introduction to crm

SHEETAL WAGHMARE

M.TECH (Computer Science & Data Processing)

IIT KHARAGPUR

EMAIL-ID: [email protected]

[email protected]

What is CRM?

• CRM, or Customer Relationship Management, is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty.

• True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time.

SHEETAL WAGHMARE IIT KHARAGPUR

• CRM is an IT enhanced value process, which identifies, develops, integrates and focuses the various competencies of the firm to the ‘voice’ of the customer in order to deliver long-term superior customer value, at a profit to well identified existing and potential customer.

Contd..


A customer (also known as a client, buyer or purchaser) is the recipient of a good, service, product, idea obtained from a seller, vendor or supplier for a monetary or other valuable consideration.

Who is customer?


Need of CRM

CRM is not just a technology, but rather a

comprehensive approach to an organization’s philosophy in dealing with its customer.

Customer Relationship management is the strongest

and the most efficient approach in maintaining and creating relationships with

customers.

CRM is not only pure business but also ideate strong personal

bonding within people. Development of this type of

bonding drives the business to new levels of success.


Imagine a system in place where the lines of communication and information requests are

somewhat scrambled.

Management does not have real time performance information

Each area has their own system, tracking and keeping records on different software

Customer Service does not have

marketing information for cross sell opportunities.

Sales does not have easy access to client records and customer

calls, old system doesn't tie into

account, so don't know past order


A CRM system has one central system where all the information is collected and stored in one location


• Everyone is connected into one system • People have the information they need to do their jobs • Sales and Customer Service have a deeper knowledge of the

customers. • Data duplication is eliminated • Data security is strongly enhanced• Providing promotions, services and products that are exactly

what your customers are looking for • Offering better customer service • Cross selling products more effectively and quickly • Helping sales staff close deals faster• Retaining existing customers and discovering new ones


“Customer Relationship Management is a comprehensive approach for creating, maintaining and expanding customer relationships”


Technology Consideration of CRM


Steps Before Implementing CRM

Business Objectives

Program Initiatives

Departmental Plans

Technology


Stages of Technology Implementation

Functional CRM

Departmental CRM

Partial CRM

Full CRM


Gather data Analyze the data

Formulation StrategyAction

Customer Intelligence


CRM Technology Components

CRM Engine

Front Office Solution

Enterprise Application Integration


Customer Life Cycle


Customer Life Time Value


Customer Life Time Value Calculation

• Say the average customer buys for 2 years, then stops for at least 1 year. Therefore, we define the LifeTime of a customer as 2years. Over years, the average customer makes 16 purchases

16* 2000 Profit per unit = 32000 LTV of the average customer


Justify

Cost of retaining old customer is always less than generating new customer


Customer Life Cycle Management

Personalization

Customization

Cross selling

Up selling

This is a special form of the product which will be prepared according to the personnel requirement because of this personalized attention, the customer retention process will become very easy

This improves the product quality according to the expectations of the customer. This will change the standard product into the specialized solution for an individual to improve the customer satisfaction


• The E-CRM or electronic customer relationship marketing concept is derived from e-commerce.

• It also uses net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers making use of information technology (IT)

• E-CRM expands the traditional CRM techniques by integrating new electronic channels such as Web, wireless and voice technologies and combines it with e-business applications into the overall enterprise CRM strategy.

E-CRM


• The CRM offerings remains channel centric not customer centric.

• Customers want to interact with businesses when and where it is convenient for them.

Need of E-CRM


Acquisition: Increasing the number of customers

Retention: Increasing the amount of time that customer stays

Increased Profitability

ObjectiveCustomer acquisition

Customer retention

Customer value migration

Cross-selling

Frame Work of E-CRM


• eCRM implies capabilities like self service knowledge bases, automated email response, personalization of web content, online product bundling and pricing.

• ECRM gives Internet users the ability to interact with the business through their preferred communication channel.

• It also allows business to offset expensive customer service agents with technology.

• E-CRM puts much emphasis on the customer satisfaction and reduced cost through improved efficiency.

• E-CRM use customer data for personalization, cross-selling and up-selling.

• Sales Force Automation(SFA )and Enterprise Marketing Automation(EMA) is integrated in the Ecrm.

Features of E-CRM


Features of E-CRM

Enables a personalized relationship with customers

• Offers integrated customer information from all departments into one centralized knowledge base

• Has a totally integrated, customer-centric approach• Employs e-business technologies to extend customer

service and offers a variety of solutions tailored to your specific needs



SIX “ES” IN E-CRM

E-Electronic Channel

E-Extern

al Information

Similarities in CRM & E-CRM

Usage

Objective

Media

Level of Interaction

Focus

They make the companies closer to the customer

They provide the best interaction between marketing, sales, service and support

They reduce & eliminate the disconnection between customer and company relationship

They both improve upon reality and perception of personalization

Mail, telephone or in person or the common customer touch points

Difference Between in CRM & E-CRM

Man Power

Data Pooling

Customer Touch Points

Priority of Goals

Process

Strategy

Nature of Transaction

Emotional Dealings

System Focus


Components of E-CRM

• E-CRM Assessment

• E-CRM strategy alignment

If you can’t measure it, you can’t understand it.If you can’t understand it you can’t control itIf you can’t control it, you can’t improve it.


E-CRM Architecture

Customer Analytic Software

Data Mining Software

Campaign Management Software

Business Simulation

Real Time Decision Engine •campaign management software allows marketers to listen, learn and engage with individuals across channels and take them from new customer to loyal customer.•Every customer interaction generates data. Data which helps to understand a customer as an individual and reveal clues about how best to engage them.

Architecture of PeopleSoft CRM

• The strength of PeopleSoft architecture is approach for integration using the concept of available enterprise integration points (EIPs).

• The idea of EIP is central to all Internet architecture.• They are open, standard pieces of reusable code that provide the

developers with preprogrammed means to communicate with internal systems and other PeopleSoft systems.

• In Sap’s world, they are called Business Application Programmers Interface [BAPI].

• PeopleSoft provides these EIPs through their Open Integration Framework.

• OIF is a multi-featured framework that provides foundation for various interactions between systems.


OIF

Application Messaging

Business Interlink

Component Interface API

People Code Java

File layout object & application engine

EDI(Electronic Data Interchange) Manager

Open Query

Back-end code

Business Interlinks architecture provides a plug-in framework for PeopleSoft applications to invoke third-party APIs over the internet. Different vendors support different methods for invoking their APIs—including object technologies such as CORBA; programming language-specific interfaces for C or C++; or interfaces based on HTTP and XML. The Business Interlinks framework provides a consistent framework for application developers to invoke external applications across this wide variety of technologies.

The components are easily recognizable interfaces in the business world such as a sales order, invoice etc. The interface is the ability of architecture to recognize the document in other party‟s form and pass PeopleSoft data to that form. It can be done through the same languages and protocols as business interlink and CORBACommon Object Request Brooker Architecture is a standard defined by object management group (OMG) the enables software components written in multiple computer languages to work together


CRM Projects are divided into four phases:

• Phase I : Sales module customizations : It means the product catalogs, the sales process embedding, the account and contact databases, and the sales pipeline management.

• Phase II : Marketing module customizations : These are no different in technical process from Sales module customizations. They are merely different in what needs to be customized.

• Phase III : Integration with external applications : This is an analysis of the existing information technology infrastructure and the network functionality. This work identifies the integration points between the legacy systems, the CRM application, and the possible installation and customization of other new non-CRM applications and systems.

• Phase IV : Reporting integration : Reporting is a vital function for the businesses that are scattered the office. The customization of those reports and their generation are critical to corporate success.


1. Explain the components of e-CRM.

2. Describe the steps to be followed before implementing CRM.

3. Explain the six E’s associated with e-CRM in business organization.

4. Explain the four phases of any CRM project.

5. Compare CRM and e-CRM.

6. Explain the role of IT staff and integration experts as team members for implementing CRM.

7. Describe the customer life cycle with an example.

8. Explain the need of e-CRM with an example.

9. Difference between cross-selling and up-selling.


introduction to crm

Business

crm crm

old customer

customer calls

potential customer

customer loyalty

crm system

average customer buys

customer retention process