1. ©2013 LHST sarl
Customer
Relationship
Management
MT 115

2. ©2013 LHST sarl
The Key Question
Partners
Stockholders
Clients
Employees
How can customer relationship
management enhance
organizational performance?
CRM helps us understand the motivations, experience and objectives of the
internal and external clients of the organization

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The answer
(at least in part)
Focus Improve Knowledge Leverage Mesure
Organization Processes Explicit Transactions Efficency
Community Participation Embedded Innovation Engagement
Networks Relationships Emerging Interactions Effectiveness

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Five Questions
•How does Atos Origin define “customer
relationship management”?
•Why do the authors argue that customer
value is more than just price, product, place
and promotion?
•How does Atos divide the CRM market into
three main solution areas?
•What role can a consultancy play in
implementing a CRM solution.
•Of the different “case studies” mentioned in
the paper, which example seems the most
significant, and why?
“Customer Relationshp Management“

5. ©2013 LHST sarl
The objectives of an IS
 Actifs
 Demandes en temps
réel
 ...
Actionnaires
 Compétition
 “made in” “made by”
 ...
Société
 Peu de barrières d’entrée
 Acquisitions, OPA
 ...
Partenaires
 Fidélité ?
 Vrai coûts
 ...
Clients
L’organisation
 Mobilité
 Valorisation des tâches
 ...
Employées
ObjectivesObjectives ISIS InformationInformationProblemProblem InternetInternet

6. ©2013 LHST sarl
The Cost of Retaining a Customer
“Winning back a lost customer can cost
up to 50-100 times as much as
keeping a current one satisfied.”
Rob Yanker, Partner, McKinsey & Company
Sherif Kamel
• Loss current revenues that the business relationship created.
• Loss of the jobs that the clients provide.
• Loss of reputation.
• Loss of of future business.

7. ©2013 LHST sarl
Positioning CRM vs Traditional Marketing
Traditional Marketing CRM
Goal: Expand customer
base, increase market
share by mass marketing
Goal: Establish a profitable,
long-term, one-to-one
relationship with customers;
understanding their needs,
preferences, expectations
Product oriented view Customer oriented view
Mass marketing / mass
production
Mass customization, one-to-
one marketing
Standardization of
customer needs
Customer-supplier
relationship
Transactional relationship Relational approach

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Organizational
Stuctures
MT 115

9. ©2013 LHST sarlL. SCHLENKER
ORGANISATIONAL STRUCTURE?

10. ©2013 LHST sarlL. SCHLENKER
TECHNOLOGICAL INFRASTRUCTURES ?

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BUSINESS PROCESSES ?

12. ©2013 LHST sarlL. SCHLENKER
HUMAN COMPETENCIES ?
Technicity
Reflection
Imagination
Cooperation
Method
Action
John Holland

13. ©2013 LHST sarl
Information Systems are a question of
perspective
• The financial perspective
(entreprise resource planning)
• The logistics perspective
(supply chain management)
• The client perspective(client
relationship management)
• The community
perspective(social media)
ObjectivesObjectives ISIS InformationInformationProblemProblem InternetInternet

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DIFFERENT SIDES OF THE COIN
ERP SCM CRM
History MRP Total Quality
Management
Client contact
systems
Measure Quantitative
Static
Quantitative
Dynamic
Qualitative
Perimeters Inside a firm Between firms Between firms
and clients
ROI 5 to 7 years 1 to 3 years 6 months to 1
year

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Key Tools
MT 115

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Functional Coverage
Process Identification Differentiation Interaction Customization
Goal · Identify
individual
customer
· Evaluate
customer value
and needs
·Build a continuing
relationship
· Fulfill customer
needs
· Generate profit
Traditional
Mass
Marketing
· Not done · Clustering · Call Center · Sales
· Services
CRM · Customer
profiling
· Individual level
analysis
· Call center
management
· Auto response
system
· Sales automation
· Marketing
process automation
Information
technologies
· Cookies
· Web site
personalization
· Data mining
· Organizational
learning
· Web application
· Wireless
communication
· ERP
· E-Commerce

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CRM Activities
•Cross-Selling- Additional products are sold as the result
of an initial purchase
•Event-Based Marketing- Offering individual promotions
tied to specific events to offer the right products &
services to customers at the right time.
•Mass personalization- understanding customers, their
behaviors, and their preferences allows firms to
customize communications aimed at specific groups of
customers..
•Predicting Customer Behaviors- Behaviors can be
predicted and firms forecast likelihood of customers’
purchases.
•Profiling Customers- Grouping customers in a variety of
ways to create more specialized communications about
their products.
•Relationship marketing or permission marketing-
customers select the type and time of communication.

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CRM Tools
Automated Sales Force Tools- Used for
documenting and communicating field activities
– Sales Activity
– Sales Territory Management
– Lead Management
– Knowledge Management
Call Centers
Call center systems can now categorize all calls,
determine average resolution time, and forecast future
and improve the overall productivity of the staff,
increasing customer satisfaction levels.
Informational Scripting
Scripts to successfully guide service representatives
through many types of customer problems. They do
not allow for much “out-of-the-box” thinking.

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“Traditional” Technologies
• Phone calls, E-mails,
• SMS, WAP services
• Cookies : used for
authenticating, tracking, and
maintaining specific information
about users
• Loyalty cards
• CRM software- “Front office”
solutions

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Market
Sell
Serve
eChannelDistributorCall Center
CSR/TSR
Field Sales
Siebel, Baan (Aurum),
Vantive and Clarify
PrimeResponse, Siebel,
Vantive, Clarify
Asera,
Marketsoft, WebBridge
Blue Martini,Accrue,
BroadVision, Andromedia
Net Perceptions, eGain,
Vignette, WebTrends
MarketWave, Rubric,
Aptex, PrimeResponse,
LikeMinds, RighPoint,
Online Insight,Responsys
Click Interactive,
Allegis,
Partnerware,
Channelwave,
Webridge
Blue Martini, Interworld,
BroadVision, IBM,Open
Market, SAP, Oracle, Art
Technology Group
(ATG), Microsoft, i2
Calico, SilkNet,Cygent,
Trilogy, Netscape,
RighPoint,
NetSales, BackWebBroadway & Seymour, Clarify,
Chordiant, Corepoint, IMA,
Pegasystems, Quintus, SCT
Utilities, Siebel, SilkNet,
Vantive,Advantage KBS (a
division of Carnegie Group),
Inference, Molloy Group,
Primus, ServiceSoft, ServiceWare
Click Interactive
ServiceSoft, Inference,
Siebel, Vantive, Motive,
SilkNet, ServiceWare,
Primus, Scala, Invera,
WebTone, Octane,
Chordiant, PeopleSupport
Siebel, Baan (Aurum),
Vantive and Clarify
Clarify, Metrix, Vantive,
Serviceware, Siebel,
Foresight, RTS, Astea
Enablers
Kana, Brightware, iContact, netDialog,
Acuity, General Interactive, Mustang, LivePerson,
Dialog, Genesys, G2X, Webtone, Webline, Nortel,
CosmoCom, BroadQuest, Amteva, Tumbleweed
Xcellenet, PowerCerv,
Synchrologic
Channel
Independent
EnablersBroadbase, Business
Objects, Cognos,
E.piphany, Seagate,
Quadstone, IBM,
HNC, Tessera,
NeuralWare,
RightPoint,SAS
Talus, Concentra,
Calico, Trilogy
Inference
Avalon, Broadway & Seymour,
Clarify, Chordiant, Oracle,
Corepoint, IMA, Pegasystems,
Onyx,Pivotal,Point, Siebel,
Vantive,Firepond,
Proscape, SoftAd, Calico
Aspect, Lucent, ATIO,
Apropos, Webline, eShare,
Genesys, Geotel, HP ,
Quintus, Davox (Answersoft)
Market Players
Accenture

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Market Share
• Salesforce.com - is the most popular cloud-
based CRM software globally , claiming
14.8% of the entire CRM software market.
• Microsoft Dynamics CRM - Analysts expect
the total revenue from Dynamics CRM and
ERP to reach $2.5 billion by the end of
2018.
• SAP - has over 30,000 customers and over 2
million users. They also have 12,000
partners to assist them.
• SugarCRM - SugarCRM is the leading
provider of open-source CRM software.
The company has more than 7,000
customers and over half a million users
around the globe.
Marketshare of the French CRM market
Copyright PAC 2011

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Key Metrics
MT 115

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Organizational Benefits
• Reduction of Marketing
Cost
• Timely Data
• Increased Revenue
• Increased Market Share
• Improved Service

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Customer Benefits
• Order Tracking
• Availability Checks
• Web-based Customer
Self Service
• Service and Claims
Management

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Traditional Metrics
• Churn - the number of customers who
leave a business in a year’s time divided
by the number of new customers in the
same period.
• Defection Rate - the percentage of
customers who leave a business in one
year.
• Customer Lifetime Value - the net present
value of the profits a customer generates
over the average customer life.
• Touch Points – number of times your
company interacts with a customer

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Size/Share of Wallet
• Size of wallet = ∑=
J
j
jS
1
=jS Sales to focal customer by firm j
• Individual share of wallet % =
• Share and size of wallet should be analyzed together...
∑=
J
j
j
j
S
S
1

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Customer Value Metrics:
Transition Matrix
• Shows expected share of wallet from multiple brands
• Depicts consumer’s willingness to buy over time
• Transition probability from B to A, than from A to C:
10%*20% = 2%
Brand A Brand B Brand C
Brand A 60%60% 30% 20%
Brand B 10% 80%80% 15%
Brand C 20% 15% 70%70%

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Oracle
• Interaction Center- integrates with service, sales, contracts, and marketing
applications.
• Oracle Sales- processes across all sales and customer interaction
channels.
• Oracle Marketing -provides automation and tools for the entire marketing
process.
Siebel Systems
• Call Center- improve agent productivity by providing critical customer
information.
• Siebel Sales- the means to focus on the right deals at the right time.
• Siebel Marketing- optimizes targeting and improves response rates with
robust segmentation capabilities.
Some CRM
Application Providers

29. ©2013 LHST sarl
Rules for Successful CRM
 RELATIONSHIP
- CRM is ultimately about relationship not
technology. Focus on improving
relationship, which enables organization to develop
more prospects
 PROACTIVE EXECUTIVE EMPOWERMENT
- management involvement is critical
- management set overall strategic direction
- Ensure that the culture of customer service is
incorporated in the organization
 KNOW YOUR BUSINESS
- many people deploy CRM without
understanding the business processes
- define business processes, understanding
departmental interactions
will help employees better manage customer
relationship
“We are not an airline with great
customer service. We are a
great customer service
organization that happens to be
an airline”.
Colleen Barrett
Executive Vice
President
Southwest Airlines

30. ©2013 LHST sarl
Current Challenges in CRM
New Privacy Regulations- Rules and
laws regarding invasion of privacy are
springing up. Solution: develop a
privacy policy and post it on their Web
site.
Application Service Providers (ASPs)-
Fifty 50 percent of all CRM programs
are now designed and maintained for
clients by ASPs.
Adapting CRM for global uses is
increasing-New Markets out side of
traditional industrialized countries
require adaptation to local needs,
language, and culture