Customer Relationship Management (CRM)

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Customer Relationship Management (CRM). Nattapan Buavaraporn , PhD. CRM course outline. Introduction to CRM Six Market Model of CRM What is CRM? The purpose of CRM The existing customer behavior CRM trend. CRM course outline (Cont’). - PowerPoint PPT Presentation

Text of Customer Relationship Management (CRM)


Customer Relationship Management (CRM)Nattapan Buavaraporn, PhD

1CRM course outlineIntroduction to CRMSix Market Model of CRMWhat is CRM? The purpose of CRMThe existing customer behaviorCRM trend2CRM course outline (Cont)CRM approach (Types of CRM, DMU, CRM Model, Relationship level)British Telecom (BT) Case CRM CRM CRM CRM3Group discussion processUnderstand the Importance of CRM + identify Six Market ModelIdentify Decision Making UnitsIdentify your existing workflow processCRM Strategy planning: Implementing CRM + Customizing CRM to your workBenefits of proposed CRM programProspect/Proposed CRM plan4Introduction to CRMCRM (Relationship Management) 5 6 / / Rebate in US Backward Vertical IntegrationForward Vertical IntegrationrelationshipSharing info + building good relationshipCRM in the 21th century (buyers Market) unique and customised product/ service : IKEA ! 5 (Philip Kotler)2 important P Product and Promotion (Stakeholder)7/ / / / / / all stakeholdersSix Market ModelCRM(Customer Market)8Workshop 1:Objective: end-user Discussion: Six Market Model, Six Markets

9What is CRM?

CRM Win-Win StrategyCRM (Customer Royalty)10The goal of CRM11CRM GoalKey Characteristic of CRM (Customized) (Personalised) POLO, AIS etc. (Long-term relationship)Win-Win StrategyTwo-way communication (call center, hotline, internet chat etc.)12 CRM (Words-of-mouth)Example: Samsonite 13Customer behavior and CRM CRM 14ValueValue-addedSatisfiedMore than satisfiedCRM (Buyers market) Value Value added : High Speed internet ? Compared to other choices?: corporate Customised products and services?

15 Market CRM 1617

The Royalty Program (Supplier) Alliance, joint venture, backward integration Forward integration consumer, end user184Ps Product, Price, Place, Promotion4Cs Customers needs and wants : Cost : Convenience : Communicate :

19Trend of CRM AIS, O2, T-Mobile: Non-store retailing (ex. e-channal, BT website, Dell website etc.) (Integrated Marketing Communication)One-to-One Marketing (ex. Polo-Created your own, Dell, BT) (Networking and Sharing)

20 CRMCRM : Business to Business (Target: Retail shop, dealer, distributor, Franchise) CRM : Business to Customer/ Consumers

21Pause of Thought: Please think about your existing work, what is the main type of your prospect CRM program?

80:20 Rule! (Decision Making Unit) (User) (Influencers) (Deciders) (Approvers) (Buyers) (Gatekeepers)

22CRM Model (Reward Model) (Contractual Model) (Value-added model) (Educational Model)23 (Reward Model) Mileage Program, spot reward, , Database Promotion, customize, beyond expectationTOT??24 (Contractual Model) Franchise Franchiser design, operate, and managementEx. Hotel member, fitness member, Restaurant member etc.BT ?? TOT??25 (Value-added model)Central card store card?Various value-added through the use of Central card, such as sale preview, central lounge, special parking, extra reduction etcBT More than internet provider, but service provider !TOT??26 (Educational Model) Ex. Ex. SMEs training by financial institutions TOT??

27ExamplesSamsonite Case wheel repairQatar Airways Case Business Class upgradingMark and Spencer Case umbrellaBT caseDell CasePolo (Created your own)28Case Study: CRM @British Telecom BT is one of the worlds leading telecommunications providersBT is the UKs main telecommunications provider ( businesses: BT retail broadband networks, BT retail internet, BT retail telecoms, BT wholesale telecoms network, BT R&D100,000 employees,Annual turnover 18.4 billion pounds

29BT servicesBT retail delivers tailored (Customise and Personalise) IT solutions for SME and Larger organizationsCover both business and residential customers (B2B and B2C)Products: Voice, data, Internet (Broadband) and multimedia (TV)30BT case: challengesIncreased competition delivering the value to customers, concerning B2B and B2C (TOT, Who s your main competitors??)They attempted to provide extensive product and service to customer, however, not enough!The key important issue is that customers required tailored/ customised product and service to meet their particular need valued to them (Check out BT Web and Discussion)

31BT case: solutionsThus, BT implemented a customer-centric strategy, by integrating traditional products and services through the new wave technologies (web-based)Not only delivering them with products and services, but also using our understanding of our customers to create a compelling value proposition32BT case: solutions (cont)Value proposition: combination of products and services based on identified set of individual customer needs.BT view: business today revolves around the needs being serviced, not the products being offeredBT focused on improving the quality of service delivery, enhancing customer satisfaction, as well as reducing costs3334 (Prospect) (Purchasers) (Clients) (Supporters) (Advocates) (Partner)Group Discussion ??

35 (Basic Marketing) (Reactive Marketing) (Accountable Marketing) (Proactive Marketing) (Partnership Marketing)

36 4 CRM (Harvard) CRM CRM

37How about Us?RevisionWhat is CRM? Characteristics of CRM? Objective of CRMSix Market ModelTypes of CRM, DMU, : B2B, B2C CRM 38Workshop 2:Objective: CRMDiscussion (End-to-end process) , (Decision Making Unit) , , ,

39Workshop Guideline40MarketBusiness ProcessAfter sale services

Decision Making Unit/ CustomersDecision Making Unit/ CustomersDecision Making Unit/ Customers CRM4142

Trust &Commitment CRMCRM Strategy Design (Customer Acquisition) (Customer retention) (Customer Win-back strategy) Trader Consumers43 CRM: , , : Traders Consumers CRM

44 CRM/ / + CRM CRM + CRM Strategy45 1: ? Traders: Consumers: : (Value Delivery Network)Workshop:

46 (Superior Value delivery network)47 (producer)/ (service provider) (Consumer/ customer)()()()() ?48 2: InternetSWOT (STP marketing)49Our SWOT analysis?50 3: / / B-2-B (): ( ) ( ) ( ) B-2-C: ( ) ( lifestyle) Niche Market - One-to-one marketing: two-way communicationIdentify

51 3: / / (undifferentiate) CRM (Differentiate) 2 (Market Concentration) CRM 52 3: / / CRM (Frequent Flyer Program) 53

4: (Market map) STP 54: 55

5: + , , , , , database 56 5: + contribute 57

5: + 58 59 6: CRM CRM direct mail, catalog Thank you and new product launching party

CRM TradersCompetition/ sales contestMini concertTrip: rewards trip, familiarity tripDisplay, sales training, sales toolsDiscountCall center60 6: CRM 7: CRM + 61

Workshop CRM 762 CRM63 (Relationship Management Chain) CRM Customer focus: (value proposition) - (superior customer value)

You are special!

64 (CRM)65 ? Value Added 66 2 CRM CRM program67 End-to-end Business process (Customer-centric approach) Customization

68 : 69 CRM 3Ps: People, Process and Proactive/ Personalized servicesPeople: internal marketing and brand ambassadorProcess: Call center, NPD, SRM &CRMProactive/ Personalized services: 70Pause of Thought CRM (Check) (Action)71CRM (Customer profitability): Rule 80/20 (Customization)

72CustomizationCustomer profitabilityCRM 73 6 six market model74CRM(Customer Market)Revisit of Business Process &Six Market Model CRMObjectives: (customer defection rate)/ (retention rate)/ (customer satisfaction)

75 CRM (perfect order achievement) (customer referrals) (complaints)76 CRM77 (cross selling & Line extensions and brand extensions)


79 8012-How to build Customer Retention Call center back office operations (frequency marketing program: FMP): 8112-How to build Customer Retention825. 12-How to build Customer Retention Mass Customization Internal marketing (switching cost)

83 CRM (new customer acquisition) (lead generation) call center/ website (lead qualification) (account conversion)

8484 85 front office back office

86Organization structure: teamworkEmployee surveyEmployee grouping: propose appropriate activitiesHRD and trainingEmpowermentRewardsInternal communicationEvaluation and accountabilityTrust and support87Supply Chain ManagementStrategic outsourcing R&DWin-win strategyTrust and commitmentShared information 8889One-to-one marketingDirect response for two-way communication IMC : direct marketing, PR, Advertising, sales promotion, sponsorship, corporate identity, personal selling, signage, etc.90Thank you very much 91