Customer Relationship Management

Small Business Information Systems Professor Barry Floyd

Agenda

Defining ERP Implementation tasks for CRM CRM Overview / Demos

Conceptual Overview An application perspective of CRM

Operational Analytical

Lab component:

Hands on use of CRM with Microsoft

Use of ERP software in the curriculum Defining ERP?

Defining ERP

In 1990, research firm Gartner Group coined the term Enterprise Resource Planning, or ERP. It quickly became a catchall for back office enterprise functions that included financials, human resources, accounting, purchasing, ordering and costing. ERP II takes the ERP foundation and extends it outward, to position the enterprise in the supply an value chains (e.g., Supply Chain Management (SCM), Customer Relationship Management (CRM), Product Life Cycle Management (PLM) .

Conceptual Overview

Sales?

Conceptual Overview

A shift in thinking

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

Whats a relationship?

Can an organization have a relationship with a person? Emphasis on CRM is the notion of a learning relationship
Knowledge Intent Trust

Customer Satisfaction Customer Loyalty

The Death of Customer Satisfaction: CRM in the Internet Age by Tony Zingale

Fulfillment The company has what I want. Value The price meets my expectations. Convenience The product is easy to get. Trust Im reasonably confident the product is reliable.

PeopleSoft CRM

Consider the front-facing CRM application developed by PeopleSoft (not a product line of Oracle). A front-facing application is an application that the customer sees.

Contrast with back-office operations like we have been working with using GP Dynamics 9.0

In this clip, a customer wishes to file a damage claim. Key points:

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

PeopleSoft Customer Request

Customer Satisfaction Customer Loyalty

The Death of Customer Satisfaction: CRM in the Internet Age by Tony Zingale

Satisfaction My basic transactional needs are met Bonding The company is acting in my best interests. Personalization The company demonstrates that it understands and anticipates my needs. Empowerment The relationship is on my terms and under my control.

Customer Differentiation vs. Product Differentiation

Research by Professors Cooper and Kaplan at the Harvard Business School has shown that in a large number of companies 20 percent of customers account for 225 percent of profits and the 80 percent `lose 125 percent of profits. But the trouble is that most companies do not know which customers make up the 20 percent and which make up the 80 percent.

Enterprise Strategy Map

Database Marketing 1 to 1 learning relationship

Ability to Interact with Customers Individually

Interacting
Customers addressed only in mass media C u s

Mass Marketing Niche Marketing

Standard products

Tailoring

Tailored products

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

Share of the Market vs. Share of the Customer

Needs Satisfied

Needs Satisfied Customers Reached Customers Reached

Themes

Customers as assets
Market based assets, including customer relationships Companies executives will need to report their customer relationship management performance to investors Holistic view of the customer Analysis out of the hands of the statisticians

Four implementation tasks for creating and managing customer relationships

IDIC
Identify Differentiate Interact Customize

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

Four implementation tasks for creating and managing customer relationships

IDIC
Identify Differentiate Interact Customize

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

Identify

Relationships are individualistic, not with markets or groups of people

Must be able to identify your customers individually and recognize them when interacting with them Without identification, you cannot understand who they are and what their needs are. Difficult to do, can be almost impossible if channels of communication involve intermediaries How much customer identification does a company already have (what info do you need) Get customers to identify themselves

Steps
1. 2.

Four implementation tasks for creating and managing customer relationships

IDIC
Identify Differentiate Interact Customize

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

Differentiate

Some customers are worth more than others

80/20 rule Want to better understand customer needs vs. demographics Want to better understand the value of that customer to the enterprise

Knowing value of customer to the enterprise allows prioritization

Lifetime value (LTV) net present value of the stream of expected future contributions from the customer. Most valuable customers, most growable customers, belowzeros, migrators Refers to why customer buys rather than what they buy.

Differentiate customers based on needs

PeopleSoft CRM Insurance Companys Response

What support is provided by the company to help the Customer Support Agent

What information does this agent have about the client? Where does it come from? How useful is it? What information does the agent have about their own performance? What information has the claimant provided to the Insurance Company? How does this interaction reflect a partnership How much trust is there?

Consider

PeopleSoft Customer Support Agent Response

Four implementation tasks for creating and managing customer relationships

IDIC
Identify Differentiate Interact Customize

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

Interact

Goal of interaction is to get more information directly from a customer in order to serve him in a way no competitor can who doesnt have the information Want to turn the interaction into a collaboration in which the enterprise and customer work together to make transactions beneficial to both parties a learning relationship Important issue in the interaction is privacy. Research has indicated that individuals are willing to provide information

Four implementation tasks for creating and managing customer relationships

IDIC
Identify Differentiate Interact Customize

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

Customize

Use knowledge of customer to figure out what he/she needs Key term is mass customization
Can be product based Or service based on standard products Use of information technologies key

PeopleSoft CRM Insurance Companys Response

What support is provided by the company to help the Sales Agents Response

Are we wasting the Sales Agents time? Why not? When the Sales Agent calls the client, will it be consider intrusive? How are gaining share of the customer (in contrast to share of the market?) What information has the claimant provided to the Insurance Company? How does this interaction reflect a partnership How much trust is there?

Again consider

PeopleSoft Sales Agent Response

How does technology play a role?

Enabler . Managing all touch points with the customer to develop knowledge so that the relationship part of the interaction becomes meaningful. Note, technology is only an enabler, people and organizational design play critical roles in CRM success

CRM Overview / Demos An application perspective of CRM

PeopleSoft CRM View

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

CRM Overview / Demos An application perspective of CRM

PeopleSoft CRM View

Get immediate, seamless integration among your customer, financial, supply chain, and employee management systems.
CRM Analytics Marketing Solution Sales Solution Service Solution CRM Industry Solutions

Operational CRM Analytics CRM

CRM Overview / Demos An application perspective of CRM

Operational CRM

Operational CRM is the automation of horizontally integrated business processes involving front-office customer touch points across sales, marketing and customer service via multiple, interconnected delivery channels. Meta Group

CRM Overview / Demos An application perspective of CRM

PeopleSoft CRM View

MARKETING

New product campaign

Email wave Telesales wave Free software offer

SUPPORT

Installed Product

HELPDESK

Agreement Warranty

Call Center Agent Resolution Database

SALES

Forecasts Leads/Opportunities Sales Reps

Specialist Competencies Call Center Agent Resolution Database

FIELD SERVICE

ANALYTICS

Service Order Technician Competencies

INTERACTION MANAGEMENT

CRM Overview / Demos An application perspective of CRM

CRM Demos User Perspective

Customer Perspective Customer Support Agent Sales Representative Sales Manager

CRM Overview / Demos An application perspective of CRM

Example Business Process:

CRM Marketing and Sales Business Process Flow
Analyze Customer Performance and Generate Target Audience List Create Campaign Create Wave

CRM Marketing Business Process

Lead Generation

CRM Sales Business Process

Manage Leads

Measure Campaign Measure Opportunity Performance Generate Forecasts and Rollup Forecasts

Create Opportunity

CRM Overview / Demos An application perspective of CRM

Two key features of business process

Embedded Analytics

Allows for data analysis within the business process stream

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

Interaction Management

CRM Overview / Demos An application perspective of CRM

Analytical CRM

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

CRM Overview / Demos An application perspective of CRM

CRM Analytics Solution

CRM Portal Pack CRM Warehouse Customer Behavior Modeling Customer Scorecard EPM Portal Pack Predictive Analytics

CRM Overview / Demos An application perspective of CRM

Customer Behavior Marketing

Which customers are most likely to purchase your product Which customer segment will maximize your ROI on marketing campaigns Which personalized, targeted offers your call center reps should present Which customers are at risk of attrition

PeopleSoft Sales Manager

Predictive analytics

An application that leverages a companies operational data about customers and past events and uses it to predict a customers future behavior. Goal is to distribute the value of statistical analysis to non-statisticians in the organization.

CRM Demo Resources

Siebel: http://www.siebel.com/bestpractices/examples.shtm SalesForce.com: Microsoft:

http://www.microsoft.com/dynamics/crm/default. mspx http://mscrm.demoservers.com/

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

Avaya:

http://www1.avaya.com/enterprise/resourcelibrary/demos/crm _callcenter.html

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

http://www.destinationcrm.com/

http://searchcrm.techtarget.com/

TeraData Center, Duke University

http://crm.ittoolbox.com/

http://www.crmguru.com/

CRM Lab

Go to the following web site:

http://mscrm.demoservers.com/ Register Once youve registered, log in and do the SALES CRM lab.

Ive given you a handout on this.

Summary

CRM is an exciting application that provides an integrated view of critical business processes and allows the student to develop a real-world understanding Integration with other modules like Supply Chain Management, Financials, and HR is critical for a complete view of the customer