BUSINESS B4

1. BUSINESS B4 Customer Relationship Management (CRM)

2. Learning Outcomes • Describe the three CRM technologies used by marketing departments • Describe and differentiate the CRM technologies used by sales departments and customer service departments • Compare CRM, supplier relationship management, partner relationship management, and employee relationship management • Summarize the future of customer relationship management • Summarize the future of supply chain management

3. Introduction • Customer relationship management– involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability • Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal 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

5. Introduction: RFM • Organizations can find their most valuable customers through “RFM”: • How recently a customer purchased items (Recency) • How frequently a customer purchased items (Frequency) • How much a customer spends on each purchase (Monetary Value)

6. The Evolution of CRM

7. Operational CRM

8. Marketing and Operational CRM • List generators – compile customer information from a variety of sources and segment the information for different marketing campaigns • Campaign management systems – guide users through marketing campaigns • Cross-selling and up-selling • Cross-selling – selling additional products or services • Up-selling– increasing the value of the sale

9. Sales and Operational CRM • Sales force automation– a system that automatically tracks all of the steps in the sales process

10. Sales operational CRM technologies • Sales management systems – automate each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts • Contact management systems – maintains customer contact information and identifies prospective customers for future sales • Opportunity management systems – target sales opportunities by finding new customers or companies for future sales

12. Customer Service & Operational CRM • Contact center (call center) – where CSRs answer customer inquiries and respond to problems through different touchpoints • Web-based self-service– allow customers to use the Web to find answers to their questions or solutions to their problems • Click-to-talk –customers click on a button and talk with a CSR via the Internet • Call scripting – access organizational databases that track similar issues or questions and automatically generate the details to the CSR who can then relay them to the customer

13. Customer Service & Operational CRM • Contact centers can include: • Automatic call distribution– a phone switch routes inbound calls to available agents • Interactive voice response (IVR) – directs customers to use touch-tone phones or keywords to navigate or provide information • Predictive dialing– automatically dials outbound calls and when someone answers, the call is forwarded to an available agent

14. Analytical CRM • Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior • These systems quickly aggregate, analyze, and disseminate customer information throughout an organization • Analytical CRM has the ability to provide an organization with information about their customers that was previously impossible to locate, and the resulting payback can be tremendous.

16. Current Trends: SRM, PRM, & ERM • Supplier relationship management (SRM)– focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection • Partner relationship management (PRM)– focuses on keeping vendors satisfied by managing alliance partner and reseller relationship that provide customers with the optimal sales channel • Employee relationship management (ERM)– provides employees with a subset of CRM applications available through a Web browser

17. CRM Future Trends • CRM applications will change from employee-only tools to tools used by suppliers, partners, and even customers • CRM will continue to be a major strategic focus for companies • CRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customers • CRM suites will incorporate PRM and SRM modules

18. Closing Case Two: Calling All Canadians • Canada has become one of the primary targets for outsourcing customer service centers by U.S. companies • Not only are accent and time-zone issues nonexistent, but companies also receive a favorable exchange rate

19. Closing Case Two Questions • What are the two different types of CRM and how can they be used to help an organization gain a competitive advantage? • Explain how a contact center (or call center) can help an organization achieve its CRM goals • Describe three ways an organization can perform CRM functions over the Internet • How will outsourcing contact centers (call centers) to Canada change as future CRM technologies replace current CRM technologies?