CRM

Customer Customer Relationship Relationship ManagementManagementSmall Business Information Small Business Information

SystemsSystemsProfessor Barry FloydProfessor Barry Floyd

AgendaAgenda

Defining ERPDefining ERP Implementation tasks for CRMImplementation tasks for CRM CRM Overview / DemosCRM Overview / Demos

Conceptual OverviewConceptual Overview An application perspective of CRMAn application perspective of CRM

OperationalOperational AnalyticalAnalytical

Lab component: Lab component: Hands on use of CRM with MicrosoftHands on use of CRM with Microsoft

Use of ERP software in the curriculum – Defining ERP?Use of ERP software in the curriculum – Defining ERP? Defining ERPDefining ERP

““In 1990, research firm Gartner Group coined In 1990, research firm Gartner Group coined the term Enterprise Resource Planning, or the term Enterprise Resource Planning, or ERP. It quickly became a catchall for back ERP. It quickly became a catchall for back office enterprise functions that included office enterprise functions that included financials, human resources, accounting, financials, human resources, accounting, purchasing, ordering and costing.”purchasing, ordering and costing.”

““ERP II takes the ERP foundation and extends ERP II takes the ERP foundation and extends it outward, to position the enterprise in the it outward, to position the enterprise in the supply an value chains (e.g., Supply Chain supply an value chains (e.g., Supply Chain Management (SCM), Customer Relationship Management (SCM), Customer Relationship Management (CRM), Product Life Cycle Management (CRM), Product Life Cycle Management (PLM) .”Management (PLM) .”

Conceptual OverviewConceptual Overview Sales?Sales?

Conceptual OverviewConceptual Overview A shift in thinking …A shift in thinking …

Transaction Transaction Learning relationship Learning relationship Mass Marketing Mass Marketing Individual marketing Individual marketing Transaction Value Transaction Value Life time value Life time value Conquest Marketing Conquest Marketing Retention marketing Retention marketing Product Life Cycle Product Life Cycle Customer Life Cycle Customer Life Cycle Customer Satisfaction Customer Satisfaction Customer Loyalty Customer Loyalty Share of the market Share of the market Share of the Share of the

customercustomer Product differentiation Product differentiation Customer Customer

differentiationdifferentiation

What’s a relationship?What’s a relationship?

Can an organization have a Can an organization have a ‘relationship’ with a person?‘relationship’ with a person?

Emphasis on CRM is the notion of a Emphasis on CRM is the notion of a ‘learning relationship’‘learning relationship’ KnowledgeKnowledge IntentIntent TrustTrust

Customer SatisfactionCustomer Satisfaction Customer Loyalty Customer Loyalty The Death of Customer The Death of Customer

Satisfaction: CRM in the Internet Satisfaction: CRM in the Internet Age Age by Tony Zingaleby Tony Zingale

Fulfillment – The Fulfillment – The company has what I company has what I want.want.

Value – The price Value – The price meets my meets my expectations.expectations.

Convenience – The Convenience – The product is easy to get.product is easy to get.

Trust – I’m reasonably Trust – I’m reasonably confident the product confident the product is reliable.is reliable.

PeopleSoft CRMPeopleSoft CRM Consider the ‘front-facing’ CRM application Consider the ‘front-facing’ CRM application

developed by PeopleSoft (not a product line of developed by PeopleSoft (not a product line of Oracle).Oracle).

A ‘front-facing’ application is an application that A ‘front-facing’ application is an application that the customer sees. the customer sees. Contrast with ‘back-office’ operations like we have Contrast with ‘back-office’ operations like we have

been working with using GP Dynamics 9.0been working with using GP Dynamics 9.0 In this clip, a customer wishes to file a damage In this clip, a customer wishes to file a damage

claim.claim. Key points:Key points:

Customer centric, can see all interactions with this Customer centric, can see all interactions with this ‘insurance company’, customer-driven, is an example ‘insurance company’, customer-driven, is an example of of mass customizationmass customization and and personalizationpersonalization

PeopleSoft – PeopleSoft – Customer RequestCustomer Request

Customer SatisfactionCustomer Satisfaction Customer Loyalty Customer Loyalty The Death of Customer The Death of Customer

Satisfaction: CRM in the Internet Satisfaction: CRM in the Internet Age Age by Tony Zingaleby Tony Zingale

Satisfaction – My basic Satisfaction – My basic transactional needs are transactional needs are metmet

Bonding – The company is Bonding – The company is acting in my best acting in my best interests.interests.

Personalization – The Personalization – The company demonstrates company demonstrates that it understands and that it understands and anticipates my needs.anticipates my needs.

Empowerment – The Empowerment – The relationship is on my relationship is on my terms and under my terms and under my control.control.

Customer Differentiation Customer Differentiation vs. Product Differentiationvs. Product Differentiation

Research by Professors Cooper and Kaplan Research by Professors Cooper and Kaplan at the Harvard Business School has shown at the Harvard Business School has shown that in a large number of companies 20 that in a large number of companies 20 percent of customers account for 225 percent of customers account for 225 percent of profits and the 80 percent `lose’ percent of profits and the 80 percent `lose’ 125 percent of profits.125 percent of profits.

But the trouble is that most companies do But the trouble is that most companies do not know which customers make up the 20 not know which customers make up the 20 percent and which make up the 80 percent. percent and which make up the 80 percent.

Enterprise Strategy MapEnterprise Strategy Map

Database Database MarketingMarketing

1 to 1 1 to 1 learning learning relationshiprelationship

Mass Mass MarketingMarketing

Niche Niche MarketingMarketing

Ability to Interact with

Customers Individually

Cus

Customers addressedonly in mass media

Standardproducts

Tailoredproducts

Tailoring

Interacting

Source: Pepper / Rogers, Enterprise One to One,New York: Doubleday/Currency, 1997.

Share of the Market Share of the Market vs. Share of the Customervs. Share of the Customer

Nee

ds S

atis

fied

Customers Reached Customers Reached

Nee

ds S

atis

fied

ThemesThemes

Customers as assets Customers as assets Market based assets, including Market based assets, including

customer relationshipscustomer relationships Companies executives will need to Companies executives will need to

report their customer relationship report their customer relationship management performance to investorsmanagement performance to investors

Holistic view of the customerHolistic view of the customer Analysis out of the hands of the Analysis out of the hands of the

statisticiansstatisticians

Four implementation tasks Four implementation tasks for creating and managing for creating and managing

customer relationshipscustomer relationships

IDICIDIC IdentifyIdentify DifferentiateDifferentiate InteractInteract CustomizeCustomize

Reference: Peppers and Rogers, Managing Customer Relationships, A Strategic Framework

IdentifyIdentify Relationships are individualistic, not with Relationships are individualistic, not with

markets or groups of peoplemarkets or groups of people Must be able to identify your customers Must be able to identify your customers

individually and individually and recognizerecognize them when them when interacting with theminteracting with them

Without identification, you cannot understand Without identification, you cannot understand who they are and what their needs are.who they are and what their needs are.

Difficult to do, can be almost impossible if Difficult to do, can be almost impossible if channels of communication involve channels of communication involve intermediariesintermediaries

StepsSteps1.1. How much customer identification does a How much customer identification does a

company already have (what info do you need)company already have (what info do you need)2.2. Get customers to identify themselvesGet customers to identify themselves

DifferentiateDifferentiate Some customers are worth more than othersSome customers are worth more than others

80/20 rule80/20 rule Want to better understand customer ‘needs’ vs. Want to better understand customer ‘needs’ vs.

demographicsdemographics Want to better understand the value of Want to better understand the value of thatthat customer to customer to

the enterprisethe enterprise Knowing value of customer to the enterprise Knowing value of customer to the enterprise

allows prioritizationallows prioritization Lifetime value (LTV) … net present value of the stream Lifetime value (LTV) … net present value of the stream

of expected future contributions from the customer.of expected future contributions from the customer. Most valuable customers, most growable customers, Most valuable customers, most growable customers,

below-zeros, migratorsbelow-zeros, migrators Differentiate customers based on needsDifferentiate customers based on needs

Refers to Refers to whywhy customer buys rather than what they buy. customer buys rather than what they buy.

PeopleSoft CRM – PeopleSoft CRM – Insurance Company’s Insurance Company’s

ResponseResponse What support is provided by the company What support is provided by the company

to help the “Customer Support Agent” to help the “Customer Support Agent” What information does this agent have about What information does this agent have about

the client? the client? Where does it come from?Where does it come from? How useful is it?How useful is it? What information does the agent have about What information does the agent have about

their own performance?their own performance? ConsiderConsider

What information has the claimant provided to What information has the claimant provided to the Insurance Company?the Insurance Company?

How does this interaction reflect a ‘partnership’How does this interaction reflect a ‘partnership’ How much trust is there?How much trust is there?

PeopleSoft – PeopleSoft – Customer Support Agent Customer Support Agent

ResponseResponse

InteractInteract Goal of interaction is ‘to get more information Goal of interaction is ‘to get more information

directly from a customer in order to serve directly from a customer in order to serve him in a way no competitor can who doesn’t him in a way no competitor can who doesn’t have the information’have the information’

Want to turn the interaction into a Want to turn the interaction into a collaborationcollaboration in which the enterprise and in which the enterprise and customer work together to make transactions customer work together to make transactions beneficial to both parties … a beneficial to both parties … a learning learning relationshiprelationship

Important issue in the interaction is privacy. Important issue in the interaction is privacy. Research has indicated that individuals are Research has indicated that individuals are willing to provide information willing to provide information

CustomizeCustomize

Use knowledge of customer to figure Use knowledge of customer to figure out what he/she needs out what he/she needs

Key term is ‘mass customization’Key term is ‘mass customization’ Can be product basedCan be product based Or service based on standard productsOr service based on standard products Use of information technologies keyUse of information technologies key

PeopleSoft CRM – PeopleSoft CRM – Insurance Company’s Insurance Company’s

ResponseResponse What support is provided by the company What support is provided by the company

to help the “Sales Agent’s Response” to help the “Sales Agent’s Response” Are we wasting the Sales Agent’s time? Why Are we wasting the Sales Agent’s time? Why

not?not? When the Sales Agent calls the client, will it be When the Sales Agent calls the client, will it be

consider intrusive?consider intrusive? How are gaining ‘share of the customer’ (in How are gaining ‘share of the customer’ (in

contrast to ‘share of the market’?)contrast to ‘share of the market’?) Again consider …Again consider …

What information has the claimant provided to What information has the claimant provided to the Insurance Company?the Insurance Company?

How does this interaction reflect a ‘partnership’How does this interaction reflect a ‘partnership’ How much trust is there?How much trust is there?

PeopleSoft – Sales Agent PeopleSoft – Sales Agent ResponseResponse

How does technology How does technology play a role?play a role?

Enabler ….Enabler …. Managing all touch points with the Managing all touch points with the

customer to develop knowledge so customer to develop knowledge so that the ‘relationship’ part of the that the ‘relationship’ part of the interaction becomes meaningful.interaction becomes meaningful.

Note, technology is only an enabler, Note, technology is only an enabler, people and organizational design people and organizational design play critical roles in CRM successplay critical roles in CRM success

CRM Overview / Demos – An application perspective of CRM Overview / Demos – An application perspective of CRMCRM

PeopleSoft CRM ViewPeopleSoft CRM ViewPeopleSoft® Enterprise Customer PeopleSoft® Enterprise Customer

Relationship Management (CRM) Relationship Management (CRM) is a is a comprehensive solution offering comprehensive solution offering greater user adoption, an improved greater user adoption, an improved user experience, and real-time user experience, and real-time intelligence for your enterprise to make intelligence for your enterprise to make smarter decisions. Every customer smarter decisions. Every customer interaction can now be an opportunity interaction can now be an opportunity to build business value with your to build business value with your customers.customers.


PeopleSoft CRM ViewPeopleSoft CRM View““Get immediate, seamless integration Get immediate, seamless integration

among your customer, financial, among your customer, financial, supply chain, and employee supply chain, and employee management systems.” management systems.” CRM AnalyticsCRM Analytics Marketing SolutionMarketing Solution Sales SolutionSales Solution Service SolutionService Solution CRM Industry SolutionsCRM Industry Solutions

Operational CRMAnalytics CRM


Operational CRMOperational CRM ““Operational CRM Operational CRM is the automation is the automation

of horizontally integrated business of horizontally integrated business processes involving front-office processes involving front-office customer touch points across sales, customer touch points across sales, marketing and customer service via marketing and customer service via multiple, interconnected delivery multiple, interconnected delivery channels. channels. ” ”

Meta GroupMeta Group


PeopleSoft CRM ViewPeopleSoft CRM ViewMARKETINGMARKETING

New product New product campaigncampaign

Email waveEmail wave Telesales waveTelesales wave Free software Free software

offeroffer

SALESSALES ForecastsForecasts Leads/Leads/

OpportunitiesOpportunities Sales RepsSales Reps

SUPPORTSUPPORT Installed ProductInstalled Product

AgreementAgreement WarrantyWarranty

Specialist Specialist CompetenciesCompetencies Call Center AgentCall Center Agent Resolution DatabaseResolution Database

FIELD SERVICEFIELD SERVICE Service OrderService Order Technician Technician

CompetenciesCompetencies

HELPDESKHELPDESK Call Center Call Center

AgentAgent Resolution Resolution

DatabaseDatabase

INTERACTION INTERACTION MANAGEMENTMANAGEMENT

ANALYTICSANALYTICS


CRM Demos – User CRM Demos – User PerspectivePerspective

Customer PerspectiveCustomer Perspective Customer Support AgentCustomer Support Agent Sales RepresentativeSales Representative Sales ManagerSales Manager


Example Business Process:Example Business Process:CRM Marketing and Sales CRM Marketing and Sales

Business Process FlowBusiness Process FlowAnalyze Customer Analyze Customer

Performance Performance and Generate and Generate Target Audience Target Audience ListList

Create CampaignCreate Campaign

Create WaveCreate Wave

Lead GenerationLead Generation

Manage Manage LeadsLeads

Create Create OpportunityOpportunityGenerate Forecasts Generate Forecasts

and Rollup and Rollup ForecastsForecasts

Measure CampaignMeasure Campaign

Measure Opportunity Measure Opportunity PerformancePerformance

CRM MarketingBusiness Process

CRM SalesBusiness Process


Two key features of Two key features of business processbusiness process

Embedded AnalyticsEmbedded Analytics Allows for data analysis within the Allows for data analysis within the

business process streambusiness process stream Interaction ManagementInteraction Management

Provides a 360-degree view of the Provides a 360-degree view of the customer’s interactions (cases, leads, customer’s interactions (cases, leads, installed products, service orders, installed products, service orders, agreements, returned materials, agreements, returned materials, interactions) interactions)


Analytical CRMAnalytical CRM ””Analytical CRM Analytical CRM is the analysis of is the analysis of

data created on the operational side data created on the operational side of CRM and through other relevant of CRM and through other relevant operational data sources for the operational data sources for the purposes of business performance purposes of business performance management and customer-specific management and customer-specific analysis. analysis. ””

Meta Meta Group Group


CRM Analytics SolutionCRM Analytics Solution CRM Portal PackCRM Portal Pack CRM WarehouseCRM Warehouse Customer Behavior ModelingCustomer Behavior Modeling Customer ScorecardCustomer Scorecard EPM Portal PackEPM Portal Pack Predictive AnalyticsPredictive Analytics


Customer Behavior Customer Behavior MarketingMarketing

Which customers are most likely to Which customers are most likely to purchase your productpurchase your product

Which customer segment will Which customer segment will maximize your ROI on marketing maximize your ROI on marketing campaignscampaigns

Which personalized, targeted offers Which personalized, targeted offers your call center reps should presentyour call center reps should present

Which customers are at risk of Which customers are at risk of attritionattrition

PeopleSoft – Sales PeopleSoft – Sales ManagerManager

Predictive analyticsPredictive analytics

An application that leverages a An application that leverages a companies’ operational data about companies’ operational data about customers and past events and uses customers and past events and uses it to predict a customer’s future it to predict a customer’s future behavior.behavior.

Goal is to distribute the value of Goal is to distribute the value of statistical analysis to non-statistical analysis to non-statisticians in the organization.statisticians in the organization.

CRM Demo ResourcesCRM Demo Resources Siebel: Siebel: http://http://

www.siebel.com/bestpractices/examples.shtmwww.siebel.com/bestpractices/examples.shtm

SalesForce.com: SalesForce.com: http://www.salesforce.com/us/products/demo-cenhttp://www.salesforce.com/us/products/demo-center.jspter.jsp

Microsoft:Microsoft: http://www.microsoft.com/dynamics/crhttp://www.microsoft.com/dynamics/cr

m/default.mspxm/default.mspx http://http://mscrm.demoservers.commscrm.demoservers.com//

Avaya: Avaya: http://www1.avaya.com/enterprise/resourcelibrarhttp://www1.avaya.com/enterprise/resourcelibrary/demos/crm_callcenter.htmly/demos/crm_callcenter.html

CRM ResourcesCRM Resources

http://crm-daily.newsfactor.com/

http://www.destinationcrm.com/

http://searchcrm.techtarget.com/

http://crm.ittoolbox.com/

http://www.crmguru.com/

TeraData Center,Duke University

CRM LabCRM Lab

Go to the following web site:Go to the following web site: http://mscrm.demoservers.com/http://mscrm.demoservers.com/ RegisterRegister Once you’ve registered, log in and do Once you’ve registered, log in and do

the SALES CRM lab.the SALES CRM lab. I’ve given you a handout on this.I’ve given you a handout on this.

SummarySummary

CRM is an exciting application that CRM is an exciting application that provides an integrated view of provides an integrated view of critical business processes and critical business processes and allows the student to develop a real-allows the student to develop a real-world understanding world understanding

Integration with other modules like Integration with other modules like Supply Chain Management, Supply Chain Management, Financials, and HR is critical for a Financials, and HR is critical for a complete view of the customercomplete view of the customer

CRM

Documents

Transcript of CRM