Customer Service and Call Center Technologies

Lecture-1: Customer Relationship Management Concepts

CRM Defined

An approach to:
Understand customer behavior Influencing them through communication Enhance customer loyalty through long term relationship Acquire new customers Make profits

Call Center is basic contact point for CRM

Re Pr lati of on ita s bi hip lit y

Every Companys Big Unknown ... Customer Value

Full Potential

Number of Relationships

Current
Current Customer Value

Current

Relationship Duration

Customer Relationship Management

Value ( $ )

Customer Relationship Management Definition

l e Va Th
Targeting Acquisition

he of t ue

hip ons ati Rel

Duration of Customer Relationship

Retention

Expansion

Who Do we target What segments are most profitable What segments match our Value Proposition What is the best segmentation strategy for us / our industry

What is the best channel for each segment What is the acquisition cost for a channel / segment Do certain channels deliver certain types of customers Cost effective acquisition

How can we improve retention What is our average customer relationship length How can we hold customer for as long as possible What is the most cost effective method of retention

How many products does our average customer buy How can we induce our current base to buy more products Who are the prime targets for expansion What is the cost of expansion

Customer Relationship Management can be simply defined as everything involved with Customer Relationship Management can be simply defined as everything involved with managing the customer relationship. managing the customer relationship.

Why CRM?

It costs six times more to sell to new customer than to sell to an existing one. A typical dissatisfied customer will tell 8-10 people By increasing the customer retention rate by 5%, profits could increase by by 85% Odds of selling to new customers = 15%, as compared to those for existing customers (50%) 70% of the complaining customers will remain loyal if problem is solved 90% of companies do not have the sales and service integration to support e-commerce

Importance of CRM
Scope
Customer Management Process Threads
Marketing Selling Servicing Customer Relationship

Depth

Customer Interaction Channels

Broadcast Mail Field Personnel Agents / Distributors Call Center Retail Internet

Strategies

Are we making the right level and type of marketing , sales , and service investments in each of our customer segments? Are we taking a holistic approach to our customers across processes and channels?

Customer Relationship

Structure

Performance
Back Office Process / Systems

Customer Relationship

Have we implemented best practices and technology in process / channel?

Customer Relationship Management

Customer Relationship Management and Shareholder Value

Annual Cash Flow

Service/Usage Revenue Acquisition Cost

Cost of Service

Duration of Relationship

n
Successful Customer Relationship Management can generate positive shareholder value. Successful Customer Relationship Management can generate positive shareholder value.

Customer Relationship Management

Customer Relationship Management Process

Capture Customer Data and Measure Results Capture Customer Data and Measure Results

The Data and Measure Results Capture CustomerCustomer

StoreCapture Customer Data and Measure Results Data, The CRM Mine and Make Information Accessible Dynamic

Take Action to Enrich the Capture Customer Data and Measure Results Customer Build and Relationship Manage Capture Customer Data and Measure Results Customer Value

The building blocks of CRM allow an organization to manage this cycle and use the knowledge on customers to enhance the Life Time value of the customer portfolio. No organization has perfect information on its customers. Knowledge of customers is continuously enhanced through the CRM dynamic.

Customer Relationship Management is a ongoing, dynamic learning process for an organization Customer Relationship Management is a ongoing, dynamic learning process for an organization

CRM Methodology: Issues and Solutions

Management is poised between

1. Opportunities that CRM offers to enhance customer relationship and increase profitability 2. Cost and time consumed on the process of CRM

How to over come the dilemma?

Determine investment priorities and select best supportive technology Going live with sales force automation, customer service and marketing at once may result in failure

CRM Methodologies: Issues and Solutions (Cont..)

Planning the CRM Process

Enable Technology to support business process, not the Business be tailored to support the technology CRM is long and continuous process.. Continue the real service, not just slogans and promises Integrate front-office activities, e.g sales, customer service, and tech support with back office resources, e.g. MIS

Apply gradual approach, identify best approach, ensure proper implementation before going live Identify customer segments and determine appropriate communication channels

Customer Relationship Management

Implementing CRM must be approached from an Integrated Perspective

Taking action to improve the relationship without measuring the The Data and Measure Results Capture CustomerCustomer results provides no evidence of success or failure and limits the opportunity for learning. StoreCapture Customer Datainformation Accessible Data, Mine and Make and Measure Results Capture Customer Data and Measure Results Capture Customer Data and Measure Results Capturing gigabytes of customer data in disparate operational systems that are next to impossible to access may render the data useless.

CRM without an Integrated Approach

Take Action to Enrich the Capture Customer Data and Measure Results Customer Build and Relationship Manage Capture Customer Data and Measure Results Customer Value Implementing new technologies without the knowledge on how to enrich the relationship is likely to yield a return below the cost of the capital expenditure.

A data warehouse full of data without the tools to extract knowledge is nothing more than expensive inventory. Sophisticated mining tools only produce results only as good as the data they mine.

Developing insights on how to improve the value of the customer relationship without having the infrastructure to take action has no impact on the bottom line. In addition, there is no opportunity to test the theoretical analysis.

All areas must be implemented, to some degree, to effectively manage the customer All areas must be implemented, to some degree, to effectively manage the customer relationship. When pieces are implemented in isolation, the benefits are less than relationship. When pieces are implemented in isolation, the benefits are less than overwhelming. overwhelming.
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Customer Information Management

Know your customer Know what the customer wants, their buying habits and preferences Use Technology to satisfy customer needs, gather customer data, e.g. historical transactions and analyze it, proactively pursue customers, direct their desires..

Customer Relationship Management

The Building Blocks of CRM

Data Capture
Customer Touch Point Integration Market Research External Databases

Data Warehousing

Knowledge Management

Enabling Technologies

EIS OLAP Data Cleansing MetaData

Segmentation Customer Profitability Data Mining Statistical Modeling

Call Centres Sales Process Automation e-Business

Organization People Deployment and Support The building blocks of CRM are the things that need to be in place for an effective Customer The building blocks of CRM are the things that need to be in place for an effective Customer Relationship management program Relationship management program

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CRM Support Technologies

Data warehousing Data mining Database systems Wireless Communication VoIP Email

CRM Roadmap
Analyze current state of customer interaction Predicting the future course of customer interaction Develop plan of action to meet predicted future course Prepare and present the business case to secure CRM project funding

Lecture date: 26-09-2010

CRM action plan

Elements to include in CRM Action Plan

Call Center Management IT Department Other departments and resources that will be affected by CRM Strategy

Targets and expectations out of CRM

Enhances sales per customer Lowers the cost of sales More referral sales Increased profits

Technology solutions selection

Improving call center telephony infrastructure Enabling customer/contact center calls over the Web Deploying or enhancing data warehouse or data mart information to collect and analyze customer and market data Improving customer relationships through customer-facing e-business

Customer Relationship Management

The Enabling Technologies

Techniques: Relationship marketing, automated packaging and pricing, knowledge-based selling

Increase revenue from your customer base Customer satisfaction measure Consultative selling Responsiveness to market conditions

Sales Force Automation

Techniques: ACD, IVR, CTI
Automatic Call Distribution (ACD) Incoming Call Queuing Performance Statistics Integrated Voice Response (IVR) Automated Inquiry & Transactions Automated screen pop on agents screen Integration with company legacy platforms Billing & Meter Reading Direct Access to Customer Data

CRM
Call Centre

Electronic Business

Techniques: WEB based application, e-mail processing

Automated product and service information WEB based sales and support through standard menus and automated help screens. WEB based training Reaching the global market

Technologies

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What is Sales Force Automation?

a technique of using software to automate the business tasks of sales, including order processing, contact management, information sharing, inventory monitoring and control, order tracking, customer management, sales forecast analysis and employee performance evaluation

Define, Apply, Manage, Create Value

CRM Strategy

Defining CRM Strategy

12-Stages of CRM Strategy 1.Develop a clear set of business objectives 2.Formulate detailed plan of action 3.Provide strong leadership 4.Institute changes in corporate culture 5.Obtain support of senior management member 6.Crucial areas first build in stages
7.

CRM Strategy (cont)

12- Stage strategy (Cont.)

7.Integrated business design creation 8.Concentrate on activities that create economic values 9.Develop customer driven product and service development process 10.Encourage the development of organizational capabilities in terms of team members 11.Generate early wins to create self-funding process 12.Include customers in two-way flow communication

Apply CRM Strategy: How?

Analysis of customer behavior patterns

Data warehousing and data mining technologies help anticipate customers needs as done by banks!
Communication channel preferred by customers Calculate the risk of customers leaving the relationship Calculating probabilities that customer will buy products and services

Maximizing individual customer experiences

Marketing departments need systems that allow employees to track, capture and analyze millions of customer activities, both interactions and transactions over a log period of time

CRM Issues

Issues with moving towards CRM are:

Deciding how and where to start Costs Risks Tangible returns quickly Accelerating implementation and maintaining the momentum Minimizing disruption to organizations normal operations Establishing a foundation for continuing gains

What helps resolve these issues

Holding CRM Workshops Transaction analysis Customer relationship technologies Maintaining Privacy Having clear justification for need of CRM

Tools for customers input in CRM

Alert platform, which is supported by suitable communication media:

High quality landline or mobile telephones Well-formatted text and interactive applications for emails, web, fax or sms

Implementation of alert/response applications Integrating alert/response systems with existing systems Configuring alert/response content

An example of alert/response system