Personalization for the E-Customer: A discussion of CRM software packages and how to personalize a site.

1. Personalization for the E-Customer: A discussion of CRM software packages and how to personalize a site. Create an imaginary plan for a personalized site and customized product.

2. Agenda of Today Personalization for the E-customer • What is CRM? • Examples of CRM software packages • What is personalization? • Why personalize? • How to personalize? • What is customization? • Create a plan for a personalized site and customized products.

3. What is CRM? • CRM is Customer Relationship Management • A customer service approach that focuses on building long term and sustainable customer relationships that add value both for the customer and company. • A business strategy to select and manage customers to optimize long term value. (www.greaterchinacrm.org)

4. More about CRM • CRM requires a customer-centric business philosophy and culture to support effective marketing, sales and service processes. • CRM applications can enable effective customer relationship management , provided that an enterprise has the right leadership, strategy, and culture. (www.greaterchinacrm.org)

5. CRM Types There are 3 types: • Operational CRM: Used for typical business functions involving customer services, order management, invoice/billing, or sales and marketing automation and management • Analytical CRM: Involves the capture, storage, extraction, processing, interpretation, and reporting of customer data to a user • Collaborative CRM: Deals with all the necessary communication, coordination, and collaboration between vendors and customers (Electronic Commerce, A Managerial Perspective 2004, p. 23)

6. CRM software packages • Using CRM software packages can help companies increase the level of interaction with their existing or potential customers. They also lead to more efficiency in operations, lower operating costs and help in increasing customer loyalty. • The global CRM software market is lead by Siebel Systems, SAP, Oracle and PeopleSoft. There are other tier-two vendors like SalesLogix, Onyx, ACT!, GoldMine, SalesNet and SalesPro. (http://www.dqchannelsindia.com/content/channeltech/104010701.asp?)

7. CRM software package features • Contact management solutions • Salesforce automation • Interface with inventory systems • Back-end accounting packages: entire transaction with suppliers, customers, staff, and production/assembly plants • Import, export, data management • Integration with document and communications systems such as e-mail, phone, fax, and external calendar/scheduling systems such as Outlook • Automatic newsletters to subscribers • CRM Software packages can be customized for different companies

8. Examples of CRM software1:PeopleSoft • LONDON, UK -- 4 October, 2004 -- Today at its EMEA Connect 2004 customer conference, PeopleSoft Inc. (Nasdaq: PSFT) announced that The Randstad Group, one of the largest temporary and contract staffing organisations in the world, purchased PeopleSoft Enterprise Supplier Relationship Management (SRM) in Q3 2004. With more than 1,600 branches worldwide and in-house operations within 642 client companies, Randstad places an average of 206,000 employees on a daily basis. PeopleSoft SRM will provide Randstad's customers with a single system for staffing contract and temporary labour utilising a vendor managed services model. • PeopleSoft Enterprise SRM simplifies the management of multi-currency transactions. This enables customers to maintain control and reporting accuracy, while utilising different currencies throughout various stages of the sourcing, procurement and settlement processes. • "The growing demand for contingent labor requires a more efficient way to manage services procurement," said Guy Dubois, executive vice president international, PeopleSoft. "PeopleSoft Enterprise Services Procurement will allow Randstad's customers to automate the entire services procurement cycle--from sourcing to settlement. (http://www.peoplesoft.com/corp/en/news_events/news/database/press_release.jsp?doc=4A3037BE8B05B82288256F2300465A94)

9. Examples of CRM software 2: Siebel Systems, Inc. • Increasingly, large enterprises are using Siebel CRM OnDemand to quickly provide employees with access to market-leading CRM capabilities. Cendant is one of the foremost providers of travel and real estate services in the world. Using Siebel CRM OnDemand, Cendant's Travel Distribution Services division is combining silos of information across 116 locations; unifying sales, service, and marketing functions; improving its lead qualification process; and gaining insight into real-time and historical business trends. As a result, Cendant expects to improve its prospect conversion rate by 20 percent in the first 12 months after deployment, while increasing time spent with customers by 25 percent. • With Siebel CRM OnDemand, small and medium-sized businesses are leveraging Siebel Systems' extensive CRM expertise, gaining quick access, with no up-front investment, to robust CRM capabilities traditionally available only to large enterprises. • Additional enterprises using Siebel CRM OnDemand to increase their business results include Boise Cascade, Countrywide Financial Corporation, Jones Lang LaSalle, NASDAQ, and Peregrine Systems. (http://www.siebel.com/news-events/press_releases/2004/041005_accelerates.shtm)

10. What is personalization • Personalization is the ability to tailor a product, service, or web content to specific user preferences. • The matching of services, products, and advertising content to individual consumers. • It’s one-to-one marketing, which treats each customer in a unique way to fit marketing and advertising with the customer’s needs. • Customers like personalization, and are willing to pay more for it.

11. Why personalize? • User profiles include customer preferences, behaviors and demographics • Personalization using customers’ user profiles increases customer loyalty. • Personalization will also increase E-loyalty which is customers’ loyalty to an e-tailer

12. How to personalize? • Personalization to individuals is based on what a company knows about the user. • To generate user profiles: • Solicit information directly from the user • Observe what people are doing online • Build from previous purchase patterns • Perform marketing research • Types of collaborative filtering: • Rule based filtering • Content based filtering • Activity based filtering • With information received using the above technologies, E-tailers can create a marketing plan tailored to each consumer.

13. Create an imaginary plan for a personalized site and customized product (1) • Before starting an EC, do mall surveys, telephone surveys and find out who is the target consumer group. • Build an EC selling products that this group might like • From using cookies and filtering, track customer information online • Use EC software to target each customer

14. Create an imaginary plan for a personalized site and customized products (2) • The customers each get their personalized settings and greetings from the website • The site automatically offers the customers the products that interest them • Customer information is “remembered” the next time the customer logs in, so that he/she won’t need to fill out forms to buy again • Customers get reminded by e-mail that a new product is on the market and he/she might be interested • The EC software will “remember” customer preferences and customize products and services for him/her

15. What is Customization? • Customization is creation of a product or service according to the buyer’s specifications. • Examples of product customization: • Nike will customize sneakers for its customers • Dell will customize PCs for its customers • Examples of Service customization: • FedEx will customize pick up and shipping time for customers • Dell has 2 year, 3 year or 4 year onsite service plans for customers to purchase

16. Examples of personalization • “Welcome, Yu!” • “Thanks, Yu!” • “You might be interested in this new product..” • “Would you like to see some related products?” • “It’s just a reminder e-mail that we have more phone cards that you might be interested in. ” • “Yu, we're delighted to have you as a new customer. ” • “Your FedEx account gives you the flexibility to take advantage of convenient and simple FedEx services that make shipping easier for you ”

17. Conclusion • Personalization is a must for a successful EC • CRM software packages will make personalization much easier • With personalization and customization, customer loyalty is greatly increased The End!