a framework for customer relationship management by russell s. winer presented by team jjems john...

A Framework forCustomer RelationshipManagement

by Russell S. Winer

Presented by Team JJEMSJohn Follett Article Synopsis

Matt Baker The Business Case for CRM

Judi DeBord How to Implement CRM

Eric Nill Infrastructure and Examples

“The essence of the information technology revolution and, in particular, the World Wide Web is the opportunity afforded companies to choose how they interact with their customers.” Russell Winer

What is Customer Relationship Management (CRM)?

Some say the new “mantra” of MarketingTracking Customer BehaviorPredicting Future Customer Communicating with Customers

Results:Allows Management to better focus marketing effort

1:1 MarketingLCV “Lifetime Customer Value”

Customer Relationship Management Model

(7 basic components) Create a Database

Analysis

Customer Selection

Customer Targeting

Relationship Marketing

Privacy Issues

Metrics

The Business Case for CRM

Who Are Our

Profitable Customers?

Retention = Net ProfitsReichheld

Repeat vs. New Customer

Mckinsey

Data Driven Approach !

Customer Buying Data

LCV Analysis

Customer Segmentation

Customer Focus Strategy

CRM

Tools for Building Customer Relationships

1:1 Marketing

• Develop Relationship• Cost Effective• Begin Dialog

CustomerService

• Proactive v. Reactive• Touch Points• Customers have Choices

LoyaltyPrograms

• Cost Effectiveness• Switching Costs• Web Shopping – Loyal Behavior

CommunityPrograms

• Connect to Peoples Interests• Support Communities

The Business Case for CRM

Sales Process

Visibility

Predictability

Consistency

Scaleability

Sustainability

• You can’t manage what you can’t measure;• If you can’t see it, you can’t measure it;• If you can’t measure it, you can’t understand it;• If you can’t understand it, you can’t improve it.

The First Axiom about Improvement

CRM enables the systemization of a sales process

Unconscious Conscious, Repeatable, Predicable

How to “Do” CRM

Develop a customer-centric strategy– You’ll be listening to your customer

rather than ‘telling’ them– Reorganize internal functions and

systems to support your customer (ERP)– Cultivate cross-functional cooperation

within your business– Overcome the inevitable internal

resistance to change

How to “Do” CRM

Assess technical capabilities Define the desired outcome of your

CRM initiative – establish metrics Define your programs:

– Reward, Community, Loyalty, etc. Build teams to select and

implement the software to get you to your destination

Physical Layer (Hardware)

– Internally Managed– Hosted Externally(Application Service Provider)

How CRM Gets “Done”

Data Source–Sales History–Opt-in Lists

•Surveys/Kiosks

–Purchased List

How CRM Gets “Done” Contact Types

– Marketing campaign(Broad coverage vs. Spam)

– B2C <--> B2B– Portal, Affinity Site

3rd Party Services–Clickstream analysis

(Customer metrics)

–AdWords/banner ads(Customer

acquisition)

How CRM gets “Done”

System Security– External Threats

(Hackers, ID Theft)

– Internal Threats(Info as Co. Asset)

Data Management– Organization of

Desired Info.– Back up & Restore– Business Continuity

“You sold us on the price, mileage, and safety features… it’s the company’s IT performance we’re still mulling over”.

How CRM gets “Done”

How CRM gets “Done”As part of integrated

part of data base management.

Primary for close customer contact and business retention tool.

Cost effectiveness of technology and growth of Internet makes Customer Acquisition through this electronic media something to consider.

Questions?