Welcome

1. Welcome

2. Competing on products?

3. Common customer service complaints “I entered my account number and the agent still asks me for it.” “I hate being transferred from one person to another.” “It is frustrating to sit on hold for minutes on end.” “Why can’t everybody know my issue? This is the 10th time I have call about the same problem. Don’t they value my business?” “I might not get a timely answer if I email. I’d rather call.” “How come when I go to the web site I get a different answer than when I call into your call centre?” “I just want to talk to a live person rather than enter 1, 2, or 3 on my touchtone phone.”

4. Avoid information silos There is often a lack of integration between channels. Sales and Customer Service Agents had little visibility into the Web channel, and Web sites sometimes had little correlation with what was available Web, Email, Wireless • 24x7 • Visual Call Centre • Convenient • Immediate Field Sales • Hands-on • Consultative Customers Resellers • Local • Multivendor Source: Gartner Group

5. Best Practices Understanding your customer in the context of CRM Visibility Across All Channels… Geographies Web & Email Products/Services Customer Information Call Centre Legacy / Back office CUSTOMERS Field Sales Partner/Agent …Drives Service Delivery Across All Business Units

7. CRM Model

8. Scope of CRM today Lead Tracking & Sales Management Contact Management Customer Service Management Customer Database “single view of customer” Campaign Management Integration with Product Engines (Transactions) Workflow & Fulfilment Telemarketing Marketing Encyclopaedia Integrated sales, marketing and service across all channels and all products

11. Economics of customer retention “Winning back a lost customer can cost up to 50-100 times as much as keeping a current one satisfied.” Rob Yanker, Partner, McKinsey & Company Understanding your customer is key to retention…..

12. Technology Customer Call Center Agent Know your customer common business processes Initiate Request Obtain Customer Feedback Phone Email Web Identify Customer Identify Request Route to Best resource Agent skills Agent availability Customer attributes Screen pop Customer History Capture Customer Details / Update Profile Complete Task Cross-sell / Up-sell Offer

13. Understanding your customer – • Business strategy & roadmap • Customer segmentation • Multi-channel strategy • Business processes • Skills & culture • Technology

14. Student Solution Components • Major Functions • Student Recruiting • Admissions • Financial Aid • Course Management • Enrollment • Student Finance • Academic Records • Academic Progression • Research • Graduation • Institutional Research

15. Purdue University University Fiscal Affairs University Human Resources Academic Affairs Provost School of Technology School of Agriculture Enrollment Management School of Education Purdue North Central Undergraduate Studies BS Agribusiness Management Admissions Registrar Purdue Calumet Graduate Studies MS Aquatic Entomology Financial Aid Academic Advising Admissions Student Affairs Admissions Financial Aid Registrar Student Affairs External Recruitment Sources Organization Specific Calendars Rules Fee Assessment Reporting External Business Alliances

16. One Trusted Source of Data Carolyn Lee “What do we know about Carolyn Lee?” Recruiting/Student Applications Self Service Applications “How do we contact Carolyn Lee?” Administrative Applications

17. Student Solution Demonstration Apply Hold Prospect Inquiry Student Recruitment Admissions Application Postcard Admission Decision Email Invitation John Purdue Prospective Student Online Invoice Financial Aid Processing Self Service Enrollment John Purdue Admitted Student Faculty Special Permission Financial Aid Disbursement Online Payment Faculty Grading

18. Identify Markets Alumni & Life Long Learners Prospect Generation Student Student Services Cultivate Inquirers Student Aid Application & Admissions Enrollments Cultivate the Entire Relationship Service & Retention Recruiting Admission & Enrollment

19. Oracle CRM Recruitment • Events Planning, Execution & Registration • List Management • Campaign Planning • Communications Management (ad hoc, automated, recurring, event triggered, high volume mass mailing) -- via email, fax, print, web and third party fulfillment houses • 360 Degree View of the Person • Single Database – One Platform

21. Implementing CRM Is it a strategic pain point? Where does it hurt? What specific processes are annoying customers? Examine the customer relationship cycle; usually a few small problems that undermine performance. Do we need perfect real time data? Is it worth spending money on real time data if we do not need it?

22. A CRM solution: strategic benefits • Most companies have decided to focus their efforts on multi-product relationships with profitable customer segments. Many are developing relationship strategies to identify, attract, grow and retain profitable customer segments - and hence will be targeting your most profitable customers. • Choose service levels by customer segment and channel. CRM will help enable different parts of the organisation to understand and communicate the “value” of each customer and hence the treatment strategy. • Enable a sales led organisation & culture to be implemented. The CRM solutions include sophisticated sales tools and sales management information to assist sales people • Streamlined administrative processes. CRM is likely to reduce levels of central support, manual administration, error correction and time taken to serve a customer. Save money.. • Avoid costly “data clean-up” and re-work programmes. By improving the quality and consistency of information recorded and used there will be far less need to invest in these type of activities.

25. RM coming of age • Airline deregulation in the U.S. • People Express vs. American Airlines • Edelman Award: RM for AA $1.4 billion in 3 years • virtually every airline has implemented RM • National Car Rental (vs. GM) • Edelman Award: RM for SNCF • AA: $1 billion incremental revenues from RM • Marriott Int’l RM: 4.7% increase in room revenue • Deregulation Europe: telecom, media,energy … • e-distribution supports dynamic pricing & profiling • Dell, Amazon & Coca Cola experiment dynamic pricing • RM spans wide range of industries … 1978: 1985: 1992: 1997: 1999: 2000-01: 2003:

26. HealthCare/ Hospitals Insurance/ banking Sports Parks Entertainment Car rental Freight, Cargo Manufact. Rail Transp. Hotels Tour Operators Retailers Airlines 1980 1985 1990 1995 RM Evolution Telco/ISP Cruise lines Energy Media 2000

27. Revenue Management Strategies & tactics for OPTIMIZING PROFITS based on DYNAMIC PRICE INVENTORY SETTING CONTROL under real-time, disaggregate updating of DEMAND FORECASTS

28. The RM Challenge Arrivals of high paying customers… Closer to departure! Arrivals of low paying customers…Earlier!

30. Overbooking metrics • Service level based: • P(denial) =0.05 • E[#denials]=2 • Etc. • Cost based: assign a cost to each and optimise Overbooking cost (airlines): • Direct compensation cost • Provision cost of hotel/meal • Reaccom cost (another flight/airline) • Ill-will cost (~ “lifetime customer value”)

31. Overbooking Airlines Hotels Car rentals Education Manufacturing Media No Overbooking Restaurants Movies, shows Events Resort hotels Cruise lines Industries

32. Tickets; $7.95 $1.00 Discount for Children & Seniors Tickets; $6.95 $1.00 Extra for Middle Aged People ...Decisions Are Not Always “Rational”

33. More Acceptable Pricing Product-Based Open Discretionary Discounts and Promotions Rewards Less Acceptable Pricing Customer-Based Hidden Imposed Surcharges Penalties Price Perception Issues are Complex...

35. CRM “Attract & retain customers” maximize profit from each customer Segment by customer LTV Price/availability= fct. of forecasted customer LTV to the organization Ignores capacity issues and opportunity costs (displacement) Wealth of data RM “generate revenue” maximize profit from available assets Segment by customer WTP Price/availability = fct. of forecasted demand & available supply Ignores customer value issues and long term revenues Quantifiable value Maximize long-term profits

36. CRM & RM

37. Variables to track • Actual win or loss • Number of days played • Credit history • Length of stay at hotel • Individual spending preferences • Demographics • Psychographic profiles

38. Theoretical = (total amount wagered) X (house advantage) 100$ hand x 10 hours x 100 Hands/hour x .01 (house adv. 49/51) = $1,000 Theoretical Revenue

39. Can you track every single person??? • Not always • Difficult in table games • Theoretical = (total amount wagered) X (house advantage) Where.. Total amount wagered = estimated average bet x estimated time played

40. Future estimates… • ADT = Average Daily Theoretical Revenue • Assumes that this level is constant • Multiply by estimated # of days of future trip to gain value • Combined with CRM data on consumption of food and beverage, entertainment, pshychographics, etc

41. Rooms, a scarce resource • Heads in beds: make money on gaming • Comp. Rooms: traditionally a fixed number of rooms given to big gamblers • Used averages to cost out, did not dynamically look at “opportunity cost”

42. ReInvestment amount • % of the ADT • ADT $1,000 • Reinvestment amount = 30% • = $300 • Total value of the room, F&B, Entertainment, etc. must be less than the • Room 200, F&B 100, Ent. 80..more than ADT x reinvest. • Ergo…try and sell room.. • Sophisticated applications use dynamic pricing to asses opportunity costs..

43. Requirements • RM – Yield management like the airlines.. • Player tracking systems..Use cards like Harras, to register all activity and psychographic profiles • POS resturants, theaters, spas, retail stores, entertainment, etc… • CRM integrates all of the above!! • Statistical analysis and optimization applications.