CRM Intro1
CRM Intro1
CRM Intro1
MANAGEMENT
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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Chapter Ten Outline
Defining Customer Relationship Management (CRM)
CRM’s Role in Supply Chain Mgmt
Key Tools & Components of CRM
• Segmenting Customers
• Predicting Customer Behaviors
• Customer Profitability Determination
• Personalizing Customer Communications
• Automated Sales Force Tools
• Customer Service Capabilities
Designing and Implementing a Successful CRM Program
Some CRM Application Providers
Future Trends in CRM
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Introduction
“Finding a new customer costs five times as much as
keeping an old customer”
– Customer relationship
management (CRM) is
associated with automated
transaction and communication
applications.
– Increased automated
interactions will lead more
organizations to find they must
continue to identify and develop
new value for customer
relationships
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Defining Customer Relationship
Management
Customer Relationship Management (CRM) is defined as:.
• Building and maintaining profitable long-term customer
relationships.
• Successful CRM programs require cultural change in
many organizations, leading to strategies that are
focused on cultivating long-term relationships with
customers, aided by the software capabilities.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
CRM’s Role in Supply Chain Management
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Key Tools & Components of CRM
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Key Tools & Components of CRM- Cont.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Key Tools & Components of CRM- Cont.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Key Tools & Components of CRM- Cont.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Key Tools & Components of CRM- Cont.
Call Centers
Call center systems can now categorize all calls, determine average
resolution time, and forecast future and improve the overall productivity
of the staff, increasing customer satisfaction levels.
Informational Scripting
Scripts to successfully guide service representatives through many
types of customer problems. They do not allow for much “out-of-the-
box” thinking.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Key Tools & Components of CRM- Cont.
Web Site Self-Service- Web sites act as support mechanisms for call
centers. Customers can access their account information and operating hours,
contact information, etc.
Field Service Management- Customers can communicate directly with
product specialists using wireless devices and the right diagnosis can be made
quickly.
Measuring Customer Satisfaction- Customers are frequently given
opportunities to provide feedback about a product, service, or organization.
Customer Privacy Capabilities- Two important issues are ability to assure
privacy and ability to minimize customer harassment.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Designing & Implementing a Successful
CRM Program
What will CRM solve?
This question must involve employees from all functions.
Step 1. Creating the CRM Plan- should include:
– Objectives of the CRM program
– CRM’s fit with corporate strategy
– New applications to be purchased or developed
– Integration or replacement of existing methods or legacy systems
– Personnel Requirements- personnel, training, policies, Upgrades, and
maintenance and
– the costs and time frame for implementation.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Designing & Implementing a Successful
CRM Program- Cont.
Step 2- Involve CRM users from the Outset- To get acceptance of
the CRM initiative, employees should understand how it affects their
jobs.
– Create a project team with members from all affected organizational
areas.
– Test with a pilot application
Step 3- Select the Right Application and Provider- Find an
appropriate application and determine the extent of customization
(adaptation).
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Designing & Implementing a Successful
CRM Program- Cont.
Step 4- Integrate Existing CRM Applications- CRM is a collection of
various applications implemented over time.
– Customer contact mechanisms need to be coordinated so that every
CRM application user in the firm knows about all of the activity
associated with each customer.
– Centralized database or data warehouse containing all customer
information.
Step 5- Establish Performance Measures- Measuring performance
allows the firm to:
– Determine if objectives have been met
– Compare actual to planned = variance
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Designing & Implementing a Successful
CRM Program- Cont.
Step 6- Providing CRM Training for All
Users-
– Provide and require training for
all of the initial users and then
provide training on an ongoing
basis as applications are added.
– Training can also help convince
key users like sales, call center,
and marketing personnel of the
benefits and uses of CRM
applications.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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© 2005 Thomson Business and Professional Publishing
Some CRM
Application Providers
Oracle
• Interaction Center- integrates with service, sales, contracts, and marketing
applications.
• Oracle Sales- processes across all sales and customer interaction
channels.
• Oracle Marketing -provides automation and tools for the entire marketing
process.
Siebel Systems
• Call Center- improve agent productivity by providing critical customer
information.
• Siebel Sales- the means to focus on the right deals at the right time.
• Siebel Marketing- optimizes targeting and improves response rates with
robust segmentation capabilities.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
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Future Trends in CRM
New Privacy Regulations- Rules and
laws regarding invasion of privacy are
springing up. Solution: develop a
privacy policy and post it on their Web
site.
Application Service Providers (ASPs)-
Fifty 50 percent of all CRM programs
are now designed and maintained for
clients by ASPs.
Adapting CRM for global uses is
increasing-New Markets out side of
traditional industrialized countries
require adaptation to local needs,
language, and culture
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