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BSM 3590 Customer Relationship Management

BSM 3590 Customer Relationship Management. │ LECTURE 1 2 │ Implementing CRM: Criteria for Successful CRM and the Measurement. By Leo Kwan BA / IVE (TY). Learning Objectives. Identify the common barriers in implementing CRM in an organization.

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BSM 3590 Customer Relationship Management

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  1. BSM 3590 Customer Relationship Management • │LECTURE 12│ • Implementing CRM: Criteria for Successful CRM and the Measurement By Leo Kwan BA / IVE (TY)

  2. Learning Objectives • Identify the common barriers in implementing CRM in an organization. • Realize the ways to avoid and overcome the barriers. • Measure the effectiveness of CRM programs and the degree of customer loyalty. • Recognize the correlation between satisfaction and loyalty.

  3. Customer Relationship Management Basic concept and definition Customers Relationship Management of relationship People Process Technology Information Implementation of CRM

  4. Four Main Common Barriers to Successful CRM in Organizations Misconception about CRM

  5. 2. The Ways to Avoid and Overcome the Barriers

  6. 2.1 Understanding the Misconception of Customer Relationship Management • Contractual links: locking the customers in • Frequency Marketing: clubbing the customers to death • Such as requiring customers to sing in a karaoke box 5 times a month in order to exchange for 2 extra hours of singing time. • Only stimulate purchasing behavior, not loyalty. • Can easily be copied by competitors. • True relationship make customer an advocate. • Complicate the Connection: sell them more stuff • Make cross selling as the only goal, not the choice for customers.

  7. Example:Expect to sell more and more to customers 12/6/2003 情侶可憑｢仲夏傾情賽馬夜｣套票免費入場 下週三(六月十八日)為本季最後一次跑馬地夜賽。凡於明日(六月十三日)上午九時起，登入馬會網站 (www.hongkongjockeyclub.com)，免費列印｢仲夏傾情賽馬夜｣套票，或於六月十四日至十八日期間，在四十間指定場外投注處(地址請參閱馬會網站)，免費索取有關套票，即可於當晚與情侶免費入場。套票數量有限，派完即止。 每對憑｢仲夏傾情賽馬夜｣套票入場的情侶，均可獲｢毛毛馬｣掛飾乙個和「仲夏傾情賽馬夜」遊戲券兩張。於遊戲中勝出的人士，可獲得｢手牽手幸運毛公仔｣乙個。憑券更可即場參加在公眾席(近馬場禮品店) 舉行的｢馬場身歷聲｣活動 。屆時｢講馬之王｣將為參加者分析當晚賽事的形勢，另特備遊戲環節，參加者有機會獲得精美情侶腕錶乙對。 另外，當晚所有入場人士，均可享有雀巢甜筒半價優惠。 查詢請電馬會顧客服務熱線1817。

  8. Not what happen, but why it happened Without hard selling

  9. Four Main Common Barriers to Successful CRM in Organizations Misconception about CRM

  10. 2.2 Creating a CRM Culture • Change management • Metrics and rewards • Reward desirable behavior • Sponsorship • Through story telling • Wan Chabao • Wing On Travel HoD, Chairman, staff, staff, supervisor

  11. Four Main Common Barriers to Successful CRM in Organizations Misconception about CRM

  12. 2.3 Creating Realistic Expectations • The first step is to develop a common vision, shared goals and realistic expectations across the organization(next slide) • Develop the vision and roadmap • Internal communications (repeating the key messages) • Inform • Educate • Motivate • Enable • Respond • Customer communications (customers learn as well)

  13. Develop vision, mission and core values Example: KCRC

  14. Five-step Program

  15. Four Main Common Barriers to Successful CRM in Organizations Misconception about CRM

  16. 2.4 Building an Operational Infrastructure • The traditional channels of reporting need to be redefined • Require seamless (no gap) integration across all of the company’s touch points (functional department where customers can see)

  17. Traditional organizational structure IT Mktg Cus. Ser. IT Mktg Sale Figure 14.3 Simple hierarchy Sale Cus. Ser. Figure14.1 One boss. Figure 14.2 Dual authority

  18. CRM organizational structure Figure 14.4. Circle Figure 14.5. All-channel Network

  19. 3. Measuring Effectiveness of CRM

  20. 3.1 Measurement to Guide Your CRM Strategy • Loyalty measurement Table 14.1 Loyalty and profit measurement.

  21. Lifetime Value The overall length of the relationship The amount that the customer buys in his lifetime. Customers treasure relations Customers advocate for the enterprise Retention rate Measuring the customer turnover Churn rate Percentage of its customer portfolio the enterprise loses every year. 3.1 Measurement to Guide Your CRM Strategy

  22. 3.2 Measuring Emotional Reactions Table 14.2 Measuring emotional reactions.

  23. If you want to measure customer retention, use Customer satisfaction index • If you want to measure customer loyalty use Emotional markers

  24. Interpretation of Emotional Reaction relieved surprised welcome excited grateful happy trusting warm encouraged happy satisfied anticipated curious excited content happy relaxed content indignant embarrassed impatient anxious impatient nervous angry annoyed embarrassed angry frustrated annoyed frustrated irritated angry disappointing powerless disappointing

  25. End of Lecture 12 Final Lecture is for revision

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