CRM?

Theory (Remzi Grocer)or

Software

Aim

Customer Satisfaction,

Keeping Existent Customer,

Customization, Service Range

How?

Information & Relational Marketing

Customer SelectionIncrease C. NumberKeeping Existent C.

RetentionC.

FunctionsCosts & Benefits

Customer Side

Company Side

Software Errors

Database

ETLRFM

Primary KeyGranularityData Mart

Olap CubesFact TablesHierarchy

Navigation CRM Based Marketing Strategy

Datamining

Segmantation Targeting

Posititioning

Prediction or

Description Loyalty

Cust. PyramidLoyalty TypesReason of Loy.

Rel. Management

CRM System

Retention, Winback &Acquisitio

n

Sales Force Automation

Measuring Customer

Satisfaction

Implementing Crm Systems Trust

Conflict HandlingCommitment

Communication

CRM FUNCTIONS

Customer SelectionSegmentation

Campain ModellingBrand Management

New Products

Gain Customer Order Man.

Demand AnalysisLogistic Man.

Complain Man.

Retain Customer

Market LeadershipNecessity Analysis

Increasing Customers

Analitic CRMCross Selling

BENEFITS - COSTSCOMPANY SIDE - CUSTOMER SIDE

Benefits;Customized ProductsMore IncomeLong Term IncomeCross ‐sellingUp ‐sellingBundlingCustomer Loyalty

Costs;IT Costs (server, software, training, security, labor organization),Framework change ,Re-engineeringResistance by employees

Benefits;Regularity (Barber - no risk)Touch point (Banks - ques )Customized product or service Enhances service (Holiday Inn)

Costs;Sharing your personal informationsOpportunity costs(Underestimating the other companies’ offers)

LOYALTY – Customer PyramidPotential Customer; There is a possiblity to be Customer of the company in the futureCustomer;Who bought servise or product from the companyRegular Customers;Who buy servie or product in regular time intervalSupporting Customers;Regular customer but do not recommend the company to other customerLoyal Customers;Regular customers and recommend companys’ product or services to other customers

Behavioral Brand Loyalty:Undivided Loyalty :A,A,A,A,ADivided Loyalty :A,B,A,B,A,BSwitched Loyalty:A,A,A,B,B,B

Indifference Loyalty:A,B,C,D,E,F,G,H

Which Factors Effects the Customer Loyalty???

Which Factors Effects the Customer Loyalty?

Before Sales During Sales After Sales

ExpectationsPerformance/Quality

JudgementsPerformance/Quality

Expectations and Judgements

Pleased

Satisfied

Disappointment

CRM BASED STRATEGY

CRM SYSTEM

Customer Data INFORMATION MANAGER

Marketing Strategy

“The application of digital and wireless technologies to personal selling” is known as SFA.

Sfa software; organizes and manages data about sales touch points and customer’s history with company.

SFA may use data mining to integrate the pipeline data with other CRM data and make suggestions to sales representative.

Automation tools describe where prospects /customer are in the sales cycle. “EXPEDIA EXAMPLE”

SFA tools have risks and costs.???

Identfy LeadsSuspected interest

Qualify LeadsValue Estimates

Contact Buying Centers Recognize Key players

Re-contactWinback interest

Develop RelationshipDevelop interest

Negotiate TermsLongterm View

CloseAsk for the sale

NO YES

SALES FORCE AUTOMATION

SALES FORCE AUTOMATION TASKS

Benefits of SFA :

Increase sales productivity and efficiency.Offers high quality customer service.Increase customer satisfaction.Creates customer loyalty.

SFA PROBLEMS:

Planning

Communication

Measurement

Source: Earl D. Honeycutt, Tanya Thelen, Shawn T. Thelen, Shoren T. Hodge(2005);“Implements to Sales Force Automation”, Industrial Marketing Management, Volume 34, pp.313-322.

Definition state - aimCollecting feedback

Connection errors between different departments

Lack of sales person education Focusing on organizational profits - sales person?

Resistance to downsizing - automation

Lack of process definitionsReward mechanisms

SALES FORCE AUTOMATION TASKS

Contact and Time Management

Opportunity or Lead Management

Knowledge Management

Price Quotes and Order

Configuration

Follow-up Management

Analysis and Reporting Tools

Communication with potential customers and existent customers (e-mail, sms availability)Date update and integration customer name, address, phone number and etc organization chart, decision treeProviding information to sales representatives about customer data (birthday, hobies, interests,location maps)Sharing information between departments and sales team membersTime management tool, meeting arrangements

Contact and Time Management

Opportunity or Lead Management

Determine potential customers of the companyProduct focus serviceCorrect order controlPurchasing preciselyDefining correct communication point with customersOpportunity management = Leadership + Process and information managementSales ForecastCustomer Value Calculation Future sale forecast

Easy managing, managing organizational informationIntranet, network inside the companyExtranet, sharing information, B2B - suppliers

Ordering effectivelyAdministrative facilities

Knowledge Management

Price Quotes and Order Configuration

Price lists,discount forms, price quotes informationProduct configuration is important for sales represantatives

Decreases offering timeCross-sellingEstablishing self service with Extranet support – e-commerce

Follow-up Management

Communication is a part of ManagementOrganization of communication and delay follow-up

Product delivered on time?E-mail sendComplaint system

Providing access to call and sales reports iformationsProviding Analysis for sales managers

Time –customer - location basedProviding information for Managers

Ratios, percantage information about the sales

Analysis and Reporting Tools

Call CentersDirect access to customersClassical call center hyergy:

Menu optionsWaiting customer representativeIdentication processProviding iformation about customer to customer represenatativeProblem definitionInforming customer about his/her problem result

Call RoutingInteractive Voice Response

Caller ID SystemsAutomatic Distribution SystemTrouble ticketCaller Note

Description or Prediction ???

Automated prediction of trends and behaviors.

Automated discovery of previously unknown patterns.

Data Mining

Evolutionary Step Business Question Enabling Technologies Product Providers Characteristics

Data Collection (1960s)

"What was my total revenue in the last five years?"

Computers, tapes, disks

IBM, CDCRetrospective, static data delivery

Data Access (1980s)"What were unit sales in New England last March?"

Relational databases (RDBMS), Structured Query Language (SQL), ODBC

Oracle, Sybase, Informix, IBM, Microsoft

Retrospective, dynamic data delivery at record level

Data Warehousing & Decision Support(1990s)

"What were unit sales in New England last March? Drill down to Boston."

On-line analytic processing (OLAP), multidimensional databases, data warehouses

Pilot, Comshare, Arbor, Cognos, Microstrategy

Retrospective, dynamic data delivery at multiple levels

Data Mining (Emerging Today)

"What’s likely to happen to Boston unit sales next month? Why?"

Advanced algorithms, multiprocessor computers, massive databases

Pilot, Lockheed, IBM, SGI, numerous startups (nascent industry)

Prospective, proactive information delivery

Decision Support Systems Functions:

Churn Analyse: Which customer will switch – To which rival

Cross-Selling: Which customer – Which product

Fraud-Detection: Which customer is planning to cheat (assurance) Risk Management: Crediy card apply –Yes or No

Customer Segmentation: Who are my customers?

Targeted ads: Which advertising? To which customer?

Sales Forecast: How many products will be sold in the next month

Data Mining

Description or Prediction ???

RFM (Recency, Frequency, Monetary)

Functions;

Classification – Modelling – fuction- test set (Predictive)Clustering (Descriptive)Association Rule (Descriptive)Regression (Predictive)Deviation Detection (Predictive)Sequential Pattern Discovery (Descriptive)

Data Mining

Information Discovery Methods;

Decision TreesGenetic AlgorithmsNeural Networks

Data Mining

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First Generation

6ads

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Second Generation

11ads

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Third Generation

Problems;

Measurable ? Data Size (Enormous) Disordered Data Data quality Securing Personal Data Multimedia Data -Streaming

Data Mining

CUSTOMER CYCLE

Suspect-Potential

Gain Retention-Holding

Regain

Loyal Customer

Repeat Customer

Unactive Customer

Losy Customer

Customers’First Sales

Recognize; Name &Past

AIM;One to One

Relation

Gaining by Satisfying Customers;

Performance & Quality

Develop; Customer Relation

CRM SYSTEM

LOST CUSTOMER

Lost Customer

Which Customer is about to leave?

Life Time value of Customer

Why he/she is leaving?

Which contact way is the best?

How much time is needed to activate the customer?

First Conversaton After Problem With Customer;

Thanks for trusting to our company

Competely Lost Customer;

Thanks for Past support to our company