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CUSTOMER RELATIONSHIP MANAGEMENTCUSTOMER RELATIONSHIP
MANAGEMENT
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Barter Age
Customized Product Age
Mass Production Age
- Customer
- Consumer Customization Age: 1:1 Relationship
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Strategy, Process,Software, Philosophy, Project???
a) CRM is about Strategy
CRM
isaboutcreatingacompetitiveadvantagebybeingthebestatunderstanding,communicating,deliveringanddevelopingexistingcustomerrelationships,inadditiontocreatingand
keepingnewcustomers (Strategic CRM)
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Whatproductsandservicesareweofferingnowandinthefuture?
Inwhatmarkets? Whatcustomergroupswilltheseproductsand
servicesappealto? Whichoftheseareofgreatestvaluetothe
organization?In termsofexpenditure,
reliability,growthpotential?
Whatadditionalneedsdothemostvaluable
customergroupshave? Adiitionalproducts?Additionalservices?
Inwhatdifferentwayscanwedobusinessto
delivertoourcustomersbetter?
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Cog Wheel Process: CRM (UK) Ltd.(Four Key Areasofthe
Business)
- Strategy
- People
- Technology
- Processes
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St p 1: Defi e t ee isti c st errel ti s i
management pr cesses wit in t ec mpany St p 2: Determine t e
percepti ns of how the
company managestheirc stomerrelationshipsboth internally and e
ternally
St p 3: Design theidealc stomerrelationshipmanagementsol
tionsrelati eto thecompany orindustry
St p 4: Deli er a strategy
fortheimplementationoftherecommendations based on thefindings
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Com etition: Globalization
Customer Ex ectation: e-Commerce
Technology: Touchpoints
Diminishing im act of
advertising:Informationthroughe-mailandwebsites
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b) CRM the customer thread
Whetherthecustomersarecurrent / potential /selectedCRM
isaboutacquiring,retaining,partnering,personalizing
relationshipswiththem
CRM
helpsbusinessesusetechnologyandhumanresourcestogaininsightintothebehaviorofcustomersandthevalueofthesecustomers.
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Customization: Customizationassumes
thatmanufacturerwilldesign /
orenabledesigningaproducttosuitcustomerneeds.
Personalization:
Personalizationisaboutcustomerbecomingaco-creatorofthecontentoftheirexperience.
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TRUTH # : Customersarenolongerloyal.
TRUTH # :
Customersdonotreallywantarelationshipbutcompaniesdo.
- Your BestCustomersCan Leave
- Your MarginalCustomersCan Move
- ConsumersCan BecomeCustomers TRUTH # :
Customerswantinformation.
TRUTH # :
Customersnotonlywanttobethankedfortheirpatronage,theyexpectit.
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TRUTH # 5: Customerscontroltheselling
process. TRUTH # 6: The Lifetime Valueofacustomer
isnotrelevant.
TRUTH # 7: Donotovercomplicatethe
program. TRUTH # 8: Keepreportingsimpleand
focusedonthecustomer.
TRUTH # 9:WHATIF? Ask
itoften.Experimenteverychanceyougetanddontcallittesting.
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Investmentin
relationshipwithvariousstakeholdersisveryimportant.CRM
isthedomainofrelationshipmanagementwithcustomers.
Industrial Revolution: ThisiswhatImake,wontyoupleasebuyit?
Customer Revolution: ThisiswhatIneed,Cantyoupleasemakeit.
Companieshavetoturnfroma make and sellphilosophytosense and res
ondphilosophy.
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TheTHREE dimensions (CRM, Relationship MarketingandMarketing)
areextremelylucidlyintegratedinaconceptcalledHolistic
Marketingframework.
TheHolistic Managementframework
enablesmanagementtoanswersfollowingquestions:
1.
Howcanacompanyidentifynewvalueopportunitiesforrenewingitsmarketing
(MarketingDimension)
2. Howcanacompanycreatemorepromisingnewvalueoffering?
(Stakeholders Relationshi Dimension)
3.
Howcanacompanyuseitscapabilitiesandinfrastructuretodeliverthenewvalueofferingefficiently?
(CRMDimension)
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TheTHREE dimensions (CRM, Relationship MarketingandMarketing)
areextremelylucidlyintegratedinaconceptcalled
Holistic Marketingframework.ManagementDecision de ends on:1.
Howcanacompanyidentifynewvalueopportunitiesfor
renewingitsmarketing (MarketingDimension)2.
Howcanacompanycreatemorepromisingnewvalueoffering?
(Stakeholders Relationshi Dimension)
3.
Howcanacompanyuseitscapabilitiesandinfrastructuretodeliverthenewvalueofferingefficiently?
(CRMDimension)
Threeorganizationalfunctionswillplaythemajorroleintheeconomy:
the demand managementfunction,the resourcemanagementfunctionand
network (Relationshi )
managementfunction.
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Transaction arketing Relationship arketing
Functional Marketing Cross-functional marketing
Focus on a single sale Focus on customer retention
Orientation on product feature Orientation to customer
values
Short time scale Long time scale
Little emphasis on customer service High emphasis on customer
service
Moderate customer contact High customer contact
Quality is a concern of production Quality is everyones
concern
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1. Classic Market Relationshi :
Consistingoftherelationshipbetweenthesupplierandthecustomer,betweenthecustomer-
supplier-competitorandtheclassisnetwork
distributionchannels.
. S ecial Market Relationshi :
Relationshipviafulltimeandparttimemarketers,interactionbetweencustomersandserviceproviders,relationshipinindustrialandbusinessmarketing,e-relationship,greenrelationship
(environmentandhealthbased,lawbased)
. Mega Relationshi s: Personalandsocialnetwork,massmedia
. Nano Relationshi s:
Relationshipbetweeninternalcustomersandinternalsuppliers,therelationshipbetweenoperationsmanagementandmarketing,relationshipwiththeemployeemarket.
FirstTWOconsidersasDirectmarket Relationshipand
LastTWOconsidersas Non-MarketRelationships
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1. Proactive versus Reactive CRM
1. Operational, Collaborative and
Analytical CRM
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1. Operational CRM:
FrontofficeCRM.Interactionbetweenthecustomerandmarketerdirectlythrough
customer touchpoint (POS,Callcenters,webetc.). Face to face
touchpoints:
Sales/Service/Channel/Events/Stores/Promotions Database driven
touchpoints:
Telephones/Email/Mail/SMS/Fax/LoyaltyCards/ATMs
Mass Media:Advertising/PR/Websites
AnyTransactioncantakeplacethroughthesetouchpoints.
Lowlevelmanagersinteractinthisstageandprocesstheinformationto
themidlevelmanagers
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2. Collaborative CRM:
Twowaydialogbetweenacompanyanditscustomersthroughavarietyofchannels
(businesspartners,agents,brokers,intermediaries)
tofacilitateandimprovethequalityofcustomerinteractionsandmaintainalongterm
profitablerelationship.
Performedby
Midlevelmanagersandtransformtheinformationtothetoplevelmanagersanddecisionmakers.
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3. Analytical CRM: Knownas back-officeor
strategicCRM.Itinvolvesunderstandingthecustomeractivitiesthatoccurredinthefrontoffice.Usingtechnology,massdataisgoingtotransformedinto
business knowledge
(behaviorpatters,preferences,valuesofcustomers).
Top
Levelmanagersanddecisionmakersestablishtheprocessandconveythemessagetothemidlevelandlow
levelmanagersforimplementation.
