Customer Relationship Management

1. Customer Relationship Management Managing all aspects of a customer’s relationship with an organization with the goal of increasing customer loyalty and retention and an organization's profitability

2. Customer Relationship Management (CRM) • CRM is a business philosophy based on the premise that those organizations that understand the needs of individual customers are best positioned to achieve a sustainable competitive advantage. • A customer first approach that revolves around understanding who your customers are • Shift from product focus to customer focus • Product: sell one product to as many customers as possible • Customer: sell one customer as many products as possible • Who are the best customers? • Which products are the most profitable?

3. Phases of CRM • What are we trying to do with CRM? • Know who our customers are? • Analyze the customer to understand what the customer is doing. • Find new customers just like our existing customers

4. Types of CRM • Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers (marketing, customer service, sales, billing, etc.) • Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers (accounting, finance, human resources, data warehouses)

5. Operational CRM Analytical CRM Results from analysis of customer data (no customer contact) Data warehouse technologies Business intelligence tools Data Analysis techniques It is used to support decision making and data analysis by identifying patterns to help the organization understand its customers. Personalization – when a website knows enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person Determine the value of an individual customer Who gets what level of customer service or level of personal contact? Create custom offers/specials/deals based upon the results of data analysis. • Customer has direct contact with system (touches customer) • Sales force automation software which helps automate the selling process. • Customer contact systems that are used to capture and “remember” all instances of contact with a customer (database technology). • Emotion detection software • Web-based self-service • Click-to-talk/chat buttons • Call scripting system

6. Information Technology and Customer Relationship Management • Advances in information technology are making it possible to gain a greater understanding of the customers who are buying your products. If an organization understands the characteristics of its customers, it is then in a better position to meet customer needs, and therefore generate even more business. • How are we going to use all of this customer data that we have collected? • Information Technology is simply a TOOL that can be used to better serve the customer. • How can customer interactions be made easier? • If you understand customer characteristics, you are then positioned to better serve customers (mine what you have to gain a clearer understanding). • Result: increase customer loyalty and probably increase revenues

7. April 23 was Sunday