SCM Chapter 10
Social CRM
Engaging the customer in a collaborative conversation Leads to customer satisfaction and loyalty Creating and cultivating virutal communities aroudn product or brand
Designing and Implementing a Successful CRM Program: Step 6
Training for CRM 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
Customer Relationship Management (CRM) Defined
"The infrasturcture that enables the delineation of and increase in customer value, and the correct means by which to motivate valuable customers to remain loyal - indeed to buy again" "...managing the relationships... within an organization and between customers and the company's cusotmer service representatives in order to improve the bottom line" "...a core business strategy for managing and optimizing all cusotmer interations across an organization's traditional and electronic interfaces" More simply - Building and maintaining profitable long-term cusotmer relationships
Strategy/Relationship Management Tool
-Collaboration -Customer Experience -Cusotmer Involvement
Successful CRM Programs Requirements
-Cultural change - Effective CRM project management - Employee engagement Strategies that cultivate long-term relationship with customers - Strategies that cultivate long-term relationships with customers - Information gathered from CRM applications - Treating customers right and make them feel valued
Internal Organizational Processes
-Customer Acquisition -Customer Retention -Customer Win-Back
Informations/Data Management System
-Data Capture -Data Distribution -Data PRocessing -Data Storage
CRM Cloud Applications
Cloud computing and on-demand offerings accessed via web browser Software as a Service (SaaS) model - providers offering cloud applications Changing the cost structure of CRM applications Beneficial for small companies with limited resources
Managing Customer Service Capabilities - "Seven Rs Rule"
Having the right product In the right quanity In the right condition At the right place At the right time For the right customer At the right costs
Other Database Construction Considerations
Number of people accessing the databse concurrently Speed of access and information display requirements Export requirements for accessed data Internal and external security requirements Privary requirements Regulations, legislation Database update requirements (adds, deletes, or changes) -Timing -Volume -Critical path Data recovery requirements - Priority - Timing - Ownership of process Contingency requirements - Which data and priority - Off-site redundancy - Cost issues
Automated Sales Force Tools
Sales Force Automation (SFA) - Used for documenting field activities, communications with the home office, and retrieving sales history - Sales Activity Management - Tool offering sales reps a guided sequence sal sales activities - Sales Territory Management - Sales managers obtain information of each sales rep's activities (e.g., total sales per sales rep) - Lead Management - Sales reps foloow prescribed tactics when dealing with prospects to aid closing the deal - Knowledge Management - Enables quick decision making, better customer service, and a better-equipped and happy sales staff
Measuring Customers Satisfaction
Customers are frequently given opportunities to provide feedback about a product, service, or organization Cusotmers communicate through surveys or feedback cards Website surveys often don't ask the proper questions
Designing and Implementing a Successful CRM Program: 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 contianing all customer information
Data Warehosue
Repository for - Customer-prospect - Product/service - Related marketing information - Depth and breadth of historical depnds on organization, industry - Integrated with one or more operational data stores and data marts
Benefits of Data
- Customer knowledge - Sales projections - Industry trends - Customer complaints - Competitive issues
Data Management Tools
- Data warehouse ——Central Strorage - Data mart —— Department-specific data - Data mining —— Search - Dashboard —— Customized
Designing and Implementing a Successful CRM Program: 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 - Personal Requirements - personnel, training, policies, upgrades, and maintenance - Costs and time frame for implementation
Data Marts
- Subsets of data warehouse - Designed to work efficiently with specific decision support software - Integrated with one or more operational data stores and data marts - Business-discipline - specific application
Integrated Communications
-Sales -Marketing -Cusotmer Service
Designing and Implementing a Successful CRM Program: Step 5
Establish Performance Measures - This allows the firm to monitor progression of the system - Determine if objective have been met - ID implementation or usage problems as they occur -Compare actual to planned variance - Metrics should be transparent and easy to measure
Designing and Implementing a Successful CRM Program: Step 2
Involve CRM users from Outset - Employees should understand how it affects their jobs - Create a project team with members from all offected organizational areas - The team should be heavily involved in evaluating an selcting the CRM applications - During implementation, closely monitoring system performance will keep users convinced of the value of the initiative
Customer Service Elements
Pre-transaction elements - precede the sale (e.g., customer service policies, the mission statement, organization structure, and system flexibility) Transaction elements - occur during the sale and include the order lead time, the order processing capabilities and the distribution system accuracy Post-transaction elements - occur after the sale and include warranty repair capabilities, complaint resolution, product returns, and operating information
Customer Data Privacy
Rules and laws regarding invasionof privacy include Patriot Act in the US and Internet Privacy Lae in the EU Safeguarding customer information is a legal and ethical responsibility for any company dealing with sensitive customer data Companies must reassure their cusotmers that thier information will be protected
Tools and Components of CRM
Segmenting Customers - Grouping customers to create specialized communications about products Target marketing efforts - Addressing specific cusotmer segments avoids becoming a nuisance to other cusotmers Relationship marketing or permission marketing - customers select the type and time of communication (opt-in or opt-out) - Mobile Marketing - placing advertising on cellphones - QR Codes - using the camera function on a smartphone and downloading a QR code reader app - Facebook or Web.com users create their own customized Web pages that potential consumers choose to visit 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) - If successful, customers perceive this an individualized attention, and it results in more satisfied and loyal customers Predicitng Customer Behaviors - firms forecast likelihood of cusotmers' purchases Customer Defection Analysis - finding methods to retain customers - Churn reduction - reducing customer defections Customer Value Determination - calculating the customer lifetime value for firms Personalizing Customer Communications - understanding customer behaviors and preferences, enables firms to cusotmize communications -Clickstream, how a cusotmer navigates a Web site Event based Marketing - offer the right products and services to customers at the right time Call Center - can categorize calls, determine average resolution time, forecast future demand, improve the overall productivity of the staff, increasing customer satisfaction levels
Designing and Implementing a Successful CRM Program: Step 3
Select the Right Application and Provider - Find an appropriate application and determine the extent of customeization - Visit trade show, read trade literature, hire consultant, etc. - Use the knowledge of internal IT personnel - Search CRM supplier directories and websites - Consider extent of support available from application provider - Carefully consider cost and contract negotiations