Customer Relationship

Management
Further CRM

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Types of Customer
Relationship Management
Operational CRM
Analytical CRM
Collaborative CRM

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Operational CRM

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Goal of Operational CRM

The goal of Operational CRM is to provide
electronic support for the "front office"
business processes, which include all
customer contact (eg. sales, marketing
and service).
it aims to deliver customer-centric
business processes and operations.

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Business Benefits
Operational CRM provides the following
benefits:
Enables a 360-degree view of each customer
Each employee from sales people to service
engineers can access complete history of all
customer interaction with the organisation
regardless of the initial point of contact
Delivers personalised and efficient marketing,
sales, and service
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Components of Operational
CRM
Sales force automation (SFA)
Enterprise marketing automation
(EMA)
Customer service and support (CSS)

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Sales force automation (SFA)

SFA automates critical sales and sales

force management functions eg

lead/account management
contact management
quote management
Forecasting
customer preference tracking

SFA requires a well designed database in

order to store and retrieve customer
details.
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Enterprise marketing
automation (EMA)
EMA provides information about the
business including
Competitors
industry trends

EMA utilises Data Mining and OLAP

Technologies which have been
covered earlier in this module.

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Customer service and

support (CSS)
CSS automates

service requests
Complaints
product returns
information requests.

call-centre support for customer inquiries has

evolved into the customer interaction centre
(CIC) - uses multiple channels (Web, phone/fax,
face-to-face, kiosk, etc).
CSS technology is database oriented and is
underpinned by Service Level Agreements
(SLAs)
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Service Level Agreements

A Service Level agreement:
Is a contract with a customer which
Defines the Level of service to be
provided thereby eliminating
unrealistic expectations.
Enables the management of
complaints /comments
Facilitates performance monitoring
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Example
Help Desk
Accident and emergency units

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Setting expectations:
Customers are happy when
a supplier under-promises and over-delivers
a supplier delivers the correct order on time
a supplier routinely exceeds expectations

Service level agreements mean that the

customer knows what to expect and this
sets a benchmark for their judgement of
the service.
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Complaints
A complaint can be viewed as
- a useful measure of performance
- guidance for improving quality
- an opportunity to increase customer loyalty

A complaint may be categorised based

on how far outside of the service level
agreement the service received was.
Expert handling of complaints can
increase customer loyalty and referrals.
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Handling complaints
Once categorised, complaints can be
handled electronically in a uniform way by
a good CRM system.
They are viewed positively by organisations
and MUST be responded to positively.
Usually response includes
An apology (for inconvenience caused)
An assurance that the complaint has been taken
seriously and quality is being improved
A marketing gesture eg. Discount voucher.
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Performance monitoring
Ability to produce performance
exception reports leading to the
possibility of targeted marketing to
reduce churn
Identification of problem areas
leading to the possibility of quality
improvement

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Analytical CRM

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Goal of Analytical CRM

To develop insight into customers needs.
To determine what other products and
services you can sell to your customers in
order to increase the Average Revenue
Per User (customer) ARPU.

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Benefits to Business
Segmentation of customers to feed
into enterprise marketing (EMA)
systems
Identifies customers in danger of
churning
Aids Decision Making

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Customer segmentation
It is useful to segment customers for
targeted marketing campaigns:
Customers most and least likely to
repurchase product)
Profitability analysis (which customers lead to
the most profit over time)
Personalisation (the ability to market to
individual customers based on requirements)
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Other Analyses
Design and execution of specific customer
campaigns, including cross-selling, up-selling
Analysis of customer behavior to aid product and
service decision making (e.g. pricing, new
product development etc.)
Management decisions, e.g. financial forecasting
and customer profitability analysis
Prediction of the probability of customer
defection (churn analysis)
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Collaborative CRM

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Goal of Collaborative CRM

Collaborative CRM's ultimate goal is to
use information collected from all
departments to improve the quality of
customer service
This requires a clear contact management
strategy which enables everyone in an
organisation to see who is talking to who.

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Business Benefits
Enables efficient productive customer
interactions across all communications
channels
Enables web collaboration to reduce
customer service costs
Integrates call centres enabling multichannel personal customer interaction

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Aim
Collaborative CRM aims to get various
departments within a business, such as
sales, services and marketing, to share
the useful information that they collect
from interactions with customers.
Feedback from a technical support center,
for example, could be used to inform
marketing about specific services and
features requested by customers.
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Aims continued
Collaborative CRM facilitates interactions
with customers through all channels
(personal, letter, fax, phone, web, e-mail)
and supports co-ordination of employee
teams and channels. It is a solution that
brings people, processes and data
together so companies can better serve
and retain their customers.
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E-CRM and M-CRM

E-CRM allows customers to access
company services electronically
M-CRM allows customers or managers to
access the systems for instance from a
mobile phone or PDA with internet access,
resulting in high flexibility.
An example of a company that
implemented M-CRM is Finnair, who made
it possible for their customers to check in
for their flights by SMS.
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CRM Strategy
CRM is a broad area which can be
applied on an enterprise-wide basis.
It could be introduced to parts of an
organisation but is more effectively
introduced as a strategy.

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What makes CRM fail?

The main risk factors of implementing a CRM
strategy may be:
Lack of CRM planning no strategy
Underestimating implementation costs,
timeframes and organizational commitment
Poor front and back-end integration
Not being customer focused or customer centric
Political friction within the organization stifles the
sharing of customer information
Initiatives are driven by technology rather than
by customer strategy and service process design
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