A Framework for Customer Relationship Management by Russell S. Winer

1. A Framework for Customer Relationship Management by Russell S. Winer Presented by Team JJEMS John Follett Article Synopsis Matt Baker The Business Case for CRM Judi DeBord How to Implement CRM Eric Nill Infrastructure and Examples

2. “The essence of the information technology revolution and, in particular, the World Wide Web is the opportunity afforded companies to choose how they interact with their customers.” Russell Winer What is Customer Relationship Management (CRM)? Some say the new “mantra” of Marketing Tracking Customer Behavior Predicting Future Customer Communicating with Customers Results: Allows Management to better focus marketing effort 1:1 Marketing LCV “Lifetime Customer Value”

3. Create a Database Analysis Customer Selection Customer Targeting Relationship Marketing Privacy Issues Metrics Customer Relationship Management Model (7 basic components)

4. Tools for Building Customer Relationships • 1:1 Marketing • Develop Relationship • Cost Effective • Begin Dialog • Customer • Service • Proactive v. Reactive • Touch Points • Customers have Choices • Loyalty • Programs • Cost Effectiveness • Switching Costs • Web Shopping – Loyal Behavior • Community • Programs • Connect to Peoples Interests • Support Communities The Business Case for CRM Who Are Our Profitable Customers? Data Driven Approach ! Customer Buying Data  LCV Analysis  Customer Segmentation  Customer Focus Strategy Retention = Net Profits CRM Reichheld Repeat vs. New Customer 2X Gross Income Mckinsey

5. The Business Case for CRM CRM enables the systemization of a sales process Unconscious  Conscious, Repeatable, Predicable Sales Process Visibility The First Axiom about Improvement • You can’t manage what you can’t measure; • If you can’t see it, you can’t measure it; • If you can’t measure it, you can’t understand it; • If you can’t understand it, you can’t improve it. Predictability Consistency Scaleability Sustainability

6. How to “Do” CRM • Develop a customer-centric strategy • You’ll be listening to your customer rather than ‘telling’ them • Reorganize internal functions and systems to support your customer (ERP) • Cultivate cross-functional cooperation within your business • Overcome the inevitable internal resistance to change

7. How to “Do” CRM • Assess technical capabilities • Define the desired outcome of your CRM initiative – establish metrics • Define your programs: • Reward, Community, Loyalty, etc. • Build teams to select and implement the software to get you to your destination

8. Data Source • Sales History • Opt-in Lists • Surveys/Kiosks • Purchased List How CRM Gets “Done” • Physical Layer(Hardware) • Internally Managed • Hosted Externally (Application Service Provider)

9. How CRM Gets “Done” • Contact Types • Marketing campaign (Broad coverage vs. Spam) • B2C <--> B2B • Portal, Affinity Site • 3rd Party Services • Clickstream analysis • (Customer metrics) • AdWords/banner ads • (Customer acquisition)

10. “You sold us on the price, mileage, and safety features… it’s the company’s IT performance we’re still mulling over”. How CRM gets “Done” • System Security • External Threats (Hackers, ID Theft) • Internal Threats (Info as Co. Asset) • Data Management • Organization of Desired Info. • Back up & Restore • Business Continuity

11. How CRM gets “Done”

12. How CRM gets “Done” As part of integrated part of data base management. Primary for close customer contact and business retention tool. Cost effectiveness of technology and growth of Internet makes Customer Acquisition through this electronic media something to consider.

13. Questions?