ECS402 - Fundamental of MIS - CRM

Management Information
System
ECS402
Customer Relationship Management
Customer Relationship Management
• A customer-centric focus
• Customer relationships have become a company’s most
valued asset
• Every company’s strategy should be to
find and retain the most profitable
customers possible
What is CRM?
• Managing the full range of the customer relationship
involves
• Providing customer-facing employees with a single,
complete view of every customer at
every touch point and across all channels
• Providing the customer with a single, complete view of the
company and its extended channels
• CRM uses IT to create a cross-functional enterprise
system that integrates and automates many of the
customer-serving processes
3
Application Clusters in CRM
4
Contact and Account Management
• CRM helps sales, marketing, and service professionals
capture and track relevant
data about
• Every past and planned contact with prospects and
customers
• Other business and life cycle events of customers
• Data are captured through customer touchpoints
• Telephone, fax, e-mail
• Websites, retail stores, kiosks
• Personal contact
5
Sales
• A CRM system provides sales reps with the tools and data resources
they need to
• Support and manage their sales activities
• Optimize cross- and up-selling
• CRM also provides the means to check on a customer’s account
status and history before scheduling a sales call
6
Marketing and Fulfillment
• CRM systems help with direct marketing campaigns by automatic
such tasks as
• Qualifying leads for targeted marketing
• Scheduling and tracking mailings
• Capturing and managing responses
• Analyzing the business value of the campaign
• Fulfilling responses and requests
Chapter 8 EnterpriseBusiness
7
Systems
Customer Service and Support
• A CRM system gives service reps real-time access to
the same database used by sales and marketing
• Requests for service are created, assigned,
and managed
• Call center software routes calls to agents
• Help desk software provides service data
and suggestions for solving problems
• Web-based self-service enables customers to access
personalized support information
8
Retention and Loyalty Programs
• It costs 6 times more to sell to a new customer
• An unhappy customer will tell 8-10 others
• Boosting customer retention by 5 percent can boost profits by 85
percent
• The odds of selling to an existing customer are 50 percent; a new
one 15 percent
• About 70 percent of customers will do business with the
company again if a problem is quickly taken care of
• Enhancing and optimizing customer retention and loyalty is a
primary objective of CRM
• Identify, reward, and market to the most loyal
and profitable customers
• Evaluate targeted marketing and relationship programs
9
The Three Phases of CRM
10
Benefits of CRM
• Benefits of CRM
• Identify and target the best customers
• Real-time customization and personalization
of products and services
• Track when and how a customer contacts
the company
• Provide a consistent customer experience
• Provide superior service and support across
all customer contact points
11
CRM Failures
• Business benefits of CRM are not guaranteed
• 50 percent of CRM projects did not produce promised
results
• 20 percent damaged customer relationships
• Reasons for failure
• Lack of understanding and preparation
• Not solving business process problems first
• No participation on part of business stakeholders involved
12
Trends in CRM
• Operational CRM
• Supports customer interaction with greater convenience
through a variety of channels
• Synchronizes customer interactions consistently across all
channels
• Makes the company easier to do business with
• Analytical CRM
• Extracts in-depth customer history, preferences, and
profitability from databases
• Allows prediction of customer value and behavior
• Allows forecast of demand
• Helps tailor information and offers to customer needs
13
Trends in CRM
• Collaborative CRM
• Easy collaboration with customers, suppliers, and partners
• Improves efficiency and integration throughout supply chain
• Greater responsiveness to customer needs through outside
sourcing of products
and services
• Portal-based CRM
• Provides users with tools and information that fit their needs
• Empowers employees to respond to customer demands more
quickly
• Helps reps become truly customer-faced
• Provides instant access to all internal and external customer
information
14

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