1.CUSTOMER RELATIONSHIPMANAGEMENT Faculty : Prof .Ashok KumarSlides not for cirulation 1

2. Recommended Text Books :1. Customer Relationship management Emerging concepts, Tools & ApplicationJ.N Sheth , Atul ParvatiyarG.Shainesh2. The Ultimate CRM Handbook John. G . Freeland TMH edition3. CRM at the lightening speed. Paul Greenberg Slides not for cirulation 2 3. Why CRM ??????? Why do customers quit ???Research shows : 1% die 3% become dormant . 5% develop high aspiration . 9% leave for competitive reasons 14% are dissatisfied due to non value addedservice 68% quit because of an attitude ofindifference( relationship) by marketer.Slides not for cirulation 3 4. Traditional Marketing approach.Traditionally, marketers have been trained to acquire newcustomers, the ones who have not bought the productcategory before or those who are currently competitorscustomers. This has required heavy doses of massadvertising and price-oriented promotions to customers andchannel members.Today, the tone of the conversation has changed fromcustomer acquisition to retention. This requires a differentmindset and a different set of tools.The need to better understand customer behavior and focuson those customers who can deliver long-term profits haschanged how marketers view the world. Slides not for cirulation 4 5. Transition to CRM worldTraditional approachContemporary approachProduction centric Customer centricbusiness Approach business approachMass productionCustomized productionEconomy of scale Low volume & more varietyeconomy Of scopeLow cost & volumePush.Product delivery as a total solutionof Product & serviceSell ! Sell! Sell !!! Generate Pull demandSlides not for cirulation5 6. Transition to CRM worldCustomer = kasth se Customer grantsMar me destinyCustomer has need, soIf customer likes me they they come.will stay with me .Customer think I am in Customer think I am-dispensabledispensableThey have no choiceMore option, More competitionSlides not for cirulation 6 7. 1.Which of the following a business enterprise dont need ?Market ShareBrand visibilityYoY revenue growthYoY bottom line growthLoyal customerReduced cost of operationAll of them2.What should a business do to achieve all above ?Customer centric business processCustomer oriented top managementCustomer oriented operation teamCustomer friendly business modelsValue added solutionLong term relationship approachAll AboveSlides not for cirulation 7 8. Todays corporate challenges Is customer chasing a product Or product chasing a customer ?? Slides not for cirulation8 9. What do corporate world think of CRMInitially, when Bharti started its telecomoperations, just 40 percent of our customerissues used to get resolved , this has nowgone up to about 90 percent," : vice president . "It is vital for us to manage the expectations ofour customers and provide them with innovativeproducts and services in a manner which makesthem loyal," explains Gangotra."It is this need that made us opt for a CRM(customer relationship management) solution,"she says. Slides not for cirulation9 10. CRM application in VOLKSWAGENVolkswagen AG is the largest automobile maker in Europe. More than 36 millionvehicles carry on their logo. Like other automobile manufacturers, thecompany is well informed about its customers and heavily depends on thisinformation. However, they lose contact with the car owner after the firstchange of ownership (after an average 3.7 years). As a result, the companydoes not have current information about many of its customers.In 1988, the company started its Customer Come First marketing strategy.Under this strategy, all of the decision-making processes are based on theVoice of Customer. The company carefully monitored their response to35 advertisements, customer expectations, and customer satisfaction. Customerforums and focus group are used to hear the customer voice.Volkswagen developed services such as service guarantee, the emergency plan,the mobility guarantee, the customer club, and toll-free service phone. Alladvertising media are designed toward two-way communication. This allowsthe company to obtain useful information such as lifestyle, demographic, andbehavioral data.The company maintains a central database to provide club card, bonus pointprograms, club shops, and Volkswagen magazine. Every contact points with acustomer gives the company more information about the customer, so thecompany can constantly improve the quality and value of the customerDatabase.Slides not for cirulation10 11. Virgin Mobiles vision required applications that could support the deliveryof a real time experience at any time of day, across multiple channels. Itseasier to have such a system for a postpaid cellular service , since theyjust run the billing system a month after the calls have been made todetermine what the customer owes, explains Mike Parks. CIO For aprepaid service , everything happens immediately, resulting in atremendous systems challenge.You need systems that can seamlessly integrate with other systems. Youneed to be able to instantly share data across channels and completetransactions in real time. You must have real-time failover, so customersare not inconvenienced if a system goes down.To meet the challenge, Virgin Mobile knew it needed a customerrelationship management (CRM) solution that would allow customers tospeak with knowledgeable, friendly customer service employees whocould resolve their inquiries in a single call. We wanted to give ourservice agents the ability to have control of the callnot just to provideinformation, says Mike Parks.Slides not for cirulation 11 12. What is CRM ecosystem Business ProcessCRM levels360 degree viewof clientSlides not for cirulation12 13. Customer Life Cycle & CRM practice .CRM practice in an organization helps to managecustomer life cycle in most profitable way.CRM Impulsive Compulsive Addictive buyingbuying buyingSlides not for cirulation 13 14. The customer life cycle encompasses four continuous patternsin which businesses interact with customers across multiplechannels and touch points.CRM process integrates the right employees, partners,processes, and technology to optimize relationshipmanagement across all four patterns within a customer lifecycle:. Engage: Recognizing potential customers and convertingthem into (first-time) buyers.. Transact: Getting the customer to make a purchase.. Fulfill: Providing the total one point solution .. Service: Providing customer care and service across allchannels. Slides not for cirulation14 15. Integrating CRM with organizations BusinessThree important factors which determine the financial success of an enterprise: MarketDriven solution, Delighted Customer , Customer centric organization culture .ConsumerResearch Strategy FormulationImplementationFeedback CommunicationMeasuring CRM driven ROI Slides not for cirulation 15 16. Measuring business performanceBusinesses have long since measured financialperformance with traditional financial measurement tools:profit and loss statements, balance sheets and cash flowstatements. These measurement frameworks suffer fromlimitations; they measure past activities.Kaplan and Norton created the balancedscorecard framework to address some of thesedeficiencies and have expanded the tool to measure theimpact of strategy.Balanced scorecard intends to predict future financialperformance and track how effectively the corporatestrategy is executed.Slides not for cirulation 16 17. Balance Score card is a framework of evaluation used to measurethe overall effective ness of an organization.The 4 perspectives used to evaluate the overall performance are :Customer perspective , Learning & knowledge perspective , Financialperspective & Internal process perspective.The CRM specific perspectives are : 1. Customer Value perspective ,which measures the financial benefits gained form the customer .2. Customer satisfaction perspective which measures the level ofsatisfaction achieved by products & service .3. Customer interaction perspective that measures the operationalexcellence of internal process & multi channel management.4. Customer knowledge perspective that measures the quality of Slides not for cirulation17customer knowledge & data analysis. 18. Slides not for cirulation 18 19. Concept of Balance Score Card in servicesector . Slides not for cirulation 19 20. Measuring ROI in CRM driven business model.Internally focused measurement Externally focused measurementCustomerValueValueConsumerCreation deliveryBehavior&Attitude Consumer InsightCustomer Loyalty Word of mouth Increasing retained profitable Slides not for cirulation Client base 20 21. Measuring ROI in CRM driven business model.Internal Customerconsumer FinancialProcessperceptionBehavior PerspectiveSlides not for cirulation 21 22. Kaplan and Nortons balanced scorecard framework CLV( Projected revenue)(Business process) Slides not for cirulation22 23. RFM approach for CRM strategy(Recency, Frequency, Monetary Value ) Recency When was the last customer interaction? Frequency How frequent was the customer in its interactions with the business? Monetary value of the interactions Slides not for cirulation 23 24. Recency, Frequency, Monetary ValueMarketing Problem:A firm has sent e-mail to 30,000 of its existingcustomers, announcing a promotion of $100. 458of them responded (1.52% of the customers)Is there any relation between the respondingcustomers and their historical purchasingbehaviours? Slides not for cirulation 24 25. RFM Method:Recency Coding 30,000 customers are sorted in descendingorder with respect to their most recentpurchases Sorted data is divided into 5 equal groups, eachof them containing 6,000 people Recency codes are assigned: Top group hascode 5, bottom group has code 1 Slides not for cirulation 25 26. RFM Method:Recency CodingRecency Results 4.00 According to analysis based onResponse %3.1 customer recency, the grouphaving the highest recency 3.00 group has also the highestresponse rate2 2.00 1.5 Remark:(3.10% + 2.00% + 1.50% + 1.00 0.620.62% + 0.38) / 5= 1,52% which 0.38 is the response rate 0.00 Strict Rule: Ones who have5 4 3 2 1purchased recently are much more willing to buy new productsRecency code R than others purchasing in the 26 Slides not for cirulation past 27. RFM Method: Frequency Coding Sort the 30,000 customers with respect tofrequency metrics. Frequency metrics: Average number of purchasesmade by customer in a time period t Sort customers in descending order with respect totheir purchase frequency. Assign them to 5 groups, top %20 in the firstfrequency group. Assign frequency codes such that the top grouphas code 5 and the bottom group has code 1.Slides not for cirulation 27 28. RFM Method:Frequency CodingFrequency Results32.8 It is observed that highest 2.5response rate is from the2.1customers having highestResponse %2frequency 1.51.3 Frequent people respond10.8 0.9better than less frequent onesbut differences between 0.5groups are less than the ones0 in the recency 54 32 1 The lowest frequency group Frequency code F always contains newcustomers That is why it is named RFMSlides not for cirulation28 29. RFM Method: Monetary Value Coding The same process as recency and frequencycoding Sorting is done with respect to monetary valuemetric Monetary value metric is the average amountpurchased in a time period t At the end of the monetary value coding, assignmonetary value codes M = 1,...,5 to groupsaccording to their groups. Slides not for cirulation29 30. RFM Method: Monetary Value Coding 2.5Frequency Results 2.121.8 It is observed that highestResponse % 1.4 response rate is from the 1.5 customers having highest 1.2 1.1 monetary value1 Unlike the recency case, 0.5 there are not big differences between groups0 5 4 3 2 1 Monetary value code MSlides not for cirulation 30 31. RFM Method: Putting the Codes Together At the end of the monetary coding firm obtain RF M metrics for customers. Each customerbelongs to one of 125 possible combinations ofthe RFM values:Database R 12345 F21222324 25 Slides not for cirulation 31231 232233234235 M 32. RFM Method:STEPS Create 3 digits RFM codes cells All cells having the same number of customersin them RFM values are used to define group ofcustomers that marketing campaign shouldtarget or should avoid Used for identifying customers having highprobability to respond to campaigns:555s response rate > 552s > 543s >541.... Increase the response rate Increase profitability not for cirulationSlides32 33. Customer Value Metrics Critical measures used to define customer worthin knowledge-driven and customer-focusedmarketing Slides not for cirulation33 34. Customer Value Metrics: Size of Wallet J Size of wallet = Sj =1 j Sj = Sales to focal customer by firm j Assumption: Firms prefer customers with largesize of wallet in order to retain large revenuesand profitsSlides not for cirulation34 35. Customer Value Metrics:Individual Share of Wallet (SW) A proportion expressed in terms of percentage,calculated among buyers Measured at individual level A measure of loyalty Can be used in future predictions Different from the market share, which alsoconsiders customers with no purchase Sj Individual share of wallet % = J S j =1jS j = Sales to focal customer by firm j Slides not for cirulation35 36. Customer Value Metrics Share of wallet and size of wallet should beanalyzed together because... Size of Share of Purchases Wallet WalletCustomer 1$50050% $250Customer 2$10050% $50 Slides not for cirulation36 37. Customer Value Metrics: Transition Matrix Shows expected share of wallet from multiplebrands Depicts consumers willingness to buy over time Transition probability from B to A, than from A toC: 10%*20% = 2% Brand A Brand B Brand C Brand A 60% 30% 20% Brand B 10% 80% 15% Brand C 20% Slides not for 15%cirulation 70% 37 38. Lead analysis & sales forecastRFQ analysis & Bid preparation (Investmentproposal )Sales controlSales collaterals & templatesSales productivity analysisField intelligence reportSlides not for cirulation 38 39. Depending on the companys business model , CRM measurement frameworks vary. Some key categories of performance measurement include:1. Brand performance measures2. Customer asset management3. Customer behavior4. Marketing performance5. Sales force performance6. Service center performance7. Field service performance8. Supply chain and logistic performance9. Web site performanceSlides not for cirulation 39 40. 1.Brand-buildingCustomer equity building Customer behavioral modeling Customer value managementCustomer-facing operations 2. Marketing operations Sales force operations Service center operations Field service operations 3.Supply chain and logistic operations Web site operationsLeading indicator measurement 4. Balanced scorecards Slides not for cirulation 40 Customer knowledge management 41. Dimensions of Loyalty & loyalty management1 Emotive Loyalist loyalist 2 Inertial loyalist 3 DeliberativeCustomer loyalistDownward 1 Life styleMigratorsDownward migrator 2 Deliberative migrator3 DissatisfiedDownward migratorSlides not for cirulation 41 42. Marketing Statistics The average business never hears from 96% ofits unhappy customers.They tell a minimum of 9-10 other people abouttheir bad experiences. Getting a repeat customer from unhappycustomer group is extremely difficult . Every positive experience is shared with 2 to 3people( prospective customer ). For every single complaint received, there are infact 26 customers withfor cirulationSlides not the similar concern. 42 43. Marketing Statistics Of the customers who register a complaint, as many as70% will do business again with your organization if thecomplaint is resolved effectively. This figure goes up to 95% if the complaint has beenresolved promptly. 40% of complaints result from customer mistakes orincorrect expectations. Customers who complain and get satisfactory resultsare 8% more loyal than if no complaint at all.Slides not for cirulation43 44. Customer Profitability and Life time Value.As cost of serving a customer increases overthe years ,due to inflation ( rise in input cost )profit earning ability of the firm decreasesduring the life time . Hence customer centricbusiness leverage on RLEATIONSHIPMANAGEMENT as key strategy to improvecustomer profitability over the lifetime of thecustomer.Slides not for cirulation44 45. Customer lifetime value represents exactly how much eachcustomer is worth in monetary terms, and therefore exactly howmuch a marketing department should be willing to spend toretain each customer or a specific segment .Relationship can be contractual or referral. Accordingly the costof maintaining the relationship will change. This will reflect inCLV. Slides not for cirulation 45 46. CLV model makes simplifying assumptions :1. Churn rate: The percentage of customers who end theirrelationship with a company in a given period. One minus thechurn rate is the retention rate. Most models can be writtenusing either churn rate or retention rate. If the model uses onlyone churn rate, the assumption is that the churn rate is constantacross the life of the customer relationship.2.Discount rate: The cost of capital used to discount futurerevenue from a customer. The current interest rate is generallyused as a simple discount rate. Slides not for cirulation46 47. 3.Retention cost/ Cost of servicing : The amount of money acompany has to spend in a given period to retain an existingcustomer. Retention costs include customer support, billing,promotional incentives, etc.Period : The unit of time into which a customer relationship isdivided for analysis. A year is the most commonly used period.Customer lifetime value is a multi-period calculation, usuallystretching 3-7 years into the future. In practice, analysis beyond this point is viewed as toospeculative to be reliable. The number of periods used in thecalculation is sometimes referred to as the model horizon.4.Periodic Revenue: The amount of revenue collected from acustomer in the period. Slides not for cirulation47 48. Customer Lifetime Value (simplified formula)nCLV = D [(Rt Ct)] - Ac + Rf [ Rtr Acr ] t=1(1+r)t (1+r)tWhere:t = Year n = Length of customer relationship r = Discount rateRt = Revenue earned from customer in year tCt = Cost of servicing customer in year tAc = Full acquisition costsRf = Number of referrals generated by customer each year D = customer retention rateAcr = Reduced acquisition costs .Rtr = Revenue from referral customerbackup FolderSpecial LTV Calculator2.xls Slides not for cirulation 48 49. The CLV equation can also be used to show whereadditional profits can be obtained from customers.Increased profits can result from: IncreasingJ, the number of productspurchased, by cross-selling. Increasing P, the price paid, by up-selling orcharging higher prices. Reducing C, product marginal costs. Reducing MC, the customer acquisitioncosts. Slides not for cirulation 49 50. CLV propositionSlides not for cirulation 50 51. Effectiveness of Loyalty ProgrammeEffectivCustomere Exit pointness Time taken to redeem CLPSlides not for cirulation 51 52. Hence in a competition driven markethaving more business challenges, to attract , acquire and retain a customer,business practices which are customercentric ( Customer RelationshipManagement ) is imperative and need ofthe business.Slides not for cirulation 52 53. Adoption( diffusion ) of the new product concepthappens only if : Slides not for cirulation 53 54. Diffusion strategyFactors which are responsible for early adoption are :1. Perceived relative advantage2. Compatibility with existing process , values , belief etc3. Low complexity : Easy operation, maintenance. Userfriendly.4. Trailability : Ease of experimenting5. Observability : Visual effect Slides not for cirulation 54 55. Create adopter categories :InnovatorsEarly adoptersEarly majorityLate majorityLaggardsEarlyEarly Innovatorsadaptors majorityStrategy to : Develop innovators: Acquire innovators through price ,trivertising , trade promotion, BTL promotion flexible terms of take back if not satisfiedetc. Mass media Develop Adaptors : Extensive sales promotion . Push early majority; Create demand through urgency , opportunityloss, artificial delay etc.Slides not for cirulation 55 56. Lead Management ProcessLead management or opportunity management process involves a CRMprocess which help to identify the right opportunities , qualify the opportunitiesand convert them. More popularly known as sales pipeline or salesfunnel management .As the suspect to customer ratio decreases drastically in any sales process ,sustained forecasting model for lead generation is must .Material planning , production planning , budget , profit guidelines , etc largelydepend on the revenue plan of the firm .Sales forecast happens to be the initial link for sound revenue plan. C RMpractice address this issue. Slides not for cirulation 56 57. Customer Life Time value ( CLV) in the marketing lexicon explainsthe concept that each customer in the database should be analyzedin terms of current and future profitability to the firm.A model of the profitability of a customer based on past andcurrent purchases is the following:Profits t = [ (P j C j) - MC k] + R( PJ CJ ) T (1+ r)(1+ r)where:t = the current time period,T = the total number of time periods in the database,J = the number of products purchased,K = the number of marketing tools used to target customers,Pj = Revenue generated from the purchase.Cj = Cost of the product purchased,MCk = Customer acquisition costs).Slides not for cirulation 57 58. Steps to develop CRM perspective in an organization. 1. Building database of customer activity 2. Set up a process to analyze the data base according toactivity . 3. Report which customer to target 4. Establish business process to build relation with the targetcustomer 5. Establish & convey customer privacy issues. 6. Define metrics for measuring the success of CRM program in the organization Slides not for cirulation 58 59. CRM perspective in an organization. Slides not for cirulation 59 60. Slides not for cirulation 60 61. CRM Eco systemIntelligent and easy business solutions thatenable extraordinary customer experiences CustomerServiceEmpoweredConnected Sales ForceFieldEmployeesAutomationService CustomersMarketing eCommerceAutomation InformedIntegratedManagementPartners Slides not for cirulation61 62. CRM strategy in an organization helps to build 360Degree view of the customer Slides not for cirulation 62 63. CRM Process At HDFCSlides not for cirulation 63 64. Technology:Slides not for cirulation 64 65. CRM removes the disjoint & micro perspective of a customer in enterpriseSlides not for cirulation65 66. Measuring business performanceBusinesses have long since measured financialperformance with traditional financial measurement tools:profit and loss statements, balance sheets and cash flowstatements. These measurement frameworks suffer fromlimitations; they measure past activities.Kaplan and Norton created the balancedscorecard framework to address some of thesedeficiencies and have expanded the tool to measure theimpact of strategy.Balanced scorecard intends to predict future financialperformance and track how effectively the corporatestrategy is executed.Slides not for cirulation 66 67. Measuring ROI in CRM driven business model.Internally focused measurement Externally focused measurementCustomerValueValueConsumerCreation deliveryBehavior&Attitude Consumer InsightCustomer Loyalty Word of mouth Increasing retained profitable Slides not for cirulation Client base 67 68. Measuring ROI in CRM driven business model.Internal Customerconsumer FinancialProcessperceptionBehavior PerspectiveSlides not for cirulation 68 69. CLV( Projected revenue)(Business process) Slides not for cirulation 69 70. Depending on the companys business model , CRM measurement frameworks vary. Some key categories of performance measurement include:1. Brand performance measures2. Customer asset management3. Customer behavior4. Marketing performance5. Sales force performance6. Service center performance7. Field service performance8. Supply chain and logistic performance9. Web site performanceSlides not for cirulation 70 71. 1.Brand-buildingCustomer equity building Customer behavioral modeling Customer value managementCustomer-facing operations 2. Marketing operations Sales force operations Service center operations Field service operations 3.Supply chain and logistic operations Web site operationsLeading indicator measurement 4. Balanced scorecards Slides not for cirulation 71 Customer knowledge management 72. Products and services originate in the companys valueproduction capabilities and then flow through the valuedelivery capabilities and to the customer. Thecompanys customer insight capabilities must collectknowledge about the customers behavior and mindsetand inform the value production and deliverycapabilities.While companies frequently measure customer valueproduction and delivery capabilities, very few measurethe customer insight or knowledge managementcapabilities.Slides not for cirulation 72 73. CRM strategy helps to build 360 degree view of the customerPre consumptionStage Desire statePerception & And aspirationConsumptionstage Attitude displayed Driving the unstatedDuring consumption Need Expectation gap Or delightBehavioralSymptoms forcingshiftPost consumptionStage Slides not for cirulation 73 74. Evaluate Differentiate360 degree Build Customer CustomerCustomerretention ROIView strategySlides not for cirulation 74 75. Identify your customerHSelectivelyAdd valueexit& reduce costTo serve.Cost toServeMove up theDifferentiate throughValue chainVAS & RetainLL HProfitabilitySlides not for cirulation 75 76. Slides not for cirulation 76 77. Is this the way you are ManagingCustomers ?MyWe keep track of customers usingsales, service, and marketing teamsMy sales andtrack of customers using of We keep service teams keep track useOutlook, spreadsheets, paper,separate applications; They cant things, but I am not sure where our financial application and manila foldersshare information Customer chaos High Dissatisfaction High churn rate Low profitability Low brand equitySlides not for cirulation 77 78. Is this how you want to manageCustomers ?My sales, service, and our profitableWe know who are marketing teams My sales and trackservice teams using of We keep service teams keep follow and of customers trackOur sales & closely work with them tocustomersare integrated tightly and shareour financialprocessesconsistent application things. enhance the experience of our products & customer information for decisionmaking servicesSlides not for cirulation 78 79. ORGANIZATIONS NEED CUSTOMER CENTRICAPPROACH AND CULTURE TO BUILD POSITIVECUSTOEMR EXPERIENCE , LOYALTY .ORGANIZATION NEED TO DELIVER TOTAL BRAND EXPERIENCE . MUST DELIVER MULTIPLE TOUCH POINT VALUEHIGH CUSTOMER LIFE TIME VALUETotal Customer Solution = Product + Customer serviceSlides not for cirulation79 80. Customer Relationship Management Process of creating and maintainingrelationships with business customers orconsumers A holistic process of identifying, attracting,differentiating, and retaining customers Integrating the firms value chain to createenhanced customer value at every step An integrated cross-functional focus onimproving customer retention and profitability forthe company.Slides not for cirulation80 81. Customer Relationship ManagementA customer centric business processespracticed by an organization from acquisition toretention to build bonding , enhance positivecustomer experience, increase multiple touchpoint value and create high customer life timevalue.Slides not for cirulation81 82. Customer Relationship ManagementThe use of information-enabled systemsfor enhancing individual customerrelationships to ensure long-termcustomer loyalty and retention Slides not for cirulation 82 83. CRM process focuses more on personalized marketingrather than mass marketing .CRM process is developed on the principles ofrelationship marketing concepts.CRM process is created around customer serviceconcepts .CRM is not just a software .MYTHCRM can do well only in B2B model . MYTHSlides not for cirulation83 84. CRM process demands an attitude shift atmanagement level, change in businessprocess level to adapt to customer needs,technology support to deliver & service thecustomer fast and quick. CRM = Customer oriented+ Customer oriented + InformationOrganizational culturebusiness processTechnologySlides not for cirulation 84 85. Contemporary CRM process focuses on :Proactive approach rather than reactive .Personalized care to individual customerExtensively leverage on technologyProduct & service offerings specific rather than genericIntegrated with back end operations like ERP .Slides not for cirulation 85 86. Relationship ManagementSlides not for cirulation 86 87. Shift from transactional marketing to Relationship Marketing InterdependenceRelation shipMarketingCollaborateConflict Transactional MarketingIndependence Slides not for cirulation87 88. Relationship Marketing & customer Loyalty .Relationship.CLVCEMCTVMarketingIt helps to build a life time customer value for theorganization .CRM initiative helps the organization to manage relationbetter to maximize revenue & life span while keeping theoperational cost low.Slides not for cirulation88 89. Level of relationship strategiesIntegrated information service Volume & frequencyJoint investments RewardsShared process & equipment Bundling & cross selling Stable pricing Structural FinancialbondbondMassContinuos relationshipcustomization CustomizationSocial personal relationshipCustomerbondbondsocial bonds amongintimacycustomers.InnovationSlides not for cirulation89 90. Distinctions in CustomizationMass MarketingCustomizationRelationshipCustomer is passive Customer is activewith customersparticipant in process co-producer,Customer needsResearched andMay not bearticulated articulatedProduct and service Marketing and R&D Customized basedofferingdrive offeringon customerinteractionsPrice Fixed prices with Value based pricing;discounting customerdeterminedCommunication Advertising and PRIntegrated,interactiveDistributionMix of direct and Direct (online)indirect not for cirulation Slides90 91. CRM process focus areasCustomer Service ProcessSales processMarketing Contact & Activitymanagement Management processprocessSlides not for cirulation 91 92. SALES ManagementProcess Slides not for cirulation 92 93. Sales Planning A good sales strategy evolves from a good sales planning. Any sales planning should ideally begin with the situation analysis. Organizations present position vis a vis the competition . Competition need to be looked from direct & indirect perspective. Its inherent strength & weak ness in a given account , market segment , territory , product etc. The Sales planning process comprises of :BusinessMarketing Sales SalesSalesObjective PlanPlanBudget ResponsibilityEvaluate &SalesControl ReportSlides not for cirulation 93 94. Challenges of Sales Management processLong Sales Cycles : In complex products andservices ( solution sales ), the sales process fromlead generation to closure tend to get longer thananticipated.Disconnected lead information system makingdecision process of lead qualification difficult .Need for transparent sales transaction in de- centralized customer set up.Control & streamline Sales forecast process.Unable to assess sales productivity Slides not for cirulation94 95. Sales Force Automation Manages lead generation, tracks movement ofleads through the pipeline, allows better usageof customer data, integrates activities acrosssales channels, simplifies relationshipmanagement, forecasts for opportunities Helps to understand competitive position insales situation . Sales funnel ( Sales pipeline ) management Sales person productivity analysisSlides not for cirulation 95 96. Revenue management is key the success of any business .Revenue Planning : Begins during the third quarter fornext fiscal year.Input is gathered from sales & marketing team andother sources and Revenue plan is fixed.Related expenses are decided & planned profit is predecided.Revenue plan is broken up into sales targets forproduct line & communicated to sales force .Q1( AMJ)Q2(JAS)Q3( OND)Q4 ( JFM)M1 M2 M3M4 M5 M6 M7 M8 M9M10 M11 M12 annual revenue plan.xl Slides not for cirulation96 97. Sales Process ManagementSales forceProductivitySales performanceAnnual businessSales Planningmanagement AnalysisplanningOrder lossStatus report& analysisOrder Order Business partner Channel partnermanagement AcquisitionManagement WarehouseOrder vettingC&FTechnicalCommercialFeedback to Opportunitysales teamManagementSales funnelmanagement Slides not for cirulation 97 98. Generate More Leads: Capture those leads through a variety of channels including your Web site.Campaign ROI Top Search Terms Leads by Source Lead QualityWeb Site VisitorsWeb Form Google AdWords Organic Web traffic Contact me request Email Marketing AdWords referrals Free trial Email responses Event registration Direct Mail Cold Calls Inbound CallsCreate New Leads Lead Capture Partners Yellow pages Cold calling Set up auto-response emails TV Google Maps If one doesnt exist, create a new lead-Thank you for your interest Radio Word-of-mouth referrals-Your trial information -Event details EventsLists Import Data Set up lead assignment rules Trade Shows-Geography Purchased list Use the import PR-Company size Trade show wizard or Excel -Product of interestSlides not for cirulation98 Legacy dataconnector 99. Close More DealsClose deals faster by providing a single place for updating deal information, tracking opportunitymilestones, and recording interactions. Easily analyze your sales pipeline so you can quicklyidentify and eliminate any bottlenecks in the sales cycle.Retail salesforecast.xls Closed BusinessTop 10 DealsTop Sales Reps by Month Sales MarketingOpen Opportunities Presentation ProposalNegotiationWonYesNew CustomersNo You canCustomize Sales force toSupport monitor your fit your internal sales Sales force gives your entire opportunitiesmethodologies and company a 360-degree view of reports andprocesses, making itKeep an archive of your dead opportunities. your customers and facilitates dashboards toeasier to monitor your Use email marketing andcollaboration across your keep track ofsales pipeline. organization, helping you buildcall downs to re-market strong, lasting customer your top deals to your archivedrelationships. and prioritize opportunities. Slides not for cirulation99 your time. 100. Lead analysis & sales forecastRFQ analysisBid preparation (Investment proposal )Sales coordinationSales collaterals & templatesSales productivity analysisField intelligence report Slides not for cirulation 100 101. Sales target The amount of sales each sales representative, team, product or product category has committed or is assigned to solicit.Close percentage This metric goes by many names. The purpose of the metric is to score a lead with a percentage that it is likely to turn into a sale. As sales personnel work with the customer to answer questions, exchange information, prepare legal contracts and so on, the percentage is changed up or down.Customer score Not only are leads scored, but customers are too. By scoring a customer, companies can develop a model that helps them predict which customers are likely to purchase their product or service. Many attributes (size of the company, geographic location, level of access into the company, level of cultural, industries the customer serves, size of budget for the solution being sold) can go into scoring a customer. In this regard, customer scoring is similar to a segmentation exercise.Sales expenses This metric includes all expenses related to the sale, such as travel, entertainment, printing, shipping, use of other internal resources, 3rd party expenses, etc.Close rate The percentage of sales leads that convert to sales. This is often tracked at the sales representative, team, customer segment and product/product category level. Slides not for cirulation 101 102. Sales totalsThe total number of sales represented by all leads. This metric is often multipliedby the close percentage for a weighted sales leads number. This metric is used topredict future sales.Sales lostThe number (or percentage) of sales lost, broken down by reasons, which caninclude loss to a competitor, loss of customer funding, and many other reasons.Training impact Companies use different techniques to detect the impact of sales training on thesales force, including sales staff surveys on training effectiveness andcomparisons in other sales metrics pre- and post-training.Cross-sell rate The percentage of sales totals that include items that were not specificallyrequested but recommended by the sale force or through marketing.Number of calls The number of calls made by a sales representative or sales team. This can bebroken down by new account calls and existing account calls.Number of new How many new customers have been added during a period of time.customersSlides not for cirulation 102 103. Key returns from improved sales performanceand management include the following: Increased salesperson productivity Increased sales management productivity Decreased cost of customer acquisition Increased revenues (increased profits onrevenues) Decreased administrative overhead Reduced employee training costsSlides not for cirulation 103 104. Customer Service managementQoS ( Quality of Service ) deliveredby an organization is judged by itscustomer of the basis of 5 keyparameters known as serve qualparameters. Slides not for cirulation 104 105. 1. Tangibles of Service :( Infrastructure & facilities , Employ commitment (People) & the process links of services laid to build efficiency &problem resolution )2. Responsiveness : Attitude (Willingness) to help the customer proactively.3. Reliability : Dependability on the service & accuracy ofthe service.4. Assurance : Competence of the organization to deliverthe promises & gain credibility for service .5. Empathy : Caring for the customer . Feeling of concern& responsibilities. Ser Mktg not for cirulationSlides 105 Proprietary slides 106. Tangibles of ServiceResponsiveness ReliabilityAssurance Empathy Serve Qual Model. Ser Mktg not for cirulationSlides 106 Proprietary slides 107. Service Quality Gap ModelPerception Gap CommunicationEmployee Gapperception Delivery GapKnowledgegapStandard gapManagement Employee perception Slides not for cirulation 107 108. CUSTOMER SERVICE MANAGEMENT PRE SALE SERVICE POST SALE SERVICE CALL CENTER MANAGEMENT FILELD SERVICE MANAGEMENTHELP DESK MANAGEMENT WARRANTY SERVICE & NON WARRANTY SERVICE SPARE SERVICE MANAGEMENT FIELD ENGINEER ALLOACATIONSlides not for cirulation 108 109. Designing SLA for committed serviceSLA is formal & legal document detailing the scope of service with standardOperating procedure explained by the service provider to set right expectationOf the client. ( Eliminate Service Gap )Components of SLAScope of service to be renderedCommitted Total turn around timePenalty clausesImplementation timeJoint responsibilityFinancial implicationPrice escalation clauseCommercial implicationsLegal implicationTermination clauseRenewal clause Slides not for cirulation109 110. SLA Management encompasses :SLA contract definition (basic schema with the quality of service parameters.) SLA negotiation SLA monitoring SLA enforcement, according to defined policies.Slides not for cirulation 110 111. CUSTOMER SERVICE MANAGEMENT PROCESSSERVICESERVICE STATISTICS SERVICE ROIPERFORMANCECallcallcall call call incentivescapture analysis allocation tracking closure calculationSet up auto-responseemails with id codeSERVICE CALLbenchmark THRU Web Site Email TO CC Web Form Contact me request Calls ThruTOLLFREE NO.Inbound Calls Service call Allocation processImport DataPreventive callManagement Warranty customer Use the import Databasewizard or ExcelSlides not for cirulation 111 connector 112. Call tracking:logging to resolutionCall uptime calculation : Actual time / total committed timeService center operations Slides not for cirulation112 113. Call countsand The number and duration of calls either received or sent, oftenduration broken down by call type, which is input by the call center representative after completing the call.Average hold time The amount of time a customer has to wait before being served byan agent.Abandonment rateThe number of calls abandoned expressed as a percentage of thetotal calls. These are customers who hang up while waiting for anagent or get disconnected.Average The average time a caller waited before abandoning the call.abandonment timeAdherence The amount of time the agent is in their seat ready to take calls,expressed as a percentage of the total time the agent is scheduled.Wrap-up timeThe amount of time, after the call is completed, the agent needs tocomplete administrative tasks related to the call.Slides not for cirulation113 114. Average cost per call The sum of all costs for running the center divided by the number of callsreceived.Average talk time The amount of time the agent spends on the call talking to a customer.Average handle time The sum of the talk time and the wrap-up time.Agent utilization The amount of time agents spend on calls versus other internal tasks,expressed as a percentage of available time.Blocked calls The number and percentage of calls that receive a busy signal and could noteven get to the automatic call distribution system (ACD).Service level A goal for call center performance. A widely used format for the goal andvalues is for a call center to answer 80% of the calls within 20 seconds.Call qualityCompanies have devised ways to monitor the quality of a call and the agentsabilities. Scores can include vocal intonation, friendliness, promptness,knowledgeableness, and adherence to procedures. Slides not for cirulation 114 115. Response time Amount of time it takes a service agent to respondCompletion time Amount of time it takes a service agent to resolve a customersproblem.Repairfulfillment The amount of time it takes to deliver a requested part or servicetimeneeded for a repair.Service level This metric is similar identical to the call center metric whenapplied to inbound phone calls. It includes additional measureswhen applied to all support calls.CustomerMany companies routinely survey their customers after a servicesatisfaction scorecall to verify satisfaction.Service call priority Service calls are frequently prioritized to comply with servicecontracts or warranty terms or to indicate the importance of therequest. Slides not for cirulation115 116. CRM driven Supply chain performance.Fill rate The number of items ordered compared with items shipped.Fill rate can be calculated on a line item, SKU, case or valuebasis.On time ship rate What percent of orders where shipped on or before therequested ship date. On time ship rate can be calculated on aline item, SKU, case or value basis.Performance to What percentage of orders where shipped on or before thepromisepromised ship date. In some cases, some items may be on back order or delayed for whatever reason. This metric captures the overall conformance with promised ship dates.BackordersThe number (or percentage) of unfulfilled orders.Slides not for cirulation116 117. Customerorder The average time it takes to fill a customer order.cycle timeCash to cycle time The number of days between paying for raw materials and getting paid for the product by the customer.Supply chain cycle The total time it would take to satisfy a customer order if alltime inventory levels were 0.PerfectOrder The error-free rate of each stage of an order. Error rates are capturedMeasureat each stage (order entry, picking, delivery, shipped without damage, invoiced correctly) and multiplied together.Upside flexibility The ability of a supplier to meet additional demand requirementsSlides not for cirulation 117 118. Contact and activity ManagementKAM processBlue book / Account dossier /Customer historysheet preparationScheduler and calendaring eventsProject management process Slides not for cirulation 118 119. The critical new interfaces for sales Marketing Strategy LargeKey/Global Account ManagementCustomerThe shrinkingSales Level/domain for thePotential traditional salesforce? Direct channels/Internet-based salesSmall Low HighCustomer Slides not for cirulation Requirements Service/Relationship 119 120. The relational development model KAMIntegrated Strategic Interdependent intent of sellerCooperativeBasicExploratory Strategic intent of buyerAdapted from a model developed by Millman, A.F. and Wilson, K.J.From Key Account Selling to Key Account Management (1994) 121. Key account preliminary categorization Degree ofKAM relationship stageNeeds of parties to collaborationKAM relationship High: collaborative Integrated Realization of fullest potentialof both organizations Confidence in relationship, stableInterdependent & highly evaluated by both sidesCooperative Reduction of risk,ability to forecast BasicOperational, efficienttransactionsLow: transactional Slides not for cirulation121 122. Creating closer relationships with supply chain partnersD DI IMarketing From MarketingR RE EC OperationsOperationsCT TO Information SalesPurchasing Information OR SystemsSystemsRS SSupplier Customer 123. Creating closer relationships with supplychain partnersDirectors Directorsselling companyTobuying companyMarketing MarketingOperationsOperationsInformation InformationKey-AccountSystemsSystems SupplierCo-ordination Development SupplierCustomer 124. Key account categorizationATop 15 (in volume/revenue generated)B Next 30C Next 55Slides not for cirulation124 125. Selection of Key Accounts Supplier BusinessStrength with CustomerHighlow High StrategicStar AccountAttractivenessLarge StatusStreamline LowMediumSmall Slides not for cirulation125 126. The key customer portfolioSupplier business strengthwith customer High Low High Strategic SelectiveinvestmentinvestmentKey accountattractiveness Pro-active Managementmaintenance for cashLowSlides not for cirulation 126 127. Supplier Relationships as a Source ofBusiness AdvantageBusiness Business ProcessTypeContribution CriteriaCriteria10 Strategic First mover advantage KAM lead10Suppliers Channels to market Business strategy driven < 1% of Reverse revenue generation A team on both sidessuppliers20Preferred Point-to-point solution Relationship manager 600Suppliers Technology access Strategy from CatMan c. 20% of all Operational advantage SLA scorecardsuppliers1, 350Commodity Cost improvement Managed locally3,000Suppliers Superior service levels Performance monitoredc. 80% of all suppliers Ease of transaction E-enabledSlides not for cirulation127 128. Blake and Mouton 91/99/9The customersThe problemfriendsolver5/5Concern forCompromise customerMethod approach 1/19/1The order The pressuretakersalesman119Concern for making the saleSlides not for cirulation128 129. Implementing an Account Planning Process STEP 1ContinuousIdentify strategic customer &ImprovementDevelop accountplanning process STEP 2 ContinuousFacilitate buy-in Improvementat local managerand KAM levelsSTEP 3Provide guidance( CSH ), commit resources and discipline toensurethat plans are developed and used. Measureaccount profitability.Slides not for cirulation129 130. Developing the Strategic Account Planning Process The strategic account planning processshould be specific and actionable, andinclude Objectives and activities Action plans designed to meet the objectives Assigned responsibilities and accountabilities A listing of the resources required toimplement the plans Slides not for cirulation 130 131. Facilitating Buy-In Training and education programs canfacilitate buy-in within the sellingorganization Sales education programs mustemphasize the value that KAM and salesmanagers can provide to these strategicaccountsSlides not for cirulation 131 132. Providing Guidance for Plan Development and Implementation Key Account Managers provide much guidance and leadership to their team & buyers . They seek ongoing support from top management Identify new opportunities & help buying organization in decision making. Act as problem for cirulation & evangelist. 132 Slides not solver 133. The Engineering PerspectiveDATA MINING Slides not for cirulation 133 134. Six Es e CRM are :1. Electronic channel integration : (Web, Mail & messaging )2. Enterprise : Across the organization other than sales & marketing function are able to interact & provide customer centric services & products. ( Enterprise integration ERP , Work flow , DRP ) .3. Empowerment : Enabling the customers to decide when & how to stay in touch with the organization.4. Evaluation : Evaluate customer interaction along various touch point channel & compare anticipated ROI against accruals. Slides not for cirulation 134 135. 5 Economics : Concentrate on customer economics , whichdrives smart asset allocation decision & greatest return oncustomer communication6. External information : Leverage information from thirdparty sources , web page profiler etc.Slides not for cirulation135 136. CRM application & development tools Functional capabilitiesSoftwareBasicCMS SFA Help Added features AnalysisDesk MySAP .com*** Siebel* ** **** Clarify *** Sales Logix ***** Oracle People soft *** * Netsol **** SAS**** Teradata **** Micro strategy * Slides not for cirulation**136 137. Popularly used BI tools:Business objects,Teradata,Cognos - Power playInformatica ,Crystal enterprise suite , SAS ,Micro strategy.Slides not for cirulation 137 138. Data Mining Collection, storage, and analysis of typicallyhuge amounts of- data Data readily resides in the companys datawarehouse Data cleaning is almost inevitableSlides not for cirulation 138 139. Data MiningGoals of Data Mining Developing deeper understanding of the data Discovering hidden patterns Coming up with actionable insights Identifying relations between variables, inputsand outputs Predicting future patternsSlides not for cirulation 139 140. Data Mining: Steps Data selection Data cleaning Sampling Dimensionality reduction Data mining methods Slides not for cirulation 140 141. Data Mining:Methods Exploratory Data Analysis Segmentation Cluster Analysis Decision Trees Market Basket Analysis Association rules Information Visualization Prediction Regression Neural NetworkSlides not for cirulation 141 Time Series Analysis 142. Information VisualizationData mining algorithms... Can only detect certain types of patternsand insights Are too complex for end users tounderstand Slides not for cirulation142 143. Information Visualization A field of Computer Science which hasevolved since the 1990s. Before 1990s: Graphical methods for dataanalysis to pave the way for statisticalmethods After 1990s: Computer hardware has advanced with respect to memory, computational power, graphics calculations Software has advanced with respect to user interfaces Data collection systems have advanced (barcodes, RFID, ERP) Slides not for cirulation143 144. Information Visualization The analyst does not have tounderstand complexalgorithms. Almost no training required. There are no limits to the typesof insights that can bediscovered. Slides not for cirulation 144 145. Marketing Data analysis forstrategic marketing decisions.Data standardizedInformation aboutTo a common format Data available in DW Slides not for cirulation 145 146. CRM process & information technology Slides not for cirulation 146 147. TechnologySlides not for cirulation 147 148. Typical e CRM ArchitectureCRM tool used for building high customer touch Slides not for cirulation 148 149. Classification: It maps data into predefined group orclusters . These classes are predefined . Classificationalgorithms requires that the classes are defined on the dataattributes values. ( Micro Segmentation of consumers )Regression : It assumes that the target result fit in to someknown type of functions ( eg linear , logistic etc ) & thendetermines the best function which models the given data.Clustering : The approach is useful for determining thesimilarity On the predefined attributes . Identifying preciseset of variables / parameters describing the data set fordecision making process. Consumer modeling forpromotion strategy.Summarization : It is used for extracting representativeinformation about the data not for cirulationSlides base. It maps data in to subsets 149with associated simple description. 150. CRM Project implementationmethodologyEnvisioningPlanning Development Deployment PostDeployment Slides not for cirulation 150 151. Components for CRM software project managementmodelBasic components are common to any industries whichinclude1. Scope management2. Time management3. Resources management4. Quality management5. Cost management6. Communications management7. Risk management,8. Procurement management9. Integration management.Slides not for cirulation 151 152. Implementing CRM solution: TechnologyperspectiveCRM solutions stand on a integrated database ofcustomers/ transaction data , which are used forbuilding proactive marketing strategies .People , Process & Technology are the corner stonesof any successful CRM solution implementation .Industry nuances are to be kept in mind whiledesigning CRM solution for an organization.Integration issues with back end operation viz ERPwork flow management etc need to be addressed priorto the selection of CRP solution. Slides not for cirulation152 153. Data mining process: It helps to predict future trends & behavior allowingthe business to make proactive knowledge based decisions.Data mining taxonomy . Predictive modelDescriptive model Classification ClusteringRegression summarizationTime series analysis Association rules PredictionSlides Sequence discoverynot for cirulation 153 154. Slides not for cirulation 154 155. Slides not for cirulation 155 156. Slides not for cirulation 156 157. Using Customer tracker an organization can dofollowing :Profile key contacts.Schedule activities and view tickler lists.Generate, distribute and store customercorrespondence.Create, store and track customer contracts.View customer project lists and support tickets.Identify, track and manage opportunities.Sales executives and administrators can leverageviews of Pending Pipeline, Win / Loss Data, andActivity Lists.Establish a portal for named customer contacts tosubmit project requests and support tickets. Slides not for cirulation 157 158. Slides not for cirulation 158 159. Slides not for cirulation 159 160. Slides not for cirulation 160 161. Slides not for cirulation 161 162. Slides not for cirulation 162 163. CRM implementationUser interface.Session managementWork flowDatabaseGraphicsMessagingBusiness Slides not for cirulation 163 164. Introducing The Solution An easy to useCombine Outlook CRM Solutionwith Slides not for cirulation164 165. Pipe line reporting tool. Slides not for cirulation 165 166. Slides not for cirulation 166 167. Slides not for cirulation 167 168. Slides not for cirulation 168 169. Slides not for cirulation 169 170. Conclusion :CRM is a business philosophy driving anorganization to build customer centricbusiness process & culture to gaincompetitive edge in cut throat competitiondriven market for sustainability & growth.Technology is the backbone of anysuccessful CRM process implementation .Slides not for cirulation 170 171. Slides not for cirulation 171 172. Slides not for cirulation 172 173. CRM Information platformINPUT Contact & ActivitySales data management Sales management User profiles Business rules Business intelligence Marketing ProgramsMarket development For decision supportLoyalty programProductRelational database Sales promotionConsumer Collaborative communication Pre sale promCompetitionProcessPriceCustomized informationCustomer delivery Content operation & service Marketing Process Call center Business policy Help desk & rules SMS alert IVR Internet access Slides not for cirulation173 174. Slides not for cirulation 174 175. CRM Process FrameworkFormationManagement & GovernancePerformanceCRM PurposeIncreaseEffectiveness &Improve efficiency Team structure Relationship Role definition Planning process Strategic Programs Process alignmentMarketing Account Monitoring process Financial Management Market communication Customer Retention Marketing Employee motivationSatisfaction Co-op agreements Employee Training& loyalty Strategic PartnershipPartnersFeed back &CriteriaProcess improvementProcess Slides not for cirulation175 176. CRM Approach in an organization.CRM SOLUTION includes all customer-facingbusiness applications integrated under a singlecustomer database . Sales Force Automation (SFA) Customer Service (CS) Sales and Marketing Management (SMM) Contact & Activity ManagementSlides not for cirulation176 177. Technology driven approach to CRMBack end integration & Multipoint interactionDevelop touch pointDescriptive & predictiveWith customer BehaviorCustomer engagement Operational CRMAnalytical CRMCollaborative CRMCUSTOMERSlides not for cirulation 177 178. Technology driven approach to CRMWeb enabled & integratedBuilding customerCustomer databasecontact through:Data securityTelephoneData recovery & redundancyMailWeb MiningPersonal contactBusiness networkAfter saleData integration with back endComplaint handlingBusiness operationKey AccountData miningManagementIntegration with automated customerCustomer CareContact processIVRHelp deskSMSInternetSlides not for cirulation178 179. Slides not for cirulation 179 180. Slides not for cirulation 180 181. Organizations aim is to develop more of clients &advisors.Clients & advisors are likely to generate positive word ofMouth ( WOM) which are called a reference customers. Advisor / Partner Foresters goodClient Customer RepeatLoyaltycustomerFirst timeCustomer Prospect Suspect Slides not for cirulation 181 182. An Organization wants answers to the followingQuestions: What are your customer satisfaction levels? What is your customer attrition rate? What are your customers needs? Do you focus new product development around customerfeedback? Do Sales, Customer Service, and Technical Support work together to provide outstanding customer service? Do you build and modify work processes around servicing the customer better? Do you currently consolidate all customer related data into onerepository? Do you integrate key front office, back office, and web office systems to interact with each other? Slides not for cirulation 182 183. A media firm would like to plan and analyze its businessperformance like : demographic profilingDirect mailTelemarketingCost and revenue analysesCustomer care, and retention .Integration of various point-products and functions ( mediaplanning , media buying , client servicing, accountmanagement etc , for advertising, circulation or clickstreamanalytics etc to get an holistic perspective of the customer &business .In order to achieve this objective, they need comprehensiveand integrated CRM solutions. Slides not for cirulation 183 184. Traditional marketing strategies focused on the four Ps (price,product, promotion, and place) to increase market share. Themain concern was to increase the volume of transactionsbetween seller and buyer.Volume of transactions is considered a good measure of theperformance of marketing strategies and tactics.CRM is a business strategy that goes beyondincreasing transaction volume. Its objectives are toincrease profitability, revenue, and customersatisfaction.To build CRM, an organization wide set of tools, technologies,and procedures are required to promote the relationship with thecustomer to increase sales. Slides not for cirulation 184 185. Slides not for cirulation 185 186. Rationale of Relationship marketing & customer retentionRelationshipCustomer experienceCustomer life timeMarketing valueRelationship marketing can occur at different levels & eachsuccessive levels of strategy results in ties & binds the customercloser to the organization & helps to increase the competitiveadvantage of the organization. Level of relationship strategies 1 Financial Bonds2 Social bond 3 Customization bond 4 structural bond Slides not for cirulation186 187. Slides not for cirulation 187 188. Slides not for cirulation 188 189. Sales information management in CRM ( Reporting pipe line ) Enterprise Reporting using Sales Execution Framework(SEF) reporting tool that would serve as the master datasource for every customer or potential customer within thesales pipeline. Only those customers loaded by salesforce into the software application are considered whenmeasuring overall revenue and individual sales goals.The Enterprise Reporting development had two cleargoals while building the SEF reporting tool: To drive consistent sales information across thecompany . To ensure a simple and straightforward pipeline.Slides not for cirulation189 190. Building Role-Based Dashboards:With opportunity management processes and businessrules already in place in the field, the development groupsneed to find more productive method for reporting andanalyzing pipeline data. Simplified, standardized reporting application that wouldoffer a level of functionality similar to that of SEF Reports,in the form of personalized screen ( role-specificDashboard ) . All employees within a certain job categorywould then be able to view the information on theirpersonalized screen in the same way, thereby solving manyof the communication problems. Slides not for cirulation190 191. Presentation layer of CRM (Enterprise Desktop)The field salespeople use the enterprise desktop forentering all of their opportunity data. Extract,transform, and load (ETL) and Data TransformationServices (DTS) processes take all of the data directlyfrom the data store and consolidate it in a single, localSQL Server 2000 database.SEF Dashboard uses this localized database to extractand display sales pipeline data with the BusinessAnalytics application. Other data storessuch as SEFDatabase, a SQL Server 2000 database for revenuedataand quota and software licensing databases, alsoSQL Server 2000, connect to the local SQL Server.The consolidated database is refreshed from all theother data stores fort nightly. cirulation Slides not for191 192. The reporting application uses the default/custombuilt authentication tool within the operatingSystem to create and personalize a role baseddashboard for each user.When field users log on to operating systemrunning on their personal computers, they click thedashboard application icon located on theirdesktops. SEF Dashboard automatically recognizesthe user and his or her job definition. The tool thenopens to the users personal role-based dashboard.No additional procedures are required tolog on to the dashboard application. Slides not for cirulation 192 193. The reporting tool with a front dashboard providesaccess to nine preconfigured reports. Each of these reportsis considered key to the sales force.For example, one report tracks all opportunities within thesales pipeline for all periods. Because the reports are prebuilt, users have easy access to the information instead ofhaving to sort through many filters and screens. When fieldusers find a new opportunity, they capture details such ascompany name, location, due date, and opportunity owner.They then enter the data into the sales pipeline by usingSiebel CRM 7.5.3 and the Microsoft Office Outlook 2003messaging and collaboration client.Both tools are used primarily for the input and managing ofdata. After it is uploaded into the database, the opportunityinformation becomes part of the compiled data used for SEFSlides not for cirulation 193Dashboards. 194. Slides not for cirulation 194 195. CUSTOMER RELATIONSHIPMANAGEMENTSlides not for cirulation 195 196. Customer Loyalty Program CRM (Customer touch point Management ) CEM CTMManaging customer Touch point during :Pre purchase levelPurchase touch pointPost purchase touch pointTo increase the mind share of the customer with the brand. Slides not for cirulation196 197. Building touch point at :1 Product/ service development level2 Delivery level ( promises )3 Brand communication level. Slides not for cirulation 197 198. Relationship between CRM & Customer Slides not for cirulation 198 199. Slides not for cirulation 199 200. Slides not for cirulation 200 201. Myth 1 : Excellent CRM system guaranteemarketing success. Slides not for cirulation201 202. Slides not for cirulation 202 203. Slides not for cirulation 203 204. Slides not for cirulation 204 205. Slides not for cirulation 205 206. CRM solutions are front office automation solutionswhereas ERP SCM are the back office automationsolution .CRM helps the organization in managing thefollowing areas :1. Contact & opportunity management .2. Marketing & Product management3. Sales force Management4 Sales forecasting5 Customer order processing & fulfillment ( delivery ,Installation )6 Pricing analysis7 Post sale customer service programIt is necessary that two systems integrate with eachother & complement information as well as business Slides not for cirulation206work flow. 207. How CRM can help the marketing functionIt helps to measure the KPA of marketing function inconcrete terms so that proactive marketing strategiescan be evolved.Role Key performance Parameters (KPP)Customer acquisition Numbers , Cost /acquisitionRetentionAttrition rateRelationship selling CLV , repeat purchase % of products subscribed toBrand salience Rating & recommendationResearch % of customers for whom profile data is collected, customer response to target offer. Feedback & collection points Slides not for cirulation207 208. CRM Project Management Model.Slides not for cirulation 208 209. Integration Enterprise Application Integration (EAI) tool Maturity - BizTalk Mega Suites XML Web servicesCRM Forum research shows 62% of companies believe ease ofintegration defines their choice of supplier Slides not for cirulation209 210. So, lets take a look. Ease of use Viewing Company records Understanding the salesopportunity Tracking activities View the application fromOutlook Create an appointment cirulationSlides not for 210 211. CRM Design GoalsImprove Integrate Extend Business Cost EffectivePowerfully EasilyProductivity Make informed Set-up easily Microsoft Office Tailor forbusiness Customise (Outlook)vertical ordecisionseasily Financialindustry Help Improve Use easilyManagement specificSales Success Other business deployments Maintain easily Deliver Superior systems Complete On-premisesDevelopmentCustomer Web services or hostedKitService deployments Share Open and CRM with Small secure APIsInformation Business Web services Slides not for cirulation211 212. CRM standards.. Microsoft CRM Sales Microsoft CRM CustomerStandard Service Standard Lead management Case management Opportunity management Service request Correspondence / mail merge Knowledgebase management Account & contact management Direct Email Notes & attachments Search Activity & task management Queuing Search Account & contact management Direct email Activity & task management Territory Management Calendar User & business management Notes & Attachments Calendar User & Business management Set of reports Set of reports Customization tools & utilities Customization tools & utilities Slides not for cirulation212 213. CRM SalesCRM CustomerNeedsService needs Lead Routing Workflow Workflow Email management Sales process management Product catalog Product catalog Routing Quotes, orders, invoices Contract management Quotas Sales literature PLUS ALL STANDARD Competitor trackingFEATURES ERM Integration PLUS ALL STANDARDFEATURESSlides not for cirulation213 214. Slides not for cirulation 214 215. E CRM architecture1.Connected Enterprise Architecture ( CEA) : An system architecturewhich describes the context of the companys own customer relationshipprocess. Assessment &strategy alignment modules)2.Customer analytic software module : Measures & interprets behavior ofthe customer across both inbound & out bound channel.3.Customer communication software : Helps to integrate the outcomes ofanalytical finding in the form of business strategy to customers.4.Campaign management software: Leverage data warehouse to plan &execute multiple highly targeted campaign overtime, using triggers whichrespond timed events to customers.5.Business simulation software : Helps to simulate the campaign prior toexecution & compares the actual ROI versus projected .6.Real time decision Engine : Links & coordinates the communicationacross the Business enterprise.7.Security software. Slides not for cirulation215 216. Technology Template for CRM solutionCustomer/Prospect/ Mail Face-Face Self serviceTelephonyEmployeeTouch point E mail, Fax Call, Remote Web , KioskIVR, CTI SMSPostcall Security layer Front officeBack office Marketing SalesService Database Opporty Help deskOrder Distrib- Mfg MktgMngmt dispatchMngmt Ution & activity Campaign Proposal sparesLogisticsApplications Mgmnt Generation mgmtintegrationContent Mktg Encylop facility-Procure Billing & HR & Mgmnt Config & servicementcollect T&D Interactive Pricingopport MktgTele saleOut Data mining Dir/catalog sourceData storeData mart ( Lead) / operational database Slides not for cirulation 216 217. Slides not for cirulation 217 218. Slides not for cirulation 218 219. Slides not for cirulation 219 220. Slides not for cirulation 220 221. Customization level at Implementation stage of eCRM solution.Slides not for cirulation221 222. Components for building e-CRM solution in an organization . Slides not for cirulation222 223. Functional modules of CRM solution :Sales Force management :Demand planning & forecastingLead managementOrder processing & trackingCategory ManagementKey Account managementAccount dossiersInteractive sellingCompetitive price analysisChurn managementIntegration with billing systemProfitability analysisCSSSpares tracking TaggingBid managementContact center managementSlides not for cirulation 223 224. CRM Software solution providersSlides not for cirulation 224 225. Business Intelligence Software tools forCRMSlides not for cirulation 225 226. Slides not for cirulation 226 227. Data Mining software ToolSlides not for cirulation 227 228. Slides not for cirulation 228 229. Selection of tools on the basis of task. Knowledge Engineering TaskCasetoolsAssociation DTrulesANNGAClassification taskProblem solving task Slides not for cirulation 229 230. CRM Process in an organization Business intelligence. Customer data integration solutions. Customer facing solutions. Defining Customer relationship process.Slides not for cirulation 230 231. BPM solutionsButler Group Analysis EIS tools Slides not for cirulation 231 232. Slides not for cirulation 232 233. Slides not for cirulation 233 234. See Beyond s ICAN Suite 5.0Slides not for cirulation 234 235. Slides not for cirulation 235 236. Slides not for cirulation 236 237. Slides not for cirulation 237 238. Web integration tool : Open SEAS from FijitsuSiemens provide smooth integration without anymodification to existing host application. It convertsthe alpha numerical mask definitions of the hostapplications automatically in to formats that supportbrowsers . The other popularly used tool is WebLogic.RightNow is a powerful integration solution improvingthe quality & efficiency of communication withcustomers & openness of its web based architecturemakes it ideal for integrating customer facingbusiness process. It integrates with other enterpriseapplications through XML & standard APIs .Customized integration modules are available forCRM software like Seibel. for cirulationSlides not 238 239. Slides not for cirulation 239 240. VALUE CREATION The Customer Experience Blueprint. Rigorous Partner Certification Program. Customer Satisfaction Monitoring. Slides not for cirulation 240 241. Slides not for cirulation 241 242. Slides not for cirulation 242 243. Slides not for cirulation 243 244. Seven Tips to highly effective CRM1. Align to corporate strategy , ensuring that CRM initiatives are in complete alignment with over all goal of the organization.2. Build an overall CRM vision for the company integrating customer , employees & partners.3. Support CRM by solid business case ( ROI) & evaluate change in process , people & technology.4. Make the top Slides not for cirulation & drive changeaccountable244 downwards. 245. 5. Think big , start small, move phase wise & deliver results quickly6. Address the highest value opportunity first .7. Measure the effectiveness of the initiatives & create accountability for customer & business results.Slides not for cirulation 245 246. Slides not for cirulation 246 247. Slides not for cirulation 247