Crm unit iv (technological tools for crm)

1

By :

Prof. Amit Kumar

Relationship Officer:ABN AMRO Slide No : 02 ERP Functional Consultant

Customer Relationship Management Technological Tools for CRM

IILM Graduate School of Management

Course Contents

• Functionality of CRM Application

• Criteria used for evaluating technological solution for CRM

• Global CRM product market

• Data Warehousing & CRM

• Data Mining & CRM

• Case Study on Microsoft CRM Solution



Sales Force Automation

Campaign Management

CSS Management


Functionality of CRM Application

• Functionally CRM applications can be categorized into three main segments :

1. Sales Application- Sales Force Automation (SFA)

2. Marketing Application- Campaign Management (CMA)

3. Customer Service & Support- CSS Management




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Campaign Management (CMA)

• In order to inform customers about various products and ultimately sell them, marketing managers routinely conduct marketing campaigns of varied types as part of overall marketing strategy. They may be for:

– Launch of a new product– Test marketing of a new product– Relaunch of an old product with more features– Campaign for specific occasions– Campaign to build brand image, e.g. with a celebrity

• CMA solutions are software products that help a marketing manager plan, design, execute & measure the effectiveness of marketing campaigns.

• They help in STP activities & related strategies making for each segment. Also help in pricing & selecting distribution channels.







Functionality required by CMA

1. Workflow

2. Segmentation

3. Personalization

4. Execution

5. Response Management

6. Response Modeling






1. Workflow-

‘This is the process of managing and coordinating the activities of a campaign from planning, budgeting to execution and tracking. The campaign may consists of many stages and for each stage a different message might be sent. The software should be able to support multiple campaigns, each campaign might be across multiple channels of communications’.






1. Workflow- e.g. Initially, the company might sent emails to their prospective customers informing them of the new product and asking them to check out their website. Depending on the response from each customer, further communications like an email message, telephone call or direct visit by the sales person can be planned.

Managing such a workflow requires tremendous amount of backend support in the form of coordination and book-keeping. The campaign management solution should be capable of providing such support.






2. Segmentation-

‘Segmentation is the process of identifying………………………’

Customer database from previous campaigns that contains information about how customers responses to previous offers is usually stored in a DWH. CM software must interface with the DWH and pulls out the relevant customer details.

Some analytic capability is present in most of the campaign management packages. This capability allows managers to segment the database and identify the most appropriate target segments for a campaign.






3. Personalization-

‘Distribution of personalized content to a customer over a preferred channel of communication is emerging as an important capability of campaign management solution. For example, a customer might like to be contacted by phone directly and usually responds favorably if there are discounts offered. Such information can be used to personalize the offerings to the customer.’






4. Execution-

‘Execution is the process of actual delivery of an outbound message to a market segment or target over a specific delivery channel’.

For example, a company might send an email message initially to prospects identified by segmenting its customer database. Some of the customers may respond while others may not. For those who respond, the company may choose to provide more details by calling them over telephone (to be done by sales people from a call center) or personally visiting them (sending sales force). For those who do not respond, a different message could be sent.






5. Response Management-

‘Response management in short is the ability to track a customer’s response to the marketing message or deliver an offer to customer’.

The system should be able to determine the actual sales and

ROIs for each campaign, so that the marketing manager is able to judge each campaign’s effectiveness.

Most of the solutions have features that enable reporting of campaign results in easy-to-read, tabular and graphical formats. Once

the campaign has been completed, the campaign history, along with its details is then migrated to a data warehouse so that it can be reused for

later campaigns’.






6. Response Modeling-

‘Most of the CM solutions provide some form of response modeling feature, so that the models developed in the current campaigns can be used in future segmentation and targeting efforts’.

If a ‘good’ model is found, based on the previous campaign results, that reasonably forecast the responses of a customer category, then the model can be run for other segments to find better prospects.


Sales Force Automation (SFA)

• Customers contact the sales representatives with the intension of learning more about the company’s products. It is up to the sales person to convert this enquiry into an order.

• Customer may be very demanding .

• Sales force automation can be defined as a number of processes designed to produce a sale of your products using less time & efforts than is presently required.

• IT is a major enabler of SFA solutions. The aim of SFA is to make the sales processes more efficient and effective by communicating with the customers right the first time.





Sales Cycle typically goes through the following steps:

1. The first step is prospecting for customers.

2. Preliminary assessment of the leads

3. Sales team then needs to manage the sales efforts. Here the critical issues include RA, Information regarding quotes and pricing etc

4. Final step is to close the deal. Many times services are also offered with the product.





Functionality required by SFA

• Interface with campaign management software so that sales people are able to receive a comprehensive view of ongoing and completed marketing campaign.

• Some SFA guide Sales person during conversation with customer.

• Siebel provide forecasting and business planning support to higher level managers in sales department.

• Business Contact Management- People whom the sales personnel contact initially for any sale.

• Business Account Management

• Territory Management- This functionality enables the sales department to automatically route opportunities, accounts, contacts & activities to the right sales team members territory-wise.




Customer Support & Services (CSS)

Relationship Officer:ABN AMRO Slide No :10 ERP Functional Consultant


Full service cycle consists of:

1. Logging of the initial service request by the customer

2. Verifying the contractual coverage as regards warranties & guarantees

3. Assigning and sending out appropriate field engineers

4. Providing depot repair

5. Billing of customers




Functionality required by CSS

» Multiple Channel Access

» Solution Knowledge Base

» Managing Requests

» Contract & Warranty Status

» Field Service Support

» Management of Spares and Depot Repairs

» Billing

Depot Repairs: Many a time, a field engineer may not be able to completely repair the product on site. In that case, the part(s) are shipped to the nearest depot and repairs take place there.

Customer Support & Services (CSS)


Criteria used for evaluating the technological solution for CRM


• Functionality supported by the package• Catering to multiple channels of interaction• Compatibility with existing infrastructure• Scalability- Property of a system to cater to higher loads without any

deterioration in performance.

• Integration- It is better to choose CRM solution from a single vendor.

• Flexibility in incorporating changes & upgradeability• Experience in Implementation- training & maintenance needs

• Checking references• Price- Price driven selection may lead to a misfit with Company CRM objectives.



Global CRM product market


Large Enterprises

Small & Medium Enterprises

Siebel, Oracle,MySAP CRM

Talisma, Sales LogicsMicrosoft, OnyxSalesNotes

Siebel CRM on DemandSalesforce.com

SalesNotes.netNetCRM

Main Target Server Centric Web Centric



Global Leading CRM Provider: Siebel



• World’s largest leading provider of CRM solution .• Through its’ CRM for Everyone’ strategy, Siebel provides CRM solutions for

any kind of organization, any type of user, and for any budget.• Latest offering of Siebel 7.7 brings in industry-specific features, enhanced

analytic, business intelligence and data integration capabilities that improve total cost of ownership (TCO).

• Siebel leads the CRM market with a user base of 3.2 million users spanning 4800 organizations.

• Siebel CRM OnDemand is a hosted CRM offerings delivered over the Web and accessible from an Internet browser at a fixed price per user per month. Customer can deploy quickly, easily, and affordably, without any upfront IT investments.


Global Leading CRM Provider: Siebel



• Siebel offers 20 industry specific applications that cover all aspects of CRM that includes:

» Sales ( SFA)» Marketing (CMA)» Service (CSS)» Partnership Management» Employee Relationship Management» Analytics capability» Business Intelligence (BI) Capabilities

• Analytic capability was provided through partnership with BroadBase rather than by offering an analytic product of its own.

• Now Siebel has teamed up with IBM to develop a scalable BI solution that enable organizations to deploy BI faster, at a lower total cost, with better results.




An Abundance of Data

• Supermarket scanners, POS data• Preferred customer cards• Credit card transactions• Direct mail response• Call center records• ATM machines• Demographic data• Sensor networks• Cameras• Web server logs• Customer web site


Data Warehousing & CRM



The process of transforming data into information and making it

available to the user in a timely enough manner to make a difference

is known as Data warehousing.

• Data warehousing is the infrastructure on which data mining

applications reside and run.

• Data warehouses are maintained separately from the organization’s operational databases.

• Data warehouse contains historical and other data collected from all

part of organization. These databases might contain redundancy as

they are optimized for decision support and not for speed.


Data Warehousing & CRM



Advantages to using DWH for CRM :

• It becomes difficult to integrate information from all the customer

touch points. DWH provides better information integration to decision-maker.

• DWH helps in personalization of services. A company may find that a customer has abandoned the purchase of a product after browsing about its details for sometime. It can then get back to customer & give him a better offer.

• DWH play an important support function in marketing campaigns. It provides data that is needed to determine the ideal size of a campaign market, identifying prospects and evaluating success of a campaign based on the responses.




Why Use Data Mining Today?

Human analysis skills are inadequate:– Volume and dimensionality of the data

– High data growth rate

Availability of:– Data

– Storage

– Computational power


Data Mining & CRM



Data mining is the exploration and analysis of large quantities of data in order to discover valid, novel, potentially useful, and ultimately understandable patterns in data.

Valid: The patterns hold in general.

Novel: We did not know the pattern beforehand.

Useful: We can devise actions from the patterns.

Understandable: We can interpret the patterns.

It is commonly used in a wide range of applications, such as marketing, fraud detection and scientific discovery.




Data Mining Step in Detail

1. Data preprocessing– Data selection: Identify target datasets and relevant fields– Data cleaning

• Remove noise and outliers• Data transformation• Create common units• Generate new fields

2. Data mining model construction (Classification model Clustering)

3. Model evaluation




Preprocessing and Mining

Original Data

TargetData

PreprocessedData

PatternsKnowledge

DataIntegration

and Selection

Preprocessing

ModelConstruction

Interpretation


Crm unit iv (technological tools for crm)

Leadership & Management

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