ProsesBisnisdanInformasi SuryoWidiantoro, ST, MMSI, M.Com(IS) fileThe Web has changed business....
Transcript of ProsesBisnisdanInformasi SuryoWidiantoro, ST, MMSI, M.Com(IS) fileThe Web has changed business....
Topics covered1. Customer relationship management definition
2. CRM role in supporting business operation
3. Benefits of CRM
4. Challenges of CRM4. Challenges of CRM
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Organizations must work harder than ever to attract and retain customers retain customers where comparison shopping is the norm and competitors are just a click away.
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The Web has changed business. Customers have the power.
Economic transformation is taking place; i.e., from transactions to relationships.
Keeping customers satisfied is key. Keeping customers satisfied is key.
CRM Organization-wide strategy
Concentrates on the downstream information flow
Attract potential customers
Create customer loyalty
Portray a positive corporate image
Managers need to be able to monitor and analyze factors driving customer satisfaction.
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Customer Relationship Management (CRM) is a means of managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an customer loyalty and retention and an organization’s profitability
CRM uses IT to create a cross functional enterprise system that integrates and automates customer-serving processes
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Evolution of CRM There are three phases in the evolution of CRM:
Reporting Analyzing Predicting
CRM Reporting Technologies help organizations identify their customers across other applications
CRM Analysis Technologies help organizations segment their customers into categories such as best and worst customers
CRM Predicting Technologies help organizations predict customer behavior, such as which customers are at risk of leaving
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Operational CRM Supports traditional
transactional processing for day-to-day front-office operations or systems that deal directly with the customersdeal directly with the customers
Systems for customer interaction and service Enables direct interaction
with customers Personalized and efficient
customer service Access to complete
information about customer
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Sales Force Automation Component of operational CRM
Supports day-to-day sales activities: Order processing and tracking Order processing and tracking
Account and contact management
Opportunity management
Sales management
Territory management
Customer history preferences, (product and communication) management
Sales forecasting and performance analysis
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Examples of Sales Measures Tracked by SFA:1. Sales pipeline for each salesperson, including rating and
probability
2. Revenue per sales person, per territory, or as a percentage of sales quotaof sales quota
3. Margins by product category, customer segment, or customer
4. Number of calls per day, time spent per contract, revenue per call, cost per call, ratio of orders to calls
5. Number of lost customers per period or cost of customer acquisition
6. Percentage of goods returned, number of customer complaints, or number of overdue accounts
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Customer Service and Support (CSS)
Second component of operational CRM
Automation of traditional “help desk” services
Automation of traditional “help desk” services
Customer interaction center (CIC) Multiple communication
channels (blogs, Facebook, phone, face-to-face, e-mail, and so on)
Customer service anytime, anywhere through any channel
Low support cost
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Enterprise Marketing Management (EMM) Third component of operational CRM
EMM tools help a company in the execution of the CRM strategy by improving the management of CRM strategy by improving the management of promotional campaigns
EMM tools provide extensive analytical capabilities that can help to analyze the effectiveness of marketing campaigns
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Analytical CRM Supports back-office operations and strategic analysis
and includes all systems that do not deal directly with the customers
Analysis of customer behavior and perceptions Analysis of customer behavior and perceptions
Customized marketing Up-selling, cross-selling
Retaining customers
Key technologies used to create predictive models Data mining
Decision support systems
Continuous data collection and analysis is necessary.
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Customer Focused Business Processes Addressed by Analytical CRM:
1. Marketing campaign management and analysis
2. Customer campaign customization2. Customer campaign customization
3. Customer communication optimization
4. Customer segmentation and sales coverage optimization
5. Pricing optimization and risk assessment and management
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6. Price, quality, and satisfaction analysis of competitors
7. Customer acquisition and retention analysis
8. Customer satisfaction and complaint management8. Customer satisfaction and complaint management
9. Product usage, life-cycle analysis, and product development
10. Product and service quality tracking and management
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Collaborative CRM Refers to systems for providing effective and
efficient communication with the customer from the entire organization
Facilitates the sharing of information across the Facilitates the sharing of information across the various departments of an organization in order to increase customer satisfaction
Supports customer communication and collaboration with the entire organization, thus providing more streamlined customer service with fewer handoffs and loyalty
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CRM enables an organization to:
1. Provide better customer service
2. Make call centers more efficient
3. Cross sell products more effectively3. Cross sell products more effectively
4. Help sales staff close deals faster
5. Simplify marketing and sales processes
6. Discover new customers
7. Increase customer revenues
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Digital Dashboards for CRMDigital
dashboards help to visualize visualize key CRM performance metrics
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Benefit Examples
Enables 24/7/365 operation
Web-based interfaces provide product information, sales status, support information, issue tracking, and so on
Individualized Learn how each customer defines product and service Individualized service
Learn how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively
Improved information
Integrate all information for all points of contact with the customers—marketing, sales, and service—so that all who interact with customers have the same view and understand current issues
Speeds problemidentification/resolution
Improved record keeping and efficient methods of capturing customer complaints help to identify and solve problems faster
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Benefit Examples
Speeds processes
Integrated information removes information handoffs, speeding both sales and support processes
Improved integration
Information from the CRM can be integrated with other systems to streamline business processes and gain integration systems to streamline business processes and gain business intelligence as well as making other cross-functional systems more efficient and effective
Improved product development
Tracking customer behavior over time helps to identify future opportunities for product and service offerings
Improved planning
Provides mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies
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Firms can find their most valuable customers by using the RFM formula: recency, frequency, and monetary value
Organizations MUST track: Organizations MUST track:
How recently a customer purchased items
How frequently a customer purchased items
The monetary value of each customer purchase
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CRM success factors include:
1. Clearly communicate the CRM strategy.
2. Define information needs and flows.2. Define information needs and flows.
3. Build an integrated view of the customer.
4. Implement in iterations.
5. Scalability for organizational growth.
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