Transcript Chapter 1 Business Driven Technology

Types of CRM
• Operational
CRM – supports
traditional
transactional
processing for
day-to-day
front-office operations or systems that deal directly
with the customers (marketing, customer service, sales,
billing, etc.)
• Analytical CRM – supports back-office operations and
strategic analysis and includes all systems that do not
deal directly with the customers (accounting, finance,
human resources, data warehouses)
OPERATIONAL CRM
1. List generator – compiles customer information
from a variety of sources and then segments that
information by filtering and sorting for different
marketing campaigns
2. Cross-selling and up-selling
– Cross-selling – selling additional products or services
– Up-selling – increasing the value of the sale
3. Sales force automation software is used to
automatically tracks all of the steps in the sales
process
– Sales reps had too much info to maintain and track
– Needed to get info out of sales rep heads and into a
system that could be used by all.
OPERATIONAL CRM
4. Sales reps can organize and coordinate accounts
so that one reps lead can become a sale by the
organization (even if it means someone else makes the
sale)
5. Contact management systems can be used to
“remember” a customer and all prior dealings
with that customer
6. After acquiring a customer, you need to keep the
customer through excellent customer service
– If you want to ensure customer loyalty and
satisfaction, you must build post-sale relationships
•
Answer questions
Provide solutions to problems
OPERATIONAL CRM (Customer Service)
1. Provide consistent answers to questions (database)
2. Make sure customers don’t have to explain their
problems AGAIN (database, avoid customer frustration)
3. Emotion detection software to detect when someone
is distressed and upset (determine baseline during first
few seconds of contact and then looks for deviations)
4. Web-based self-service allows customers to find their
own answers.
–
Federal Express, UPS and other sites with shipment tracking
5. Click-to-talk buttons on a web site
6. Call scripting systems automatically generate the next
item or question.
– Good way to be consistent
Types of CRM
• Operational
CRM supports
front-office systems
that deal directly
with customers
• Analytical CRM doesn’t directly deal with
customers. It is used to support decision making
and data analysis by identifying patterns to help the
organization understand its customers.
Analytical CRM
• Analytical CRM relies heavily on data warehousing technologies and
business intelligence to glean insights into customer behavior
• These systems quickly aggregate, analyze, and disseminate customer
information throughout an organization
• Personalization – when a website knows enough about a person’s
likes and dislikes that it can fashion offers that are more likely to
appeal to that person
• Determine the value of an individual customer
– Who should we invest in?
– Who should we service at an average level?
– Who should we not invest in at all?
– Since we can’t focus on all of our customers, who should be focus on ? Where
can we get the biggest bang for the buck?
Information Technology and Customer
Relationship Management
• Advances in information technology are making it possible to
gain a greater understanding of the customers who are
buying your products. If an organization understands the
characteristics of its customers, it is then in a better position
to meet customer needs, and therefore generate even more
business.
– How are we going to use all of this customer data that we have
collected?
• Information Technology is simply a TOOL that can be used to
better serve the customer.
– How can customer interactions be made easier?
– If you understand customer characteristics, you are then
positioned to better serve customers (mine what you have to gain
a clearer understanding).
• Result: increase customer loyalty and probably increase
revenues