MGM 4136: MANAGEMENT CURRENT ISSUES

1. MGM 4136: MANAGEMENT CURRENT ISSUES Nor Hayati bt. Mat Darus 116654 Aifa Rozaini Bt Mohd Radzol 118146 Masitah Mohd Othman 116939 Aini Rashidah Bt Mohd Termizi 118146 Suria Bt Ahmad 118284

2. Customer Relationship Management (CRM) Strategies.

3. INTRODUCTION • CRM can be determining as a process or methodologies, software, and usually Internet capabilities that help an enterprise manage and learn more about customers' needs and behaviors in order to develop stronger relationships in an organized way. • The primary goal of CRM is to improve long-term growth and profitability through a better understanding of customer behavior.

4. ...cont. • Major areas of CRM focus on service automated processes, personal information gathering and processing, and self-service. • The idea of CRM is it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers.

5. IMPORTANCE OF CRM • Establish more profitable customer relationships and decrease operating costs. • Create satisfied and loyal customers • Make all the information collected being documented and stored in database system

6. STRATEGIES IN CRM • Customer strategy • Customer-interaction strategy • Brand strategy • Value-creation strategy • Culture • People • Organization • Information technology • Relationship-management processes • Knowledge management and learning

7. Strategy 1: Customer Strategy • Focus on how to attract new customers, and how to maintain and develop relationships with existing valuable customers (Christopher, Payne, & Ballantyne 1991; Gronroos, 1994; Jackson 1985) • Segment-specific treatments have to be developed and must be executed for each customer in a customized way.

8. Therefore, customer segmentation must be break into two stages: * rank the customer by their value * differentiate them by their specific need (Brown, 2000) • The more an organization can break down its valuable customers into different groups with different needs and expectations, the better it can serve them. (Day, 2003).

9. … Siebel CRM applications play a key role in allowing us to give our customers what they want: best-in-class service tailored to their specific needs, at the best value in the industry.” Ulrik Topp, Global Sales Developement Director, DHL

10. Strategy 2: Customer Interaction Strategy • How an organization interacts with its customer and how it delivers goods and services to them (Brown & Gulyez, 2002) • The interaction strategy should be developed to ensure all channels create synergy and a competitive advantage (Peppers & Rogers 1997) • All interactions during the customer lifecycle must be well coordinated and customized through all touch points.

11. All touch points must be effectively and cost-efficiently used to distribute various goods and services and to communicate with customers (Peppers & Rogers, 1997). • Customer interaction must be well coordinated and managed across all functions and all levels in the organization ( Ford, 1980)

12. Marketing Department is equipped to deliver campaigns with the right message, to the right person, at the right moment in time. Ulrik Topp, Global Sales Development Director, DHL

13. Siebel System help DHL to achieve 1% increment in revenue for year 2005. Ulrik Topp, Global Sales Development Director, DHL

14. Strategy 3: Brand Strategy • Successful brands achieve higher level of customer loyalty.(Doyle, 1989; Masters, 2001;Zikmund et al.,2003). • The brand strategy describes : • What organization’s brand stand for? • Who it wants to be? • How to act to achieve that identity?

15. A strong brand makes an organization more attractive and creates a relationship of trust with external and internal stakeholder thus strengthening the organization’ market position ( Doyle, 2000; Hart & Murphy, 1998).

16. “…..using Siebel Sales we know the precise status of each and every sales opportunity” Christ of Thomas, IT and Product Marketing Director, DCS Fleet

17. Once the prospect has been qualified, Siebel Sales tracks each and every opportunity through to sales closure Christ of Thomas, IT and Product Marketing Director, DCS Fleet

18. “From the competitive data store, Siebel Sales can helps their management be more aggressive when a competitor is offering a low-priced….” Christ of Thomas, IT and Product Marketing Director, DCS Fleet

19. Strategy 4: Value-creation Strategy • Relationship management is a value-adding activity through mutual interdependence and collaboration between an organization and its customers and other stakeholders. (Sheth & Parvatiyar, 2002). • Any strategy must focus on creating value for both the organization and its stakeholder (Hamel & Prahalad, 1994; Wilson, Danial. &Mc Donald, 2002).

20. A well-defined value-creation strategy offers superior value to individual customers, and at the same time maximizes profitability from each relationship. • Delivering superior value to customers will strengthen the organization’s competitive advantages and it becomes difficult, if not impossible, for competitors to copy this capability (Day & Wensley, 1998; Doyle, 2000; Kothandaraman & Wilson, 2001).

21. …Canon Sales acts as the frontline sales force for all Canon products while also providing value-added solutions such as software and service to create a competitive advantage. Taku Yuki, General Manager, Canon Sales’ Information Technology

22. “ We realized that we had to break out of the old pattern of building our sales organization around individual salespeople and take a more scientific approach, managing our sales activities based on predefined data.” Taku Yuki, General Manager, Canon Sales’ Information Technology

23. Canon Sales now able to establish one-to-one marketing activities to improve the lifetime value of its services and to increase customer loyalty. Taku Yuki, General Manager, Canon Sales’ Information Technology

24. Strategy 5:Information Technology • Information technology system tools and data warehouses must be accessible to all employees to allow them to analyze customer data accurately, including analyzing customer’s purchasing behavior.(Woodcock,2003) • IT architecture determines which information system support and manage business processes and how it interact with each other. • Front office • Back office

25. IT system tools allow organizations to analyze information and identify unseen pattern and trends in market and purchase behavior of customers. (Brown & Gulycs,2002)

26. “We needed a solution to managed both customer data and opportunity information and to fully leverage this data using CRM” TakuYaki , GM of the VAN Promotion Division In Canon Sales’s Information Technology Headquarter.

27. Under the new system, Canon can utilize data such as previous sales results and the service life of photocopiers to track the current status of customer account and identify opportunity to sell additional products and services that match customer’s needs. • With the CRM application, Canon Sales get: - increase revenue - improve customer services.

28. Strategy 6: Relationship management processes • Processes should be built ,mapped and understood to realize process improvements(Brown & Woodcock et al,2003) • Management of processes involves the procedures, task schedules, mechanism, activities, and routines by which a product and service is delivered to the customer ( Christopher et al 1991)

29. Formal feedback and evaluation of relationship management strategy and processes are important for continuous improvement. (Brown &Gulyz,2002)

30. Siebel Call Center allow DCS fleet customer to contact the company’s call center thought the internet, email or telephone. • Generates a screen pop that provide a complete view of the customer’s profile, enabling the agent to respond to the customer’s inquiry quickly and to a satisfying standard.

31. Introduced Web-based “Car Configurator” system “ by automating the quoting process, we reduce the number to call center, increase productivity and enhance customer satisfaction” Cristof Thomas IT and Product Marketing Director, DCS Fleet.

32. CONCLUSION • Customer strategy - Build trust and commitment which is drives the growth in the organizations profitability • Customer-Interaction strategy - Know how organization interacts with their customer and how to delivers goods and services to them

33. …cont. • Brand strategy - Enhance corporate reputation among other competitors • Value-creation strategy - Focus on create value for both

34. Information technology - Information system that support and manage business process • Relationship-management process - Important process for continuous improvement