CRM system and processesIn vocational college

Ville Krannila, Espoo Finland, (Omnia Vocational College)

Definition of CRM

CRM = Customer Relationship Management Managing customer relationships as opposed to managing

customers Joint working model in enterprise co-operation Defining your segments, customers and customer information Carrying out varying customership care plans Customer Relationship Management (CRM) is a business

strategy that is designed to improve customer service. CRM is also aims to increase customer satisfaction, manage the best customers effectively, and gain new quality customers, thus increasing a business’s profitability. (Intellinova.com)

CRM in vocational college project results in Omnia Based on a 4-year project and action research 2006-2010 Results:

1) customer strategy for Adult Education Centre 2) customer leadership models, areas and responsibilities developed 3) the customerbase analysed, segments defined and customer-care programmes developed4) own-care programmes were formed for customer groups.5) manual for CRM database created and developed

“The results proved that customer relationship management and customer leadership were challenging but possible to carry out in the academy organisation and they can be executed successfully in this environment.”

The development project was evaluated as reliable, truly work-life based, valuable and useful in the practical functions of the target organisation.

CRM is not a system or a database, CRM is a method and actions carried out from a customer perspective. It is done by people and for the people. CRM database is a tool in this work.

V.Krannila - Customer leadership and development 2010 (case Omnia)

CRM Database basics

A tool for CRM work Consists mainly of customership information Customer data, adresses, contacts, e-mail, customership activity

and classifications Can be located in user’s own server or as cloud service (usually

www-based) All employees can have access (via passwords) to CRM database

or different roles for different users can be created Usually those working directly with enterprises, management and

marketing are the main users (of database)

CRM database advantages

CRM database is used by management to gain customer information and plan marketing and management strategies

CRM database is used to carry out marketing campaigns (marketing various training programmes etc.) via e-mail or telephone, and gathering the feedback from the campaign

CRM database is used by customer account managers to sustain customership programs, information on customer activity, complaints and other useful information

CRM database collects customer information on various raports, including balance scorecard

CRM database streghtens co-operation between various units of a company and ensures customer-oriented way of working

CRM database project (case Omnia)

1) Define your main customers and segments 2) Define your targets of customership management and work 3) Collect your customer information, in which form it currently exists 4) Commit people from every unit to work together on the project 5) Choose a pilot group, depending on your organization, max. 5-20

persons is recommended, from different units if possible 6) Map out the service providers and bring them and your own ITC

personnel into project as early as possible 7) Define targets, budget and follow-up points to pilot project 8) Pilot project should last at least few months, preferably 1 year to provide

sufficient information for continuation 9) Organise meetings in regular basis to follow systems use and possible

problems. A service provider and ICT should be present every step of the way

CRM database project (case Omnia)

10) Organise sufficient training on the use of the system and database 11) Choose 1 person as main user in charge of the project and system updates 12) Map out possible integrations with other systems and their cost 13) Organise meetings in regular basis to follow systems use and possible

problems. A service provider and ICT should be present every step of the way 14) Write a report at the end of the pilot and build a plan for further development

Some critical points: - In Omnia development took several years with the amount of users growing slowly.- The cooperation and communication with ICT and service provider is neccessary,

especially during the system aquisition and pilot project- Pilot group should work closely together and should not be larger than 5-7 persons

CRM system pilot project

Process:

Targets, spesific goals for each

division, project plan,

Setting up database, collecting

customer info from various

sources,Training of

pilot participants

Possible integrations

to other systems

Testing and carrying out marketing and sales

operations via CRM system,

according to project plan

Evaluation of pilot project,

raport of procedures,

further development and plan for the future

Regular meetings with the pilot group, system provider and IT personnel

CRM database today (case Omnia)

Users (active passwords) 94 in total Users from Adult Education Centre, InnoOmnia,

Administration, Youth Workshops, Apprenticeship Training Centre

One main user and trainer (V.Krannila) 4 vice-users (one person in each unit)

Integrated to MS Outlook, On-the-job learning system, ProFinder b2b service and Studenta+ (student management system for adults)

CRM database today (case Omnia)

An open database -> everyone with a password can see everything in the system

This has increased the co-operation with different units and departments who often deal with same customers

System is based on openess and sharing of information A culture of exploiting the system regulary is important in

maximising its benefits

CRM database today (case Omnia)

Main actions carried out with the database and system: Offers for enterprises and other organizations (for educational services,

additional training) Adult education centre Marketing campaigns for different target groups -> Adult education center,

InnoOmnia, Administration Maintenance of various customer classifications and lists, for example a list

of guests invited to a certain event in Omnia Mantenance of outside organisations, students and personnel working in

Omnia’s projects -> for Balance Scorecard A list of workplace instructors -> a regular e-mail information of educations -

> e-mails sent from the system A list of various operations executed with the customers: visists, e-mails,

phone calls, meetings – all located in customers datafile

CRM database process and resposibilities(case Omnia)

x

Marketing/Communication

Administration

Main user

Organizes Marketing and

Communication viaCRM system

Raports to administration

Updates the databasemanual

Informs users

Trains users in co-operationWith vice-users

Raports to administration

Monitors the utilization

Centrally sends news letters, press releases,

Annual reports and holiday cards for customers

Maintain ja update Their customer data

Sign in various actions Customer segmentation

Offers?

Account managers/representatives

Maintains administration (upper)Level marketing listsAnd classifications

Maintaining offers andEducational products

Maintaining and updatingCustomer careplans

Carry out development Procedures on preceding

points

Makes decisions regardingdevelopment action

Controls system-updates and is inContact with theSystem provider

Units

Receives raports fromUnits and from main

user

Maintaining and updatingvarious customerlists and Customer classifications

Follow-up on sales and actions by account

managers

Raports to administration

CRM system dataflow diagram

Systems and dataflow

Microsoft Outlook(integrated to CRM) CRM database

Excel (data)

On-the-job learning System and database

classifications

Customer’information

Fonecta Profinder B2B(customer information updatesfrom the web) Integrated into CRM

Student administrationSystem and database

Customer data and updates

Workshop discussion in groups

Discuss and find answers to these questions in groups:

Define your customers, who is your main customer? How would you classify your customers/divide them into categories? How is business co-operation organized in your field? What type of information regarding your customers do you find

essential? Who in your organization is in contact with these

customers/busineses?

Present your views, questions and results

References

Links and other useful material CRM Basics: http://intellinova.com/crm/strategy/crm-for-beginners-customer-relationship-

management-basics/

http://www.mycustomer.com/topic/beginners-guide-crm

Literature: Payne, A. 2006. The Handbook of CRM. Great Britain: Butterwoth-

Heinemann McKenzie, R. 2001. The relationship-based enterprise : powering business

success through customer relationship management. Toronto: McGraw-Hill. V. Kumar & W. Reinartz. Customer Relationship Management: Concept,

Strategy, and Tools. 2012.