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    Chapter 9

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    Ana_Perez12
    This chapter discusses customer relationship management (CRM) and its objectives to be customer-focused and customer-driven. It describes the key components of CRM including operational CRM, analytical CRM, and other types. Operational CRM supports front-office processes like sales and marketing through customer-facing and customer-touching applications. Analytical CRM analyzes customer behavior and perceptions using data warehousing and business intelligence to provide insights. Other types include on-demand, mobile, and open-source CRM applications.

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    Chapter 9

    Uploaded by

    Ana_Perez12
    46 views34 pages
    This chapter discusses customer relationship management (CRM) and its objectives to be customer-focused and customer-driven. It describes the key components of CRM including operational CRM, analytical CRM, and other types. Operational CRM supports front-office processes like sales and marketing through customer-facing and customer-touching applications. Analytical CRM analyzes customer behavior and perceptions using data warehousing and business intelligence to provide insights. Other types include on-demand, mobile, and open-source CRM applications.

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    This chapter discusses customer relationship management (CRM) and its objectives to be customer-focused and customer-driven. It describes the key components of CRM including operational CRM, analytical CRM, and other types. Operational CRM supports front-office processes like sales and marketing through customer-facing and customer-touching applications. Analytical CRM analyzes customer behavior and perceptions using data warehousing and business intelligence to provide insights. Other types include on-demand, mobile, and open-source CRM applications.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views34 pages

    Chapter 9

    Uploaded by

    Ana_Perez12
    This chapter discusses customer relationship management (CRM) and its objectives to be customer-focused and customer-driven. It describes the key components of CRM including operational CRM, analytical CRM, and other types. Operational CRM supports front-office processes like sales and marketing through customer-facing and customer-touching applications. Analytical CRM analyzes customer behavior and perceptions using data warehousing and business intelligence to provide insights. Other types include on-demand, mobile, and open-source CRM applications.

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    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 34

    CHAPTER 9

    Customer Relationship Management

    CHAPTER OUTLINE
    9.1 Defining Customer Relationship Management 9.2 Operational Customer Relationship Management 9.3 Analytical Customer Relationship Management 9.4 Other Types of Customer Relationship Management Applications

    LEARNING OBJECTIVES
    Define customer relationship management

    and discuss the objectives of CRM. Describe operational CRM and its major components. Describe analytical CRM. Discuss mobile CRM, on-demand CRM, and open-source CRM.

    Customer Intimacy?
    You

    Your competition Your customer

    Your problem

    The Need for CRM


    It costs six times more to sell to a new

    customer than to sell to an existing one. A typical dissatisfied customer will tell 8-10 people. By increasing the customer retention rate by 5%, profits could increase by 85%. Odds of selling to new customers = 15%, compared to the odds of selling to existing customers (50%) 70% of complaining customers will remain loyal if their problem is solved

    9.1 Defining Customer Relationship Management

    Customer Relationship Management


    Customer relationship management (CRM) is an organizational strategy that is customer-focused and customer-driven; it is not just a process or a technology. A way of thinking and acting in a customer-centric fashion treating different customers differently because their needs differ and their value to the company also may differ.

    Tenets of CRM
    One-to-one relationship between a

    customer and a seller. Treat different customers differently. Keep profitable customers and maximize lifetime revenue from them.

    CRM Process and Goal


    Involving managing all aspects of a customers relationship with an organization to increase customer loyalty and retention and an organization's profitability

    Lifetime Customer Value

    Elements of Successful CRM Policies


    Identify many types of customer touch

    points Consolidate data about each customer

    Customer Touch Points


    Web Computer Physical Store

    Smart Phone

    Customer Service

    CUSTOMER
    Service Center

    Sales Representative Field Service Technician

    Email

    Direct Mail

    360-Degree View of Customers

    Data Consolidation
    Accounting POM

    Finance
    Customer

    HR

    Marketing

    MIS

    Database for CRM

    Evolution of CRM
    CRM reporting technology help organizations

    identify their customers across other applications


    CRM analysis technologies help organization

    segment their customers into categories such as best and worst customers
    CRM predicting technologies help

    organizations make predictions regarding customer behavior such as which customers are at risk of leaving

    Evolution of CRM
    Three phases in the evolution of CRM include

    reporting, analyzing, and predicting

    Evolution of CRM

    9.2 Operational CRM

    Operational CRM is the component of CRM

    that supports the front-office business processes that directly interact with customers (i.e., sales, marketing, and service).

    Operational CRM

    Two major components of operational CRM:


    Customer-facing applications Customer-touching applications

    Major Components of Operational CRM


    Customer-facing applications Applications where an organizations sales, field service, and customer interaction center representatives actually interact with customers Customer-touching applications

    Applications where customers interact directly with online technologies and applications rather than interact with a company representative

    Customer-Facing Applications
    Customer service and support

    Sales force automation Marketing

    Campaign management

    Marketing
    Cross selling Up selling Bundling

    Customer-Touching Applications
    Search and comparison capabilities

    Technical and other information and services

    Customized products and services

    Loyalty programs

    9.3 Analytical CRM


    Analytical CRM systems analyze customer behavior and perceptions in order to provide actionable business intelligence.

    Analytical CRM

    Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior These systems quickly aggregate, analyze, and disseminate customer information throughout an organization

    Using IT to Drive Analytical CRM

    Personalization when a Web site knows enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person

    Data mining tools analyze large volumes of data and to extract information and find patterns & relationships

    Data Mining for CRM


    Common forms of data-mining analysis capabilities include:

    Cluster analysis Association detection Statistical analysis

    Cluster Analysis

    Cluster analysis a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible CRM systems depend on cluster analysis to segment customer information and identify behavioral traits

    Association Detection

    Association detection reveals the degree to which variables are related and the nature and frequency of these relationships in the information

    Market basket analysis

    Statistical Analysis

    Statistical analysis performs such functions as information correlations, distributions, calculations, and variance analysis

    Forecast predictions made on the basis of time-series information Time-series information time-stamped information collected at a particular frequency

    The Relationship Between Operational CRM and Analytical CRM


    Customer-facing Applications Sales Marketing Customer Service and Support Campaign Management Customer-touching Applications Search and Comparison Customized Products Technical Information Personalized Web Pages FAQ E-mail / Auto Response Loyalty Programs

    Customer Data Warehouse

    Data Mining Decision Support Business Intelligence OLAP

    9.4 Other Types of CRM


    On-demand CRM

    Mobile CRM: Pal Mickey at Disneyworld

    Open-source CRM

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