Chapter10_ MGT300

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    Learning Outcomes Leave blank

    Learning Outcomes

    1. Compare operational and analytical

    customer relationship management

    2. Identify the primary forces driving

    the explosive growth of customer

    relationship management

    3. Define the relationship between

    decision making and analytical

    customer relationship management

    4. Summarize the best practices for

    implementing a successful customer

    relationship management system

    Chapter 10: Building a Customer-Centric Organization CRM

    1

    CHAPTER 10B U I L D I N G A C U S T O M E R - C E N T R I C

    O R G A N I Z A T I O N

    C U S T O M E R

    R E L A T I O N S H I P M A N A G E M E N T

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    Leave blankChapter 10: Building a Customer-Centric Organization CRM Customer Relationship Management (CRM)

    CRM enables an organization to:

    Provide better customer service

    Make call centers more efficient

    Cross sell products more effectively

    Help sales staff close deals faster

    Simplify marketing and sales processes

    Discover new customers

    Increase customer revenues2

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    Leave blankChapter 10: Building a Customer-Centric Organization CRM Customer Relationship Management (CRM)

    Organizations can find their most

    valuable customers through RFM

    Recency,

    How recently a customer

    purchased items

    Frequency,

    How frequently a customer

    purchased items

    Monetary value

    How much a customer spends

    on each purchase

    3

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    Chapter 10: Building a Customer-Centric Organization CRM Leave blankThe Evolution of CRM

    Three phases in the evolution of CRM:-

    CRM report ing technolog y helporganizations identify their customersacross other applications

    report ing

    analyzing predicting

    4

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    Chapter 10: Building a Customer-Centric Organization CRM Leave blankThe Evolution of CRM

    Three phases in the evolution of CRM:-

    CRM analysis technolog ies helporganization segment their customersinto categories such as best and worstcustomers

    reporting

    analyzing predicting

    5

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    Chapter 10: Building a Customer-Centric Organization CRM Leave blankThe Evolution of CRM

    Three phases in the evolution of CRM:-

    CRM predict ing technolog ies helporganizations make predictions regardingcustomer behavior such as whichcustomers are at risk of leaving

    reporting

    analyzing predict ing

    6

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    Chapter 10: Building a Customer-Centric Organization CRM Leave blankThe Evolution of CRM

    Three phases in the evolution of CRM:-

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    Chapter 10: Building a Customer-Centric Organization CRM Leave blankCRMs Explosive Growth

    CRM Business Drivers

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    Chapter 10: Building a Customer-Centric Organization CRM Leave blankUsing Analytical CRM to Enhance Decisions

    Operat ional CRM

    supports traditional transactional

    processing for day-to-day front-officeoperations or systems that dealdirectly with the customers

    Example: customer service, sales,billing

    Analyt ical CRM

    supports back-office operations andstrategic analysis and includes allsystems that do not deal directly with

    the customers

    Example: Accounting, Finance,Human resources, Data warehouses

    Which systems

    are more

    important to an

    organization?

    front-office or

    back-office

    9

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    Chapter 10: Building a Customer-Centric Organization CRM Leave blankCustomer Relationship Management Success

    Factors

    CRM success factors

    1. Clearly communicate the CRM strategy ensuring that all departments and employees understand exactly what CRM means

    and how it will add value to the organization is critical to the success of the

    implementation

    2. Define information needs and flows the organization must understand all of the different ways that information flows into

    and out of the organization to implement a successful CRM system.

    If the organization misses one of the information flows, such as a customer service

    Web site, then none of that information from that Web site will be integrated into the

    CRM system and the company will not have a complete view of its customers

    3. Build an integrated view of the customer the CRM system must support the organization's strategies and goals

    4. Implement in iterations avoid the big-bang approach and implement in small, manageable, pieces

    5. Scalability for organizational growth ensure the system can support the organization's future growth 10

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    Leave blank

    Compare

    operational and

    analytical

    customer

    relationship

    management

    Operational CRM supports traditional

    transactional processing for day-to-day

    front-office operations or systems thatdeal directly with the customers.

    Analytical CRM supports back-office

    operations and strategic analysis and

    includes all systems that do not deal

    directly with the customers.

    The primary difference between

    operational CRM and analytical CRM is

    the direct interaction between the

    organization and its customers.

    SummaryChapter 10: Building a Customer-Centric Organization CRM

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    Leave blank

    Identify the primary

    forces driving the

    explosive growth of

    customer

    relationship

    management

    Summary

    The primary forces driving the

    explosive growth of CRM:-

    Automation/Productivity/Efficiency

    Competitive advantage,

    Customer demands/requirements, Increase revenues,

    Decrease costs,

    Customer support,

    Inventory control,

    Accessibility

    Chapter 10: Building a Customer-Centric Organization CRM

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    Leave blank

    Define the

    relationship

    between decision

    making andanalytical customer

    relationship

    management

    Summary

    Analytical CRM solutions are

    designed to dig deep into a

    companys historical customer

    information and expose patterns of

    behavior on which a company can

    capitalize.

    Analytical CRM is primarily used to

    enhance and support decision

    making and works by identifying

    patterns in customer information

    collected form the variousoperational CRM systems.

    Chapter 10: Building a Customer-Centric Organization CRM

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    Leave blank

    Summarize the best

    practices for

    implementing asuccessful CRM

    system

    Summary

    CRM success factors include:-

    clearly communicate the CRM

    strategy ,

    define information needs andflows,

    build an integrated view of the

    customer,

    implement in iterations,

    scalability for organizational

    growth

    Chapter 10: Building a Customer-Centric Organization CRM

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