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■ Customer relationship management (CRM)

 Term applied to processes implemented by a


company to handle its contact with its customers

 CRM is a software-based approach to handling


customer relationships

 Store information on current and prospective


customers

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■ Control over buying process
 Information, comparison, selection, easy to find
■ Best possible price
 Delivery (free), quality
■ All payment options
 Secure
■ Communication designed to suit needs
 Computerized, complex, caring

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■ All forms of trading

 Direct
 Traditional
 Retail
 E-commerce
 Wholesale
 Combination

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■ New convergence

 Telephony & telemarketing


 Internet
 Mobile, SMS
 Digital TV
 Cable & satellite

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■ Control over buying process
 Information, comparison, selection, easy to find
■ Best possible price
 Delivery (free), quality
■ All payment options
 Secure
■ Communication designed to suit needs
 Computerized, complex, caring

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■ All forms of trading

 Direct
 Traditional
 Retail
 E-commerce
 Wholesale
 Combination

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■ New convergence

 Telephony & telemarketing


 Internet
 Mobile, SMS
 Digital TV
 Cable & satellite

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■ Customer relationship management (CRM)

 From the outside, customers interacting with a


company perceive the business as a single entity,
despite often interacting with a variety of
employees in different roles and departments

 CRM is a combination of policies, processes, and


strategies implemented by a company that unify
its customer interaction and provides a
mechanism for tracking customer information

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■ Information in the system can be accessed and
entered by employees in different departments)

 Sales
 Marketing
 Customer service
 Training
 Professional development
 Performance management
 Human resource development

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■ Details on any customer contacts can also be
stored in the system

 The rationale behind this approach is to improve


services provided directly to customers

 To use the information in the system for targeted


marketing and sales purposes

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■ Many inter-related aspects

 Front office operation


 Back office operations
 Business relationships
 Analysis

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■ Direct interaction with customers

 Face to face meetings


 Phone calls
 E-mail
 Online services etc

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■ Operations that ultimately affect the activities of
the front office

 Billing
 Maintenance
 Planning
 Marketing
 Advertising
 Finance
 Manufacturing

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■ Interaction with other companies and partners

 Suppliers/vendors
 Retail outlets/distributors
 Industry networks (lobbying groups, trade assn’)

■ This external network supports front and back


office activities

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■ Key CRM data can be analyzed in order to plan

 Target-marketing campaigns
 Conceive business strategies
 Judge the success of CRM activities (e.g., market
share, number and types of customers, revenue,
profitability)

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■ CRM initiatives often fail

 Implementation was limited to software


installation

 Inadequate motivations for employees to learn,


provide input, and take full advantage of the
information systems

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■ Three key phases
 1. Customer Acquisition
 2. Customer Retention
 3. Customer Extension

■ Three contextual factors


 4. Marketing Orientation
 5. Value Creation
 6. Innovative IT.

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■ Attracting our customer
 For the first purchase
 We have acquired our customer

■ Growth
 Market orientation, innovative IT & value creation
 Aim is to increase the number of customers that
purchase from us for the FIRST TIME

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■ Re-purchase
 Our customer returns and buys for a second time
 This is most likely to be the purchase of a similar
product or service, or the next level of product or
service.

■ Growth
 Market orientation, innovative IT & value creation
 Aim is to increase the number of customers that
purchase from us REGULARLY

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■ Additional, supplementary purchases
 Our customers are regularly purchasing
 We introduce products and services to our loyal
customers different from original purchase
 Once purchased, our goal is to retain them as
customers for the extended products or services

■ Growth
 Market orientation, innovative IT & value creation
 Aim is to increase the number of customers that
purchase ADDITIONAL products
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■ Focused upon the three levels of needs of
customers

 Actual, tangible product


 Core product and its benefit
 Also the augmented product such as a warranty
and customer service

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Core
Benefit

Basic
Product
Expected
Product

Augmented
product
Potential
Product 26
■ Generation of shareholder value

 Based upon the satisfaction of customer needs (as


with marketing orientation)
 Delivery of a sustainable competitive advantage

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■ Updated IT
 Efficient, speedy and focus upon customer needs
 Whilst IT and/or software are not the entire story
for CRM, it is vital to its success
 CRM software collects data on consumers and
their transactions
 Organizations will track individuals, and try to
market products and services to them based upon
similar buyer behavior seen in other individuals

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■ 1. Validation

■ 2. Discovery

■ 3. Action

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■ 1. Validation

■ 2. Discovery

■ 3. Action

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■ Correct data

 Ensuring that the data you have on your


customers is not only correct
 Also, in a suitable state for targeting
communications programs

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■ Use of data mining techniques

 To find relationships that you did not know existed


 Sometimes conventional analysis is impaired by
your own natural assumptions and prejudices
 Discovery techniques help to solve these issues
by starting from ground zero
 They simply search for relationships in the
database against a set of objectives

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■ Right communication

 Your customers and prospects need to have the


right messages communicated to them
 Quality Inter-Action drives quality Trans-Action
 This is done with a Campaign Management tool
that can automatically select the right targets and
the right messages via the right channels
 The responses are then fed back into the
Validation process for evaluation and refinement

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■ CRM is corporate strategy composed of
applications, technology and products that fulfill
three essential requirements

 1. Organization perspective
 2. Customer perspective
 3. Front office staff perspective

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■ 360° view of each customer

 For consistent and unified contact with that


customer whenever anyone anywhere in the
enterprise deals with that customer

 This knowledge increases the opportunities for


sales and the effectiveness of customer service

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2. Customer
perspective
■ Customers to have a consistent view

 To enable your customers to have a consistent


view of your enterprise, regardless of the way the
customer contacts you

 This improves customer satisfaction and customer


retention

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■ Staff performance

 To enable front office staff to perform sales,


service and marketing tasks more efficiently as a
team

 Increasing expertise and reducing costs

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■ Important

 Business starts with the acquisition of customers

 However, any successful CRM initiative is highly


dependent on a solid understanding of customers

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■ Understand
 Demographics, purchase patterns & channels
 Segmentation to identify logical unique groups
 Primary research to capture needs and attitudes
 Customer valuation to understand profitability

■ Differentiate
 Based on the value customers
are expected to deliver

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■ Develop
 Products, services, channels and media can be
customized based on the needs of quantitative
customer segments

■ Customize
 Based on the potential value
delivered by customer segment

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■ Interact
 Not just through marketing, sales and media
 Distribution, shipping, customer service & online

■ Deliver
 Delivering value is a cornerstone
 Factors including quality,
convenience, speed,
ease of use, responsiveness
and service excellence

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■ Acquire
 Learning about customers makes it easy to
identify those producing the greatest value

■ Retain
 Maintain interaction;
 Deliver on value
 Customers change as they move
through differing life stages
 Modify the service

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 Subconscious Expectations
Pizza with specified toppings
Take 10 minutes
Come in a packed box
Remain warm till you reach home
Charges – standard and acceptable price
Pizza will taste reasonably good

 You will come back is all the above are met


 If you go regularly
Rapport with employees
You forgive if they mess up with one or
two expectations

 Degree of confidence determines


tolerance
If using first time, and even one
expectation is not met
You will never go again
Exceeded expectations
Deliver on all expectations
Give you a garlic bread FREE !

You will tell everyone about it