2 crm concepts

8/2/2019 2 CRM Concepts

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CRMCRM

CONCEPTSCONCEPTSDr. Vandana KhannaDr. Vandana Khanna


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W

hat is CRM??W

hat is CRM??ItIt isis aa comprehensivecomprehensive setset ofof processesprocesses andandtechnologiestechnologies forfor managingmanaging thethe relationshipsrelationshipswithwith potentialpotential andand currentcurrent customerscustomers andandbusinessbusiness partnerspartners acrossacross marketing,marketing, sales,sales,andand serviceservice regardlessregardless ofof thethe communicationcommunication

channelchannel..BrentBrent FreiFrei, President and CEO, Onyx Software, President and CEO, Onyx Software

3/1/20123/1/2012 Dr. Vandana KhannaDr. Vandana Khanna 22


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hat is CRM??W

hat is CRM??CustomerCustomer RelationshipRelationship ManagementManagement isis thethecommitmentcommitment ofof thethe companycompany toto placeplace thethecustomercustomer experienceexperience atat thethe centercenter ofof itsitsprioritiespriorities andand toto ensureensure thatthat incentiveincentivesystems,systems, processes,processes, andand informationinformation

resourcesresources leverageleverage thethe relationshiprelationship bybyenhancingenhancing thethe experienceexperience..Peter Keen, Chairman, Keen InnovationsPeter Keen, Chairman, Keen Innovations



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hat is CRM??W

hat is CRM??CRMCRM isis anan enterpriseenterprise--widewide mindset,mindset, dogma,dogma, andandsetset ofof businessbusiness processesprocesses andand policiespolicies thatthat arearedesigneddesigned toto acquire,acquire, retain,retain, andand serviceservice customerscustomers..ScottScott Fletcher,Fletcher, PresidentPresident andand COO,COO, ePipelineePipeline

CRMCRM isis aa disciplineddisciplined businessbusiness strategystrategy toto createcreateandand sustainsustain longlong--term,term, profitableprofitable customercustomerrelationshipsrelationships.. RobertRobert Thompson,Thompson, President,President, FrontFront LineLine Solutions,Solutions, IncInc..

CustomerCustomer RelationshipRelationship ManagementManagement (CRM)(CRM) isis aa

businessbusiness strategystrategy toto selectselect andand managemanage customerscustomerstoto optimizeoptimize longlong--termterm valuevalue.. CRMGuruCRMGuru..comcom



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Objectives of CRMObjectives of CRMToTo identifyidentify andand establish,establish, maintainmaintain andandenhanceenhance andand ,, whenwhen necessary,necessary, terminateterminaterelationshipsrelationships withwith customerscustomers andand otherotherstakeholders,stakeholders, atat aa profitprofit soso thatthat thetheobjectivesobjectives ofof allall partiesparties involvedinvolved areare metmet;;

andand thisthis isis donedone byby mutualmutual exchangeexchange andandfulfillmentfulfillment ofof promisespromises..GrGrnroos 1994nroos 1994


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Competitive AdvantageCompetitive Advantage

TheThe abilityability toto learnlearn moremore aboutabout ourourcustomerscustomers fasterfaster thanthan thethe competitioncompetition

TheThe abilityability toto turnturn thatthat learninglearning intointo actionactionfasterfaster thanthan thethe competitioncompetition..

Jack WelchJack Welch


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Increasing Value of theIncreasing Value of the

Customer BaseCustomer BaseGet : Acquire Profitable Customer

Keep : 1. Retain Profitable Customers2. Win Back Profitable Customers3. Eliminate Unprofitable Customers

Grow : 1. Up sell Additional Products In A Solution2. Cross Sell Other Products To Customers3. ReferralAnd Word-of-mouth Benefits4. Reduce Service And Operational Costs


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CRM as a Hub ofCRM as a Hub of

Applied LearningApplied LearningRecognizeRecognize needs/wantsneeds/wants ofof defineddefined segmentssegments..

CultivateCultivate andand developdevelop interest,interest, trusttrust andand desiredesire..

AcquireAcquire customercustomer andand establishestablish aa relationshiprelationship..CustomizeCustomize promotion,promotion, information,information, interactionsinteractions..

CustomizeCustomize offers,offers, productsproducts andand servicesservices..

CustomizeCustomize channelchannel outletsoutlets andand locationslocations..

Collect,Collect, WarehouseWarehouse andand AnalysisAnalysis datadata..

A customer focus without accurate information issimilar to attempting to circumnavigate the planet

without a map.


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Architecture of CRMArchitecture of CRMTheThe applicationapplication architecturearchitecture ofof CRMCRM isisdivideddivided intointo threethree partsparts::

OperationalOperational CRMCRM

AnalyticalAnalytical CRMCRM

CollaborativeCollaborative CRMCRM


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Operational CRMOperational CRMOperationalOperational CRMCRM isis thethe automationautomation ofofhorizontallyhorizontally integratedintegrated businessbusiness processesprocesses

involvinginvolving frontfront--officeoffice customercustomer touchtouch pointspointsacrossacross sales,sales, marketingmarketing andand customercustomerserviceservice viavia multiplemultiple interconnectedinterconnected deliverydeliverychannelschannels..

MetagroupMetagroup


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Operational CRMOperational CRMItIt refersrefers toto thethe measuresmeasures supportingsupporting thethefrontfront officeoffice businessbusiness processes,processes, includingincluding

customercustomer contactcontact..ItIt focusesfocuses onon softwaresoftware andand installationsinstallations andandthethe changeschanges inin processprocess affectingaffecting dayday toto daydayoperationsoperations..

GivesGives informationinformation necessarynecessary forfor carryingcarrying outoutthethe taskstasks interfacesinterfaces withwith backback--endendapplicationsapplications..


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Operational CRMOperational CRMTechnologiesTechnologies suchsuch asas ERPERP (Enterprise(Enterprise ResourceResourcePlanning)Planning),, SCMSCM (Supply(Supply ChainChain ManagementManagement software)software),,

EAIEAI (Enterprise(Enterprise Application Application Integration)Integration),, DataDatawarehousing,warehousing, SFASFA (Sales(Sales ForceForce Automation)Automation) helpshelpscompaniescompanies toto massmass customizecustomize andand deliverdeliverthethe productsproducts toto customerscustomers..


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Analytical CRMAnalytical CRMAnalytical Analytical CRMCRM isis thethe analysisanalysis ofof datadatacreatedcreated onon thethe operationaloperational sideside ofof CRMCRM andandthroughthrough otherother relevantrelevant operationaloperational datadatasourcessources forfor thethe purposespurposes ofof businessbusinessperformance,performance, managementmanagement andand customercustomer--

specificspecific analysisanalysis.. MetagroupMetagroup


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Analytical CRMAnalytical CRMItIt focusesfocuses onon strategicstrategic planningplanning neededneeded totobuildbuild customercustomer value,value, asas wellwell asas culturalcultural

measurementmeasurement andand organizationalorganizational changeschangesrequiredrequired toto implementimplement strategystrategy successfullysuccessfully..

TheThe datadata gatheredgathered areare analyzedanalyzed toto segmentsegmentcustomerscustomers oror toto identifyidentify thethe potentialpotential forfor

enhancingenhancing relationshipsrelationships withwith customerscustomers..CustomerCustomer analysisanalysis leadsleads toto increaseincrease shareshare ofofthethe customerscustomers walletwallet..


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Collaborative CRMCollaborative CRMCollaborativeCollaborative CustomerCustomer RelationshipRelationshipManagementManagement isis toto coordinatecoordinate thethe multimulti--

channelchannel serviceservice andand supportsupport givengiven toto thethecustomercustomer byby providingproviding thethe infrastructureinfrastructure forforresponsiveresponsive andand effectiveeffective supportsupport toto

customercustomer issues,issues, questions,questions, complaints,complaints, etcetc..


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Collaborative CRMCollaborative CRM

ItIt facilitatesfacilitates effectiveeffective interactionsinteractions withwithcustomerscustomers throughthrough Varity Varity ofof channelschannels likelike

personal,personal, letters,letters, fax,fax, phone,phone, ee--mail,mail, etcetc..ItIt supportssupports thethe coco--ordinationordination betweenbetweenemployeeemployee teamsteams andand channelschannels..HelpsHelps inin integrationintegration ofof people,people, processesprocesses andand

datadata togethertogether..HelpsHelps inin offeringoffering betterbetter servicesservices toto customerscustomersandand inin retainingretaining themthem overover longerlonger periodsperiods..


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CRM ArchitectureCRM Architecture



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CRM Solution StructureCRM Solution Structure



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Objectives of Operational CRMObjectives of Operational CRM

HigherHigher customercustomer satisfactionsatisfaction byby improvedimprovedqualityquality ofof contactscontacts

CostCost savingssavings byby crosscross--functionalfunctional integrationintegrationofof processesprocesses andand processprocess supportsupportCostCost savingsaving byby deeperdeeper integrationintegration ofofcommunicationcommunication withwith customerscustomers withwith

companycompany--internalinternal processesprocesses



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Benefits of Operational CRMBenefits of Operational CRM


DeliversPersonalized &

efficientmarketing sales

and servicesthrough multi-

channelcollaboration

Sales people andservices engineers can

access complete history

of all customerinteraction with the

company regardless ofthe touch point

Enables a 360 degreeview of the customer(s)while interacting with

them


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Benefits of Analytical CRMBenefits of Analytical CRM


Enablessegmentationby customer

value

Allows quickdesign and

developvalue-addedproducts andservices that

meetcustomer

needs

Increases salesper customer by

up-selling andcross-selling

Improves supply

chainmanagement,resulting in

lower costs andmore

competitive pricing

Increasesprofitability

andcontrol costs

Decreases Customerchurn rate by

identification ofcustomer which are

likely to quit andincrease loyalty &

efficient marketingsales and services

through multi-channel

collaboration


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Benefits of Collaborative CRMBenefits of Collaborative CRM


Enables efficientproductive customerinteractions across

allcommunications

channels

Integrates view ofthe customer whileinteraction at the

transaction level

Integrates call

centers enablingmulti-channelpersonal customer

interaction

Enables webcollaboration toreduce customer

service costs


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Potential BenefitsPotential Benefits

of CRM Systemof CRM SystemBenefitsBenefits forfor OrganizationOrganization

CustomerCustomer FocusFocus

CustomerCustomer RetentionRetentionShareShare ofof Customer/Customer/ ShareShare ofof walletwallet

LongLong--termterm ProfitabilityProfitability

CrossCross--sellingselling andand UpUp--sellingselling


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Potential BenefitsPotential Benefits

of CRM Systemof CRM SystemCustomersCustomers BenefitsBenefits

ContinuityContinuity

ContactContact touchtouch pointspointsPersonalizedPersonalized serviceservice

EnhancedEnhanced satisfactionsatisfaction

SafetySafety


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Potential Costs of CRM SystemPotential Costs of CRM System

OrganizationsOrganizations CostsCostsInfrastructureInfrastructure

InvestmentsInvestmentsReactionReaction toto processprocess

CustomersCustomers CostsCosts

PrivacyPrivacy andand opportunityopportunityFutureFuture relationshipsrelationships

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