%he Value oI CRM Gain more control in interaction with customers customers Manage expectations better Manage expectations better Provide products that better serve customers Competitive advantage Competitive advantage Working DeIinition. Working DeIinition. CRM rarely happens by chance. Many CRM seldom happens by chance. %ouch Points Each time your company interacts with a customer is a touch point.
%he Value oI CRM Gain more control in interaction with customers customers Manage expectations better Manage expectations better Provide products that better serve customers Competitive advantage Competitive advantage Working DeIinition. Working DeIinition. CRM rarely happens by chance. Many CRM seldom happens by chance. %ouch Points Each time your company interacts with a customer is a touch point.
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%he Value oI CRM Gain more control in interaction with customers customers Manage expectations better Manage expectations better Provide products that better serve customers Competitive advantage Competitive advantage Working DeIinition. Working DeIinition. CRM rarely happens by chance. Many CRM seldom happens by chance. %ouch Points Each time your company interacts with a customer is a touch point.
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Customer Relationship Management Customer Relationship Management Becoming a common and important concept Becoming a common and important concept in many industries in many industries Beyond mere Contact Management` Beyond mere Contact Management` Most industries have CRM soItware to help Most industries have CRM soItware to help sales process, on sales process, on- -going service, and even going service, and even accounting accounting %he Value oI CRM %he Value oI CRM Gain more control in interaction with Gain more control in interaction with customers customers Manage expectations better Manage expectations better Understand what customers really want Understand what customers really want Provide products that better serve customers Provide products that better serve customers Increase trust Increase trust Competitive advantage Competitive advantage Working DeIinition. Working DeIinition. '%he Plan and Practice oI managing the '%he Plan and Practice oI managing the liIetime relationship with your customer. liIetime relationship with your customer. '%he Plan: Every successIul endeavor '%he Plan: Every successIul endeavor requires proper planning. SuccessIul requires proper planning. SuccessIul CRM rarely happens by chance. Many CRM rarely happens by chance. Many organizations jump to implementation organizations jump to implementation w/o proper planning. w/o proper planning. Working DeIinition. Working DeIinition. '%he Plan and Practice oI managing the '%he Plan and Practice oI managing the liIetime relationship with your customer. liIetime relationship with your customer. '%he Practice: Systematic '%he Practice: Systematic implementation oI your plans. Should implementation oI your plans. Should produce measurable results. Should be produce measurable results. Should be evaluated and reIined over time. evaluated and reIined over time. Few Basic CRM Concepts. Few Basic CRM Concepts. %ouch Points %ouch Points Each time your company interacts with a Each time your company interacts with a customer is a touch point. customer is a touch point. Can we name a Iew Guest %ouch Points? Can we name a Iew Guest %ouch Points? How about Owner %ouch Points? How about Owner %ouch Points? Guest %ouch Points Guest %ouch Points First Call/Internet Visit First Call/Internet Visit Lease Lease Pre Pre- -arrival arrival Check Check- -In/Check In/Check- -Out Out Post stay thank you Post stay thank you Newsletters, Interest Lists Newsletters, Interest Lists Housekeeping/Maintenance Housekeeping/Maintenance ll marketing materials ll marketing materials Owner %ouch Points Owner %ouch Points First Call/Internet Visit First Call/Internet Visit Original purchase oI property Original purchase oI property Rental listing Rental listing ny owner stays in property ny owner stays in property Every month`s owner statement Every month`s owner statement Newsletters Newsletters Owner get Owner get- -togethers togethers ny phone call ny phone call positive or negative positive or negative ny marketing inIormation that the owner may ny marketing inIormation that the owner may see see %ouch Points %ouch Points re they planned? Managed? Documented? re they planned? Managed? Documented? re all 'touchers properly trained? Enroll re all 'touchers properly trained? Enroll your complete staII in the vision. your complete staII in the vision. ny way to increase the eIIectiveness oI the ny way to increase the eIIectiveness oI the touch? touch? ny way to increase the number oI touches? ny way to increase the number oI touches? Few Basic CRM Concepts. Few Basic CRM Concepts. Market Segmentation Market Segmentation Do you treat all oI your guests the same? Do you treat all oI your guests the same? re they? re they? Consider the diIIerence between a guest that stays once Consider the diIIerence between a guest that stays once ever in a 2 bedroom cottage and a guest that has stayed ever in a 2 bedroom cottage and a guest that has stayed each oI the last 10 years in a 6 bedroom home each oI the last 10 years in a 6 bedroom home We shouldn`t treat the one We shouldn`t treat the one- -timer badly, they may come back timer badly, they may come back many more times many more times We should realize that the higher value guest deserves the best We should realize that the higher value guest deserves the best that we can oIIer. that we can oIIer. Few Basic CRM Concepts. Few Basic CRM Concepts. Market Segmentation Market Segmentation Do you treat all oI your Owners the same? Do you treat all oI your Owners the same? re they? re they? Consider the diIIerence between an owner that has one Consider the diIIerence between an owner that has one 1970`s motiI 2 bedroom condo and an owner that has 3 1970`s motiI 2 bedroom condo and an owner that has 3 8 bedroom oceanIront homes 8 bedroom oceanIront homes We shouldn`t treat the condo owner badly, they are in your We shouldn`t treat the condo owner badly, they are in your program Ior a reason (right?) program Ior a reason (right?) We should realize that the OF home owner deserves the best We should realize that the OF home owner deserves the best that we can oIIer. that we can oIIer. Customer Relationship Management Customer Relationship Management 'Process oI creating and maintaining relationships 'Process oI creating and maintaining relationships with business customers or consumers with business customers or consumers ' holistic process oI identiIying, attracting, ' holistic process oI identiIying, attracting, diIIerentiating, and retaining customers diIIerentiating, and retaining customers 'Integrating the Iirm`s value chain to create 'Integrating the Iirm`s value chain to create enhanced customer value at every step enhanced customer value at every step 'n integrated cross 'n integrated cross- -Iunctional Iocus on Iunctional Iocus on improving customer retention and proIitability Ior improving customer retention and proIitability Ior the company. the company. Customer Relationship Management Customer Relationship Management Bottom Bottom- -line: line: %he use oI inIormation %he use oI inIormation- -enabled systems Ior enabled systems Ior enhancing individual customer relationships enhancing individual customer relationships to ensure long to ensure long- -term customer loyalty and term customer loyalty and retention retention CRM Objectives CRM Objectives LiIetime Value (L%V) LiIetime Value (L%V) ReIers to the net present value oI the potential revenue ReIers to the net present value oI the potential revenue stream Ior any particular customer over a # oI years stream Ior any particular customer over a # oI years Starts with current purchase activity then extrapolates to Starts with current purchase activity then extrapolates to include potential additions Irom cross include potential additions Irom cross- -selling, upgrades, selling, upgrades, total ownership, etc. total ownership, etc. Customer Ownership Customer Ownership ttempts to 'own the lionshare oI customer spending ttempts to 'own the lionshare oI customer spending and/or 'share oI mind in a particular product category and/or 'share oI mind in a particular product category Building brand equity, maintaining vigilant customer Building brand equity, maintaining vigilant customer contact, keeping current with the market trends is critical contact, keeping current with the market trends is critical 5 points increase in customer retention20 5 points increase in customer retention20- -125 125 increase in proIit increase in proIit Is CRM New? Is CRM New? 4 4 Simply an extension oI Simply an extension oI relationship marketing relationship marketing Builds on customer Builds on customer service and satisIaction service and satisIaction concepts concepts Just the latest buzzword Just the latest buzzword Ior creating customer Ior creating customer orientation orientation Bottom Bottom- -line is still the line is still the same same 08 08 shiIt in corporate shiIt in corporate philosophy concerning the philosophy concerning the approach to value delivery approach to value delivery Customer Customer- -centric centric approach to value chain approach to value chain New and technology New and technology- - enhanced processes enhanced processes Focus is not just on Focus is not just on bottom bottom- -line, but on top line, but on top- - line line Goal is to create satisIying Goal is to create satisIying experiences across experiences across , , customer contact points customer contact points CRM CRM Rather than market to a mass oI people or Iirms, Rather than market to a mass oI people or Iirms, market to each customer individually market to each customer individually lso called one to one marketing lso called one to one marketing InIormation about the customer (previous InIormation about the customer (previous purchases, demographic proIile) is used to predict purchases, demographic proIile) is used to predict Iuture behavior Iuture behavior Reduce costs wherever possible Reduce costs wherever possible pproach made possible by advances in pproach made possible by advances in technology technology Short: 1 to 1 Marketing Short: 1 to 1 Marketing www.1to1.com www.1to1.com CRM DeIinition CRM DeIinition CRM is a cross Iunctional process Ior achieving: CRM is a cross Iunctional process Ior achieving: continuing dialogue with customers continuing dialogue with customers cross all their contact and access points, with cross all their contact and access points, with Personalized treatment Ior the most valuable customers Personalized treatment Ior the most valuable customers %o increase customer retention and the eIIectiveness oI %o increase customer retention and the eIIectiveness oI marketing initiatives marketing initiatives -- -- George S. Day 'Capabilities for Forging Customer Relationships, George S. Day 'Capabilities for Forging Customer Relationships, MSI Report 00 MSI Report 00- -118 118 CRM and the Internet CRM and the Internet Internet can be used Ior a more personalized Internet can be used Ior a more personalized experience experience Customers can get more help and support online Customers can get more help and support online Increased customer selI Increased customer selI- -service (e.g. ordering) service (e.g. ordering) Quicker turnaround Ior customer problems Quicker turnaround Ior customer problems More Ieedback, customer suggestions More Ieedback, customer suggestions Customers can be tracked and data collected Iairly Customers can be tracked and data collected Iairly easily online easily online BU%, it`s another channel and 'touch point to BU%, it`s another channel and 'touch point to manage manage Why CRM? Why CRM? Loyal customers are the source oI most proIits Loyal customers are the source oI most proIits relatively small percentage oI customers may relatively small percentage oI customers may generate most oI the proIits generate most oI the proIits Marketing cost and eIIorts are less Ior existing Marketing cost and eIIorts are less Ior existing customers customers DissatisIied customers tell others about their DissatisIied customers tell others about their experiences experiences So do satisIied customers So do satisIied customers Slowing the rate oI deIection grows the customer Slowing the rate oI deIection grows the customer base base Reducing costs (e.g. through selI Reducing costs (e.g. through selI- -service) service) Why CRM? Why CRM? Recent advances in computing and database Recent advances in computing and database management technologies have provided management technologies have provided means oI getting closer to valuable means oI getting closer to valuable customers customers Short: Why people are talking about 1 to 1 Short: Why people are talking about 1 to 1 www.1to1.com www.1to1.com EE- -Commerce increases competition Commerce increases competition CRM Programs Can Potentially Improve CRM Programs Can Potentially Improve Analytical CRM Analytical CRM Customer Segmentation Customer Segmentation %rend nalysis %rend nalysis 507ati4nal CRM 507ati4nal CRM Campaign Management Campaign Management %ele %ele- -Marketing/%ele Marketing/%ele- -Sales Sales ctivity and %ime Management ctivity and %ime Management Quotation and Order Processing Quotation and Order Processing Delivery and Order FulIillment Delivery and Order FulIillment Customer Service and Support Customer Service and Support Remote ccess Remote ccess C4llab47ativ0 CRM C4llab47ativ0 CRM Enterprise Portals Enterprise Portals Customer ccess Customer ccess Supplier ccess Supplier ccess Personalization Personalization Making CRM Happen Making CRM Happen Evaluate products and processes customers` terms. Evaluate products and processes customers` terms. nalyze the multiple channels through which the nalyze the multiple channels through which the company interacts with customers. company interacts with customers. Examine how the company understands its Examine how the company understands its customers. Does it keep good data? How does it get customers. Does it keep good data? How does it get that data? Does inIormation Ilow between Iunctional that data? Does inIormation Ilow between Iunctional areas? areas? Provide Iingertip access to all inIormation. Provide Iingertip access to all inIormation. nalyze human resources and ensure that everyone nalyze human resources and ensure that everyone has an understanding oI philosophy oI CRM has an understanding oI philosophy oI CRM