session#1; an overview of crm.pdf
TRANSCRIPT
7/27/2019 Session#1; An Overview of CRM.pdf
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction &Introduction & ConceptsConcepts
١
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
Learning ObjectivesLearning Objectives
1. Traditional Marketing vs. RM
2. Evolution and Growth of CRM
3. Importance of CRM
4. Some definitions of CRM; Our
definition
5. Several common
misunderstandin s about CRM
٢
6. Four major perspectives on CRM:
strategic, operational, analytical
and collaborative
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
Failure of Traditional Marketing
Traditional MarketingTraditional Marketing vs. Relationshipvs. Relationship
MarketingMarketing
ra ona mar e ng as a e n a cus omers
have been put last, not first. This inherent lack of
customer focus on behalf of organizations led many
consumers to conclude that organizations generally
over-promise and under-deliver .
٣
Traditional Marketing Relationship Marketing
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & ConceptsThe Transition of Relationship MarketingThe Transition of Relationship Marketing
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & ConceptsThe Rise of CRMThe Rise of CRM
The shift in business focus from transactional marketing
to relationship marketing
The realization that customers are a business asset and
not simply a commercial audience
The transition in structuring organizations, on a strategic
basis, from functions to processes
The recognition of the benefits of using information
proactively rather than solely reactively
The reater utilization of technolo in mana in and
٥
maximizing the value of information
The acceptance of the need for trade-off betweendelivering and extracting customer value
The development of one-to-one marketing approaches.
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
Evolution and Growth of CRMEvolution and Growth of CRM
>1990 >1996 >2002
1st generation 2nd generation 3rd generation
Customer Service Support
Integrated customer facing Strategic CRM
ERP IntegrationCustomer analytics
Complete Web integration
Sales force Automation
Call Center Management
Front-end( marketing, sales, service)
Campaign Management
٦
cope:
Service function
Goals:
Improve service operationsIncrease sales efficiency
Marketing functionService functionSales function
Reduce cost of interaction
Increase customer retentionImprove customer experience Competitive Advantage
Sales function
Entire organization
Cost reduction & Revenue growth
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
Why Customers?Why Customers?
“There is only one boss-the customer. And he
can fire ever bod in the com an from the
chairman on down, simply by spending his
money somewhere else.”
Sam Walton;
Founder, Wal-Mart
“Individual, differentiable customer relationships
٧
the 1:1 future. All your products are ephemeral.
Only your customers are real.”Don Peppers & Martha Rogers;
“The One-To-One Future”
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
“Your most unhappy customers are your greatest
source of learning.”
Why Customers?Why Customers?ContinuedContinued
Bill Gates
“In the 1980s, we saw in every individual a
٨
. ,see in every customer an individual.”
Jack Welch,
CEO, General Electric
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & ConceptsOur CustomersOur Customers
SuspectDisqualified
rospec
First-time
Customers
Repeat
CustomersEx-customers
٩
Clients
MembersAdvocates
Partners
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
If a company loses 10% of its inventory to Theft,
- swift action would be taken to sto the loss
TheThe Importance of Importance of CRMCRM
But
If a company loses 10% of its customers,
- no one might even notice it,
١٠
- not many things could be done to stop it!
80/20 rule
20% of the customers contr ibute 80% of the revenue
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
It is a comprehensive set of processes andtechnologies for managing the relationships with
CRMCRM DefinitionDefinition
partners across marketing, sales, and service
regardless of the communication channel.
Brent Frei, President and CEO, Onyx Software
Customer Relationship Management is the
commitment of the company to place the
١١
cus omer exper ence a e cen er o s pr or es
and to ensure that incentive systems, processes,
and information resources leverage the
relationship by enhancing the experience.
Peter Keen, Chairman, Keen Innovations
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
The management approach that involves identifying,
attracting, developing and maintaining successful
CRMCRM DefinitionDefinitionContinuedContinued
customer relationships over time in order to increase
retention of profitable customers.
Bradshaw & Brash
CRM is a disciplined business strategy to create and
sustain long-term, profitable customer relationships.
١٢
, , u , . Customer Relationship Management (CRM) is a
business strategy to select and manage customers
to optimize long-term value.
CRMGuru.com
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
“CRM relates to strategy, managing the dual-creation
CRMCRM DefinitionDefinitionContinuedContinued
, ,
the acquisition of customer knowledge and the
diffusion of this knowledge to the appropriate
stakeholders, the development of appropriate (long-
term) relationships with specific customers and/or
customer groups, and the integration of processes
١٣
network of firms that collaborate to generate
customer value”Payne, 2006
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
growing business by effectively managing the
relationship with future, past, and present
customers
A
Methodology
Other Definitions of CRMOther Definitions of CRM
achieving business goals by defining objectives,
implementing a plan, and then measuring
results via a system
A
Strategy
the infrastructure that enables the delineation of
and increase in customer value, and the correctA
١٤
means by which to motivate valuable customersto remain loyal
oncep
software, hardware, process, and workflowA System
Marketing, Sales, Support, etc.Automation
of BP
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
CRM = Customer Relationship Management
Our DefinitionOur Definition
,
successful customer relationships over time
A strategy for identifying, satisfying,
retaining and maximizing the value of a
company’s best customers
١٥
organizations use to identify, select,
acquire, develop, retain, and better servecustomers
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts360360°° ViewView oof the Customer f the Customer
١٦
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
CRM ≠ Click stream analysis CRM is NOT watching the customer behind his back and
recordin what he does in his browser
What CRM is NotWhat CRM is Not
CRM ≠ Clustering
CRM is NOT grouping a bunch of customers together and
assuming their wants and needs are the same for every
member of the group
CRM ≠ Statistical model
١٧
marketing strategy
CRM ≠ Database applications CRM is NOT a DB application that records all customer
information
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & ConceptsWhat CRM is NotWhat CRM is Not
ContinuedContinued
CRM ≠ Sales management
CRM is NOT part of the human resources issues
nvo v ng sa espeop e
CRM ≠ Contact management
CRM is NOT managing contacts means of
customers
CRM ≠ Audio call recording
CRM is NOT a tool for agent assessment which
١٨
allows the call centre to provide a better service
CRM ≠ Voice over IP (VoIP)
CRM is NOT a technology to access customers
through different channels
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢٠ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
Three Types of CRM Technology (Three Types of CRM Technology (11))
١٩
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
Three Types of CRM Technology (Three Types of CRM Technology (22))
٢٠
Source: Improving customer interaction with customer knowledge
management ; Adrian Buren
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢١ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & ConceptsOperational CRM:Operational CRM:Touching the Customer Touching the Customer
Means supporting the so-called "front office“ business processes,which include customer contact (sales, marketing and service).
responsible, information necessary for carrying out the tasks and
interfaces to back-end applications are being provided and
activities with customers are being documented for further
reference.
Benefits of O erational CRMBenefits of O erational CRM
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Delivers personalized and efficient marketing, sales, and service
through multi-channel collaboration Sales people and service engineers can access complete history of
all customer interaction with your company, regardless of the touch
point
Enables a 360-degree view of your customer while you are
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & ConceptsThree Areas in Operational CRMThree Areas in Operational CRM
٢٢
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Customer Relationship Manageme14 September 2013
N.Karami; CRM ٢٢ر
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & ConceptsAnalytical CRM:Analytical CRM:Understanding the Customer Understanding the Customer
An essential part of many CRM implementations. Customer perspective - delivers better, more timely, personalized
customized solutions.
ompany perspec ve - ena es cross-se ng an up-se ngprograms, and more effective customer retention and acquisition.
Data gathered within operational CRM are analyzed to segmentcustomers or to identify cross- and up-selling potential
Data collection and analysis is viewed as a continuing anditerative process
Analytical CRM is inextricably tied to a Data Warehouse
٢٣
arc ec ure, an use ana y ca app ca ons o everageoptimized functionality for analysis and reporting
Ad-Hoc Query Reporting
OLAP
Data Mining
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & Concepts
Customer Segmentation
Groupings dividing customers into
those most and least
Event Monitoring for example, when a
customer reaches a certain
Analytical CRM Can Provide…Analytical CRM Can Provide…
likely to repurchase a
product
Profitability Analysis which customers lead to
the most profit over time
Personalization
dollar volume of purchases
What-if Scenarios how likely is a customer or
customer category that
bought one product to buy
a similar one
Predictive Modelin
٢٤
individual customers
based on the data
collected about them
for example, comparing
various product
development plans in
terms of likely future
success, given the
customer knowledge base
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Customer Relationship Manageme14 September 2013
Customer Relationship managementCustomer Relationship management
Introduction & ConceptsIntroduction & ConceptsCollaborative CRMCollaborative CRM
Facilitates interactions with customers through all channels
(personal, letter, fax, phone, web, email) and supports co-ordination of employee teams and channels.
,companies can better serve and retain their customers.
The data/activities can be structured, unstructured,conversational, and/or transactional in nature.
Benefits of Collaborative CRMBenefits of Collaborative CRM
Enables web collaboration to reduce customer service costs
٢٥
Enables efficient productive customer interactions across all
communications channels
Integrates view of the customer while interaction at the
transaction level
Integrates call centers enabling multi-channel personal
customer interaction
THANK YOU For
LISTENING
Customer Relationship
Management
Presented by N.Karami
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