MKT360- Chapter 10

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 user in the firm knows about all of the activity associated with each customer. - Centralized database or data warehouse containing all customer information.

Managing Customer Service Capabilities

- Customer Service - Seven Rs Rule

Trends in CRM

- New Privacy Regulations- Rules & laws regarding invasion of privacy are springing up. Solution: develop a privacy policy & post it on their Web site. - Application Service Providers (ASPs)- Fifty 50 percent of all CRM programs are now designed & 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, & culture

Step 1. Creating the CRM Plan

- Objectives of the CRM program - CRM's fit with corporate strategy - New applications to be purchased or developed - Integration or replacement of existing legacy systems - Personnel Requirements- personnel, training, policies, Upgrades, & maintenance & - The costs & time frame for implementation.

CRM Application Providers

- Oracle's CRM Application - MicroSoft Dynamics CRM Application

Customer Service Elements

- Pre-transaction elements - Transaction elements - Posttransaction elements

Step 2- Involve CRM users from Outset

- employees should understand how it affects their jobs. - Create a project team with members from all affected organizational areas. - Test with a pilot application

Customer Value Determination

verify the customer lifetime value for individuals or segments (see next slide).

Step 6- Providing CRM Training for All Users

- Provide & require training for all of the initial users & then provide training on an ongoing basis as applications are added. - Training can also help convince key users like sales, call center, & marketing personnel of the benefits & uses of CRM applications.

Sales Force Automation (SFA)

- Sales Activity Management - Sales Territory Management - Lead Management - Knowledge Management

Segmenting Customers

Grouping customers to create specialized communications about products

Posttransaction elements

Occur after the sale & include warranty repair capabilities, complaint resolution, product returns, & operating information.

Transaction elements

Occur during the sale & include the order lead time, the order processing capabilities & the distribution system accuracy.

Sales Territory Management

Sales managers obtain information of each sales rep's activities (e.g., total sales per sales rep.)

Lead Management

Sales reps can follow prescribed tactics when dealing with prospects to aid closing the deal.

CRM's Role in Supply Chain Management

The firm seeks position as a value-enhancing supplier to its customers. - Firms must create methods for finding & developing good suppliers - Firms must create methods for becoming & staying good suppliers themselves. - It may be necessary for a firm to certify its intermediate customers as to their ability to adequately represent their firm's products.

Sales Force Automation (SFA)

Used for documenting field activities, communications with the home office, & retrieving sales history.

Relationship marketing or permission marketing

customers select the type & time of communication. Requires software & customer participation

Seven Rs Rule

- having the right product, in the right quantity, in the right condition, at the right place, at the right time, for the right customer, at the right costs. - Performance measures are often designed around satisfying the seven Rs. These kinds of services can come at a cost.

Key Tools and Components of CRM

-Segmenting Customers -Target marketing efforts -Relationship marketing or permission marketing -Cross-Selling -Predicting Customer Behaviors -Customer Defection Analysis -Customer Value Determination -Personalizing Customer Communications -Event-Based Marketing -Sales Force Automation (SFA) - Managing Customer Service Capabilities - Customer Service Elements - Call Centers

Cross-Selling

Additional products are sold as the result of an initial purchase (e.g., e-mails from Amazon.com describing other books bought by people)

Call Centers

Can categorize calls, determine average resolution time, forecast future demand, improve the overall productivity of the staff, increasing customer satisfaction levels.

What is CRM?

Customer Relationship Management - means focusing customer requirements, then delivering products and services in a manner resulting in high levels of customer satisfaction - Also refers to automated transaction and communication applications, however this can cause problems for some firms - CRM must still include talking to customers, understanding their behavior and their requirements, and then building a system to satisfy those requirements.

Measuring Customer Satisfaction

Customers are frequently given opportunities to provide feedback about a product, service, or organization.

Field Service Management-

Customers can communicate directly with product specialists using wireless devices & the right diagnosis can be made quickly.

Knowledge Management

Enables quick decision making, better customer service, & a better-equipped & happy sales staff.

Step 3- Select the Right Application & Provider

Find an appropriate application & determine the extent of customization.

Pre-transaction elements

Precede the sale (e.g., customer service policies, the mission statement, org. structure, & system flexibility).

Designing & Implementing a Successful CRM Program

Step 1. Creating the CRM Plan Step 2- Involve CRM users from Outset Step 3- Select the Right Application & Provider Step 4- Integrate Existing CRM Applications Step 5- Establish Performance Measures Step 6- Providing CRM Training for All Users

Sales Activity Management

Tool offering sales reps a guided sequence of sales activities

Customer Privacy Capabilities

Two important issues are ability to assure privacy & ability to minimize customer harassment.

Personalizing Customer Communications

Understanding customer behaviors & preferences, firms customize communications

Website Self-Service

Web sites act as support mechanisms for call centers. Customers can access their account information & operating hours, contact information, etc.

Step 5- Establish Performance Measures

allows the firm to: - Determine if objectives have been met - Compare actual to planned variance

Target marketing efforts

e-mail or direct mail saves labor & postage, reduces chances of being a nuisance

Customer Defection Analysis

finding methods to retain customers.

Predicting Customer Behaviors

firms forecast likelihood of customers' purchases.

Event-Based Marketing

offer the right products & services to customers at the right time.