1. Customer Relationship
Management
Relationship Marketing: Operational and Analytic CRM

2. How do we create customers?
• Identifying customer needs
• Designing goods and services that meet those
needs
• Communicate Information about those goods and
services to prospective buyers
• Making the goods or services available at times
and places that meet customers’ needs
• Pricing goods and services to reflect costs,
competition, and customers’ ability to buy
• Providing for the necessary service and follow-up

3. How do we create VALUE?
• Identify the needs in the marketplace
• Find out which needs the organization can profitably
serve
• Design goods and services that meet those needs
• Developing a marketing mix that will convert
potential customers into actual customers
• Providing for the necessary service and follow-up
after the service

4. Today’s Markets
• Stagnation of growth in customer base.
• Too much competition for customer’s free
time.
• Customers are increasingly convenience
shopping as opposed to price driven shopping.
• Consumers now prefer suppliers that provide
good quality at a fair price.
• They find such a supplier and stay with them
for a long time.

5. The Marketing Challenge: The Relationship
Marketing Solution
 Time Horizon.
 Market Segmentation.
 Product or Service Design.
 Market Research.
 Marketing Communications.
 Customer Service.
 Pricing.

6. Time Horizon
 The time horizon available for marketers to achieve
results in many companies has shrunk: investors and
financial managers have dramatically reduce the
time frame available for building revenue.
 Marketing which remain focused on transaction
rather than relationship is time consuming.
Furthermore relationship has longer time horizon.
 The marketer will have two roles:
 To identify the customer base with which the firm
is to maintain and deepen relationship;
 To champion the changes needed within the
company for this to happen.

7. Market Segmantation
 Marketers need to accept the fact that market
segmentation no longer exist the way they were
taught: there are no more market segments, just
individual customers.
 In B2B marketing this approach is well known. In
B2C marketers have focused more on segment-
based marketing principles.
 Increasing competition push companies to
differentiate products or services, but this
strategy become more and more expensive.

8. Example: Not target but Personas
Informazione Profilo A Profilo B Profilo C
Foto
Nome profilo referente ICT piccola azienda Professionista / socio studio imprenditore piccola azienda
Età 30-40 35-45 35-50
Sesso M M M
Dimensione di azienda € fatturato 3-10 milioni € 1-5 milioni € 5-20 milioni €
Dimensione di azienda dipendenti/collaboratori 5-20 dipendenti 2-10 collaboratori 5-50 collaboratori
Area aziendale ICT Avvocato, commercialista Direzione
Ruolo aziendale esperto tecnico Socio o proprietario CEO o top manager
Livello aziendale funzionario o cosnulente esterno Socio o proprietario Manager o socio
Generazione di riferimento X baby boomers, X baby boomers, X
Budget a disposizione ICT 20.000 € 30.000 € 50.000 €
Tempo passato online 10 ore al giorno 4 ore al giorno 2 ore al giorno
Punto di accesso ufficio, casa, cellulare ufficio, casa ufficio, cellulare
Velocità di connessione Larga banda Larga banda Larga banda
Tipo di device PC, laptop, server, smatphone portatile, desktop ipad, portatile smartphone
Cosa cerca online
siti tecnici, informazioni, vacanze,
sport, hobby
specialistici, leggi, golf,
vacanze, informazioni
informazioni, specifici di
business, sport, vacanze
Siti web preferiti Google Virgilio, Google repubblica, sole 24 ore
Attitudine al web alta media poca

9. Product or Service Design
 Customers are not equal – they want
different things in different amount at
different time - and the profit derived from
each will vary.
 The key challenge for the marketer is to
identify the core strategic value that will be
delived to the customer and the elements
that customer can change.

10. Market Research
 Market research can take more time than the
marketer has available. Current research
findings may actually be dealing with
yesterday's issues.
 Now marketers need to devise knowledge
systems to learn more about individual
customer so that firms can create the value
each customer wants
 Analisys of Big Data from the Internet and
Social Network is a new opportunity Marketers
have to know the customer, each invidual.

11. Marketing Communication
 Previously, marketers relied on broadcasting
their message (one way communication). No
longer.
 Today the marketer has opportunity to
communicate with individual customer
according to the media each prefer.
 The challenge for the marketer is to apply
technology to facilitate this relevant, timely,
personalized and customized communication.

12. Customer Service
 The old adage is that the customer is always
right: make customers happy when they
complain, engage then positively, offer
restitution.
 When customer complain, it is a signal of a
broken process somewhere in the business.

13. Pricing
 Customers want to participate in decisions
regarding the value they receive and the
price they pay.
 Give them a standard offering and they will
expect to pay a single price.
 Offer them options in the product and they
will want some more than others, and will
pay more for these.

14. Relationship
Marketing
CRM

15. From transaction-based marketing to
relationship marketing…
• Transaction–based marketing (Simple exchanges)
• Relationship marketing
– Lifetime value of a customer
– Converting new customers to advocates

16. Relationship Marketing
• Relationship Marketing differs from other marketing strategies in
a number of ways:
 It is the process of attracting, maintaining and enhancing relationships
with key individuals over time.
 Uses one-on-one communication to earn the loyalty of your target
audience.
 High-touch, person-to-person communication
 The most powerful and the most time-consuming.
Personal Marketing
Direct Marketing
practices
Booths at community fairs
Visit community events
Phone calls to key individuals in
the community
Cultural guides
Partnership with other community
programs
Ethnic Marketing:
Consider ethnic diversity of the
target group
Determine the level of
ethnicity
Develop and implement your
campaign based on those
two factors
IS NOT

17. From transaction-based marketing to
relationship marketing…

18. Three Levels of Relationship Marketing
Characteristic Level 1 Level 2 Level 3
Primary bond Financial Social Structural
Degree of
customization
Low Medium Medium to high
Potential for
sustained
competitive
advantage
Low Moderate High

19. Relationship Marketing
• The success of Relationship
Marketing programs is due to the
loyalty of committed
participants, volunteers and lay
leaders
• A key to relationship marketing is to
make it clear that your program is
going to last for a long time.
• Diverse communities are accustomed
to the short attention span of
programs that come in, make
promises, then lose their funding and
leave.
• Explain how your program is
different, and that you are committed
for the long term.

20. Aspects of customer relationship management
1. Customer Identification: Customer relationship management starts by identifying the
customer. This stage includes targeting the individuals who will become either company's customers
or profitable for the company. In addition, the focus of this stage of customer relationship
management is mainly on analysis of the customers lost while competing with other firms, and ways
of winning them back. Customer identification involves customer analysis and customer segmentation.
2. Customer Attraction: This stage follows customer identification. Having identified the customer's
potential segments, organizations can put their energy towards attracting target segments of the
customer. Direct marketing is one of factors for drawing the customer.
3. Customer Retention: Customer retention is a paramount concern in customer relationship
management. Customer satisfaction which refers to the comparison of customer expectations with
his/her perception of satisfaction is regarded as an absolute prerequisite for retaining the customer .
Customer relationship management is the philosophy of business activities for attracting and
keeping the customer, raising the customer value, loyalty, and implementing the customer
centered techniques.
4. Customer Development: This stage requires steadily increasing the amount of interactions, the
value of interactions, and personal profitability of the customer. Elements composing customer
development are: customer life time value analysis, average sales growth, and analysis of product
basket the customer uses in the company. Customer lifetime value analysis has been defined as a
prediction of total net income that company can expect from the customer
Some theorists including Parvatiyar, Sheth, and Miller

21. Relationship Marketing
Customer Retention Marketing is the foundation of
relationship marketing.
The goal is to convert the target audience into loyalists,
loyalists into enthusiasts, advocates and donors.

22. Steps to implement a Relationship Marketing
Steps Description Activities
1
Identify the audience with
whom you wish to build a
relationship.
•What does this audience know about your program?
•How does this audience feel about your program (positive or negative)?
•What needs does this audience have that your program can meet?
2
Understand What is the
feedback about your program
•If they know about “your program” and feel positively about it, maintain a good
relationship by keeping in contact through impersonal marketing techniques, such as
mailings, brochures, etc.
•If they know about “your program” and feel negatively or indifferently about it, use
the Six “P’s” from the Personal Marketing program. The Six P's represent people,
partnership, product, place, promotion, and price.
•Emphasize Promotion and Price
•If the audience does not know much about “your program”, inform them. Again,
apply the Six “P’s” technique.
3
Identify assets of individuals or
institutions in the target
audience.
•Use the assets of these individuals and institutions to help carry out your
programs
•Having volunteers for short- or long-term assignments will help build
program ownership and foster even more participation
4
Actively solicit the increased
participation and involvement of
community members.
This will build greater loyalty to the program. The community will be able to
identify on-going benefits of the program leading to potentially increased
involvement.
5
Encourage greater support from
community members.
Loyal individuals are more likely to advocate for the program and/or donate
resources to the program.

23. Example:Barilla

24. Developing Relationship Marketing Capabilities
• Initial steps include:
• Data collection
• Data access and marketing tools
• Product and service customization
• Customer service procedures
• Customer access channels
• Key measures:
• Customer satisfaction
• Share of Wallet
• Stability of relationship

25. Customer Information
• Requires more information than traditional
direct marketing.
• Optimal types of customer information will vary
by industry, company market positioning, and
marketing programs.
• Building a customer information base is an
iterative long term process.

26. Developing Relationship Marketing Capabilities
• If implemented properly customers are locked
in due to satisfaction, ease of service, and
value.
• This increases the cost on the customer’s part
when they have to switch suppliers.
• Customer service should be interactive,
personalized.
• Communication is through multiple channels.

27. Example: Cellular Phones
• Stage 1:
– Preliminary information collected during the first
purchase to make recommendations
• Stage 2:
– Based on the calling patterns and bills make refined
recommendations and offer better deals that the
customer cannot refuse.

28. Customization and Added Value
• Provide tangible benefits to customers through
customization.
– Example: Dell Computers
• Trend evident in service industries such as
• Insurance
• Computer systems
• Telco
• Financial Services
• Customer service is a better differentiating weapon
than price or features.

29. Developing Relationship Marketing Capabilities
• Use customer service opportunities to:
• Verify if needs and preferences have been addressed
• Measure levels of satisfaction
• Find any other questions that need to be answered
• Additional customer information such as change in
status
• Verify if presenting new products or options is
appropriate

30. Customization and Added Value
• Mass customization occurs when consumers become
co-creators in the content of their experiences
• Enablers of mass customization
- information technology
- process technology
- digitization of product
- new organizational thinking
• Issues in mass customization
- pricing of customized products
- compensation for customer input
- strategic relationship between producers and
consumers in market for customized goods

31. Two Way Communication
• Focus is on customer’s choice of channels.
• In several new channels customers control the time
of access
• Companies control only the content delivered.
– Example: Internet, e-mail, Cellular phones.
• Key to success is to integrate information flows from
multiple channels and co ordinate marketing activity.

32. Building Customer Loyalty
• Key measurement for loyalty: Retention
• 5% increase in retention rate can increase
lifetime value by 75% (F. Reichheld)
• The top 20% customers yield 80% of revenue
• So, treat the ‘Gold’ better than others
• What to do with ‘Losers’ ?
–Reference accounts
–Referral
–Learning
–Innovation

33. Building Customer Loyalty
Five customer loyalty promotions examples:
1. Develop catalog with Gifts available with proof of
purchase
2. Establish an ‘insiders’ or ‘special privilege’ club
3. Create a prestige offering, made both of practical
benefits and self-image symbols
4. Establish an apparently personal relationship via social
networks
5. Provide extra conveniences that have secondary
purpose of increasing consumption

34. Examples

35. Example
• Electricity 100%
from renewable
sources
• Customer
connections
drive big
discounts
• Customer can
become Energy
Broker and sell
the “vision”
and the
products

36. Strategies for Building Customer
Relationships
• Affinity Programs
– a marketing effort sponsored by an organization that
solicits responses from individuals who share common
interests and activities
– Example: Credit Card ILUNI FEUI

37. Strategies for Building Customer
Relationships
• Frequency Marketing
– frequent-buyer or user marketing programs that reward
customers with cash, rebates, merchandise, or other
premiums
– Examples: Garuda Frequent Flyer, Matahari Club Card

38. Strategies for Building Customer Relationships
• Database Marketing
– software that analyzes marketing information,
then identifies and targets messages toward
specific groups of potential customers.
– Examples: Telco operator (Vodafone, Telkomsel,
Satelindo, etc)

39. Strategies for Building B2B Relationships
• Strategic alliance
– a partnership formed to create a competitive
advantage
– These more formal long-term partnership
arrangements improved each partner supply-
chain relationships and enhance flexibility
– Example: SkyTeam (Garuda with other airlines e.g.
Etihad)

40. Strategies for Building B2B Relationships
• Electronic Data Interchange (EDI)
– involves computer-to-computer exchanges of invoices,
orders, and other business documents.
• Vendor Managed Inventory (VMI)
– is an inventory-management system in which the seller–
based on existing agreement with a buyer– determines
how much of a product is needed.

41. Customer
Evaluation

42. Valuing High Growth Businesses
1. Traditional finance approach
»Price/Earning ratio
2. Marketing approach
–Customer Lifetime Value (CLV)

43. Evaluating Relationships
• Lifetime Value (LTV)
• Refers to the net present value of the potential
revenue stream for any particular customer
over a # of years
• Starts with current purchase activity then
extrapolates to include potential additions
from cross-selling, upgrades, total ownership,
etc.

44. The Value of Customer Retention
• On average, it is more costly acquire a new
customer rather than retain an existing
one.
• Customer retention ensure higher profit
margin.
• Voluntary spending to maintain
relationship.

45. Relationship Lifecycle
Customer relationship lifecycle Baines, et al, 2011, p. 568

46. Five Different Levels of Relationships
 Basic. The company salesperson sells the product, but does
not follow up in any way.
 Reactive. The salesperson sells the product and encourages
the customer to call whenever he or she has any questions or
problems.
 Accountable. The salesperson calls to the customer a short
time after the sale to check whether the product is meeting
customer expectation.
 Proactive. The salesperson or other in the company phone
the customer from time to time with suggestions about
improved product use or helpful new product.
 Partnership. The company works continuously with the
customer and with other customers to discover ways to
deliver better value

47. Opportunity Management in a Relation Marketing Framework
10 minuti

48. Exercise

49. Group Exercise
Think about pricing strategy that can be used to build
relationship with consumer, in each of the following
product category:
• Automotives
• Clothing retailer
• Online store
• Restaurant
• Airlines
15 minutes

50. Behavioral brand loyalty
Measured by proportion of purchase:
• Undivided loyalty AAAAAAAAAA
• Occasional switcher AAABAAACAA
• Switched loyalty AAAAAABBBB
• Divided loyalty AAABBBAABB
• Indifference ABCDADCDBD

51. Loyalty Ladders
Partners
Clients
Customers
Prospects
Members
Advocates
Partners
Clients
Repeat Cust
Prospects
Members
Advocates
1st Time Cust
Suspects
Traditional
Marketing
Relationship
Marketing
Payne et al 1995 Kotler 1997 Baines, et al 2011

52. Types of Loyalty
Source: Baines, et al (2011, p. 573)

53. How much are customer worth?
Acquired Customer
Base
Year
Value US$
millions
Acquirer
Thousands of
Customers
Per Customer
Value US$
Powerco 1998 9 NGC 16 533
WEL Energy 1999 37 NGC 68 547
ETSA 2000 96 AGL 734 131
TransAlta NZ 2000 259 NGC 513 505
Powercor 2001 174 Origin 582 299
Enron Direct 2001 22 Centrica 160 140
New Power 2002 8 Centrica 215 38
Citipower 2002 75 Origin 272 276
Pulse 2002 451 AGL 1400 322
Contact Energy 2004 322 Origin Energy 608 530
Atlantic Energy 2004 19
Scottish &
Southern
300 63
Centrica 2004 18981
Market
capitalisation
45000 422
Origin Energy 2004 999
Market
capitalisation
2000 499
Contact Energy 2004 332
Market
capitalisation
608 546

54. Utility customer lifetime value
Customer
Lifetime Value
Customer Loyalty
Gradient represents
customer profitability
Length of Relationship (Months)

55. Customers as Assets
“Intangible assets are hard to see and even harder to
fix a precise value for. But a widening consensus is
growing that the importance of (intangible) assets –
from brand names and customer lists … – means
that investors need to know more about them.”
- New York Times -

56. Customer Lifetime Value
Customer Equity – total of discounted lifetime values
of all the firm’s customers
• Value – customers’ assessment of utility
• Brand – customers’ assessment of image
• Relationship – customers’ willingness to stay with
brand

57. Customer Lifetime Value
• m : Contribution margin
• r : Retention rate
• The percentage of total customers minus customers who end their
relationship with a company in a given period
• i : Discount rate,
• The cost of capital used to discount future revenue from a customer.
• The current interest rate is sometimes used as a simple (but incorrect)
proxy for discount rate.








ri
r
mCLV
1

58. Exercise 1
• Post-paid cellular mobile phone subscription:
• Monthly payment: $ 25
• COGS: $ 15
• Retention rate 50%
• Discount rate 10%
• Calculate the CLV

59. Finite
CLV = 10 x (0.5/(1-0.4))
= 10 x 0.83333
= $ 8.334 per month per
customer








ri
r
mCLV
1

60. Exercise 2 - Sehat Sentosa Gym
Sehat Sentosa Gym requested your
consulting services in order to make an
investment decision that could boost
their revenue.

61. Sehat Sentosa Gym
• Calculate the gym’s CLV for the next 5 years.
• Here is some information about the Gym’s customer
value:
• Annual membership fee is $300
• The average member spends $100 a year at the gym—café,
nutrition, drinks, snacks, etc - 40% of which is COGS
• 80% rejoins in the following year
• Discount rate is 10%

62. The club discounts future cash flow at 10% per year
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $400 $400 $400 $400 $400
COGS $40 $40 $40 $40 $40
Gross Profit $360 $360 $360 $360 $360
Probability of
being active
100% 80% 64% 51% 41%
Actual Profit $360 $288 $230 $184 $147
Present Value
of Profit
$360 $262 $190 $138 $101
Total value = $1051

63. Managerial question
Sehat Sentosa Gym currently faces two
options to boost revenue
1. Option 1 is to invest $500,000 on membership
reward to increase retention rate by 10% (from
80% to 88%)
2. Option 2 is to invest the same amount in the
facility and increase annual fee by 10%
–Which option should the gym choose?

64. Option 1 – higher retention rate
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $400 $400 $400 $400 $400
COGS $40 $40 $40 $40 $40
Gross Profit $360 $360 $360 $360 $360
Probability of
being active
100% 88% 77% 68% 60%
Actual Profit $360 $317 $279 $245 $216
Present Value
of Profit
$360 $288 $230 $184 $147
Total value = $1210
Increase = 15 %
Instead of 80%
Consider 88%

65. Customer
Relationship
Management

66. Customer Touch Points

67. Why CRM is a Customer and
Competitive Necessity
1. It typically costs 5-10 times as much to acquire a new customer as it does
to retain an existing one.
2. “Some companies can boost profits by almost 100% by retaining just 5%
more of their customers.” Harvard Business Review (Reicheld & Sasser)
3. A recent McKinsey study showed that the average new customer spends
$24.50 at a given web site in the first 3 months as a shopper. The average
repeat customer spends $52.50 every 3 months.
4. Most companies lose 50% of their customers in 5 years (Harvard University)
5. On average only 15% of a site’s customers consider themselves Loyal to it.
The loyalty rating among people who had experienced a problem was only
6%. Customers who had not experienced problems indicated a customer
loyalty rating of 19%. The loyalty rating among customers who had
experienced problems but were satisfied with the way they were handled:
21%. (Digital Idea)
6. 70% of repeat purchases are made out of indifference to the seller, NOT
loyalty. (eLoyalty)
7. The web customer is ‘only 1 click away from your competition’.

68. What is Customer Relationship Management
(CRM)?
Customer Relationship Management (CRM) is:
the integration of sales, marketing, service
and support strategy, process, people and
technology to maximize customer acquisition,
value, relationships, retention and loyalty.
• A Redesigning of your Business from the Outside In.
• Customers, Data and Database at the Center of your
Organization (Customer-centricity).
• A organization-wide single customer view.
• A Foundation for “1to1 Marketing: Treating Different
Customers Differently” (Single Ticket Buyer vs. Subscriber)
• A Means to Your Total Customer Development Ends.

69. 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.
Customer Evangelism
Enable loyal customers to become a volunteer sales force.
Cost Reduction
• Reduce costs related to marketing, sales, customer service and
support.
Improve Productivity
Enhance your e-business strategies.

70. Total Customer Development™ Hierarchy
Interactive Marketing Management
Customer Relationship Management
Customer Innovation Management tm
Customer Quality Management tm
Cause Marketing Management
Customer Experience Management
Customer Lifecycle Management
Customer Evangelism Management tm
Customer Actualization Management tm

71. Customer Relationship Management (CRM)
The combination of strategies and tools that
drive relationship programs, re-orientating
the entire organization to a concentrated
focus on satisfying customers
CRM is a broad area which can be applied on
an enterprise-wide basis. It could be
introduced to parts of an organisation but is
more effectively introduced as a strategy.

72. Types of Customer Relationship Management
Operational CRM
Analytical CRM
Collaborative CRM

73. Goal of Operational CRM
• The goal of Operational CRM is to provide
electronic support for the "front office"
business processes, which include all
customer contact (eg. sales, marketing and
service).
• it aims to deliver customer-centric
business processes and operations.

74. Business Benefits
• Operational CRM provides the following
benefits:
– Enables a 360-degree view of each customer
– Each employee from sales people to service
engineers can access complete history of all
customer interaction with the organisation
regardless of the initial point of contact
– Delivers personalised and efficient marketing,
sales, and service

75. Components of Operational CRM
• Sales force automation (SFA)
• Enterprise marketing automation (EMA)
• Customer service and support (CSS)

76. Sales force automation (SFA)
• SFA automates critical sales and sales force
management functions eg
– lead/account management
– contact management
– quote management
– Forecasting
– customer preference tracking
• SFA requires a well designed database in order to
store and retrieve customer details.

77. Enterprise marketing automation (EMA)
• EMA provides information about the business
including
– Competitors
– industry trends
• EMA utilises Data Mining and OLAP Technologies
which have been covered earlier in this module.

78. Customer service and support (CSS)
• CSS automates
– service requests
– Complaints
– product returns
– information requests.
• call-centre support for customer inquiries has
evolved into the customer interaction centre (CIC) -
uses multiple channels (Web, phone/fax, face-to-
face, kiosk, etc).
• CSS technology is database oriented and is
underpinned by Service Level Agreements (SLAs)

79. Service Level Agreements
A Service Level agreement:
Is a contract with a customer which
• Defines the Level of service to be
provided thereby eliminating unrealistic
expectations.
• Enables the management of complaints
/comments
• Facilitates performance monitoring

80. Example
1. Help Desk
2. Accident and emergency units

81. Setting expectations
• Customers are happy when
– a supplier under-promises and over-delivers
– a supplier delivers the correct order on time
– a supplier routinely exceeds expectations
• Service level agreements mean that the
customer knows what to expect and this sets a
benchmark for their judgement of the service.

82. Complaints
• A complaint can be viewed as
- a useful measure of performance
- guidance for improving quality
- an opportunity to increase customer loyalty
• A complaint may be categorised based on how far
outside of the service level agreement the service
received was.
• Expert handling of complaints can increase customer
loyalty and referrals.

83. Handling complaints
• Once categorised, complaints can be handled
electronically in a uniform way by a good CRM
system.
• They are viewed positively by organisations and
MUST be responded to positively.
• Usually response includes
– An apology (for inconvenience caused)
– An assurance that the complaint has been taken seriously
and quality is being improved
– A marketing gesture eg. Discount voucher.

84. Performance monitoring
• Ability to produce performance
exception reports leading to the
possibility of targeted marketing
to reduce churn
• Identification of problem areas
leading to the possibility of
quality improvement

85. Goal of Analytical CRM
• To develop insight into customers’ needs.
• To determine what other products and
services you can sell to your customers in
order to increase the Average Revenue Per
User (customer) ARPU.

86. Benefits to Business
• Segmentation of customers to feed into enterprise
marketing (EMA) systems
• Identifies customers in danger of churning
• Aids Decision Making

87. Customer segmentation
It is useful to segment customers for targeted marketing
campaigns:
• Customers most and least likely to repurchase product)
• Profitability analysis (which customers lead to the most
profit over time)
• Personalisation (the ability to market to individual
customers based on requirements)

88. Other Analyses
• Design and execution of specific customer
campaigns, including cross-selling, up-selling
• Analysis of customer behavior to aid product and
service decision making (e.g. pricing, new
product development etc.)
• Management decisions, e.g. financial
forecasting and customer profitability analysis
• Prediction of the probability of customer
defection (churn analysis)

89. Goal of Collaborative CRM
• Collaborative CRM's ultimate goal is to use information
collected from all departments to improve the quality of
customer service
• This requires a clear contact management strategy
which enables everyone in an organisation to see who is
talking to who.

90. Business Benefits
• Enables efficient productive customer interactions across
all communications channels
• Enables web collaboration to reduce customer service
costs
• Integrates call centres enabling multi-channel personal
customer interaction

91. Aim
• Collaborative CRM aims to get various departments within
a business, such as sales, services and marketing, to share
the useful information that they collect from interactions
with customers.
• Feedback from a technical support center, for example,
could be used to inform marketing about specific services
and features requested by customers.
• Collaborative CRM facilitates interactions with
customers through all channels (personal, letter, fax,
phone, web, e-mail) and supports co-ordination of
employee teams and channels. It is a solution that
brings people, processes and data together so
companies can better serve and retain their
customers.

92. E-CRM and M-CRM
• E-CRM allows customers to access company services
electronically
• M-CRM allows customers or managers to access the
systems for instance from a Smartphone or Tablet
with internet access, resulting in high flexibility.
• An example of a company that implemented M-CRM
is Finnair, who made it possible for their customers
to check in for their flights by SMS.

93. What makes CRM fail?
• The main risk factors of implementing a CRM
strategy may be:
– Lack of CRM planning – no strategy
– Underestimating implementation costs, timeframes
and organizational commitment
– Poor front and back-end integration
– Not being customer focused or customer centric
– Political friction within the organization stifles the
sharing of customer information
– Initiatives are driven by technology rather than by
customer strategy and service process design

94. Implementing CRM:
1. When introducing or developing CRM, a
strategic review of the organisation’s current
position should be undertaken
2. Organisations need to address four issues :
I. What is our core business and how will it evolve
in the future?
II. What form of CRM is appropriate for our
business now and in the future?
III. What IT infrastructure do we have and what do
we need to support the future organisation
needs?
IV. What vendors and partners do we need to
choose?

95. Process to implement CRM :

96. Video Demo CRM Online Microsoft
https://youtu.be/Kc0xXxqgtM0