Customer Relationship Management (CRM) - Sharifsharif.edu/~albadvi/Crmses2.pdf · Customer...

Customer Relationship Customer Relationship Management (CRM) Management (CRM)

Dr A. Dr A. AlbadviAlbadvi

Asst. Prof. Of ITAsst. Prof. Of ITTarbiatTarbiat ModarresModarres UniversityUniversity

Information Technology Engineering Dept.Information Technology Engineering Dept.

Affiliate of Affiliate of SharifSharif University of TechnologyUniversity of Technology

School of Management & EconomicsSchool of Management & Economics

Sept. 2003Sept. 2003

WWW.albadvi.netWWW.albadvi.net

2003 A. 2003 A. AlbadviAlbadvi

Session#2: AgendaSession#2: Agenda

CRM TechnologiesCRM Technologies

CRM solution structureCRM solution structure

Operational CRMOperational CRMSales Force Automation (SFA)Sales Force Automation (SFA)

Customer Service & Support (CSS)Customer Service & Support (CSS)

Enterprise Marketing Automation (EMA)Enterprise Marketing Automation (EMA)

Analytical CRMAnalytical CRMTools & examplesTools & examples

Collaborative CRMCollaborative CRM


AnalyticalCRM

Operational CRMCollaborative CRM

Sales

Marketing

Service

Sales Data

Marketing data

Customer Data

Web Personalization

Call Center

Web Sales & Service

3 Types of CRM 3 Types of CRM TechnologTechnologiesies


Operational CRMOperational CRMCustomerCustomer--facing applications that integrate the front, back and facing applications that integrate the front, back and mobile offices, including salesmobile offices, including sales--force automation, enterprise force automation, enterprise marketing automation, and customer service and supportmarketing automation, and customer service and support

Analytical CRMAnalytical CRMApplications that analyze customer data generated by operationalApplications that analyze customer data generated by operationaltools for the purpose of business performance managementtools for the purpose of business performance management

Collaborative/Communicational/Interactive CRMCollaborative/Communicational/Interactive CRMCollaborative services that facilitate interactions between Collaborative services that facilitate interactions between customers and businessescustomers and businesses

Help to establish the lifetime value of customers beyond the Help to establish the lifetime value of customers beyond the transaction by creating a partnering relationshiptransaction by creating a partnering relationship

3 Types of CRM 3 Types of CRM TechnologTechnologiesies


Operational CRM: Operational CRM: Touching the customerTouching the customer

Customers

Refined Business Actions

Customer Touchpoints Call

Center

Web access

Direct Sales

Usage Fax

E-mail

Customers


Analytical CRM: Analytical CRM: Understanding the CustomerUnderstanding the Customer

Refined Business Actions

Businessintelligence

Processimprovement

Integrated Database

Billing

Provisioning

Accountspayable/rec’bles

Sales

Call Center

Analysis

Information

Businesssystems


Operational CRMOperational CRMAlso known as Also known as ““frontfront--officeoffice”” CRM, involves the CRM, involves the areas where direct customer contact occurs areas where direct customer contact occurs ------””TouchpointsTouchpoints””

Also known as “back-office” or “strategic” CRM, involves understanding the customer activities that occurred in the front office

Analytical CRM


Operational CRMOperational CRMRoles and workplaces Roles and workplaces implementing bestimplementing best--businessbusiness--practicespractices

Analytical CRMAnalytical CRMUnderlying business Underlying business warehouse and warehouse and knowledge knowledge managementmanagement

CollaboratiCollaborativeve CRMCRMCollaboration across all Collaboration across all channels (mobile, phone, channels (mobile, phone, Internet)Internet)

3 Types of CRM Technology3 Types of CRM Technology


Com

mu

nication

al C

RM

An

alytical C

RM

Operation

al C

RM

Personal Contact

InternetEmail Mailings

Telephone

WAPTV/Radio

Customer Customer Interaction CenterInteraction Center

Marketing Automation

Sales Automation

Service Automation

Front Front OfficeOffice

Data Mining

OLAP

Customer Data Warehouse

Back Back OfficeOffice

Supply Chain Management ERP

Computer Integrated Manufacturing …

CRM Solution StructureCRM Solution Structure


1. 1. Operational CRMOperational CRM

Means supporting the soMeans supporting the so--called "front office" called "front office" business processes, which include customer business processes, which include customer contact (sales, marketing and service). contact (sales, marketing and service).

Tasks resulting from these processes are Tasks resulting from these processes are forwarded to employees responsible, information forwarded to employees responsible, information necessary for carrying out the tasks and necessary for carrying out the tasks and interfaces to backinterfaces to back--end applications are being end applications are being provided and activities with customers are being provided and activities with customers are being documented for further reference.documented for further reference.


Objectives of Operational CRMObjectives of Operational CRM

Higher customer satisfaction by improved Higher customer satisfaction by improved quality of contacts quality of contacts

Cost savings by crossCost savings by cross--functional functional integration of processes and process integration of processes and process supportsupport

Cost saving by deeper integration of Cost saving by deeper integration of communication with customers with communication with customers with companycompany--internal processesinternal processes


Benefits of Operational CRMBenefits of Operational CRM

DeliverDelivers s personalized and personalized and

efficient efficient marketing, sales, marketing, sales,

and service and service through multithrough multi--

channel channel collaborationcollaboration

SalesSales people and service people and service engineers engineers can can access access complete history of all complete history of all

customer interaction with customer interaction with your companyyour company, , regardless regardless

of the touch pointof the touch point

Enables a Enables a 360360--degree degree view of your customer view of your customer

while you are while you are interactinginteracting


Sales Sales FForceorceAAutomationutomation (SFA)(SFA)

Customer ServiceCustomer Serviceand Support (CSS)and Support (CSS)

Enterprise Enterprise MMarketingarketingAAutomationutomation (EMA)(EMA)

3 Areas in Operational CRM3 Areas in Operational CRM


Sales Sales FForceorce AAutomationutomation (SFA)(SFA)

Sales Sales FForceorce AAutomationutomation (SFA): (SFA): Critical functions Critical functions e.g.e.g. lead/account management, lead/account management, contact management, quote management, contact management, quote management, forecasting, sales administrationforecasting, sales administration

Key infrastructure requirements are mobile Key infrastructure requirements are mobile synchronization and integrated product configurationsynchronization and integrated product configuration

SFA tools are designed to improve field sales SFA tools are designed to improve field sales productivityproductivity


Customer Service and Support Customer Service and Support (CSS)(CSS)

Customer Service and Support (CSS): Customer Service and Support (CSS): Internal help desk and traditional inbound callInternal help desk and traditional inbound call--center center support for customer inquiriessupport for customer inquiries

NowNow evolved into the "customer interaction center" evolved into the "customer interaction center" (CIC), using multiple channels (Web, phone/fax, face(CIC), using multiple channels (Web, phone/fax, face--toto--face, kiosk, etc)face, kiosk, etc)

Key infrastructure requirements include computer Key infrastructure requirements include computer telephony integration (CTI), high volume processing telephony integration (CTI), high volume processing capability, and reliabilitycapability, and reliability


Enterprise Enterprise MMarketingarketingAAutomationutomation (EMA)(EMA)

Enterprise Enterprise MMarketingarketing AAutomationutomation (EMA): (EMA): The execution side of campaign and lead The execution side of campaign and lead management. Demographic analysis, variable management. Demographic analysis, variable segmentation, and predictive modeling occur on the segmentation, and predictive modeling occur on the analytical (Business Intelligence) side and are CPU analytical (Business Intelligence) side and are CPU intensiveintensive

The intent of EMA applications is to improve The intent of EMA applications is to improve marketing campaign efficienciesmarketing campaign efficiencies

Tailor Answer to Each Request


Com

mu

nication

al C

RM

An

alytical C

RM

Operation

al C

RM

Personal Contact


Telephone

WAPTV/Radio



Sales Automation

Service Automation


Data Mining

OLAP







2. Analytical CRM2. Analytical CRMData gathered within operational CRM are Data gathered within operational CRM are analyzed to segment customers or to identify analyzed to segment customers or to identify crosscross-- and upand up--selling potentialselling potential

Data collection and analysis is viewed as a Data collection and analysis is viewed as a continuing and iterative processcontinuing and iterative process

Ideally, business decisions are refined over time, Ideally, business decisions are refined over time, based on feedback from earlier analysis and based on feedback from earlier analysis and decisionsdecisions

Graphic showing customer relationship lifecycle responding to analysis of acquisition, growth and retention efforts


Analytical CRM CAnalytical CRM Can an PProviderovide……CustomerCustomer segmentation segmentation groupings groupings

dividing customers into dividing customers into those most and least likely those most and least likely to repurchase a productto repurchase a product

ProfitabilityProfitability analysis analysis which customers lead to which customers lead to the most profit over time the most profit over time

PersonalizationPersonalizationthe ability to market to the ability to market to individual customers based individual customers based on the data collected about on the data collected about themthem

EventEvent monitoring monitoring for example, when a for example, when a customer reaches a certain customer reaches a certain dollar volume of purchasesdollar volume of purchases

WWhathat--ifif scenarios scenarios how likely is a customer or how likely is a customer or customer category that customer category that bought one product to buy bought one product to buy a similar onea similar one

PredictivePredictive modeling modeling for example, comparing for example, comparing various product various product development plans in terms development plans in terms of likely future success, of likely future success, given the customer given the customer knowledge baseknowledge base


AnalyticalAnalytical CRM CRM is inextricably tied to a is inextricably tied to a Data Warehouse architecture, and use Data Warehouse architecture, and use analytical applications to leverage analytical applications to leverage optimized functionality for analysis and optimized functionality for analysis and reportingreporting

AdAd--Hoc QueryHoc QueryReportingReportingOLAPOLAPData MiningData Mining

Analytical CRMAnalytical CRM


Data Mining DefinedData Mining Defined

Data mining is Data mining is the nonthe non--trivial extraction of implicit, previously trivial extraction of implicit, previously unknown, and potentially useful knowledge from dataunknown, and potentially useful knowledge from dataa variety of techniques used to identify nuggets of a variety of techniques used to identify nuggets of information or decisioninformation or decision--making knowledge in bodies making knowledge in bodies of data, and extracting these in such a way that they of data, and extracting these in such a way that they can be put to use in areas such as decision support, can be put to use in areas such as decision support, prediction, forecasting, and estimationprediction, forecasting, and estimation

Extracting actionable intelligence from large datasets


Example of Analytical CRM Example of Analytical CRM Tool: EISTool: EIS

What is an EIS?What is an EIS?

““ An EIS is a computerAn EIS is a computer--based system that based system that serves the information needs of top serves the information needs of top executives. It provides rapid access to timely executives. It provides rapid access to timely information and direct access to management information and direct access to management reports. EIS is very userreports. EIS is very user--friendly, supported friendly, supported by graphics, and provides exceptions by graphics, and provides exceptions reporting and reporting and ““drilldrill--downdown”” capabilities. capabilities. ””

-- RockartRockart and and DeLongDeLong


Characteristics of EISCharacteristics of EIS

Drill DownDrill DownException ReportingException ReportingNavigation of information under different formatsNavigation of information under different formatsCritical Success Factors (CSF)Critical Success Factors (CSF)

Strategic or operationalStrategic or operationalDerived mainly from 3 sources:Derived mainly from 3 sources:

11-- Organizational factorsOrganizational factors22-- Industry factorsIndustry factors33-- Environmental factorsEnvironmental factors

90%

0102030405060708090

1er trim.

2e trim.

3e trim.

4e trim.


EIS BenefitsEIS Benefits

Facilitating the attainment of Facilitating the attainment of organizational objectives byorganizational objectives by

☺☺ Rendering the user (management) more Rendering the user (management) more productive:productive:

☺☺Increasing the quality of decisionIncreasing the quality of decision--makingmaking

☺☺Increasing communication capacity and qualityIncreasing communication capacity and quality

☺☺Facilitating information accessFacilitating information access

☺☺Saving timeSaving time


Commander centerCommander center

Commander EISCommander EIS

SASSAS

PowerPlayPowerPlay

MediaMedia

Examples of EIS ProductsExamples of EIS Products


Example of Analytical CRM Example of Analytical CRM Tool: Tool: OLAPOLAP

OnOn--Line Analytical Processing (OLAP) Line Analytical Processing (OLAP) a category of software technologya category of software technology

enables analysts, managers and executives to gain enables analysts, managers and executives to gain insight into datainsight into data

through fast, consistent, interactive access to a wide through fast, consistent, interactive access to a wide variety of possible views of information transformed variety of possible views of information transformed from raw datafrom raw data

to reflect the real dimensionality of the enterprise as to reflect the real dimensionality of the enterprise as understood by the userunderstood by the user

Combined EIS and DSS capabilitiesCombined EIS and DSS capabilities


Benefits of Analytical CRMBenefits of Analytical CRMDecreaseDecreases s

customer churn customer churn rate by rate by

identification of identification of customer which customer which are likely to quit are likely to quit

and increase and increase loyaltyloyalty

Allows quick dAllows quick designesign and and develop valuedevelop value--added added

products and services that products and services that meet customer needs meet customer needs

Enables Enables ssegmentationegmentationby customer by customer

valuevalue

Increases sales Increases sales per customer by per customer by upup--sellsellinging and and crosscross--sellsellinging

IncreaseIncreases s profitability and profitability and

control costscontrol costs

ImproveImproves s supply chain supply chain management, resulting in management, resulting in

lower costs and more lower costs and more competitive pricingcompetitive pricing


Com

mu

nication

al C

RM

An

alytical C

RM

Operation

al C

RM

Personal Contact


Telephone

WAPTV/Radio



Sales Automation

Service Automation


Data Mining

OLAP







3. Collaborative CRM3. Collaborative CRM

FFacilitatesacilitates interactions with customers through interactions with customers through all channels (personal, letter, fax, phone, web, eall channels (personal, letter, fax, phone, web, e--mail) and supports comail) and supports co--ordination of employee ordination of employee teams and channelsteams and channels

AA solution that brings People,solution that brings People, Processes and Processes and Data together so companies can better serve Data together so companies can better serve and retainand retain their customerstheir customers

The data/activities can be structured, The data/activities can be structured, unstructured,conversational, and/or unstructured,conversational, and/or transactional in naturetransactional in nature


Benefits of Collaborative CRMBenefits of Collaborative CRMEnablEnableses efficient efficient

productive customer productive customer interactions across all interactions across all

communications communications channels channels

IntegrateIntegrates s call call centers enabling centers enabling

multimulti--channel channel personal customer personal customer

interaction interaction

Enables wEnables webebcollaboration to collaboration to reduce customer reduce customer

service costsservice costs

IntegrateIntegrates s view of view of the customer while the customer while interaction at the interaction at the transaction leveltransaction level


Customers meet problems sometimes Customers meet problems sometimes e.g. when using ee.g. when using e--banking where they need to banking where they need to fill in fill in ∞∞ amount of infoamount of info

They can seek for help fromThey can seek for help fromOnline Online FAQsFAQs

Sales reps by phoneSales reps by phone

Virtual sales repsVirtual sales reps

Collaborative CRM ExampleCollaborative CRM Example

Customer Relationship Management (CRM) - Sharifsharif.edu/~albadvi/Crmses2.pdf · Customer...

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