Elva-hanke, liiketoiminnan sähköistymisen vaikutukset liiketoimintaprosesseihin-seminaari...

CUSTOMER RELATIONSHIP MANAGEMENT: FROM STRATEGY TO SYSTEM

Anthony Okuogume, YliopettajaKemi-Tornion University of Applied SciencesPicture from; EC-Council

Liiketoiminnan sähköistymisen vaikutukset liiketoimintaprosesseihin-seminaari 14.15.10.09.

My background on CRM

• I work as a Principal lecturer in Kemi-Tornio University of Applied Sciences

• I have been working and developing the missing link in CRM for the past 7yrs.

• Most especially, CRM/CEM integration and customer quality systems – see; www.intrestool.com

• Also, I am a big critic of traditional CRM thinking!

Structure of my presentation• We will start by looking at the bottom-line of CRM. • Why the need for a CRM strategy • Why CRM strategies should drive:

– value creation for the customer and for the business. – how to connect with the customer (customer intimacy) and how to grow the value of

customers.

• Why CRM system tools are not a substitute for a well designed CRM strategy• CRM rationalizes the transaction process• CRM will be addressed as a tool for getting to know the customer better and

for managing customer information and data (BI). • IT-systems will be touched and the importance of integrating CRM-CEM data.

– That is; transaction event data plus knowing what customers think and feel about a company’s services as the final frontier of customer relationship management.

• It will be SMEs and B2B focused• However, lets see what can be covered in 30 mins.

The Bottom line

What is CRM all about?

CRM IS DRIVEN BY TRANSACTIONAL EVENT:

CRM COVERS EVERY ASPECTS OF

TRANSACTIONAL RELATIONSHIPS

WITH THE CUSTOMER

TYPES OF CRM

• OPERATIONAL CRM– vTIGER CRM

• PRM• RELATIONSHIP CRM (FOR CONTACT MANAGEMENT)• SOCIAL CRM

– According to Gartner Inc. “Social computing is becoming a significant customer relationship management (CRM) market trend and represents a disruptive force in this market”

– Gartner predicts that, “by 2010, more than 60 per cent of Fortune 1000 companies will have some form of online community that can be used for customer relationship purposes”

Why CRM?

CRM rationalizes the transaction processCRM also provide with speed, relevant

and accurate information on transactional activities and customer

data to decision making

THE BOTTOMLINE: CRM IS AT THE HEART OF THE CONCEPT OF MARKETING

Grönroos, (1997) see marketing as :

“the establishment, maintenance, and enhancement of relationships with

customers and other partners, at a profit, so that the objectives of the parties involved are

met”

Customer relationship management isn't

just good marketing; it's also, good

business!

MANAGING CUSTOMER RELATIONSHIP IS A BUSINESS

PHILOSOPHY THAT DRIVES ALL CORPORATE ACTIVITIES

“CRM isn’t just about collecting, processing,and deploying customer information.

It is about serving customers in afundamentally improved way”

(Source: Crosby & Johnson, 2000)

In CRM, strategy comes first!CRM Strategy: • Firm’s define how to manage

customer’s journey -– from the point of expectation

building through interaction stage (the phase of actual experience with a firm’s services or product)

– to the final point of reflections (where customer evaluate the outcomes of that interaction and the subsequent feelings that leads to the decision to or not to bond)

What is needed:

• Firms must establish long-term customer strategy that can have impact on the business.

• This means that core “business model must change from a short-term transaction-based orientation to a longterm relationship-based orientation”. (Crosby & Johnson, 2000)

Do youwant customers who

are loyal to yourcompany, not just its

current offerings?So…

…So your CRM should be about Building Customer Platforms not Product Platforms

Customer Platf orms

Therefore;

The customer, not the

product is the hero.

(Namrata Rana, 2002)

Growing the value of customer relationship

(Source: Baaken & Schröder, 2009) Liiketoiminnan sähköistymisen vaikutukset liiketoimintaprosesseihin-seminaari

14.15.10.09.

CRM: A SYSTEM PERSPECTIVE

Includes all stages of CRM/Sales Process:• Marketing automation (lead generation, campaign support)• Sales automation (customisable product entries, inventorymanagement, quotations, billing, and trouble ticketing)• Customer support & service functions, including a customer self-

service portal• Analysis and reporting• CRM / Sales process handles the touchpoints of customer

interaction,• E.g. the cycle

• Leads -> Accounts -> Contacts -> Potentials -> Quotes -> Sales Orders

-> Invoice (eInvoices)

Existing CRMs solutions lack the customer experience management aspect!

So at intrestool:• We integrate between

existing solutions. • However, the level of

integration c an be decided.

• Integration present a full solution that handles it all – both internal and external BI integration

CRM/CEM INTEGRATION

Intres CEM integration

• Customer Experience data that is deeply rooted with events of CRM history. • Open history to customers, allow / invited / encourage them to participate and share

what they think, during all touchpoints of customer interaction, and finally the result:– http://www.intrestool.com/features/features/study_the_dependency_relationships.html

Why such a solution?• Advanced CRM solutions do have the sales Process Management Capacities, so they

can handle most of the touch points of customer interaction. • Within the sales process, people in different roles can participate in feeding in

information at different levels at different times. • Invoicing (and eInvoicing) is just a push of button following the whole process. (this

example is from business-to-business sales process but a simplified model applies to the sales to consumers).

• However, all these traditional CRMs lacks the Customer Experience Management - which is supposed to be the last, natural phase of Sales Process Management.

The Customer Experience

Asiakkuuskokemuksen kehäkaavioTarpeen tiedostaminen, etsintä, valinta, maksu, toimitus, huolto, asiakaspalvelu, tyytyväinen käyttö, uuden tarpeen tiedostaminen, asiakkuuden uusiutuminen ja

vahvistuminen – vai irtisanoutuminen?

1. Miten rakennan vaikuttavaa palvelua jokaisessa kosketuspisteessä? 2. Miten asiat liittyvät toisiinsa?

TOUCHPOINT OFFERS A SURGICAL INSIGHT to the customer’s experience

”DNA is a nucleic acid that contains the genetic instructions used in the development and functioning of all known living

organisms and some viruses” (source: wikipedia)

We analyse them to understand our genetic structures

Touchpoints are the DNA of the customer experience

However

Do not allow the drive for customer information over shadow the

genuine need to build profitable, longterm

relationships with key customers.

Thank you!

Elva-hanke, liiketoiminnan sähköistymisen vaikutukset liiketoimintaprosesseihin-seminaari...

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