Business Plugin B 9 CUSTOMER RELATIONSHIP MANAGEMENT Mc

9 -2 BUSINESS BENEFITS OF CRM • CRM enables an organization to: – Provide better customer service – Make _____ centers more efficient – Cross sell products more effectively – Help sales staff close deals faster – Simplify marketing and sales processes – Discover new _____ – Increase customer revenues

9 -3 CRM BASICS • Organizations can find their most valuable customers through “RFM”: – How recently a customer purchased items (Recency) – How frequently a customer purchased items (______) – How much a customer spends on each purchase (Monetary Value)

9 -4 The Evolution of CRM • CRM reporting technology – help organizations identify their customers across other applications • CRM _____ technologies – help organization segment their customers into categories such as best and worst customers • CRM predicting technologies – help organizations make predictions regarding customer behavior such as which customers are at risk of leaving

9 -5 The Evolution of CRM • Three phases in the evolution of CRM include reporting, analyzing, and predicting

9 -6 The Evolution of CRM

9 -7 Operational and Analytical CRM • Operational CRM – supports traditional transactional processing for day-to-day ______-office operations or systems that deal directly with the customers • Analytical CRM – supports ______-office operations and strategic analysis and includes all systems that do not deal directly with the customers

9 -8 Operational and Analytical CRM

9 -9 Using IT to Drive Operational CRM

9 -10 Marketing and Operational CRM • Three marketing operational CRM technologies: 1. List generator – compiles customer information from a variety of sources and segment the information for different marketing campaigns 2. Campaign management system – guides users through marketing campaigns 3. Cross-selling and up-selling • • Cross-selling – selling additional products or services Up-selling – increasing the value of the sale

9 -11 Sales and Operational CRM • The sales department was the first to begin developing CRM systems with sales force ______ – a system that automatically tracks all of the steps in the sales process

9 -12 Sales and Operational CRM • Sales and operational CRM technologies 1. Sales management CRM system – automates each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts 2. Contact management CRM system – maintains customer contact information and identifies _____ customers for future sales 3. Opportunity management CRM system – targets sales opportunities by finding _____ customers or companies for future sales

9 -13 Customer Service and Operational CRM • Three customer service operational CRM technologies: 1. Contact center (call center) 2. Web-based self-service system • Click-to-talk 3. Call scripting system • Access DB to automatically generate details for the CSR

9 -14 Customer Service and Operational CRM

9 -15 USING IT TO DRIVE ANALYTICAL CRM • • • Personalization – when a Web site knows enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person Analytical CRM relies heavily on data ______ technologies and business intelligence to glean insights into customer behavior These systems quickly aggregate, analyze, and disseminate customer information throughout an organization

9 -16 CURRENT TRENDS: SRM, PRM, AND ERM • • • Supplier relationship management (SRM) – focuses on keeping suppliers satisfied by evaluating and _____ suppliers for different projects Partner relationship management (PRM) – focuses on keeping _______ satisfied by managing alliance partner and reseller relationships Employee relationship management (ERM) – provides employees (as customers) with a subset of CRM applications available through a ______

9 -17 FUTURE CRM TRENDS • • CRM applications will change from employeeonly tools to tools used by suppliers, partners, and even ______ CRM will continue to be a major ____ focus for companies CRM applications will continue to adapt ____ capabilities supporting mobile sales and mobile customers CRM suites will incorporate PRM and SRM modules