CRM adoption and implementation proposal

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Cust.RelationshipMgmt.SectionY01Fall2018CO-11272018-1058PM.zip
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content/Unit1/Section 2 - CRM Definition .html

CRM Definition

To begin our understanding of CRM we all need to have a similar definition of marketing itself.

So “Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” (American Marketing Association, 2004)

The IT staff will work closely with the Marketing group in the development of the processes and IT structure for CRM. The definition of CRM is very close to that of Marketing itself.

CRM is:

From a strategic perspective, CRM is the process of selecting the customers a firm can most profitably serve and shaping the interactions between a company and these individual customers

CRM.gif

content/Unit1/Section 3 database marketing.html

CRM and Previous Technique of database marketing

Do not confuse CRM methodologies with the more common practice, before the evolution of CRM, of database marketing.

Database Marketing

• Customer Databases

– Identify and analyze customer population

– Group based on similarities

– Recommend separate marketing campaigns for different groups

• CRM

– Applies database marketing techniques at customer level

– Develops strong company-to-customer relationships

content/Unit1/Section 4 CRM in Detail.html

CRM Definition

CRM is the practice of analyzing and utilizing marketing databases and leveraging communication technologies to determine corporate practices and methods that will maximize the lifetime value of each individual customer to the firm

CRM specifics

  • Capture customer data and interact with the customer simultaneously
  • Develop specific strategies for interaction with each customer
    • – Better relationships with profitable customers
    • – Locating and enticing new customers that will be profitable
    • – Finding appropriate strategies to deal with unprofitable customers, including termination of relationships

CRM and customer value

Customer Value: The economic value of the customer relationship to the firm – expressed on the basis of contribution margin or net profit.

The benefits of using Customer Value for Marketing Decision

  • Decrease in Costs
  • Maximization of Revenues
  • Improvement in Profits and ROI (Return On Investment)
  • Acquisition and Retention of Profitable Customers
  • Reactivation of Dormant Customers

content/Unit1/Section 5 CRM is more than just customer demographics.html

CRM is more than just customer demographics.

You can conventionalize CRM across three areas

1.0 Functional level: focuses on technology
  • Sales force automation in the sales function
  • Campaign management in the marketing function

2.0 Customer facing front-end level: focuses on total customer experience

  • To build a single-view of customers across contact channels
  • To distribute customer intelligence to all customer-facing functions

3.0 Strategy level: focuses on customer satisfaction

  • Frees CRM from technology underpinnings
  • Describes CRM as a process to implement customer centricity in the market and build shareholder value
  • Knowledge about customers affects the entire organization

content/Unit1/Section 6 - Time-line of CRM Evolution.html

Time-line of CRM Evolution

1st Generation (functional CRM approach) - 1990

• Sales force Automation (SFA) – Pre-sales functions

• Customer Service and Support (CSS) – Post-sales functions

• Combined SFA/CSS market niche small

• Market for ERP growing

2nd Generation (customer facing front-end approach) - 1996

• Similar to ERP - integration of a number of independent sub-systems into one package

• Customer expectations exceeded realized benefits of CRM technology

3rd Generation ( Strategic CRM) - 2002

• Integration of customer-facing front-end with back-end systems as well as partners and suppliers

content/Unit1/Section 7 Factors driving CRM forward .html

Several Factors are driving CRM forward today.

Note several factors are due directly to improvements in IT and development of software.

  • Shift from transactional to relationship–based markets
  • Growing proof of value in targeted customer relationships
  • Improved effectiveness of marketing communication tools
  • IT vendors and associated change management consultancies
  • Reducing costs of data storage and capture
  • Developments in Customer Value measurement

content/Unit1/Section 8 future of CRM .html

What is the future of CRM ?

Increasingly the demands on the IT infrastructure will be challenged in the areas of data manipulation and database design. The future for CRM applications will see

  • Worldwide increased spending on CRM
  • Next generation CRM-focus on building sustainable competitive advantage that cannot be easily imitated by competitors
  • Integration of HR function into strategic CRM efforts
  • Creation of a single-view of customer
  • Continuous fine-tuning and micro-segmentation of customer database
  • Growing ability of firms to handle deep customer analytics