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Customer Relationship Management @ HP A study 12/30/2009 1 Prepared by: Shrirang Damle-109 Ashay Singh -117 Abhilash Krishnan- 120 Shoeb Ali Syed - 127 Submitted to: Prabhat Jain sir

Customer Relationship Management @ HP

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Page 1: Customer Relationship Management @ HP

Customer Relationship Management @ HP

A study

12/30/2009

1

Prepared by:

Shrirang Damle-109

Ashay Singh -117

Abhilash Krishnan-120

Shoeb Ali Syed - 127

Jayant Singh Raghav - 128

Submitted to:

Prabhat Jain sir

ITM Business School, Kharghar, Navi Mumbai

ITM Business School, Kharghar, Navi Mumbai

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Page 3: Customer Relationship Management @ HP

Contents

1. Brief about HP

2. Hands-on CRM @ HP

3. Relationship Marketing @ HP

4. Customer Services @ HP

5. Conclusion

6. Reference

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1. Brief about HP

HP is a technology company that operates in more than 170 countries around the world. We explore how technology and services can help people and companies address their problems and challenges, and realize their possibilities, aspirations and dreams. We apply new thinking and ideas to create more simple, valuable and trusted experiences with technology, continuously improving the way our customers live and work.

No other company offers as complete a technology product portfolio as HP. We provide infrastructure and business offerings that span from handheld devices to some of the world's most powerful supercomputer installations. We offer consumers a wide range of products and services from digital photography to digital entertainment and from computing to home printing. This comprehensive portfolio helps us match the right products, services and solutions to our customers' specific needs.

1.1. Corporate objective and share valve:

It is necessary that people work together in unison toward common objectives and avoid working at cross purposes at all levels if the ultimate in efficiency and achievement is to be obtained."

— Dave Packard

HP's Corporate Objectives have guided the company in the conduct of its business since 1957, when first written by co-founders Bill Hewlett and Dave Packard.

1.2. History

Stanford University classmates Bill Hewlett and Dave Packard founded HP in 1939. The company's first product, built in a Palo Alto garage, was an audio oscillator—an electronic test instrument used by sound engineers. One of HP's first customers was Walt Disney Studios, which purchased eight oscillators to develop and test an innovative sound system for the movie Fantasia

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1.3. Product & Service mix

Products & Services are broadly classified among computers and other hardware, software offered by HP. The block diagram below shows the categorization of its offerings.

Fig.- Classification of HP offerings

HP has further classified its computer products among large product matrix. It has a wide range of product in every available market. We can say the HP is following full market coverage strategy for target market selection. Within a particular market they have large offerings to be made. HP has grown this product tree as line extension with the development of the industry. During early part of this century HP used to offer all desktop, laptops and other machines under same product line. But with the development of laptop market they have put it as a separate line and have more than 35 variants of various product brands available under laptop sections. Figure shows the diversified product mix of HP. HP has separate product mix for its Printer and imaging products. HP thinks it as altogether different market.

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Fig. : Product mix of HP machine solutions

Fig. : Software and Service Classification

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2. Hand-on CRM @ HP

2.1. CRM Solutions and Customer Retention Improvement

CRM Services is built on the principle of delivering and managing high-quality contact center services that support complex, large-scale customer interactions. Our services are designed to address pressing business challenges facing our clients. We bring measurable high value to our clients through differentiated industry-tailored services, as well as the ability to comprehensively manage the entire customer interaction operations of our clients. We deliver tangible, breakthrough results quickly by providing leading insights, being responsive to our clients and reducing risk. Whether you need a single service or an integrated approach, we have the flexible solutions that can improve customer satisfaction, retention, loyalty and value.

2.2. Comprehensive Customer Interaction Outsourcing

HP can provide the complete outsourcing of your customer interaction operations inclusive of all people, processes, and technologies. This can yield substantial cost and quality improvements. We offer complex multi-vendor management and the ability to manage diverse geographies and customer bases in a multichannel environment. This can provide substantial cost reductions and improved customer satisfaction, service, and quality.

2.3. High-Value Quality Sales and Service

HP combines its complex integration expertise and recognized high-quality delivery to manage end-to-end, high-value customer sales and service contact center interactions – the types of interactions that enable client growth and increased revenue, customer satisfaction and retention. We provide high value features such as customer segmentation, cross-sell/up-sell, and customer and product analytics.

2.4.Industry-Specific Solutions

Our CRM capabilities are integrated to industry-specific business process frameworks to manage critical customer-facing activities end-to-end, and address industry-specific challenges to serving end-customers. More detailed information on our industry-specific solutions is available below.

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2.5. HP Delivers

The Right Information, Processes and Tools Make the Difference

HP helps you deliver a multichannel interaction environment that provides a seamless customer view throughout the customer life cycle. Centrally located customer and product data is available across the organization, making information accessible in real time to all customer-facing channels and providing the customer one-touch service. The right information at the right time improves your ability to target, reach and service customers.

The Need For Visibility, Consistency and Integration

Customer satisfaction is critical to an enterprise’s success and revenue growth. To ensure satisfied and loyal customers, companies must provide a differentiated customer care experience across multiple channels. They also must have a full view of their customer interactions across business units, sites and outsourced service providers to measure and improve customer satisfaction. HP helps integrate all of the customer interaction processes and technologies to deliver services in a standard, customer-focused way.

Multi-Vendor Management

Through multi-vendor management, HP orchestrates and streamlines the contact center organization by integrating people, processes, and technology into a single enterprise solution. This ensures alignment between your business priorities and service performance across the enterprise, and consistency through a single point of contact for all facets of support across programs, vendors, contact center technologies, and geographies.

Maximize Contact Center Performance

HP knows how difficult it is to consistently collect, manage, and disseminate contact center performance data across multiple contact centers and service providers. Our set of managed services encompass strategy, technology, governance and processes and enable you to consolidate, standardize, automate, report on and analyze contact center performance information. These global, enterprise-wide services enable greater use of best practices and tools across the organization, so you can provide a more consistent customer experience.

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Fig. : CRM Model of HP

Hewlett-Packard takes the CRM processes and functions into the E-commerce millennium and has developed a CRM architecture to support effective customer interaction for sales and marketing automation. This architecture addresses the requirements of “enhancing/enriching and changing the customer experience” by providing the functionality required to effectively interact with the customer, during the Sales and Marketing process. Effective interaction with the Customer requires the following information:

1. Know your customer’s needs and pro-actively engage your customer.

2. Know your customer and also his conversations/interactions with you {not only to build a better relationship with the customer, but also to serve the customer effectively}.

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3. Use the knowledge gained during customer interaction to improve the interaction and relationship with the customer. The core architecture is design engine component which uses Business Rules (a set of Enterprise Rules that define the “actions” to be taken and are termed as “Customer recommended actions or CRA”).

The Decision engine takes as input the Customer Profile, Contact History and applies the stored Business Rules thereby creating a set of one or more Recommended Actions for the customers.The Business Rules Management component enables the creation, deletion, analysis and storage of the Business Rules in a repository. The Customer Profile component is generated based on the information in the Customer Information File (CIF), Customer Information Warehouse (segmentation, scoring).

The relevant customer conversation/contact/dialogue information is captured and stored in Contact Management component. The CRA Effectiveness Analysis component by using Data Mining technology provides a facility to explore rules, recommended actions and customer interaction effectiveness in general. The Treatment provides unique treatment data for customer, products and services.

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3. Relationship Marketing @ HP

Relationship Marketing

fig.: Relationship Marketing Model

The first stage is to identify the client and understand client behavior with attributes in order to understand their needs, habits, and desires. The knowledge obtained in this stage is “fed” into marketing campaigns, treatment plans, and business strategies.

The second stage is to start managing the customer relationship by first performing direct customer interaction and then continually integrating all relevant interaction or dialogue that occurs across passive and active network of client channels or “touchpoints”. In order to dynamically maintain the client life cycle, the relevant client dialogue must be captured and customized for the best possible future action. Ultimately, the vision is to build a “one-to-one Enterprise” such that the most valuable customer is treated differently by providing customized products and services.

Identify the customer individually and addressable

Differentiate by value and then by need

Valuable Customer

Customize (Product/Service/Info) IInteract and Remember

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In fact, Hewlett Packard has seen that CRM actually represents an enterprise business strategy that involves focusing knowledge, business processes and organizational structures around customers and prospect for the whole organization. Surrounding this business strategyis an information technology infrastructure consisting of data warehouses, decision engines and integrated middleware for touchpoints/channels in order to better understand customer behaviour and respond in a timely and relevant manner.

Touch points or channels includes Customer support centers, direct mail, telesales, direct sales, e-commerce, Web), clients want recent contacts (including complaints) or interaction to be known and reasonable personal recommendations etc.

3.1. Relationship Marketing PrincipleFor proper CRM and to understand the customer in better way HP adopted the following principle:-

Principle 1: By knowing more about the customer value and anticipating relationship needs better than when the customer was involved in a high-touch relationship.

Principle 2: Consolidate and make available all customer interaction information from all channels/touch points

Principle 3: Develop a customer centric infrastructure that can consistently Support the customized treatment of each customer.

Principle 4: Assign dedicated people, process and technology resources to achieve profitable results

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3.2. HP customer relationship model Hewlett-Packard has developed a Customer Relationship Model based on experiences attained from CRM project engagements globally. The Model shows that the customer relationship is strengthened by Relationship Building tactics, which are continuously measured through time.

The end result is a strong customer relationship, which lead to acceptable customer loyalty, profitability and retention. Success criteria such as share of wallet, profitability and cross-sell rations are also applied as part of the continuous measurement to ensure that Business CaseRequirements have been achieved.

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4. Customer Service @ Hewlett Packard

HP is having a nick of developing a close relationship with their customers. Giving customers better software solutions and helping them throughout implementation of these software and even after realization. HP has a unique Mission Critical and Proactive Services. Taking example of HP Proactive Blade System Service which is a part of this innovative service. It helps the businesses improve the ongoing management and utilization of HP blade technology and tools in order to provide the reliability and the cost-effective performance business expects.

HP’s global delivery organizations with its experienced technical experts help IT organizations manage and maintain their IT infrastructures to be more cost-effective and change-ready. An HP-assigned account support manager (ASM) is assigned personally to every business that helps their customer business growth and serves as primary service contact and works with them to customize a support plan to help meet their operational objectives for HP blade infrastructure.

Fig. Customer Support Model

Account Support Manager

Research & Design

Technical Support

Customers/ Business

Data warehousing/ Data mining

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The plan documents the services HP plans to deliver and the associated delivery timeline. The HP account support manager also coordinates any specialized technical resources that business customer may need, and sets up periodic meetings with you throughout the year to review the account support plan and highlight specific opportunities for improvement.

HP supports its customer and follows the above model of Customer support. Account Support manager plays crucial role for the Customer development and retention. ASM is responsible for gauging the needs of the customer and keeps a track of its customer growth. He then transfers the requisite to the technical support which then further processes the information and tries to find the match with the available solutions. In case solutions are not available R&D comes into picture and try to redesign the solution. This model helps HP to grow with their customers and simultaneously helping customers to grow with them.

Some of the points on which HP emphasize to provide better customer service support are An assigned account manager Operational and technical advice

Account support plan

Support activity reviews

Support planning and reviews

Site environmental survey

Operating systems analysis and management

Software updates

Education planning assistance

24x7 coverage for hardware and software

2-hour callback on software issues

4-hour onsite response for hardware

Escalation management

Flexible call submittal

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Assistance on non-HP products

HP also provides support through its website also that makes its customer service more effective and efficient. Providing supports like drivers and software downloads, various product support and service forums have improved customer experience.

Basic CRM involves the construction of data marts and data warehouses as the core components to support the sales and marketing decision making process. The data warehouse is the technology centerpiece that acts as a repository for all customer-centric data required for the decision making process in CRM. Marketing models such as Customer Segmentation, Life Time Value, Campaign analysis, and Profitability analysis are fed as information to the Customer data warehouse. In addition, external data such as Demographic, Mailing lists, Credit bureau are also fed into Data Warehouse.

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5. Conclusion

The principle of CRM Process and Function in HP architecture is knowledge base. This enables HP to transform them into a customer oriented business by making information as a strategic asset. For example, call center agents can look to CRM to supply them with information on the customers calling them with their purchases, transaction history and complaint history. Alternatively, a sales force can have customer contact and demographic information as part of their sales force automation. Basic CRM acts a foundation to move quickly to Step2 CRM, which provides integrated contact history, customer profile, channel integration, etc. In addition, decisioning technology develops knowledge from information used to determine the best recommended actions for a customer regardless of touch-point/channel.

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