Information Technology for Crm
Transcript of Information Technology for Crm
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Customer Relationship Management:Customer Relationship Management:
Concepts and ToolsConcepts and Tools
CUSTOMER RELATIONSHIP MANAGEMENT:
CONCEPTS AND TOOLS
Information Technology For CustomerRelationship Management
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ManufacturerWholesaler
Retailer
Distribute Sell
Supply
Demand
Consumer
ConsumeProduce
$
$
$
Purchase
Enterprise Systems
Enterprise Resources Planning
Supply Chain Management
Customer RelationshipManagement
Customer RelationshipManagement
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Origins of CRM technology
Stand-alone technologies Call centresSales force automation systems
Data analytics
Customer information files
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Why is technology necessary?
As companies grow they become separatedfrom the customers and cultures they intuitivelyunderstand
Customer knowledge is maintained in both drymemorynnn Documents, nnn Spreadsheets, nnn Emails
nnn Customer cards, nnn Reports
and wet memory, i.e. the heads of people
CRM technology captures, stores, analyses anddistributes this information for marketing,sales and service operations
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ERPBack Office
Internet
Support
Customer
Management
Sales
Marketing
Card
Card
Report
Report
Report
Spreadsheet
S
preadsheet
Document
Document
Document
Document
Document
Document
Spreadsheet
S
preadsheet
email
email
email
Spreadsheet
S
preadsheet
Single view of the customer?
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Ultimate goal of CRM technology
The ultimate goal is consistently excellent customerexperience across all channels, i.e. multi-channel CRM
All customer contact channels such as sales, partners,
marketing, and the service centre are consolidated intoa single view of the customer, across all communicationmedia including face-to-face, voice telephony, email,web, and wireless.
Customers expect continuous, consistent dialogue with
a company, irrespective of the systems anddepartments within
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Courtesy: PeopleSoft
360 degree view of the customer
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What must CRM technologies accomplish?
CRM must
be flexible enough to stay in touch with a changingaudience (the customer)
meet different operational requirements in different
industries be accessible to external stakeholders and mobile
professionals such as salespeople and field technicians.
operate over any communication channel
must integrate with other systems to provide a single viewof, and for, the customer.
must be implemented in such a way that appropriate workpractices and skills are deployed, as many of therequirements of CRM cannot be solved by technologyalone
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Global Enterprise Application Software sales
0
2
4
6
8
10
12
14
16
1997
1998
1999
2000
2001
2002E
2003E
2004E
2005E
USDB
illion
ERP
CRM
SCM
Total
Source: Gartner Dataquest
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EAS points of note
CRM software valued at over one-third ofoverall EAS sales
CRM software touches both sides of the profitequation: revenues and costs
ERP and SCM software touch cost-side only
Many more user seats needed for customer-side software, than ERP or SCM: marketers, salespeople, contact centre, field
technicians, partners, customers, distributors
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Early adopter profiles
GeographyNorth America, Europe
IndustriesBanking
Finance
Telecommunications
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CRM issues vary by industry
CRM?
Telcos andBanks
AutomotiveManufacturers
High
Technology
Consumer GoodsBeverage
ChurnShare of walletCall centresData mining
Dealer networksService and maintenanceCustomer knowledgePortals
Complex sellingChannelsProduct configurator
Partner portal
Retail tradeTrade spend and promosStore auditsComplex customer structures
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Some members of the CRM ecosystem
Service ProvidersPeppers & RogersCustomer Connect
AccentureIBM
Unisys
EDS
Hardware and InfrastructureIBM
Hewlett-PackardGenesysSiemensAvaya
Midmarket SW VendorsPivotalOnyx
MicrosoftSaleslogix
CRM SW VendorsSiebel
PeopleSoftOracle
SAP
Specialist SW VendorsSASNCR
salesforce.comO4
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Classifying CRM service providers
Service Details Examples of service
providers
Strategy consulting consulting support for the formulation of customer
strategy, contact strategy, channel strategy, CRM
strategy.
McKinsey, Peppers and
Rogers
Business consulting services around business process re-engineering,
process improvement, and best practices for CRM.
Accenture, Bearing
Point, CGEY
Application consulting design and development of application
modifications, project management of software
package implementation and training.
CRM vendors,
Accenture, CGEY,
Bearing Point, IBM
Technical consulting design and implementation of technical
infrastructure, and integration of this infrastructure
with the existing business processes and
applications.
Unisys, IBM, Logica
Outsource service
providers
technology outsourcers and business process
outsourcers.
EDS, IBM, CSC,
Acxiom
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Issues in CRM architecture
Architecture is the way in which the system isconstructed
CRM systems must be able to operate in the office, out
of the office, and over the web. CRM systems must tie together multiple communication
channels each using very different technologies (web,email, telephone).
CRM systems must perform well enough, and be flexible
enough, to suit a constantly changing, potentiallygrowing user community.
Some users may be both partners and competitors. Thearchitecture must recognise this
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Contemporary architectural challenges
Growth in number of communicationtechnologiesvoice phone, fax, email, web, SMS, advertising,
direct mail, salespeople
Growth in number of company touch pointsBranch, contact centre, field service, service desk
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Architectural excellence 1
1. Usability Ease of navigation or use
Intuitive, requiring minimal effort to reach thedesired outcome
Little training needed Perceived as highly responsive by the customer
1. Flexibility An applications flexibility determines how many
alternatives are available to the user at any given
time These alternatives are often implemented through
hyperlinks, buttons, or screen
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Architectural excellence 2
3. Performance All technologies must be aligned Performance of the overall system is often
determined by the performance of the weakest link
Network performance, database performance andserver performance all influence CRM system overallperformance
Integration and synchronisation issues
4. Scalability
As the CRM system grows, and is used by moreinternal and external people, the scalability of thesystem becomes important
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Typical CRM architecture
TelemWeb
(customer, partner)
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CRM Challenge Architectural SolutionSingle customer view across theorganization
Multi-channel CRM across asingle database
Suitability for customer-facing situations Usable, flexible, high-performing architecture
Complex, many-to-many relationships,varying across customers and industries Flexible data modeling
Deployment to field operations (sales,service)
Mobile and wireless
Efficient changing and upgrading of thesystem
Business Rules Repository(metadata)
Unstructured, widely dispersed informationKnowledge Management
Deployment outside the organization Web Browsers
Effective modelling of customer-facingprocesses
Workflow and Assignment
Information flow with the back office and Integration
Architectural solutions for CRM challenges
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Mobile and wireless technologies
Many businesses go to the customers premises
Salespeople, service technicians.
Important to overall customer experience
Need current customer and product information Two main technologies available to support mobile
professionals
mobile (synchronised)
handheld or laptop device, with a small resident database
wireless (online) handheld device connected to the main system using a
wireless connection such as a mobile phone
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Metadata
Metadata are data about data
Meta data includes data about the layout of thecolumns, rules for validation, lists of values, even the
processes to be represented on a devices screen Metadata stored in a separate database
The final result on the screen is a combination of thecore processing logic, the metadata (business rules),and the data itself (extracted from customer records).
The metadata repository is typically modified using aset of tools, provided by the CRM software vendor
Examples: PeopleTools (PeopleSoft), Siebel Tools, andStudio (E.piphany).
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Knowledge management
A central element to effective CRM is storingand leveraging knowledge about the customerstructured, transactional data such as contact history
and account balancesunstructured information such as letters and faxes
from the customer, and notes on telephoneconversations
The success of CRM depends largely on howwell this information is converted intoenterprise-wide knowledge
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Browser interface
Courtesy:Oracle
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CRM benefits from browser technologies
The hyperlink-driven user interface is ideal for theloosely structured flow of most customer-facingdialogues.
The ubiquitous nature of the web also makes it
relatively easy for people to learn how to navigate insuch an application. Particularly important with customer- and partner-facing
applications
Web technologies also play in important role in
integration and mobile solutions. XML (extensible mark-up language), a standard, flexible
format for the description of documents over the web, isbecoming a standard language for integration betweenapplications
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Workflow within CRM
In CRM many customer-related processes arepredefined and automated
Business rules that are critical to the success
of sales, marketing and service no longer needto be manually managed.
Workflow technologies can be programmed tomonitor for predefined conditions.
The end result is that customers receive aconsistent, predictable experience
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Workflow for sales lead assignment
Courtesy: Siebel
Assign Lead
Assign
error
activity
Quality
High priority
assignment
Low priorityassignment
Create
opportunity
note
End
Error
High
Low
Unknown
Start
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Contexts of workflow automation 1
1. Process automation
when an email comes in from a customer in southernregion, automatically respond with the following
1. Escalation if a service call is 20 hours old, of high severity, and from
a high value customer, and the status is not resolved,page the service manager
1. Assignment
when a lead comes in from the web site, look at theproduct being offered, the territory, and the currentworkloads of my salespeople, and assign the lead to thebest person
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Contexts of workflow automation 2
1. Integration
if the customer submits a confirmed order, automatically postit to the fulfilment system for verification and dispatch
1. Dialog scripting
when a customer calls in, prompt the call centre agent with astandard welcome script. Register the customers response,then determine the best course of action, and offer the agent ascript accordingly. Continue this process to increase thechance of up-selling the customer
1. Process navigation if the customer does not offer their password, automatically
navigate the user to the customer identification screen
l hC R l i hi M
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Types of integration
Batch processingStores information up in a file or batch, then moves
the information across the interface into the
destination system in one batch.The cost is opportunities lost in the wait before moving
the information
Real-timeOccurs immediately
once a customer record is updated in one system, thechange is immediately reflected in the destinationsystem
C t R l ti hi M tC t R l ti hi M t
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4 areas of CRM integration 1
1. Application integration
Integrates front-office systems with back-office
accounting, billing, inventory and human resources
1. Telephony integration Ties the CRM application in to the telephone system,
inbound calls can be routed to the right person
allows outbound calls can be made from the contactcentre desktop
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4 areas of CRM integration 2
3. Email integration Can involve both the generation of emails as a
result of an internal workflow process, and as an
automated email response3. Web integration
Integration of the web site into the CRMimplementation
May also involve web chat or web collaboration
C t R l ti hi M tCustomer Relationship Management:
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CRM applications
DataKnowledge
BaseWarehouse
CRM SystemMarketing(analysis,
promotionsactuals)
Sales(synchronised,
field information)
Service(orders,
complaints) Management(decision support,performance)
Partner
(promotions,funds, portals)
Consumer(web, clubs)
Other systems, email, telephone
We
b
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Marketing automation
CustomersHistory Attributes
Segments
Plans Budgets
ListsCampaign
s
Marketingfunds
Partners
Permission &personalisati
on
Leads /opportunities
ActivitiesResponses
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Marketing automation: example 1
Courtesy: E.piphany,
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Marketing automation: example 2
Courtesy: Pivotal
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Sales force automation (SFA)
Customers
LeadsOpportuniti
es
Quotes,presentatio
ns,proposals
Salesorders
Customerproducts
ProductsConfiguratio
nBuyingprocess
Competitors
Salesteam
Partners
ActivitiesSales
methodology
Objectives
and tactics
Territory Forecasts
Incentives
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Service and support automation
Customers
Dialoguescripts
Servicerequests
Agreements &
warranties
ServiceOrders &Return
MaterialAuthorisati
on
Resolutions
Serviceteam
Activities Inventory
Customerproducts Products
ManualsMaintenanc
e plans
Knownissues
Defects
Solutions
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Portal: example 1
Courtesy: Pivotal
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Portal: example 2
Courtesy: SAP
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CRM analytics: basics
Management wants to measures key results customer value, satisfaction and propensity to churn
The three levels of analysis in todays CRM
systems, in increasing order of complexitystandard reporting
online analytical processing
data mining.
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Concepts and ToolsConcepts and Tools
Reporting: standardised or query-based
Standardised reports aretypically delivered withthe CRM softwareapplication, but oftenrequire customisation
Query-based reportingpresents the user with aselection of tools, whichcan then be used toconstruct the report thatis currently required.
Far more flexible, but isnot suitable for theregular, standard
operational requirements
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Concepts and ToolsConcepts and Tools
OLAP
Online Analytical Processing (OLAP)OLAP technologies allow information to be
transformed into a format that suits analysis and ad-hoc inquiry, and stored in a data warehouse
Supports rapid slicing and dicing, allowing users to
drill down on graphs and tables to analyse where acertain figure or problem may have arisen
ApplicationsSales people can analyse their territory to determine
revenue and profitability by customer.
Service people can analyse call response rates andtimes.
Partner managers can analyse the performance ofpartners by marketing fund approvals and partner-generated revenues.
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Concepts and ToolsConcepts and Tools
Analytics: example 1
Courtesy: Siebel
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Analytics: example 2
Courtesy: E.piphany
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Concepts and ToolsConcepts and Tools
Analytics
Customer value Customer
satisfaction
Next purchase
Channels
Partner contribution
Web activity
CRMTransactions
CRM Analytics(OLAP)
ERP
Other Data
Supplier evaluation Campaign success
Sales activity
Segmentation
Customer profiling
Risk scoring Prospecting
Propensity to buy
Revenue
Volume
Brand Profitability
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Other CRM stakeholders
Partners
Employees
Suppliers
Investors
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Partner relationship management
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CRM technologies across the CRM value chain 1
Customerportfolioanalysis
Customer
intimacy
Network
development
Value
propositiondevelopment
Manage the
customerlifecycle
Customers
and
Products
Customer
structures
Customer
profiles
Customer
management
Product and
pricing
definition.
Customer
expectations
Defect
tracking
Marketing Segmentation Predictive
modelling
Partner
marketing
development
funds
Competitive
positioning,
promotions,
customization
Campaign
management,
event
management,
emailmarketing
Sales Forecasting Historical
data,
revenue
analytics
Partner sales
analytics
Sales
methodology
Order entry,
order
configurator,
enterprise
selling, webshopping,
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CRM technologies across the CRM value chain 2 Customer
portfolio
analysis
Customer
intimacy
Network
development
Value
proposition
development
Manage the
customer
lifecycle
Service
Cost-to-serve
Historical
data,
complaint
tracking, CSat
analytics
Partner self
service
Service level
agreements
Service request
management,
service orders,
self service,
field service
PRM Partnerrecruitment Partner portal Partner management Marketingdevelopment
funds
Partner teamselling
Other
stakeholders
ERM, SRM,Investor portal
Performancereview
Analytics Customer life-
time value,
acquisitioncosts,
retention costs
Customer
needs,
customerpreferences,
C.Sat
Partner
performance
Pricing,
profitability and
incentives
Sales
performance,
serviceperformance,
bal. scorecard
Data mining Customer
profitability
analysis
Customer
insight
Partner analysis Churn scoring,Propensity-to-
buy scoring
Activity based Cost modelling Cost actuals