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Customer Relationship Management (CRM). & Customization vs. Personalization. What is CRM?. “It is a business strategy to select and manage customers to optimize long-term value.”
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Customer Relationship Management (CRM) & Customization vs. Personalization
What is CRM? • “It is a business strategy to select and manage customers to optimize long-term value.” • “It requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes.”
What is CRM? (continued) • “CRM applications can enable effective Customer Relationship Management, provided that an enterprise has the right leadership, strategy, and culture.” • This the official CRMGURU.com definition. • http://www.crmguru.com/content/answers/whatiscrm.html
What are the benefits of CRM? • Instill greater customer loyalty • Increased efficiency through automation • Deeper understanding of customers • Increased marketing and selling opportunities • Identifying the most profitable customers
CRM Benefits (continued) • Receiving customer feedback that leads to new and improved products or services • Obtaining information that can be shared with business partners • http://www.ittoolbox.com/help/crmoverview.asp
CRM Application Companies • Siebel • Peoplesoft • Teradata • TJ Group
TJ Group’s CRM Suite • Sales Automation • Marketing Automation • Campaign Management • Business Management • Knowledge Management • Service Automation
Implementation Experiences • Upper Management Support • Salesperson Buy-in • Upgrade Issues • Technology Issues • Nit-Picking
Customization • Customization is the modification of software to reflect an organization’s environment. • Customization may involve the addition, modification, or deletion of fields, screens, databases, and logic in a software package.
Customization Benefits • Encourages user adoption • Fixes poor design on the part of the vendor • Better reflects the needs of the business • May allow access to other applications used by the business
Customization Problems • Future upgrades • On-going maintenance • IT staffing • May cost three to five times the cost of the software • May unwittingly void the terms of a maintenance contract
Personalization • “Personalization now includes anything from a simple mail merge to extending specific sales and promotional offers based on extensive customer profiling.” • Collaborative Filtering • Segmentation • Rules Based Personalization • http://www.crmdaily.com/perl/story/17396.html
Personalization Benefits • Resolve complaints more efficiently • Boost customer loyalty • Make relationships more profitable • Result in greater online spending by consumers
Personalization Problems • Data Integration – Data is contained in many databases. • Translating customer information into the right decision or recommendation for the customer. • Misconceptions that personalization leads to predictions about a customer’s future behavior. It can only make correlations. • Privacy Issues • http://www.crmdaily.com/perl/story/17396.html
Summary • Customer Relationship Management is a business methodology that is supported by a CRM application package. • Customization is the process of modifying a software package to fit the needs of the business. • Personalization is the process of modifying the sales and marketing processes to fit the needs of the individual customer or a group of customers.