lecture presented at PAARL's Summer National Conference on the theme "“Library Tourism & Hospitality: The Business of Endearing Philippine Libraries and Information Centers to Publics” (San Antonio Resort, Baybay Beach, Roxas City, Capiz, 27-29 April 2011) by Michael Pinto
Utilization of CRM for excellent library customer service
1. UTILIZATION OF CRM FOR
EXCELLENT LIBRARY
CUSTOMER SERVICE
Presented by:
MICHAEL A. PINTO, MPA
Director of Libraries- University of Saint Louis-Tuguegarao
President – CaAKAp Librarians’ Association inc.
Chair- PLAI HOD
2. OUTLINE OF PRESENTATION
Preliminaries
What is CRM, its functions,
stages, determinants.
Activity
2010 Top Ten Trends in
Academic Libraries
Six Guiding Principles of Library
Service
Bottom lines
3. PRELIMINARIES
Libraries are service centers, therefore
it must provide “SERVICE ”
What kind?
“QUALITY SERVICE” C
For WHOM?
For the CUSTOMERS. R
What do they HAVE?
They have their RIGHTS. M
What LIBRARIANS should do?
Librarians have to “PROTECT” these
rights
HOW to Protect?
ENHANCE our relationship with them
through…
4. WHAT IS CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)?
CRM is “the development and maintenance
of mutually beneficial long-term
relationships with strategically
significant customers”
(Buttle, 2000)
CRM is “an IT enhanced value process, which
identifies, develops, integrates and focuses the
various competencies of the firm to the ‘voice’ of
the customer in order to deliver long-term
superior customer value, at a profit to well
identified existing and potential customers”.
(Plakoyiannaki and Tzokas, 2001)
5. UNDERSTANDING CUSTOMER
RELATIONSHIP MANAGEMENT (CRM)?
CRM is a business philosophy based on upon individual customers
and customised products and services supported by open lines of
communication and feedback from the participating firms that
mutually benefit both buying and selling organisations.
The buying and selling firms enter into a “learning relationship”,
with the customer being willing to collaborate with the seller and
grow as a loyal customer. In return,, the seller works to maximize
the value of the relationship for the customer’s benefit.
In short, CRM provides selling organisations with the platform
to obtain a competitive advantage by embracing customer needs
and building value-driven long-term relationships.
6. WHY DID CRM DEVELOP?
CRM developed for a number of reasons:
The 1980’s onwards saw rapid shifts in business
that changed customer power
Supply exceeded demands for most products
Sellers had little pricing power
The only protection available to suppliers of
goods and services was in their relationships
with customers
7. WHAT DOES CRM INVOLVE?
CRM involves the following :
Organisations must become customer focused
Organisations must be prepared to adapt so
that it take customer needs into account and
delivers them
Market research must be undertaken to assess
customer needs and satisfaction
8. DETERMINANTS OF CRM
Trust
The willingness to rely on the ability, integrity, and
motivation of
one company to serve the needs of the other company as
agreed upon implicitly and explicitly.
Value
The ability of a selling organisation to satisfy the needs of the
customer at a comparatively lower cost or higher benefit than
that offered by competitors and measured in monetary,
temporal, functional and psychological terms.
9. DETERMINANTS OF CRM
In addition to trust and value, salespeople/librarians must:
Understand customer needs and problems;
Meet their commitments;
Provide superior after sales support;
Make sure that the customer is always told the truth
(must be honest); and
Have a passionate interest in establishing and retaining a
long-term relationship (e.g., have long-term perspective).
10. THE PURPOSE OF CRM
The focus [of CRM] is on creating value
for the customer and the company over
the longer term”.
When customers value the customer
service that they receive from suppliers,
they are less likely to look to alternative
suppliers for their needs .
CRM enables organisations to gain
‘competitive advantage’ over competitors
that supply similar products or services
11. WHY IS CRM IMPORTANT?
“Today’s businesses compete with multi-
product offerings created and delivered by
networks, alliances and partnerships of
many kinds. Both retaining customers and
building relationships with other value-
adding allies is critical to corporate
performance” .
“The adoption of C.R.M. is being fuelled by a
recognition that long-term relationships
with customers are one of the most
important assets of an organisation”
12. FUNCTIONS OF CUSTOMER RELATIONSHIP MANAGEMENT
Direct functions (are the basic requirements of a company
that are necessary to survive in the competitive marketplace)
Profit;
Volume; and
Safeguard
Indirect functions (are the actions necessary to convince the
customer to participate in various marketing activities).
Innovation:
Market;
Scout: and
Access.
13. STAGES IN THE DEVELOPMENT OF A CUSTOMER RELATIONSHIP
The Pre-relationship Stage
The event that triggers a buyer to seek a new business partner.
The Early Stage
Experience is accumulated between the buyer and seller although
a great degree of uncertainty and distance exists.
The Development Stage
Increased levels of transactions lead to a higher degree of
commitment and the distance is reduced to a social exchange.
The Long-term Stage
Characterised by the companies’ mutual importance to each other.
The Final Stage
The interaction between the companies becomes institutionalized.
14. STAGES IN THE DEVELOPMENT OF A KEY-ACCOUNT RELATIONSHIP
High
Synergistic KAM
Partnership
Degree of
involvement Mid-KAM
Early-KAM
Low Pre-KAM
Transactional Collaborative
Nature of customer relationship
(Millman and Wilson, 1995)
15. “STRATEGICALLY SIGNIFICANT
CUSTOMERS”
“Customer relationship management focuses on
strategically significant markets. Not all
customers are equally important” .
Therefore, relationships should be built with
customers that are likely to provide value for
services
Building relationships with customers that will
provide little value could result in a loss of
time, staff and financial resources
16. MARKERS OF STRATEGICALLY
SIGNIFICANT CUSTOMERS
Strategically significant customers need to satisfy
at least one of three conditions :
1. Customers with high life-time values (i.e.
customers that will repeatedly use the service
in the long-term e.g. Researchers in the
library)
2. Customers who serve as benchmarks for other
customers e.g. In a hospital library consultants
who teach on academic courses
3. Customers who inspire change in the supplier
17. INFORMATION TECHNOLOGY AND CRM
Technology plays a pivotal role in CRM.
Technological approaches involving the use of
databases, data mining and one-to-one marketing
can assist organisations to increase customer
value and their own profitability
This type of technology can be used to keep a
record of customers names and contact details in
addition to their history of buying products or
using services
This information can be used to target customers
in a personalised way and offer them services to
meet their specific needs
This personalised communication provides value
for the customer and increases customers loyalty
to the provider
18. INFORMATION TECHNOLOGY AND CRM:
Examples
Phone calls, emails, mobile phone text
messages
Loyalty cards
CRM software- Library Management
Software
Additional Borrowing Privileges
Social Networking Sites
19. FACE-TO-FACE CRM
CRM can also be carried out in face-to-face
interactions without the use of technology
Staff members often remember the names and
favourite services/products of regular customers
and use this information to create a personalised
service for them.
However, face-to-face CRM could prove less
useful when organisations have a large number
of customers as it would be more difficult to
remember details about each of them.
20. ACTIVITY: SWOT ANALYSIS
Identify the SWOT of your library in
terms of your customer relation
Strengths Opportunities
Weaknesses Threats
21. CRM IMPLEMENTATION
Create a Database for your customers which
includes the following:
Personal Information
Emails
Reading Preferences
Choose a CRM Activity that will enhance your
relationship with your customers
Email Alerts
Online Bulletin Board (Library Website)
CRM through Social Networking Sites
(announcements, alerts (obligations), schedule of
returning, news bits, etc.
22. 2010 TOP TEN TRENDS IN ACADEMIC
LIBRARIES
BY: ACRL RESEARCH PLANNING AND REVIEW COMMITTEE
#1. Academic library collection growth is driven by
patron demand and will include new resources
#2. Budget challenges will continue and libraries will
evolve as a result.
#3. Changes in higher education will require that
librarians possess diverse skill sets.
#4. Demands for accountability and assessment will
increase. Increasingly, academic libraries are required
to demonstrate the value they provide to their clientele
and institutions.
#5. Digitization of unique library collections will increase
and require a larger share of resources.
23. 2010 TOP TEN TRENDS IN ACADEMIC
LIBRARIES
BY: ACRL RESEARCH PLANNING AND REVIEW COMMITTEE
#6. Explosive growth of mobile devices and applications
will drive new services.
#7. Increased collaboration will expand the role of the
library within the institution and beyond.
#8. Libraries will continue to lead efforts to develop
scholarly communication and intellectual property
services.
#9. Technology will continue to change services and
required skills.
#10. The definition of the library will change as physical
space is repurposed and virtual space expands.
Source: C&RL News (June, 2010; 71.6)
24. SIX GUIDING PRINCIPLES OF
LIBRARY SERVICE
1. Accommodate all forms of queries
2. Library users don’t know everything
3. Library users need to be informed
4. Prioritize access to maximize utilization
5. Technology enhances library service
6. Library provides service
25. GUIDING PRINCIPLE #1
Accommodate all forms of queries
- This asserts that all library services are
born out from the curiosity of the mind
- The questions that customers ask become
the triggering factor for the library to
think of what are the services it must
provide to its users.
26. GUIDING PRINCIPLE #2
Library users don’t know everything
- This asserts that the reason why
library users go to the library is
because they want to know something.
- The library users have the motivation
to come to the library and discover
things
27. GUIDING PRINCIPLE #3
Library users need to be informed
-The role of the librarian in terms
of information dissemination is
expounded.
- Librarians should disseminate
information
28. GUIDING PRINCIPLE #4
Prioritize access to maximize utilization
- Library resources to serve its purpose
should be utilized to its fullest.
- Librarians on the other hand should
strategize ways by which full access to
the information can be achieved.
29. GUIDING PRINCIPLE #5
Technology enhances library service
- As the library grows and develops, development in
the information technology also continues and
new technologies are introduced to improve the
services of the library
30. GUIDING PRINCIPLE #6
Library provides service
- Library is a service center
- Libraries do not only exist for the purpose
of preservation and conservation but to
make available all the library resources to
users through the different services it offers
- “Service is the main ethos of librarianship”
(Chowdhary)
31. THE BOTTOM LINES
Bottom line #1
"Thereis only one boss. The customer.
And he can fire everybody in the
company from the chairman down,
simply by spending his money
somewhere else."
Sam Walton
32. BOTTOM LINE #2
Always give people more than
what they expect to get.“
Nelson Boswell
Surprise the customer
Entertain the customer
Amaze the customer
33. BOTTOM LINE #3
The way to a customer’s
heart and wallet lies in how
well we initially serve our
customers and recover from
poor service.”
Unknown
34. BOTTOM LINE #4
The fruit of SILENCE is Prayer
The fruit of PRAYER is Faith
The fruit of FAITH is Love
The fruit of LOVE is Service
The fruit of SERVICE is Peace.”
Mother Teresa’s Business Card
35. THE FINAL BOTTOM LINE
“Librarianship is a combination of
something you are (CHARACTER)
and some things you do.
(COMPETENCE)”
May DATING at GALING
38. REFERENCES
Liz Shahnam. What’s really CRM? CRM Today. [Online] [Accessed
November 2008]
Adrian Payne. Customer relationship management. Cranfield University.
[Online] [Accessed June 2006, no longer available online]
Francis Buttle. The S.C.O.P.E of Customer Relationship Marketing.
Macquarie Graduate School of Management. [Online] [Accessed June
2006, no longer available online]
www.ventureinfotech.com