Business Plug-In B 9 Customer Relationship Management Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.
LEARNING OUTCOMES 1. Describe three CRM technologies used by marketing departments. 2. Describe and differentiate the CRM technologies used by sales departments and customer service departments. 3. Compare customer relationship management, supplier relationship management, partner relationship management, and employee relationship management. 4. Summarize the future of customer relationship management. B 9 -2
INTRODUCTION • Customer Relationship Management—Involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability – Operational CRM—Supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers – Analytical CRM—Supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers B 9 -3
INTRODUCTION B 9 -4
MARKETING AND OPERATIONAL CRM • Three marketing operational CRM technologies: 1. List Generator—Compiles customer information from a variety of sources and segments the information for different marketing campaigns 2. Campaign Management System—Guides users through marketing campaigns 3. Cross-Selling and Up-Selling: • Cross-Selling—Selling additional products or services • Up-Selling—Increasing the value of the sale B 9 -5
SALES AND OPERATIONAL CRM • Sales Force Automation—A system that automatically tracks all of the steps in the sales process • Three sales operational CRM technologies: 1. Sales Management CRM System—Automates each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts. 2. Contact Management CRM System—Maintains customer contact information and identifies prospective customers for future sales. 3. Opportunity Management CRM System—Targets sales opportunities by finding new customers or companies for future sales. B 9 -6
SALES AND OPERATIONAL CRM B 9 -7
SALES AND OPERATIONAL CRM • CRM pointers for gaining prospective customers: 1. Get their attention. 2. Value their time. 3. Over deliver. 4. Contact frequently. 5. Generate a trustworthy mailing list. 6. Follow up. B 9 -8
CUSTOMER SERVICE AND OPERATIONAL CRM • Three customer service operational CRM technologies: 1. Contact Center is where customer service representatives (CSRs) answer customer inquiries and respond to problems through a number of different customer touch points. 2. Web-Based Self-Service Systems allow customers to use the web to find answers to their questions or solutions to their problems. 3. Call Scripting Systems access organizational databases that track similar issues or questions and automatically generate the details for the CSR who can then relay them to the customer. B 9 -9
Analytical CRM • Personalization—When a website knows enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person • 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 B 9 -10
Analytical CRM • Analytical CRM Information Examples: 1. Give customers more of what they want. 2. Find new customers similar to the best customers. 3. Find out what the organization does best. 4. Beat competitors to the punch. 5. Reactivate inactive customers. 6. Let customers know they matter. B 9 -11
SUPPLIER RELATIONSHIP MANAGEMENT • Supplier Relationship Management (SRM)—Focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection • Benefits HBOS derived from the SRM solution include: – A single consolidated view of all suppliers – Consistent, detailed management information allowing multiple views for every executive – Elimination of duplicate suppliers B 9 -12
PARTNER RELATIONSHIP MANAGEMENT • Partner Relationship Management (PRM)— Focuses on keeping vendors satisfied by managing alliance partner and reseller relationships that provide customers with the optimal sales channel • The primary benefits of PRM include: – Expanded market coverage – Offerings of specialized products and services – Broadened range of offerings and a more complete solution B 9 -13
EMPLOYEE RELATIONSHIP MANAGEMENT • Employee Relationship Management (ERM)— Provides employees with a subset of CRM applications available through a web browser • Many of the ERM applications assist the employee in dealing with customers by providing detailed information on company products, services, and customer orders B 9 -14
FUTURE TRENDS • CRM future trends include: – CRM applications will change from employee-only tools to tools used by suppliers, partners, and even customers – CRM will continue to be a major strategic focus for companies – CRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customers – CRM suites will incorporate PRM and SRM modules B 9 -15
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