Extending Customer Relationships Through the Web

1. Extending Customer Relationships Through the Web 64157 電子商務模式設計與應用 國立中山大學企管所 2002 Spring, Week 7-1 • 黃光彩 博士 • 太世科公司 • 2002/05/11

2. What is CRM? • “The art & science of how companies deal with customers” • Distinguish your business from your peers • Steer your industries’most profitable customers to you • Cement their loyalty with outrageous service • Underlying Premise: C-CAM • Customer Capital Asset Mgmt (Lifetime Customer Value) • Defined as Customer lifetime revenue – lifetime costs = customer cash flow. Express as net present value. • New Idea? Not really… • “The true business of every company is to make and keep “The true business of every company is to make and keep customers”– Peter Drucker, 1954 • “Some customers deserve to be fired” - unknown

3. What is CRM? • CRM ties together all of a company’s front office customer touchpoints: • sales (contact management, product configuration), • marketing (campaign management, telemarketing), • and customer service (call center, field service) • Via multiple, interconnected delivery channels (telephony, email, Web, and direct interaction) YOU ARE TRYING TO TRACK ENTIRE HISTORY OF RELATIONSHIP WITH YOUR CUSTOMER OR CLIENT

4. CRM is a Strategy, the Web is a Channel Your Website is a company representative HR Procurement Accounting Manufacturing Remote Synch Knowledge Tools Remote Synch CTI ACD IVR DNIS ANS Technology Base Internet Mktg Auto SFA - Config. Electronic Commerce Call Center Field Service Part-ner Mgt.

5. Extending Customer Relationships Through the Web Issue: The Web pushes CRM technology to the next generation

6. Issue: The Web Pushes CRM Technology to the Next Generation • Discussion Overview: • Setting strategy: Comparisons of user and end customer goals • Market dynamics: Discuss vendor approaches • Leading edge practices: Functionality to look for

7. Companies want Web self-sales and service to improve customer relationships • Opportunity to sell more to each customer • Cross sell and upsell • Create customer convenience • 7X24 • fast response • flexibility cost savings • Save internal costs : • faster problem resolution • reduced processing time • Seen as a competitive requirement

8. Company goals and Web visitor expectations don’t match! Web visitors use self-service as a convenient way to complete tasks • Web visitors expect Web relationships to reflect in-person experiences • Recognition • Complete the business I came to do efficiently • Give me help when I need it, fast

9. CRM/ERP vendors Web vendors Vendors approach self-service from two directions • Web visitor • Expectations • Web • Experience • centric • Recognition • Complete tasks • Get help Customer Self-Sales and Service • Company Goals • System Centric • Open up functionality • for visitors to • complete tasks

10. Web vendors focused on the customer experience - Recognition Customer insight Art Technology, Andromedia, BroadVision, Blue Martini, Data Sage Epicenter, E.phipany, Hot Socket, Manna, Net Perceptions, Neuromedia, OneSoft Personify, Rightpoint, Vignette

11. Sales Service Ventix Ask Jeeves Advantage Kbs Neuromedia Inference ServiSoft Web vendors focused on completing business transactions Research Create Search Prepare Check Dispatch products order solutions order status engineers Calico FirePond 2order.com On Link Selectica Trilogy netDialog IET eDispatch.com PointServe iPlanet FourthShift InterWorld Ironside Open Market SpaceWorks Saqqara Allegis, BackWeb, Channel Web, Click Interactive, Entigo, Hot Samba Haht, pcOrder, Partnerware, viaLink WebBridge, WebEnable Silknet

12. E-mail Chat Collaboration Call center HP HP Atio netDialog netDialog Spider ServiSoft eShare Primus Cisco eGain Silknet Customer interaction is a Web vendor priority Aptex Banter Brightware Kana Gen. Interactive Mustang eShare Business Evolution Sessio.com Valisoft Effusion Active touch Net Effects Acuity FaceTime Inference Ventix

13. Delivery Status Open Service Orders Personal Profile Sales orders Quotes ERP and CRM vendors let Web visitors touch the Company’s systems • Open up functionality • Search engines • Configurators • Order entry screens • Order status screens • Organize screens to show the internal data customers use most

14. Mktg Sales Serv. Fin. Purch. Engr. Mfg. HR ERP Vendors PeopleSoft JDE SAP Baan Oracle CRM and ERP Vendors extend functionality to a Company’s Website visitors CRM Suite Vendors Astea Metrix ServicePlus RTS Epicor Great Plains PowerCerv SCT

15. Chat Collaboration Call center Few CRM or ERP vendors offer Web interaction applications Siebel Epicor

16. No one vendor meets the Web visitor’s expectations: Recognition Complete the business I came to do Get help when I need it

17. Recognition Complete business I came to do Provide help when needed Aptex Banter Brightware Kana Gen. Interactive Mustang Business Evolution eShare Valisoft Effusion Active touch CRM Suite Vendors Calico FirePond 2order.com On Link Selectica Trilogy Ventix Ask Jeeves Advantage Kbs Neuromedia Inference netDialog Net Effects Astea Metrix ServicePlus RTS IET eDispatch.com PointServe ERP Vendors Sessio.com Acuity FaceTime Inference Ventix HP HP iPlanet FourthShift InterWorld Ironside Open Market SpaceWorks Saqqara Atio netDialog netDialog ServiSoft Epicor Great Plains PowerCerv SCT Siebel Allegis, BackWeb, Channel Web, Click Interactive, Entigo, Hot Samba Haht, pcOrder, Partnerware, viaLink WebBridge, WebEnable Spider ServiSoft eShare Primus Cisco PeopleSoft JDE eGain Epicor SAP Silknet Baan Silknet Oracle There is no definitive model, you’ll have to create one Art Technology Andromedia, BroadVision, Blue Martini, Data Sage Epicenter, E.phipany, Hot Socket, Manna Net Perceptions, Neuromedia, OneSoft Personify, Rightpoint, t Vignette

18. New Features emerge rapidly • Make sure your strategy considers the following: The Next Generation - Web-based customer relationship • CRM systems - Internally focused systems used to make the most of a customer base • Next Gen CRM technologies - • Include real-time customer interaction • through the web

19. Your Website has a personality • Your Website is your representative • Leading edge features • Visitors do not “interface” with a company’s internal systems • An intelligent persona represents the company

21. HR Procurement Accounting Manufacturing CTI ACD IVR DNIS ANS Remote Synch Knowledge Tools Remote Synch Technology Base Mktg Auto SFA - Config. Electronic Commerce Call Center Field Service Part-ner Mgt. Internet Let visitors complete all the business they came to do • Leading edge features • Broad range of business functions • Span front office operations and other systems needed to complete the business at hand

22. Answer visitors’ questions • Self-service searches • Leading edge collaboration features Chat Call Me Browser Sharing White board Shop with me

23. Recommendations for users • Design CRM features from the customers point of view • Be sure you clean up before opening up • Compare your vision of Web relationships with the vendors’ • Expect to patch applications together • Don’t wait to start, there’s too much at stake

24. Recommendations for Vendors • Design products that will enhance the end customers’ Web experience • Be creative - This is the time for one-upsmanship • Acquire, merge, partner and build self- service functionality • Be clear about your vision • Deliver against an aggressive timeline, customers can’t wait

25. Just for a moment, Imagine...

26. What is Customer Relationship Management? Acquisition Customer Development Retention Contact Points Web E-Mail VoIP Fax Mobile Marketing Sales Services Internet & Telemarketing with Intelligence Inbound/Outbound Customer Service -Call Center Mgmt. -e-Mail Mgmt -Customer Self-Svce. Customer Segmentation -e.g., customer size, buying patterns, profitability, needs and wants Lead Management Channel Mgmt. -by Cust. Segmt -By Product Campaign Mgmt. -Internet -Telemarketing Objective Touch Process Focus Customer Information/Knowledge -e.g. …Customer Knowledge Database ...Customer Value Management Analyses Infrastructure

27. Customer Life Cycle Focus • Who are your profitable customers? • What are their needs? • How do you attract them? • How do you deliver: • What the customer wants? • How they want it? • When they want it? Acquisition Development Retention • How do you build and sustain customer loyalty?

28. Customer Retention Drives Earnings • Software • Office Management • Industrial Distribution • Insurance Brokerage • Credit Insurance • Credit Card • Banking • Auto Service

29. Support Different Business Models Segment Business Value Models Functional Requirements • Grow revenue through new customer reach • Increase customer loyalty • Improve operational efficiency • Relationship Marketing • Content Management • Order Management e-CRM e-Channel e-Procurement Retail • Grow revenue through new customer reach • Strengthen business relationships by extending processes • Reduce cost through automation • Order management • Business Integration • Auction management e-CRM e-Channel e-Supplier Manuftg & Dist. • Support for various business models • Quick time to market • Scaleable Low cost of operations • Grow business at net speed • Reduce cost through automation e-CRM e-Marketplace Service Providers

30. CRM Solution Sales Service Marketing • Target Marketing • Reward Mgmt • Customer Research • Lead Mgmt • Marketing material fulfillment • Catalog Mgmt • Order Mgmt • Order Tracking • Logistics Mgmt • Auction Mgmt • Relationship Mgmt • Report Mgmt • Account Mgmt • Return Mgmt • Asset Mgmt • Solutions: • Customer relationships • Entitlement catalog & price • Respond to changing markets • B2B2C model • Product bundling • Campaign management • Customer retention • Customer knowledge Base • Benefits: • Enhance customer loyalty • Reduce cost of sell • Reduce cost to serve • Increase sales and market share • Improve channel loyalty

31. CRM Architecture

32. Campaign Manager

33. CRM System Components Service Fulfillment Customer Interaction Service Parts Service Activity Service Request Management Call (VoIP) Management RMA / Order Status Assignment Management Web Service Management Service Delivery Management Activity Management Inventory Status Field Relationships Management Contract / Agreement Management Workflow Management Logistics Status Asset Management Knowledge DataBase Repair Status

34. CRM Applications • Marketing and Sales • Campaign Management • Mail Management • Sales Force Automation • Relationship Manager (Householding) • Data Mining • Behavioral Scoring • Segmentation • Fraud • Risk And Profitability • Business Intelligence • Customer Service • e-Service Suite • TeleWeb Center

35. e-CRM for Financial Services Target Financial Services Segments Investment Management Investment Banking Retail Banking • Prospect Data Importing • Investment Profiling • Web Literature Fulfillment • Collaborative Presentation Development • Broker Relationship Management • Sales Reporting • Compliance Tracking • Referral Tracking • Pitch Book Creation • Automated Research Mailings • Daily Call Tracking • Institutional Sales Process • Investment Profiling • IPO opportunity management • Syndication Tracking • Client Profiling • Targeted Marketing • Cross-Selling • Account Management • Trust & Private Banking • Client Service • Interface with Online Trading

36. How to Make Your CRM Initiative Succeed • Identify and set clear business requirements • Institute a common planning process • Obtain Senior- Management Buy- In and Understanding • Pinpoint functional differences in culture and success measures and bridge the gaps • CRM is a Business Philosophy

37. Tap the Potential of eCRM—Web- based all the Way • Create Interactions— decide if it is advantageous to be the creator of a new community or better to join forces; integrate all sales and marketing channels with back office financials • Operate at Internet Speed— real time data gathering, analysis and response is approaching as the standard • Analyze Data— Turn massive amounts of data into insight to retain customers • Integrate Customer Information Access Across Systems -- Montgomery Research, Inc. 2000

38. Total Cost of Ownership • Server Hardware & Software • Server w/ disks, RAID Fault Tolerance, Memory • Backup software • Basic Server Installation & Integration • Configuration of Server in Hours • Service Agreement on Hardware • Service Agreement on Network System

39. Total Cost of Ownership • Server Installation & Maintenance • Upgrades in a three- year period • Man hours for upgrades • Migration of platform issues • Upgrades to Network Operating System • Server Troubleshooting • Emergency Service— Actual Hours • Consultant Assistance (one day every fourth week) • Assistance w/ maintenance

40. CRM Mainstream Migration 2002 • Sales Automation • Marketing Automation • Web-based • Conferencing/Telephony • Analytics • Relationship Mgmt. In ASP format • Synchronous Customer Management (multi-channel managed via web or wireless device) 2000 90s • Personalization— using web • Customer Relationship Mgmt. - expensive, non- integrated software • Database Tracking of Entries • Call Centers (most not Internet- friendly) 80s • Contact Mgmt. – most offline

41. Total Cost of Ownership • End User Install & Maintenance • Upgrading old PCs • User Administration • Hidden downtime & Support Costs • Courses and Internal Training • Software Licensing • Security & Telecommunications • Employee Infrastructure

42. Basic CRM Components

43. CRM Issues • Critical Success Factors • Must have customer centered culture first • Executive(s) championing the effort • Remember: It’s the people, stupid • Reasons for failures • Reengineering is hard! Must manage change effectively • System chosen before solution defined • Don’t “pave over cow paths” • SFA apps can’t build human relationships

44. CRM Trends • Right customer, message & channel • Industry Consolidation • Focus on mid-size businesses • Microsofts’ bCentral portion of .Net?? • Minimize data islands! Converge! • Building customer loyalty will be prioritized, and Marketing’s status will increase

45. Customer Lifetime Value Development

46. CRM Marketers Break with Tradition •Major Players Reinventing Product Line to Serve Lowend •Web- based Solutions for all Industries •New Technology Platforms Breed New CRM methods— I. e. Release of Windows 2000 platform •Free Is the “Winner to Take All” Plays •Geography is Meaningful in Seizing Market Share and VC Dollars— Look in Your Backyard for Answers •ERPs Migrating to ASPs That Can Go Live Within Days

47. High-End Marriages Outside the Product Class • Example: Siebel Mid- Edition (first shipped July 19, 2000) andGreat Plains Partner Status • Features Include: • Customer Applications including ecommerce functions, 24/ 7 self- service, and online marketing info; • Employee Applications including features for front- office employees; • and Partner Applications for partner organizations (i. e. sales channels)

48. New Low-Cost Web Entries

49. Moderate-Cost Entries • Example: Worldtrak. com • Works with Microsoft Outlook • Account Opportunity Mgmt. • Enterprise Forecasting • Activity Tracking • Enterprise Lead Mgmt. • Enterprise Data Synchronization & Remote Access:

50. Verticals: SoftWatch.com