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Customer Facing Technologies

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Permission-Style Email Works. It works: cheap, easy, and effective ... Traditional direct-mail methods fliers, coupon cards, and the like average. 50 cents to $2 a pop ... – PowerPoint PPT presentation

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Title: Customer Facing Technologies


1
Customer Facing Technologies
2
Agenda
  • Defining CRM
  • Customer value
  • CRM technologies
  • eCRM
  • Customization

3
Strategic IT Framework
Business PartnersSuppliers, Distributors,
Resellers
Selling Chain Management
Logistics
Distribution
Production
Enterprise Resource Planning
BusinessIntelligence
EnterpriseApplicationIntegration
Employees
Administrative ContentHRMS / E-Procurement
Stakeholders
Finance/Accounting/AuditingManagement Control
Customer Relationship Management
Marketing
Sales
CustomerService
Selling Chain Management
Customers, Resellers
Source Kalakota and Robinson
4
Customer Relationship Management
  • CRM is a business strategy, not a specific
    software or hardware but it encompasses the
    technology and strategy needed to completely
    integrate your business in order to get a
    holistic view of the customer. (from CIO.com)

5
80/20 Rule

Retention Zone
Selectivity Zone
KEY CUSTOMERS
COSTS
SUBSIDIZED CUSTOMERS
REVENUES
Often Biggest Customers Often
smallest
Source Dr. Jagdish Sheth
6
Some Customers Are More Equal Than Others
Source PeppersRogers Group (1to1.com)
7
Identify and Capitalize on Customer Differences
  • Customers have different needs from a firm, and
    they represent different valuations to a firm
  • The value of a customer determines how much time
    and investment should be allocated to that
    relationship
  • Customer Life Time Value (LTV)
  • Discounted stream of expected future profits (net
    of costs)
  • Plus other benefits referrals, knowledge about
    customer tastes, help in designing new products

8
Learning Relationship A Business Must Become a
One to One Enterprise
  • Equation
  • Customer expresses wants to the enterprise e.g.
    groceries
  • Enterprise both meets expectations and remembers
    specifications
  • Loyalty more convenient than non-loyalty for both
  • Cost of switching customer will have to reteach
    a competitor
  • Every interaction and feedback leads to more
    detailed knowledge of customers needs and
    tastes
  • I know you. You tell me what you want. I
    provide it.
  • I remember for next time.

9
Customer Value Metrics
  • Profit and Growth
  • How do you define loyal customers?
  • Profits from referrals?
  • What expenses incentives are allocated to
    customer retention?
  • Why do the customers defect?
  • Are customer satisfaction data collected
    systematically, objectively and consistently?
  • Are there listening posts for customer feedback?
  • Ritz Carlton

10
Customer Relationship Management (CRM)
  • Definition processes and technologies that
    support coordinated customer interactions
    throughout all customer channels
  • Customer Relationship Management helps companies
    understand, anticipate, and respond to their
    customers' needs
  • By collecting and analyzing information across
    marketing, sales, and service
  • By implementing the most appropriate customer
    interaction strategy, whether it's through the
    Web, telebusiness, field representatives, or
    partners
  • Integrated sales, marketing, and service strategy
  • use existing relationships to grow revenue
    (up-selling and cross-selling)
  • use integrated information for excellent service
  • introduce repeatable sales processes
  • create new value and instill loyalty

11
Customer Relationship Management
  • Key themes
  • Maximize the lifetime value of the customer
  • Build a relationship with your customer acquire,
    retain, enhance
  • CRM Functionality
  • Profiling learn about customers needs and
    desires
  • Customer Interactions remember what customers
    say they need
  • Interface let customers show what works for
    them
  • Products offer what customers need or version
    offer
  • Service provide future service based on past
    customer interactions and purchases

12
Customer Lifecycle Processes
CRM Mantra ETFS
13
CRM software types
  • Customer support (need to include call center
    technologies)
  • Examples Clarify, Siebel, Vantive
  • Marketing automation
  • Examples Broadvision, Epiphany
  • Sales force automation (SFA)
  • Examples Siebel, Vantive, PeopleSoft

14
CRM Benefits
  • Faster response to customer inquiries
  • Deeper knowledge of customers
  • More marketing and/or cross-selling opportunities
  • Employee empowerment
  • Customer feedback may lead to new and improved
    products or services
  • More one-to-one marketing
  • Obtaining information that can be shared with the
    company's business partners.

15
CRM Drawbacks
  • Very difficult to integrate solutions
  • High failure rates of 55-75 (at least for SFA)
  • May require a significant shift in corporate
    culture

16
eCRM
A Web-centric approach to synchronizing customer
relationships across communication channels,
business functions, and audiences.
Forrester Research
Synchronization
eCRM
Web
CRM
Sales force automationMarketing
automationContact centerAnalytical tools
anddata warehouses
Click-stream trackingPersonalization
rulesSelf-service
17
Why is eCRM Important?
  • Rapid convergence of eBusiness and traditional
    CRM is the main driver of eCRM applications
  • Sample eCRM functions
  • Attract customers (eMarketing)
  • One-to-one marketing and eSales (content
    management, personalization, configurators, and
    collaboration tools)
  • Create satisfied buyers (supply-chain execution)
  • Cross-sell and up-sell (analytical applications)
  • eCRM vs CRM
  • Focus on extended enterprise
  • Customer controls the relationship
  • Relationship is outwardly focused on customer
  • Deeper relationship

18
How Does It Work?
19
How Does It Work (2)?
20
How Does It Work (3)?
21
Advantages for Site
  • Targeted marketing
  • Enable shopping carts
  • Prevent banner ad burnout
  • Customized promotions
  • Cross selling and promotions
  • Test banner advertising effectiveness
  • Consumer-tailored content
  • Synergies with other web sites
  • Collect and resell consumer data

22
Issues for Consumer
  • Privacy, privacy, privacy!
  • The right to be left alone
  • No user awareness of being observed
  • "Cookie Chomping" and web washer software
  • Network computer may lack read/write capabilities
  • Monitors browsers and not users
  • Does not work in multi-user environment

23
Amazon Customization
  • Greet return customers by name
  • Recommendations
  • Customers who bought this also bought
  • Wish list
  • E-mail alerts
  • Page you made (based on recent activity)

24
Permission-Style Email Works
  • It works cheap, easy, and effective
  • In 1999, 97M spent on email marketing (4.6B by
    2004)
  • 40 billion permission-style email messages
  • But 38.5 billion were "spam" email pitches
  • Costs are low
  • Email ads average to about 25 cents each
  • Traditional direct-mail methodsfliers, coupon
    cards, and the likeaverage
  • 50 cents to 2 a pop

25
How Do you Generate Trust?
  • Site privacy policy
  • Post your policy up front
  • Include info on use of all collected data
  • Provide information on site security
  • 3rd party certification
  • Report card for each site www.verisign.com
  • Some evaluate security and privacy policies
  • Rely on customer surveys of business practices

26
http//www.doubleclick.com/
http//www.doubleclick.com/
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