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What is CRM?

Customer Relationship Management

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1. Introduction (I)

Over the last two years, the concept of customer relationship management (CRM) has taken centre stage in the business world.

Whereas customer service was once low-ranking in corporate priorities, organizations are now being harried to place their clients at the heart of all of their activities and to rethink their entire sales and marketing strategies.

In the process, the information technology (IT) industry has been transformed.

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1. Introduction (II)

Sensing that a massive new market is up for grabs, the world’s leading business software vendors have reinvented themselves to focus on CRM, joining a raft of specialist suppliers in a race for dominance.

Those organizations looking to improve their customer-focused activities face a difficult task.

There it widespread confusion about the terminology employed by both management consultants and IT suppliers.

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1. Introduction (III)

There is disagreement about the approaches which organizations should take to build a CRM strategy.

This paper set out to explain the fundamental meaning of CRM from both a business and a technology perspective.

By cutting through the noise in the market, it clarifies the management philosophy behind CRM, explains the core components which help organizations to build an effective in Infrastructure and highlights the key issues which users must address as they embark on a CRM strategy.

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2. Business First, Technology Second

Customer relationship management (CRM) is a business philosophy, describing a strategy which places the customer at the heart of an organization’s process, activities and culture.

IT applications are the tools which allow organizations to implement strategy.

Core concept of CRM : cutting costs and improving efficiency

They have attempted to streamline internal process, often automating elements of ‘back-office’ function, and management effort put into customer-facing activities.

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Theory in Practice

The cost-based obsession of the last decade, in which margins, were improved through efficiency gains in the back office, has to be replaced by a focus on effectiveness in the front office

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3. Unified View of Customer

By build up individual customer profiles, organizations can assess the true value of clients and establish how they may be able to generate more business.

The true CRM solution allows management to understand the way the business functions, to measure performance more effectively and to achieve greater profitability by better targeting.

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Traditional Structure

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Unified View Of Customer

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Effective customer management centers on three data management issues : collecting information about individual

customers from multiple source cleaning and collating it centrally providing access and transmitting data to

relevant personnel, both within and outside of the organization

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4. Where Does E-business Fit In?

Treating the internet as merely another channel-to-market is liable to leave your organization exposed.

Faced with a choice of suppliers with similar offerings, a customer will typically choose that organization which is easiest to deal with.

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Customer Service

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5. The Technology Components (I)

Technology-assisted selling (TAS) Technology-driven support Product configuration Marketing automation Database marketing E-marketing

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6. Integration

Integrating different systems is one of the biggest challenges facing organization today.

It’s a little like taking a set of spare parts from three different bicycles and trying make a working model : it can be done, but it’s not easy and is rarely satisfactory.

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7. Implementation

Several recommended steps: Scope the project in detail, before beginning the implement

process Get buy-in at board level Put representatives from each department onto the

steering committee Allow for slippage in both the budget and the timeframe Consider risk-sharing Tackle cultural objections before roll-out Do not cut corners on training Should be continuously evaluated and upgraded as the

organization’s need evolve over time