ICT Enabled CRM

1. ICT Enabled CRM M J Xavier Dean - IFMR 30, Kothari Road Chennai - 600 034 e-mail: xavier@ifmr.com

2. 1 Web Profile 2 Marketing Customer completes her profile online Customer receives a mailing Customer: Lisa Customer Service Point of Sale Customer purchases product at the store Customer calls customer service 3 4 “A Day in the Life” of Lisa without CRM Customers interact with the enterprise using many touch points, or channels.

3. “A Day in the Life” of Lisa without CRM WITHOUT CRM From the customer’s perspective • Same information provided many times • Lack of coordination between interaction channels • Customer’s experience is not personalized or customized Result: The customer has an unsatisfactory experience across all interaction channels Customer X ANONYMOUS

4. “A Day in the Life” of Lisa without CRM A month later, the company embarks on a complete CRM strategy and technology implementation.

5. 1 Marketing “A Day in the Life” of Lisa with CRM WITH CRM Lisa receives a personalized and customized e-mail as part of a new marketing campaign. She is invited to register online for a promotional offer related to a previous purchase. Dear Lisa Dear Ms. Lisa Smith, As anew Gold Member customer you have been selected among 100 000 selected participants to Benefit from the incredible offer HEWLWTT PACKARD New Adopters Jornada 3100 In order to receive the free encryption software , please register at www.Hp/gold.com and enter the GOLD identification number XXXHDF234565 We are very happy to count you among our preferred customers and look forward to servicing you. Yours Sincerely Mike Abrahams Director of Sales and Marketing CRM Platform

6. 2 1 Web Profile Marketing “A Day in the Life” of Lisa with CRM WITH CRM Lisa accesses her Gold Member Homepage customized to her profile. She provides the enterprise with additional information about her preferences and habits. Dear Ms. Smith, As a new Gold Member You can take advantage Of this incredible offer WEB PROFILE Security is important we thought you may be interested in the encryption program … Thank you John Abrahams Director promotions CRM Platform

7. Customer service 3 4 Point of Sale “A Day in the Life” of Lisa with CRM WITH CRM Lisa receives one-to-one service at the store. Her experience is tailored to her purchase history based on the data collected during previous interactions. CRM Platform 1 2 Marketing Web Profile

8. “A Day in the Life” of Lisa with CRM From the customer’s perspective… XYZ Inc. With CRM, the customer develops a deeper sense of TRUST and LOYALTY toward the enterprise.

9. “A Day in the Life” with CRM From the enterprise’s perspective… By demonstrating customer knowledge and understanding, the enterprise extends the customer’s life cycle and increases customer retention rates.

10. Customer Touch Points“All those places where a customer might reach out and asked a company to do something.”

11. Touch Point Activities • Ask a QUESTION • Ask us to DO something • Ask us to FIX a problem • Ask us to CARE

12. Touch Points • Face to face • Telephone • FAX • E-mail • ATM

13. Touch Points • Kiosk • Checks • Internet • Cyber-call • Chat group

14. Touch Points • Regular mail • Loyalty cards • Telephone bridges • Surveys • Credit card

15. Touch Points • Exit checkers • EDI • Interactive voice response • Voice-mail • FAX-back

16. COMPONENTS OF CRM IT ARCHITECTURE AND KEY FUNCTIONALITY

17. Internet, Intranet & Extranet

18. Builders for a new age CRISTOPHER C. EUGSTER, GREGORY J. BESIO, AND JEFF HAWN The McKinsey Quarterly, 1998 Number 3

19. Tracking System GPS Vs AVMS Traditionally the Global Positioning Sytems (GPS) were used to monitor and track moving stocks (Trucks, railway wagons, ships etc.) The National Ship Design and Research centre (NSDRC) has developed a new Automatic Vehicle Monitoring System (AVMS). This has sensors fitted to the ntrucks and the sigansl emitted from the same are captured by AVMS Kiosks set up every 50kms on the HighWays and passes the same to the central hub through VSATS. In case of accidents the SOS signal is picked by any passing truck and passed on to the monitoring station. Amit Mitra, AVMS to hit the road soon, The Hindu Business Line, December 18, 2000, page - 5.

20. Call Centre • Maruti Udyog Ltd. Is the first auto company to set up a call centre in India. • It provides information on products, price, dealer network, spare parts, finance options, company information etc. • Used for building customer database. • Used for conducting surveys, telemarketing and post service follow-up Business Standard, 1/12/2000, Page -8

21. Psychiatric Hotline Hello. Welcome to the Psychiatric Hotline. If you are obsessive-compulsive, please press 1 repeatedly. If you are co-dependent, please ask someone to press 2. If you have multiple personalities, please press 3, 4, 5, and 6. If you are paranoid-delusional, we know who you are and what you want. Just stay on the line so we can trace the call. If you are schizophrenic, listen carefully and a little voice will tell you which number to press. If you are manic-depressive, it doesn't matter which number you press. No one will answer. If you are anxious, just start pressing numbers at random. If you are phobic, don't press anything. If you are anal-retentive, please hold

24. COMPONENTS OF CRM IT ARCHITECTURE AND KEY FUNCTIONALITY

25. Customers Fall Between System / Departmental Cracks Service Sales Accounting Delivery

26. Obstacle: Customer Information Not Connected Records for Customer A in different places and each separate database Invoicing Warranty Service Delivery Records Credit

27. Solution: Customer Data in the CRM Environment Build a Data warehouse to deliver Single Customer data Invoicing Warranty Service Delivery Records Credit

29. e-CRM CRM becomes e-CRM when an online (Internet) channel is added and integrated with the rest of the channels.

30. Cost of Customer Contact • Electronic channels require no human contact and cost $1 per sales contact • telephone sales and service cost $25 per sales contact • Distributors and channels cost $200 to $300 per sales contact • Direct sales through face-to-face interactions cost $500 per sale. • Study by Rowland Moriatry of Cubex Corp as quoted by Denis Collart in an interview to ET dated 12/12/2000.

31. Buy/Browse ratio is as low as 2% 40% would buy if there is human touch/interaction on the net.

32. On-Line Interactions • FAQ • e-Mail (many large sites do not respond at all) • voice mail (like in messenger) • Live interaction (web chat or shared browsing) • Call back (Ask customer to leave his phone number and call back)

33. Setup an unified customer front Integrate Customer touch points: - on line/Internet - e-mail - fax - phone /wireless - kiosk - shop/supermarket

34. Understand the 360 picture • Web Traffic Analysis • Duration of visit • Connection Speed • IP address/location • clickstream • response to banner ads • Marketing Interaction • Response to Direct mail • Response to sales calls • Response to e-mail campaign • Membership in Affinity Programmes • Order History • purchase patterns • Purchase frequency • Payment methods • Brand Loyalty • Proneness to promotions • Telephone Interaction • Calls to automated call center • Frequency of Calls • Duration of calls • Service Rendered by phone

35. Competition is just a click away on the net.

36. How do you get the best out of the small window of time when the customer stays in your site? Front End-Back end linkage is crucial. Eg. Customer having Rs. 50,000 balance should get faster response than the one having Rs. 5000/-.

37. ONLINE CUSTOMER SUPPORT • Internet can help your business build relationships with customers by creating online support centers that answer people’s questions • Increased loyalty from customers • Reduced returns from customers who experience problems • Reduced bad word of mouth • Faster response to customer questions

38. ONLINE CUSTOMER SUPPORT (contd.) • Lower support cost - Customers can refer to FAQs to find answers to common problems • Customers can help answer other customer’s questions • Market feedback • Profit Center

39. The Selling Cycle on the Internet http://www.pwcglobal.com/ch/eng/about/svcs/mcs/crm/ecrm.html

40. Attract: In order to get the attention of the customer several instruments are available. Advertisement in traditional media, banner ads in the Internet, cooperation with portals, inputs in search machines, etc. Inform: If a customer gets to a website, he/she has to be served with relevant content. Based on former visits, only the information that corresponds to the profile of the visitor will be shown. Through proper analysis of the customer's clickstreams on the website, their topics of interest can be recognised, thereby allowing the creation of unique offerings.

41. Configure: Product configuration and shop solutions allow customers to configure their desired products. Over a period of time, huge cost savings can be achieved because the customer is serving himself without the intervention of a sales person. Transact, Pay: Principles like one-click-ordering are essential for an optimal workflow towards realising the sale. A technically secure implementation will be made possible through a commerce server.

42. Interact: A quick confirmation mail after purchase increases customer retention. Nowadays customers are expecting further services concerning their ordered products like order status or self service support on the Internet. Also e-mails are more and more used for communication with the company. The amount of e-mails causes larger companies problems that can be solved through implementation of an e-mail response management system.

43. Deliver: The logistics behind an order is often underestimated. Specialised logistic companies can give support in this particular area. It is of importance to adapt the existing logistics processes to the characteristics of the Internet. Personalise: By filling in a registration form the company receives important information about the customer. Every click generates more information about the customer. In the future the customers will be contacted with exactly the contents that they are interested in.

44. BENEFITS OF ONLINE MARKETING • CONVENIENCE: Customers can order from the comfort of their home or office, any time, any day • INFORMATION: Computers can store and display reams of product descriptions and prices • RESPOND TO MARKET CONDITIONS: Companies can quickly add products, prices and keep up-to-date • REDUCE PRINTING AND POSTAGE COST: Production costs for digital catalogs are far less than printing and mailing catalogs

45. BENEFITS OF ONLINE MARKETING (contd) • REDUCE EXPENSES: On-line stores don’t carry the huge expense of traditional storefronts, with rent, etc. • FEWER HASSLES: Consumer’s don’t need to deal with pushy sales people • BUILD RELATIONSHIPS: Merchants can interact with consumers to create dialogues that lead to long term relationships

46. KEYS TO SUCCESSFULONLINE MARKETING • Appreciate the new paradigm in online marketing and advertising • Online marketing supports the integrated marketing programme • Mass marketing is over. Customization is in • Building relationship is one at a time • Appreciate the long term value of the customer

47. KEYS TO SUCCESSFULONLINE MARKETING (contd.) • Advertising must be interactive • Provide reams of information. Not persuasion • Create interactive dialogue • Contribute to the community • Online is a competitive advantage • Company size is irrelevant online

48. PLANNING TO GO ONLINE • Should your company be online? • Is there an online audience for your product? • Which online service or services attract that audience • Does the product line appeal to an audience that is accessible through online service? • Which products should be features online - All or few? • What is the budge? • How can you take advantage of online technology to create marketing materials that embrace interactivity?

49. CREATING MESSAGES • What is your message? • Do your marketing materials carry over the same image, message and tone of your other marketing materials • multimedia, virtual reality • What materials will be needed to support the message? - testimonials, lab report, awards • How can these materials be interactive? Hypertext, E-mail, contest, surveys

50. CREATING MESSAGES (contd.) • Why would customers buy online instead of through another channel? • Who will create the campaign, including message, art and technology? • Will the materials be updated? How often? • How do you respond to questions? The more you tell the more you sell • Do you use special promotions, discounts, etc.