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INTEGRATINGPROCESSES TO BUILD RELATIONSHIPS

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Introduction - Facts to Know and

Understand Cost is 6 times more to sell to a new customer than an

existing one.

A typical dissatisfied customer will tell ten peopleabout his experience. (Poor customer service)

Company can increase profits 85% by increasingcustomer retention 5%.

Chances of selling to a new customer are 15%, to anexisting customer 50%.

70% of complaining customers will continue to becustomers if problem is quickly resolved.

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Why Customer Relationship Management?

Customers want excellent service want it now!(The timely delivery of excellent service is customer relationshipmanagement)

Understand customers from a multifacetedperspective: Who are they?

What do they do?

What do they like?

Major Issues

Increased competition, Globalization, The growing costof customer acquisition, High customer turnover

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Effective management of customer relationships is asource of competitive differentiation

Today any advantage based on a companys product orservice innovation is short lived. Instead, continuouslycreating new value propositions for customers is key tosurvival in an increasingly dynamic market.

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CRM is one of the highest growth software markets

Executives must ask whether their companies existing

CRM infrastructures support doing business in the e-world.

CRM is moving from a sales productivity tool to atechnology-enabled e-relationship strategy.

To keep your best customers - create new deliverychannels, capture large amounts of customers data,and tie it together to provide customers with a uniqueexperience.

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Defining Customer Relationship

ManagementAn integrated sales, marketing and service strategy

Combination of biz processes & technology thatseeks to understand a companys customers from

a multifaceted perspective Goals of business framework: CRM

use existing relationships to grow revenue

use integrated information for excellent service

introduce more repeatable sales processes andprocedures

create new value and instill loyalty

Implement a more proactive solution strategy

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Managing Customer Life Cycle :

3 phases of CRM

AcquireDifferentiation

* Innovation

* Convenience

EnhanceBundling

* Reduce Cost

* CustomerService

RetainAdaptability

* Listening

* New Products

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Managing Customer Life Cycle :

3 phases of CRMAcquiring new customers

Enhancing the profitability of existing customers

Retaining profitable customers for life, master one ofthe 3

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CRM ..

Any application or initiative designed tohelp an organization optimize interactions

with customers, suppliers, or prospects via

one or more touch points for the purposeof acquiring, retaining customers andenhancing the profitability.

e-CRM is the application of CRM to an e-business strategy Personalization/customization of customers

experiences and interactions with the e-business

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How? Track and Analyze Data Employtracking devices

Personalize each visitors experience Find trends in customer use Measure effectiveness of a Web site over time ID cards

An ID card enables information to be sent to a Web sitesuch as your IP address, your browser, or your operatingsystem

Click-through banner advertisements Click-through ads enable visitors to view a service or

product by clicking the ad Advertisers can learn what sites generate sales

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Tracking: Web BugsWeb Bugs

A type of image file embedded in an image on the screen

Site owners allow companies, especially advertisingcompanies, to hide these information-collectingprograms on various parts of their sites

Every time a user requests a page with a Web bug on it,the Web bug sends a request to the Web bugscompanys server, which then tracks where the user goeson the Web.

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Tracking: Log-File AnalysisWhen visiting a site, you are submitting a request

and this is recorded in a log file Log files consist of data generated by site visits,

including each visitors location, IP address, time ofvisit, frequency of visits, etc. Log-file analysis organizes and summarizes the

information contained in the log files Can be used to determine the number of unique visitors

Can show the Web-site traffic effects of changing a Web siteor advertising campaign

E.g. WebTrends.com

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Tracking: Data Mining Data mining (building on a data warehouse)

Uses algorithms and statistical tools to find patterns indata gathered from customer visits

Costly and time consuming to go through large amountsof data manually Use data-mining to analyze trends within their

companies or in the marketplace Uncovered patterns can improve CRM and marketing

campaigns Discover a need for new or improved services or

products by studying the patterns of customerspurchases

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Data Patterns

Associations- Correlations

Sequences- Link between one event to later events

Classifications- Specific group of items Clusters- Sub group of data items

Forecasts- Extrapolation of trends

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Tracking: Customer RegistrationCustomer registration Requiring visitors to fill out a form with personal

information that is then used to create a profile

Only works when it will provide a benefit to the customer When customers log on using usernames and passwords,

their actions can be tracked and stored in a database

Require only minimum information

Need to give customers an incentive to register

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Tracking: Cookies Cookie

A text file stored by a Web site on an individualspersonal computer that allows a site to track the actions

of a customer Information collected is intended to be an anonymous

account of log-on times, the length of stay at the site,purchases made on the site, the site previously visited,the site visited next

Does not interact with other information stored on thesystem Can only be read by the host that sets them on a persons

computer

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Personalization Uses information from tracking, mining and data

analysis to customize a persons interactions with a

companys products, services, Web site andemployees

Establish relationships that improve each timevisitors return to site

Customers may enjoy individual attention andbecome more loyal, e.g.

http://www.moneycontrol.com

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Contact Centers Traditional call centers house customer-service

representatives

e-contact center Purpose is the sameto provide a personal customer

service experience

Allow customers with Internet access to contactcustomer service representatives through e-mail, online

text chatting or real-time voice communications Integration of all customer service functions

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E-Contact Centers Can change the culture of customer service

representatives: More technically knowledgeable to handle all forms

of contact

Provide a highly personalized experience thatsatisfies customers

New forms of contact can decrease costs

Outsource contact center services May be appropriate if a company cannot afford to

implement a contact center due to the costs ofequipment, office space, service representatives andtechnical support.

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Frequently Asked Questions (FAQs)AFrequently Asked Questions (FAQ) section on the

site Will help customers find answers to some of their

questions Frees up time to handle questions that can not be

answered without human interaction

Typically accompanied by phone numbers, e-mail

addresses, and a search engine

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E-MarketingManagementE-mail Marketing: Alerts, E-NewsletterManagementE-Surveying: Progressive ProfilingManagementViral Marketing: Tell-a-FriendManagement

Web Design: Registration, Subscription,VIP ManagementOnline Community/ E-Suggestion Box /Blog ManagementE-Commerce: Memberships, EventRegistration Management

Affiliate Management: SponsorshipManagement (Boston Symphony)Reporting / Analysis: Profiles, Behaviors

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TRADITIONAL FORM OF CRMThe existing CRM solution are not capableenough to satisfy and retaining customers andalso there is no integrated tool which connect

the Central sales management, regional salesoffice, customers care, sales, sales distribution,regional sales team in effective manner.

A 360 view requires the automation to bring

together all the data concerning a customer.This implies that organizations have to changethe form :

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TRADITIONAL CRM EMERGING SOLUTION

Mass production Product focus

Product focus Customer focus

1way communication Interactive

communication

Response time Real time responses

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EMERGING IMAPCT OF E-COMMERCE ON

CRMIn a fast changing internet world there are very clear trends

that are emerging :

Speed: people expect service at fast speed

Increase of global market place: more more people ,communities across the globe are able to buildrelationships.

Around the clock availability

expansion of partners : internet offers the ability for theorganizations and people alike to partner with suppliersand customers alike across the globe.

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EMERGING IMAPCT OF

E-COMMERCE ON CRM

In global market place the channels of marketingare already causing an impact on the buyingbehavior of individuals as well as organizationsalike. Some of the trends are :

1. VERTICAL E-MARKET PLACE :industry specificmarket place such as being formed by auto giants

where organized buyers and sellers can meet,list, negotiate, make orders and track delivery.

2. BUY SITE AND SELL SITE: where consumers andorganization are alike can buy or sell onlinethrough online shopping mart concept.

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What is e-CRM ?In simplest terms e-crm provides company to conduct

interactive, personalized and relevant communicationsacross the globe with their customers by utilizing the

traditional and electronic channels both.It adheres to permission based practices, respecting

individual's preferences regarding how and whether theywish to communicate with you and it focuses on the

understanding how the economics of the customersrelationships affects the business.

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What is e-CRM ?e- CRM is the electronic based version of CRM. The

user of the e- CRM solution uses the sources of theinternet to increase the relationship with the

customer.web based CRM can easily handle the

relationships between Central sales management,regional sales office, customers care, sales, sales

distribution, regional sales team.

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Why employ e-CRM ? To optimize the value of the interactive relationships

Enable the business to extends its personalized reach in thehand of customers

Co-ordinating marketing initiatives across the allcustomers channels

Leverage the customer`s information for more effective e-marketing and e-business

Focus the business on improving the customersrelationship and earning a greater share of eachcustomer`s business through consistent measurement,assessment and actionable customer strategy.

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KEY FEATURES OF e-CRM Regardless of an company objectives e-CRM

solution must posses certain key characteristics. Itmust be:

driven by a DATA WAREHOUSE

Focused on the consistent metrics to assescustomers actions across the channels

Structured to identify a customer profitability orprofit potential

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KEY FEATURES OF e-CRM To determine the effective allocation decisions accordingly,

so that most profitable customers could be indentified andretained and the resource could be invested in the

relationships, which are more profitable.

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E-CRM architectureThe primary input to this module are mainly from the e-CRM assessmentand strategy alignment modules. during this stage the company will tryand develop a connected enterprise architecture(CEA) within thecontext of the companies' own customers relationship management

strategy. The following is set of technical e-CRM capabilities andapplications that collectively and ideally comprise a full e-CRMsolutions :

Customers analytic soft wares

Data mining soft wares

Campaign management soft wares

Business simulation

A real time decision engines

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E-CRM architecture Customer analytic software : predicts ,measures and interprets the

customers behavior allowing companies to understands theeffectiveness of e-CRM efforts across both inbound and outboundchannels. Most importantly, customers analysis should integrate with

customers communication software to enable the company totransform customer findings into ROI- producing initiatives.

Data mining software :it builds the predictive models to identifycustomers most likely to perform a particular behaviors such aspurchase an upgrade or churn from the company. Modeling must be

tightly integrated with the campaign management software to keep thepace with the multiple campaign running daily or- weekly.

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E-CRM architecture Campaign management soft wares : leverages the data wares

house to plan and execute multiple, highly targeted campaignsovertimes, using triggers that respond timed events and

customers behavior. Campaign management software testvarious offers against controls groups, capture promotion historyfor each customers and prospect and produces output virtuallyany online or offline customers touch point channel.

Business simulation : it is used with conjunction with

campaign management software optimize offer, messaging andchannel delivery prior to the execution of campaigns andcompare planned cost and ROI projection with actual cost.

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A real time decision engine : coordinate andsynchronizes communications across variouscustomers touch point systems. It contains the

business intelligence to determine and communicatethe most appropriate message ,offer, and channeldelivery in real time and support two way dialoguewith the customers

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MOBILE CRMOne subset of Electronic CRM is Mobile CRM (m-CRM). This is defined as services that aim atnurturing customer relationships, acquiring ormaintaining customers, support marketing, salesor services processes, and use wireless networks asthe medium of delivery to the customers. However,

since communication is the central aspect ofcustomer relations activities, many opt for thefollowing definition of m-CRM:

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MOBILE CRMcommunication, either one-way or interactive, which is

related to sales, marketing and customer serviceactivities conducted through mobile medium for the

purpose of building and maintaining customerrelationships between a company and its customer(s)

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MOBILE CRME-CRM allows customers to access company services

from more and more places, since the Internetaccess points are increasing by the day. M-CRMhowever, takes this one step further and allowscustomers or managers to access the systems forinstance from a mobile phone or PDAwith

internet access, resulting in high flexibility.
http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/PDAhttp://en.wikipedia.org/wiki/PDAhttp://en.wikipedia.org/wiki/Internet

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MOBILE CRMAn example of a company that implemented m-CRM

is Finn-air, who made it possible for their customers tocheck in for their flights bySMS. Since m-CRM is not

able to provide a complete range of customerrelationship activities it should be integrated in thecomplete CRM system.
http://en.wikipedia.org/wiki/Short_message_servicehttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Short_message_service

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Next Generation CRM Infrastructure must integrate

Customer Content

Customer Contact information

End to End Biz Process

Extended enterprise partners Next generation trends

The multi Channel Integrated experience

Rise of the call center as a multipurpose customer contact point

Listening Portals

CRM portals (Sales Force Apps and hosted apps

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Road map to Managers

Involve top managers Define a vision of integrated CRM

Establish the CRM strategy and specify its objectives

Understand the customer

Review cultural changes that will need to occur

Develop a biz case

Evaluated current readiness

Anticipate organizational changes

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CRM key Benefits Deeper understanding of customers

Increased selling and marketing opportunities

Identifying the most profitable customers Easy to sell

Faster response to customer inquiries

Increased efficiency through automation

Effective customer feed back

Valuable information for decision making

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Increase in Productivity of Sales, Services and CRM Teams. Save Effort And Increase Efficiency Through Automation. Act and Sound Professional Save Money

Design Your Faster Response Processes To CustomerInquiries. Identifying the most profitable customers. Receiving customer feedback that leads to new and improvedproducts or services. Consider the One-to-One Marketing For Your Business.

Have a Holistic and 360 View Approach Streamlined sales and marketing processes Added cross-selling and up-selling opportunities Improved customer service, loyalty, and retention Increased call center efficiency Higher close rates

Better customer profiling and targeting Reduced expenses Increased market share Higher overall profitability

Documents

New CRM