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Chapter Six
Chapter Six
Integrating Processes to
Build Relationships:
Customer Relationship
Management

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© e-Business Strategies,
Inc.
Introduction
Introduction
Customer dissatisfaction with service widespread

Expectations of customers higher than ever

“Does your company deserve my patronage and
loyalty?”

Starting point today: What was exceptional yesterday
Organizations with long-standing customer bases find they
lack the info and data to make good service decisions

90% companies don’t have sales and service integration
Companies must view their service encounter through the
eyes of their customers

To maintain ongoing relationships strong


Acquisition and selling costs of new customer very high

Dissatisfied customers primarily due to lack of customer
service

70% of complaining customers will do business again if
their complaint quickly addressed

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© e-Business Strategies,
Inc.
The Basics of CRM
The Basics of CRM
Timely delivery of excellent service
Combination of business process and technology
When competition is fierce, companies go back to basics:
create value for customer
Execs must ask

Can their companies’ infrastructures allow value creation?

Can their companies’ existing CRM infrastructures support
doing business in the e-world
Only by integrating sales and service infrastructure with
all aspects of operations can management see change in
customer relationships

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© e-Business Strategies,
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Top Demand Drivers in CRM Verticals
Top Demand Drivers in CRM Verticals
Telecommunications – Primary CRM applications include:

Multi-channel contact centers

Business intelligence

Customer data integration and analysis

Web-based billing systems

Marketing automation/campaign management systems

Mobile CRM
Banking and Financial Services – Primary CRM
applications include:

Profitability analysis

Target marketing

Data mining

Product personalization
Source: Gartner Group, 2001


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© e-Business Strategies,
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Top Demand Drivers in CRM Verticals
Top Demand Drivers in CRM Verticals
Retail – Primary CRM applications use e-
commerce transaction and point-of-sale data to
drive:

One-to-one marketing

Cross selling

Personalized content management and
merchandizing
Source: Gartner Group, 2001
Few retailers are providing improved interaction but many
customers are demanding it --- this is an opportunity for
companies to distinguish themselves.

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© e-Business Strategies,
Inc.


Strategic Business Drivers

Strategic Business Drivers
Are these “hot buttons” that influence your
business?

Customer-driven businesses

360-degree customer view

Personalization/one-to-one marketing

Complex and more diverse channels

Automated sales

Shrinking margins due to product commoditization

Scattered global customers
These are strategic level questions aimed at CxO
and other senior level executives to uncover CRM
opportunities.

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© e-Business Strategies,
Inc.
Strategic Business Drivers
Strategic Business Drivers
This chapter


Clarify the concept of multi-channel organization

Discuss apps supporting customer-focused
business model

Discuss how marketing practices and systems must
be reworked to support ecommerce environment
Service levels on the Web today often leave a lot
to be desired. As buyers jump from site to site --
only to ultimately abandon the shopping cart
without buying anything from anyone -- revenues
slip away.

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© e-Business Strategies,
Inc.
Defining CRM
Defining CRM
Integrated sales, marketing, and service strategy

precludes lone showmanship

depends on coordinated enterprise-wide actions
CRM software suite

Helps better manage customer relationships by
tracking customer interactions of all types


Automates selling and customer service cycle

direct-mail marketing campaigns, telemarketing,
telesales, lead qualification, response mgmt,
lead tracking, opportunity mgmt, quotes and
order configuration

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© e-Business Strategies,
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Defining CRM
Defining CRM
Business Goals

Using existing relationships to grow revenue

Using integrated information for excellent service

Introducing consistent, replicable channel
processes and procedures

CRM is an
integrated
framework and
strategy, not
product

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© e-Business Strategies,
Inc.
Managing the Customer Life Cycle:
Managing the Customer Life Cycle:
The Three Phases of CRM
The Three Phases of CRM
Differentiation

Innovation

Convenience
Acquire
E
n
h
a
n
c
e
R
e
t
a
i
n
Bundling

Reduce Cost


Customer Service
Adaptability

Listening

New Products
Metrics

Direct and indirect sales

Customer service
improvements
Metrics
•Tangible and intangible benefits
•Brand equity gains
Metrics

Lifetime value

Share of wallet

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© e-Business Strategies,
Inc.
The New CRM Architecture: Organizing
The New CRM Architecture: Organizing
around the Customer

around the Customer
To determine how CRM and supporting tech will work
together for your firm, ask these questions

Are most of company’s apps designed simple to automate
existing departmental processes?

Are these apps capable of identifying and targeting best
customers, those who are the most profitable?

Are these apps capable of real-time customization of
products and services?

Do these apps track when the customer contacts the
company, regardless of the contact point?

Are these apps capable of creating a consistent user
experience across all contact points the customer chooses?
If answers to each is no, seriously consider CRM
architecture

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© e-Business Strategies,
Inc.
The New CRM Architecture: Organizing
The New CRM Architecture: Organizing
around the Customer
around the Customer

Cross-Functional Processes
Breaking Down Departmental Walls
Acquire Enhance
Integrated CRM Applications
{
Retain
Direct Marketing
Sales Force Automation
Cross-Sell &
Up-Sell
Customer Support
Proactive
Service
Complete
Integrated
Solutions
Partial
Functional
Solutions
Customer
Lifecycle

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