Clear Network Recovery | Goal of Operational Customer Relationship Management

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Goal of Operational Customer Relationship
Management
Clear Network Recovery
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Types of Customer Relationship Management

• Operational CRM
• Analytical CRM
• Collaborative CRM

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Operational CRM
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Goal of Operational CRM

• The goal of Operational CRM is to provide
  electronic support for the "front office"
  business processes, which include all customer
  contact (eg. sales, marketing and service).
• it aims to deliver customer-centric business
  processes and operations.

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Business Benefits

• Operational CRM provides the following benefits
• Enables a 360-degree view of each customer
• Each employee from sales people to service
  engineers can access complete history of all
  customer interaction with the organisation
  regardless of the initial point of contact
• Delivers personalised and efficient marketing,
  sales, and service

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Components of Operational CRM

• Sales force automation (SFA)  
• Enterprise marketing automation (EMA) 
• Customer service and support (CSS)

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Sales force automation (SFA)  

• SFA automates critical sales and sales force
  management functions eg
• lead/account management
• contact management
• quote management
• Forecasting
• customer preference tracking
• SFA requires a well designed database in order to
  store and retrieve customer details.

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Enterprise marketing automation (EMA) 

• EMA provides information about the business
  including
• Competitors
• industry trends
• EMA utilises Data Mining and OLAP Technologies
  which have been covered earlier in this module.

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Customer service and support (CSS)

• CSS automates
• service requests
• Complaints
• product returns
• information requests.
• call-centre support for customer inquiries has
  evolved into the customer interaction centre
  (CIC) - uses multiple channels (Web, phone/fax,
  face-to-face, kiosk, etc).
• CSS technology is database oriented and is
  underpinned by Service Level Agreements (SLAs)

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Service Level Agreements

• A Service Level agreement
• Is a contract with a customer which
• Defines the Level of service to be provided
  thereby eliminating unrealistic expectations.
• Enables the management of complaints /comments
• Facilitates performance monitoring

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Example

• Help Desk
• Accident and emergency units

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Setting expectations

• Customers are happy when
• a supplier under-promises and over-delivers
• a supplier delivers the correct order on time
• a supplier routinely exceeds expectations
• Service level agreements mean that the customer
  knows what to expect and this sets a benchmark
  for their judgement of the service.

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Complaints

• A complaint can be viewed as
• a useful measure of performance
• guidance for improving quality
• - an opportunity to increase customer loyalty
• A complaint may be categorised based on how far
  outside of the service level agreement the
  service received was.
• Expert handling of complaints can increase
  customer loyalty and referrals.

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Handling complaints

• Once categorised, complaints can be handled
  electronically in a uniform way by a good CRM
  system.
• They are viewed positively by organisations and
  MUST be responded to positively.
• Usually response includes
• An apology (for inconvenience caused)
• An assurance that the complaint has been taken
  seriously and quality is being improved
• A marketing gesture eg. Discount voucher.

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Performance monitoring

• Ability to produce performance exception reports
  leading to the possibility of targeted marketing
  to reduce churn
• Identification of problem areas leading to the
  possibility of quality improvement

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Analytical CRM
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Goal of Analytical CRM

• To develop insight into customers needs.
• To determine what other products and services you
  can sell to your customers in order to increase
  the Average Revenue Per User (customer) ARPU.

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Benefits to Business

• Segmentation of customers to feed into enterprise
  marketing (EMA) systems
• Identifies customers in danger of churning
• Aids Decision Making

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Customer segmentation

• It is useful to segment customers for targeted
  marketing campaigns
• Customers most and least likely to repurchase
  product)
• Profitability analysis (which customers lead to
  the most profit over time)
• Personalisation (the ability to market to
  individual customers based on requirements)

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Other Analyses

• Design and execution of specific customer
  campaigns, including cross-selling, up-selling
• Analysis of customer behavior to aid product and
  service decision making (e.g. pricing, new
  product development etc.)
• Management decisions, e.g. financial forecasting
  and customer profitability analysis
• Prediction of the probability of customer
  defection (churn analysis)

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Collaborative CRM
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Goal of Collaborative CRM

• Collaborative CRM's ultimate goal is to use
  information collected from all departments to
  improve the quality of customer service
• This requires a clear contact management strategy
  which enables everyone in an organisation to see
  who is talking to who.

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Business Benefits

• Enables efficient productive customer
  interactions across all communications channels
• Enables web collaboration to reduce customer
  service costs
• Integrates call centres enabling multi-channel
  personal customer interaction

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Aim

• Collaborative CRM aims to get various departments
  within a business, such as sales, services and
  marketing, to share the useful information that
  they collect from interactions with customers.
• Feedback from a technical support center, for
  example, could be used to inform marketing about
  specific services and features requested by
  customers.

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Aims continued

• Collaborative CRM facilitates interactions with
  customers through all channels (personal, letter,
  fax, phone, web, e-mail) and supports
  co-ordination of employee teams and channels. It
  is a solution that brings people, processes and
  data together so companies can better serve and
  retain their customers.

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E-CRM and M-CRM

• E-CRM allows customers to access company services
  electronically
• M-CRM allows customers or managers to access the
  systems for instance from a mobile phone or PDA
  with internet access, resulting in high
  flexibility.
• An example of a company that implemented M-CRM is
  Finnair, who made it possible for their customers
  to check in for their flights by SMS.

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CRM Strategy

• CRM is a broad area which can be applied on an
  enterprise-wide basis. It could be introduced to
  parts of an organisation but is more effectively
  introduced as a strategy.

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What makes CRM fail?

• The main risk factors of implementing a CRM
  strategy may be
• Lack of CRM planning no strategy
• Underestimating implementation costs, timeframes
  and organizational commitment
• Poor front and back-end integration
• Not being customer focused or customer centric
• Political friction within the organization
  stifles the sharing of customer information
• Initiatives are driven by technology rather than
  by customer strategy and service process design

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Thank You