Strategy for managing a company\'s interactions with customers, clients and sales prospects

1. Customer Relationship
Management (CRM)
Strategy for managing a company's
interactions with customers, clients
and sales prospects

2. What is CRM?
CRM is a collective term for processes and strategies
regarding individualized relationships between
enterprises and customers, prospects, and business
partners for marketing, sales and service with the goal of
winning new customers, extending existing customer
relationships across the entire customer life cycle, and
improving competitiveness and business success by
optimizing the profitability of individualized customer
relationships.
CRM is the integration of sales, marketing, service and
support strategy, process, people and technology to
maximize customer acquisition, value, relationships,
retention and loyalty.

3. BackOffic
eCustomer
Information
Analytics
Marketing
Web
Call
Center
Field
Partner
Customer
s
Email
What is CRM?

4. The Four Aspects of CRM
1. Active CRM: A centralized database for storing data, which can
be used to automate business processes and common tasks.
2. Operational CRM: The automation or support of customer
processes involving sales or service representatives
3. Collaborative CRM: Direct communication with customers not
involving sales or service representatives (‘self service’)
4. Analytical CRM: The analysis of customer data for a broad range
of purposes
Source: Wikipedia

5. Active CRM
Centralized Data Store
Ordering Information Customer details, and Business
Prospects all stored in a single system.
IT department helps in creating new user accounts and
maintaining the data store.
Single centralized data store helps to organize data efficiently
Segment
Manage
Track
Analyze

6. Active CRM
Advantages
Improved Customer Relationships
Automated Business Tasks and Processes.
Targeted Marketing Campaigns.

7. Operational CRM
 Operational CRM generally refers to the products,
services and operational capabilities that enable
an organization to ‘take care of its customers’

8. Operational CRM
 Customer care is essential to every company
 Tens of millions of dollars have been invested,
yet management still cannot say what, if any,
business benefits have resulted from CRM
initiatives
 Many can’t even say why they decided to
implement a CRM strategy

9. Goal of Operational CRM
• Should be to ‘integrate people, processes and
technology using the customer’s
perspective and expectations as the key
driver.’
• Generally cuts across many organizational
boundaries, making it high profile

10. Benefits of Operational CRM
• Drive revenue growth
• Reduce costs
• Solve problems quicker
• Gain a 360-degree view of your customer while
you are interacting with them

11. Collaborative CRM
Emphasis on direct Interaction with customers
Internet
Email
Automated phone/ Interactive voice response
Automated “self-service” type of relationship
Customer interactions are mostly “automated”.
Information can be directly captured by a CRM system
without “special formatting” by a middle layer.

12. Collaborative CRM
• IT department helps design customer interaction methods
– IT staff carefully designs web pages and email formats, so
data can be directly entered into the system without
reformatting.
– IT staff continuously scans for newer and better ways to
automate customer interaction and data capture.

13. Collaborative CRM
Includes Partner Relationship Management
Managing relationships with partners (resellers and
distributors)
Objectives
Cost reduction by using automated systems.
Service improvements through efficient consumer
response.
Better understanding of customer needs with various
departments pooling data from different sales and
communication channels.

14. Analytical CRM
Analytical CRM aids the preparation, support, and
optimization of customer oriented decision processes
Goals of Analytical CRM:
Analysis of customer behavior to aid product and service
decision making (pricing, new product development)
Management decisions (Financial forecasting, Customer
profitability analysis)
Design and execution of specific customer campaigns
including customer acquisition, up-selling, cross-selling,
retention
Design and execution of targeted marketing campaigns to
optimize marketing effectiveness

15. Analytical CRM Benefits
Employees can quickly assign, manage and resolve
incidents with automated routing, queuing and service
request escalation
Reports help identify common support issues, evaluate
customer needs, track processes and measure service
performance
Employees can easily share sales and order information
as well as support information and use it to identify top
customers and prioritize service needs

16. Analytical CRM Benefits
Access to a centralized, customizable view of sales and
support activity along with complete customer history
either online or offline and from any location using a Web
browser
Shorter sales cycles and improved close rates with tools
that enable lead and opportunity management, workflow
rules customization for automated sales processes, quote
creation and order management
Comprehensive reports that forecast sales, measure
business activity and performance, track sales and service
success, as well as identify trends, problems and
opportunities.

17. Goal of CRM
Gain insight into the behavior of the customers and the
value of those customers
Provide better customer service
Increase business revenues
Discover new customers
Simplify marketing and sales processes
Helps sales staff close deals faster
Make call centers more efficient
Company can get continuous feedback
Cross selling products more effectively

18. Need for CRM
No accurate information on who your customers are
and what their needs or desires are or will be at any
given stage in their lives
Losing customers to a competitor, lack of
understanding of your customers
Customers have different characteristics
Having multiple offices and/or mobile workers and
need to share and manage customer information
from all sources

19. Start with Strategy
• Must be practical, simple and easy to
articulate
• Must be shared by all levels of the
organization
• Should be measurable

20. Start with Strategy
• “A CRM initiative should help an
organization generate more leads, convert a
high proportion of them to customers,
retain customers longer through enhanced
service and ensure more profitability from
the customers through the effective
promotion of additional products and
services.”

21. CRM Strategies
Customer Acquisition
Gain the greatest number of new “Best” customers as
early in their “lifespan” as possible
Customer Retention
Retain and expand your business and relationships with
your customers through up-selling, cross-selling and
servicing
Customer Loyalty
Offer programs to ensure that your customers happily
buy what you offer only from you

22. CRM Strategies
Cost Reduction
Reduce costs related to marketing, sales, customer
service and support
Customer Evangelism
Enable loyal customers to become a volunteer sales
force
Improve productivity
Enhance your e-business strategies

23. What data do you have on your customers’
?
Problems, Pains, Fears, Needs, Wants, Likes, Goals,
Influences, Relationships, Affiliations, Alliances, Experiences,
Aspirations, Options, Expectations, Questions, Knowledge,
Skills, Activities, Attention, Communications, Interactions,
Emotions, Memories, Satisfaction, Perceptions, Beliefs,
Admirations, Attitudes, Opinions, Values, Learning, Ideas,
Motivations, Objections, Priorities, Choices, Behaviors,
Personality, Self-Concepts, Trust, Loyalty, Attention,
Recognition, Time, Energy, Risks, Investments, Rewards, ROI,
Lifestyle, Lifecycle Stage, Social Class, Culture, Sub-culture,
Age, Family, Education, Hobbies, Interests…?

24. CRM People
Customer Segments:
Suspects, Visitors, Prospects, Subscribers , Patrons, Members,
Users, Consumers, VIP’s, Volunteers, Annual/ Major Donors,
Advisors, Advocates, Legislators, Strategic Partners, Sponsors
Users:
Management, Employees and Visitors
Suppliers:
Services- Consultants (CRM/ Customer Development)
Products- Technology ( Software, Hardware, Connectivity)

25. CRM Technology Requirements
Integration with other company applications
Focus on the end user’s needs
Support cross company collaboration
Alignment with the specific requirements of
individual industries

26. CRM Processes / Mapping
Re-examine all of your customer management
business processes
Redefine where CRM provides the greatest value to
your “best” customers and your organization
Incrementally implement CRM to improve top
targeted processes like Subscription Renewal
Processes

27. How CRM helps Business?
Personalized customer contact
Customer specific product catalog and catalog views
Customer specific prices and conditions
Customer specific product configuration
Customer specific product recommendations
Customer specific user interfaces in e-selling
solutions

28. CRM Architecture
Enterprise Marketing Automation
Enterprise Marketing Automation
(EMA
(EMA))
SalesForceAutomation
SalesForceAutomation
(SFA)
(SFA)
CustomerServiceAndSupport
CustomerServiceAndSupport
(CSS)
(CSS)
 Business Environment Information
 Competitors, Trends
 Macro Environment Variables
 Business Intelligence
 Lead/ Account
Management
 Contact Management
 Quote Management
 Forecasting
 Sales Administration
 Customer Preference
 Performance Management
 Service Requests
 Complaints
 Product Returns
 Information Request
 Customer Interaction Center
 Computer Telephony Integration

29. CRM and IT
Biggest returns come from aligning business, CRM
and IT strategies should run across all departments
not just run on one group
Business departments who use the software take
ownership of the project, with IT and CIO playing an
important advisory role.

30. Monitor C
R
M
E
N
G
I
N
Operation
Analyze
Customer Interaction
Letter, Fax, Email, SMS, Phone, Personal Contact, EDI, web, XML
CRM DB
IT
A
P
P
L
I
C
A
T
I
O
N
Call Center
Help Desk
SFA
ERP
CRM and IT

31. CRM Implementation
Planning
Development
Deployment
Post Deployment

32. Implementation Plan
Creating the implementation strategy
Identifying the implementation team
Creating a schedule
Analyzing your business processes
Identifying hardware and software requirements in
addition to current organizational resources and how
any new resources are to be integrated into existing
systems
Determining customization needs and data import
requirements
Identifying reporting requirements
Identifying training and ongoing support requirements

33. Development
Setting up hardware and installing software
Installing CRM in a limited use and test environment
Testing CRM
Importing or migrating data
Customizing the application and the reporting features
Integrating CRM into existing systems
Identify a group of users who can use and evaluate the
product installation
Perform the common activities
Address difficulties during training

34. Post Development
Organization must develop processes and tools that will add
long-term customer value
Initial deployment period will affect productivity in the
beginning
Customer relationships are owned by the organization, not
the individual
Users must see CRM as a tool to help them

35. Common Reasons for Failure
– Implementation costs
– Political Friction
– Initiatives driven by technology
– Tendency to push ‘work’ to the customer
– No measures for success or accountability
– Poorly Implemented

36. …more Reasons for Failure
Lack of communication between everyone in the customer
relationship chain
Technology being implemented without proper support
Lack of training to the staff

37. Ways to avoid failure
– Don’t fall victim to anything mentioned in the
previous slide
– Establish visible top-down support from the
most senior levels
– Communicate strategy and buy-in

38. Successful CRM Implementation
Choose your vendor successfully
Develop customer focused strategy before considering
the technology
Break the project into manageable pieces
Make sure the CRM plans include a scalable architecture
framework
Don’t underestimate the amount of data you might
collect for easy expansion of systems in the future
Be thoughtful about what data is collected and stored
Spend time creating the best business processes

39. Ways to Ensure Optimal Benefits
• Create a customer focused business
strategy
• Have a CRM-friendly organizational
structure
• Build a customer information
environment

40. Thank You!
Please visit:
www.TheCorporateTrainer.ca