Customer Relationship Management

Session XXII

Source:
Enterprise Systems for Management
Luvai F. Motiwalla and Jeff Thompson

Enterprise Resource Planning

Rajesh Ray
Learning Objectives

1 What Is CRM?

2 Customer Relationship Processes

3 CRM Features

4 CRM Case Study

What Is CRM? 1

 A true CRM integrates corporate strategy, business methodology, and technology to accomplish a myriad of goals
for companies that want to operate in a customer-driven environment.

• For example in the case of Walt-Disney

• Corporate Strategy : Drive Business by Repeat customers
: Get repeat customers by Improving Customer Experience
• Methodology : Improve customer experience in many business processes
Keep them engaged
- Virtual tour guide
- Grab customer attention
Capture their preferences
- Make recommendation or personalised messages
• Technology
: Product Pal-Mickey
Data transfer through Infra-red beacons
Capacity to store and deliver pre-recorded message
Recommendation abilities

 No business can survive without understanding its customers and having a positive relationship with them.

 CRM provides support for the front-end customer facing functionality (e.g., marketing, sales, and customer service),
which are usually not available in traditional ERP systems.
CRM Goals 2

 Capture and maintain customer needs, motivations, and behaviours over the lifetime of the relationship.

 Facilitate the use of customer experiences for continuous improvement of this relationship.

 Integrate marketing, sales, and customer support activities measuring and evaluating the process of
knowledge acquisition and sharing.
CRM Implications and Benefits 1

 Higher Productivity for Sales Teams

 Better Cross-Selling and Up-Selling Activities

 Improved customer service and service satisfaction

 Better Opportunity close rates

 Targeted / Personalised Marketing

 Reduced Marketing, Sales & Administrative costs

 Better profitability and revenue per customer

 Increased customer retention and loyalty

CRM Evolution 1

 In the 1980s through the mid-1990s companies started using IT to automate customer processes with
discrete customer-centric applications.

 Late 1990s, companies started integrating these discrete systems into what is now known as CRM.

 CRM began in response to a changing market environment as mass marketing gave way to focused
segment marketing, and finally to target marketing an individual.

 Focus is on customer retention now

What Is CRM? 1

Evolution of CRM Programs

Customer Relationship Processes 2

CRM Processes

CRM Delivery CRM Support CRM Analysis

Customer Relationship Processes 2

CRM Delivery Processes

Campaign Management
 To generate “leads” or potential clients for the organization.

Sales Management
 To convert the lead generated by campaign management into a potential customer.

Service Management
 Provide ongoing support for the client and to assist in the operation of the product
or service purchase.

Complaint Management
 To improve customer satisfaction by directly addressing the complaint of the
customer and supporting a continuous improvement process
Customer Relationship Processes 2

CRM Support Processes

Market Research

 focuses on systematic design, collection, analysis, and reporting of data, and on

findings relevant to specific sales activity in an organization.

 Involves integration of external and internal data from a wide variety of sources.

Loyalty Management

 Provides the processes to optimize the duration and intensity of relationships with
customers.
Customer Relationship Processes 2

CRM Analysis Processes

Lead Management
 Focus is on organizing and prioritizing contacts with the prospective customers.

Customer Profiling
 Focus is to develop a marketing profile of every customer by observing his or her
buying patterns, demographics, buying and communication preferences, and
other information that allows categorization of the customer.

Feedback Management
 Consolidates, analysis, and shares the customer information collected by CRM
delivery and support processes with the analysis process, and vice versa.
CRM Technologies and Applications 3

• Sales Force Automation

• Field Service Applications
• e-Commerce Applications
• Partner Relationship Applications
• Enterprise Marketing Management (EMM) Applications
• Revenue and Pricing Management Applications
• Product Configuration Applications
• Order Management Applications
• CRM Analytics
CRM Technologies and Applications 3

Sales Force Contact/Call-

Field Service E-Commerce
Automation Centre
• Contact Management • Field Service • Online ordering • Pre-define escalation
• Lead Management Management • Online product route
• Sales Forecasting • Scheduling Workforce configuration • Records management
• Sales Performance • Managing • Online auctions • Time zone and
Management Spares/Service Parts • Online exchanges and language support
• E-Sales • Mobile solutions returns • Call assignments
• M-Sales • Enterprise Intelligence • Online billing and • Knowledge base
• Account Management payment • Self-service capabilities
• Territory Management • Workflows
• Automation- • Reports and analytics
Quotations. Contracts,
Workflows
CRM Technologies and Applications 3

Partner Relationship Enterprise Marketing Revenue and Pricing Product

Mgmt Management Management Configuration
• Partner Addition • Campaign Management • Trade-promotions • Product Configurator
• Distributing Leads • Marketing Planning • Promotion types • Proposal Generator
• Partner Profiling • Marketing and Resource • Pricing and Promotion • Cost Estimation
• Partner Programs Management optimization
• Partner Discounts • Opportunity / Lead • Segment analysis
• Partner service Management • Price Sensitivity
• Partner Inventory • Loyalty Marketing • Clearance pricing
Management • Mark-up pricing
CRM Technologies and Applications 3

Order Management
CRM Analytics
Applications
• ERP Order to Cash • KPIs
Cycle • Historical Analysis
• Applications for • Predictive Analytics
• Fax
• Kiosk
• Mobile devices
Implications for Management 5

 CRM is a strategic business solution and not a technical solution.

 CRM should not be implemented as a single system or at one time.

 CRM systems come in a variety of shapes and sizes, but there is no real off-the-shelf solution.

 Even though CRM provides a great solution for one-on-one individualized marketing, it also
provides good mechanisms for privacy and ethical violations.
James Banking Case Study 3

Background

 BNP Paribas group – World’s second largest banking group (revenue) and fourth (assets)
 75 Countries, 188000 employees
 Euro 40 Bn revenue and Euro 7Bn net income
 Retail, corporate and investment banking
 Leading European bank in Belgium, France, Italy and Luxemborg

 Pioneer in launching completely digital banks – Hello Bank, La Net Agence

BNP Paribas Fotis

 Euro 7 Bn revenue and Euro 1.66 Bn net income

 816 branches, market leading easy banking app
 Retail banking activities – Savings and Investments, Loans and Mortgages, Insurance
 Segments – Priority Banking (AUM > E85000) [385000 – complimentary service]
Private Banking (AUM > E250000) [96000 – wealth structuring]
Wealth Management (AUM > E400000) [4900 WM + KC]
Key Clients (AUM > 25 Mn)
James Banking Case Study 3

Why did BNP Paribas Fortis launch James ?

Proximity
For Business

Satisfaction Convenience

More Cost to
Customers Revenue Serve

Broadening
Relationship
of Interaction

Quality of
Advice
James Banking Case Study 3

Why makes James different ?

Traditional James
Mode of conduct Face-to-face investment Technology mediated
portfolio advice investment portfolio
advice
Availability Weekdays 9.00 AM to Weekdays 7.00 AM to
5.00 PM 10.00 PM and Saturdays
Not on Weekends and between 9.00 AM to 5.00
Bank Holidays PM and even on Bank
Holidays
Accessibility Branch Computer / Laptop /
Tablet / Mobile phone
James Banking Case Study 3

How can technology be used for personal investment advice ?

Betterment, Wealthfront
Automated Algorithms
Web conferencing
technology
Low in Touch High in Touch
High in Technology Robo-advisers Technology mediated Video transmission
personal advice (James)
Low in Technology Online brokerage Traditional Face-to-face Screen Sharing

Secure telephone line

Self-service
Face-to-
face plus
Usually no assistance Robo plus Hybrid
[Binckbank, Bolero, Evi, human modes Tech
Fortuneo, Keytrade advisor mediated
Bank, Me Direct]
expert
James Banking Case Study 3

How has James developed over time, and what made it successful ?

Customer acquisition
- Identify targets
- Recommendations
Customer interaction
Oct 2015 - Rapport (assignment of
18856 customers advisors)
52 advisors Technology
360 customers per advisor - High quality video, screen
2008 Launch sharing, good m-apps
50 customers per advisor Internal organisation
- Easy banking centre
- Open work setting
- Quality of advisors
- Training of tech and products
- Quality monitoring
James Banking Case Study 3

How should BNP Paribas expand James ?

Challenge – 100000 customers (incl 2000 private banking ) by end of 2016 – that is 5 times what was
enrolled in Oct 2015

• Look at the untapped potential

• Out of 385000 priority banking customers, 18856 are James customers which is 5%
• This has to increase to 25% to reach 100000
• Out of 96000 private banking customers, 333 are James customers which is 0.3%
• This has to increase to around 2%
• Current growth rates may not help in reaching 100000

• Strategy 1
• Increase the appeal of James
• From {Savings,Investment} to {retail banking, loans, mortgage and insurance}

• Strategy 2
• Legal requirement for physical signature from customer. Use digital signature
James Banking Case Study 3

How should BNP Paribas expand James ?

• Strategy 3
• Make James 24/7 and make it available to customers across time zone
• Identify and staff from among willing personal advisors

• Strategy 4
• Look at beyond the targeted customer base
• Increase and lower the AUM
• Include wealth management and mass retail customers

• Strategy 5
• Create a version of James with Robo-advisors – could increase ratio of customers to advisors
James Banking Case Study 3

How can digital technologies be employed ?

Who uses technology What does that enable ?
SR for transaction support Can act on behalf of customers
Customer for transaction support Can conduct transactions online
SR to mediate the customer Customer and SR can interact without
relationship the need for physical visits
SR for decision support Informed decision making
- Information repositories
- AI / ML based systems
- Algorithm based support

Customer for decision support Informed decision making

- Information repositories
- AI / ML based systems
- Algorithm based support