Program- Features & Offerings

Partners- Selection Criteria & Process

Formation Management and Governance

Performance

Team Structure

Role Specification

Communication

Common Bonds

Planning Process

Process alignment

Employee motivation

Monitoring process

Performance- Strategic Goals- Financial Goals- Marketing Goals• Loyalty• Satisfaction

Evolution- Enhancement- Termination

The Purpose of CRM and Its Operational Goals

• To improve marketing productivity and to enhance mutual value for the parties involved in the relationship.

• To enhance marketing effectiveness by carefully selecting customers for their various programs, by individualizing and personalizing their market offerings to anticipate and serve the emerging needs of individual customers.

• To fulfill consumers expectations and their goals related to efficiencies and effectiveness in their purchase and consumption behavior.

• To build customer loyalty and commitment and to develop new products, and to redefine the competitive playing field for the company.


Two categories:• Operational CRM• Analytical CRM

Operational CRMOperational CRM

• Products, services and operational capabilities that enable the organization to take care of its customers.

• Examples: contact centers, data aggregation system, and web sites.

Analytical CRMAnalytical CRM

• Strategies and tools that drive customer-centric business decisions.

• Examples: business intelligent systems, data mining tools, and customer-tier strategies.

Categories of CRMCategories of CRM

• Marketing automation• Sales automation• Service and service fulfillment• Customer self-service• E-commerce

Marketing AutomationMarketing Automation

• Bringing technology to the marketing process.• CRM generates personalization, profiling,

telemarketing, e-mail marketing, and campaign management.

• Involves understanding what customers do and want, matching that knowledge with product and service information, presenting opportunities to customers and measuring success.

• Can you give examples in our education environment?

Sales AutomationSales Automation

• Sales involve direct transferring of products and services to customers.

• Put sales representatives in direct contact with customers.

• Campaign management, pricing.


Service and service fulfillment

• Encompasses the ability of the organizations to serve customers that they already have.

• E-mail response management, telephony capabilities, computer telephony integration, interactive voice response, and predictive dialing.


Customer self-service

• Aims to make the customer more active in self-service through web self-service, search, interactive chat, e-mail, call-me capabilities.

• Also known as e-CRM (electronic customer relationship management), involving internet access and wireless devices.


E-commerce

• Capabilities such as shopping, marketplace, transaction and payment processing, and security of transactions are the prime focus.

• Involving internet access and wireless devices.


e-CRM

Two components:• The use of direct-to-customer channels,

principally e-mail and web. Emerging trends are the use of ATMs and kiosks.

• Using IT to select relevant material to be presented to the customer, in terms of content, offers, and support information.

• Can you give examples in our education environment? Paying fees through internet.

e-CRM

The key points to e-CRM:• Fast service – customers are supposed to find

adequate information immediately.• Meaningful – customers expect content will be

presented in an interesting interactive and focused manner.

• Customer driven – information provided should be what customers want to know, not what the organization thinks customers might be interested in.

• Let’s try on UPM web page and check.

e-CRM Technology

The channels to e-CRM:• E-mail – however, can be voluminous and may

not be answered timely and in accurate fashion.• Web-form technology – web forms are

structured, pre-formatted static web pages with inputs fields that allow customers to fill out information. Simple and inexpensive interaction. However, there is a privacy intrusion.

• Chat technology – allows real time interactions with customers and is becoming more popular to replace the traditional phone call.

• Can you give examples?

8 Rules For Good Customer Service 1) Answer your phone. 2)2) Don’t make promises unless you WILL keep Don’t make promises unless you WILL keep

them. them. 3)3) Listen to your customers. Listen to your customers. 4)4) Deal with complaints. Deal with complaints. 5)5) Be helpful - even if there’s no immediate profit Be helpful - even if there’s no immediate profit

in it. in it. 6)6) Train staff to be ALWAYS helpful, courteous, Train staff to be ALWAYS helpful, courteous,

and knowledgeable. and knowledgeable. 7)7) Take the extra step. Take the extra step. 8)8) Throw in something extra. Throw in something extra.

Good Customer Service Is No Longer EnoughGood Customer Service Is No Longer Enough

• Customers have more options than ever before-Customers have more options than ever before-and feel less loyalty. and feel less loyalty.

• They want products and services fast, cheap, They want products and services fast, cheap, quick-from whoever will provide them. quick-from whoever will provide them.

• The competitive advantage is now in our ability The competitive advantage is now in our ability to KEEP customers and build repeat business to KEEP customers and build repeat business and this applies in education sector as well. and this applies in education sector as well.

Good Customer Service Is No Longer EnoughGood Customer Service Is No Longer Enough

• It has to be superior, WOW, unexpected service. In a nutshell, it means doing what you say you will, when you say you will, how you say you will, at the price you promised-plus a little extra tossed.

ConclusionConclusion

• CRM refers to a conceptually broad phenomenon of business activity, and if the phenomenon of cooperation and collaboration with customers becomes the dominant paradigm of marketing practice and research, CRM has the potential to emerge as the predominant perspective of marketing which is also applicable to the education sector especially the higher education sector.

Documents

SEMESTER 2, 2013/2014 CUSTOMER RELATIONSHIP MANAGEMENT