Customer relationship management (CRM) Introduction

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Source

Key Sources of the course: CRM by Ed Peelen

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Content
Definition CRM as a business strategy CRM processes and systems Entrance, applications and success of CRM Case study

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Key message of the course

We are in it, together!

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Key message of the course

In 2003, according to Harvard Business Review, 82% of interviewed companies in the USA, stated they would introduce CRM, a large jump from the 35% who employed CRM in 2000.

What changed?

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Key message of the course

The approach changed!

Rather than use CRM to transform entire businesses, companies using CRM successfully have directed their investments toward solving clearly defined problems within their customer relationship base

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Key message of the course

The approach changed!

CRM today result in highly focused projects that are relatively narrow in their scope and modest in their goals. There is also an understanding that highly accurate and timely data are not required everywhere
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Key message of the course

Marketing

Technology

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Key message of the course

Achieving success with CRM is more difficult than expected and it is not just a matter of marketing and IT.

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CRM definition
I Metagroep
The automation of horizontally integrated business processes involving front office contact points via multiple, interconnected delivery channels

II Unknown
A process that addresses all aspects of identifying customers, creating cus. knowledge, building cus. relationships, and shaping their perceptions of the organization and its products

III Gartner group

An IT enabled biz strategy, outcomes of which optimize profitability, revenue and cus. satisfaction by organizing around customer segments, fostering customersatisfying behaviors and implementing customer-centric processes

IV McKenna
CRM targets the building of an infrastructure which may be used to develop long-term customer-supplier relationships

CRM definition
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CRM definition

A business strategy from the start, one that is aimed towards developing long-term, mutually profitable, individual customer-supplier relationships and is based on an IT infrastructure to be developed, one that enables welldefined and controlled processes, and places capable personnel in a position to function optimally.

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CRM definition
The philosophy of CRM
CRM is about Keeping the old-time spirit of customer connection even when you can not shake every hand . A comprehensive approach for creating, maintaining and expanding customer relationships. A way of thinking about and dealing with customer relationships

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CRM definition
support customer knowledge

trust

customers-oriented

culture

comprehensive approach

relationship
one-by-one
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value-driven
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CRM definition
Traditional Marketing
Goal: Expand customer base, increase market share by mass marketing Product oriented view Mass marketing / mass production

CRM
Goal: Establish a profitable, long-term, one-to-one relationship with customers; understanding their needs, preferences, expectations Customer oriented view Mass customization, one-to-one marketing

Standardization of customer needs Customer-supplier relationship Transactional relationship

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Relational approach
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CRM as a business strategy

The focus is on: What will the customers buy, when, why and for how much? What creates value for them? What service can we provide that does create a premium? What about market segmentation?

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CRM as a business strategy

CRM affects organization as a whole: marketing, IT, service, logistics, finance, production, HR, BOM, etc.
Employees & managers customer-oriented approach improved Individual customer catered Processes executed flawlessly & efficiently IT plays a determining factor

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CRM as a business strategy

marketing IT

CRM

BOM

HR

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CRM as a business strategy

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CRM as a business strategy

CRMs goal is a so-called customer intimacy
Both parties get to know one another, and help, trust and make a commitment to one another for the long term Both parties are capable of achieving lasting success in a competitive environment. Organization has opportunity to expand customer knowledge & approach Organization is capable of supplying customization

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CRM processes & systems

The use of IT becomes inevitable

To serve large group of customers Data changed by various people during days filed Customers prefer to communicate with the supplier through modern means

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CRM processes & systems

Processes which are automated and supported by the CRM systems developed
Internet becomes as a channel The call center & sales information systems for account managers & sales personnel established The front office is linked to the back office The role of human element has been reduced Processes involved in acquisition, ordering, payment, remittance, complaints, information queries, etc. described perfectly to give the customer what he wants

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Entrance, applications & success of CRM

Stemming from a much older principle that customer-supplier relationships have been the goal of companies Close relationships with customers were maintained by smallscale & specialized companies during the time of the industrial revolution Individual customer-supplier relationships paid attention since late 1980s & early 1990s
Relationship marketing alternated transaction marketing Evidences support for long-term nature of customer and supplier cooperative relationship Keeping customers more profitable than simply attracting them. Customer-oriented replaced product-oriented
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Entrance, applications & success of CRM

CRM is a strategy that affects the entire company
Product-oriented organizations invested in infrastructure to transform themselves into customer-oriented ones A variety of communication channels with customers established Individual customer knowledge developed Marketing strategy targets the relationship development instead of transaction stimulations

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Contact
Nguyen Nhu Chang, mba Email: ngnhuchang@yahoo.com

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