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