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1. Customer Relationship Management /1
• The use of information to create
Customer Relationship and enable repetitive sales and
Management support processes,
• To generate a value proposition
In any rapidly changing business that increases customer value
environment it is essential to manage and loyalty
the expectations and quality of service • The ability to increase or
and support to the market. Serious flaws institutionalize pro-activity
in this area have emerged in relation to
the management of service consistency To achieve these in a multi channel
and customer care. This section provides organization a supplier of CRM
interesting research and guidance from applications must ensure the ability to
DHL and other sources that will assist in support and drive integration across all
avoiding problems in this critical area. relevant channels and functions.
The consistent and effective Establishing CRM successfully
management of the customer
relationship across all channels and
To establish a successful CRM
functions within an organization is a key
installation, changes will be required
competitive differentiating and success
within the organizational processes, data
factor for any evolving Business.
and operation of the customer
management.
Customer relationship management
Some of the changes required are:
(CRM) can be defined as an integrated
set of business processes and enabling
• Establishing and implementing
technologies in support of a consistent
the key information sets that
entry, management and use of customer
identify the customer
related information across and between
appropriately
channels of sales and service.
• Establishing a consistent set of
data that describes customer
The essence of Customer activity
relationship Management • Establishing consistent data and
business rules in gathering,
At the heart of CRM is the issue of data processing and storing data
and relationship ownership. In the past, • Reengineering established and
marketing or sales have been deemed to emerging channels to comply with
own the customer. In the CRM model CRM requirements
any single entity or function does not • Reengineering established
own the customer. The customer is information and support
managed cooperatively by all the parties processes to reflect available
with a customer contact responsibility or normalized data
service provision / support role. • Management of change in any
application or process related to
The purpose of CRM remains the same CRM support, feed or
as that of existing customer presentation
management processes. These are: • Integration of manual and on-line
processes to be mutually
• The growth of business by supportive
leveraging existing relationships,
• Using information available to Should any of the above not be
improve the customer achieved, then islands of data and
relationship, process will remain un-integrated and
add time, cost, inconsistency and
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2. Customer Relationship Management /2
inefficiency throughout the entire supplier to investigate and
organization. introduce innovative new
services at an individual,
What should CRM contain? corporate or industry level.
Any successful CRM implementation • Application and process
integrates the following integration
• Customer Detail Information This looks to ensure that the
organization's internal application set is
This provides a total view geared to integration in support of the
of all activities and customer relationship. Here an
information related to the organization looks to have access and
customer, their activities, normalize all information from Legacy,
their interactions and their emerging and future applications and
stated or intimated needs processes in support of a single
consistent but customizable view of the
• Modes and means of contact or customer for all functions and support
service provision activities.
This defines the channels of access From Islands to Integration
the customer has operated within in
the past and future channel needs The organization into which CRM is
and allows the activities performed introduced must also change. Traditional
over each channel to be codified to a concepts of ownership and responsibility,
single, integrated, consistent contribution and value projection have to
relationship history. be addressed. The introduction of CRM
requires present isolated and
• Services, processes or support uncoordinated players in the customer
used relationship to realign to focus on the
relationship as a collegiate responsibility
to which all cooperatively contribute and
This identifies the
gain reward. Failure to ensure that this is
elements of the
the overriding and explicitly stated
organization offer that the
objective of the implementation of CRM
customer has used in the
will cause the project to deliver less
past. This information can
benefit internally and externally.
be used to illustrate
customer trends in service
This can only be achieved through the
use, trends, patterns of
inclusion of all stakeholders, realignment
use and allows proactive
of their focus in relation to the customer
offers or channel transition
and a singular focus on creating a totally
suggestions to be made to
consistent customer support resource for
them.
the customer and the organization.
• Relationship information on other
relationship stakeholders
The role of the customer in
CRM
No customer or supplier
relationship operates in The essential purpose of CRM is to
isolation. Understanding maximize organizational effectiveness
the precursors to a trade and efficiency in the servicing of and
and the follow-on benefit from customer needs. This is a
relationships of the learning and analysis process that is
customer allows the generally focused on active customers.
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3. Customer Relationship Management /3
This, whilst central to the organization's • Customer analysis
operational efficiency, should be
augmented with careful analysis of Analyze existing and past
customers no longer trading with it. customers to have a truly
rounded view of the
Every lost customer is a lost opportunity organization strengths,
for additional revenue and growth. weaknesses, opportunities
However it is also an opportunity to and threats. Competitive
identify failings or inadequacies that the benchmarking is a critical
customer felt compelling enough to force element of this process as
them to embark on a process of it identifies external offers
changing suppliers and initiating the more attractive to past
development of a new relationship. customers and potentially
to existing ones also. This
In support of any CRM project, special process should also
attention should be focused on lost include the analysis of
customers and their perception of the internal customers.
organizations failings. Generally the
feedback received will be very precise
• Scope the project and its
and a very good indicator of issues that
objectives
many existing customers may have but
have yet to feel are sufficient to force
change. In this process the
organization carefully
Existing customers will also illustrate analyses the entire
weaknesses and strengths. The organizational scope of the
strengths should be the core of the CRM customer relationship,
initiative and the weaknesses the core of their channels, services
development in support of a fuller products and support
management offer in support of the already in place. From this
customer. Once addressed and in place a clearly defined,
there then exists the opportunity to re- organizationally agreed,
contact lapsed or lost customers to sell focused project description
the new offer to them. is created.
It should be realized that customers • Create the business case
might have a very tactical view of the
service and support offer made. This The business case must be
tactical view and feedback must be created in a manner that
carefully merged to the strategic identifies the business
objectives the organization has for the problem across the
CRM project. Only through the correct organization and the
balance of the tactical and strategic can individual functional and
CRM projects address today`s needs in a overall benefits that can
manner which allows flexibility to be gained from a CRM
address future situations. project. The CRM business
plan must illustrate and
Moving Forward make clear that no single
solution will deliver
Where the decision is made to progress everything all at once.
with a CRM initiative there are a few CRM is an evolutionary
simple but relatively standard steps that process that will require
are needed to assist in the successful consistent, multi year
delivery and operation of the final resourcing for people and
deliverable. budgets.
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4. Customer Relationship Management /4
• Cross integrate CRM strategy to management empowered
the existing Organizational to align disparate functions
strategies and processes will increase
the opportunity for failure.
All organizations have All functions should be
business, technical and, in tasked to participate and
most cases, customer care contribute key knowledge
strategies already in place. personnel to the process.
The CRM strategy must be Delivery of the CRM
fitted to the framework of objectives should be a
existing strategies. stated Key deliverable and
Equally, because of the metric for all managers in
strategically important the affected functions.
nature of CRM, existing
strategies have to be • Stage the implementation process
reviewed to ensure
alignment at a business, CRM is a rapidly evolving
technical and customer field. The complexity of
care objectives level. The aligning the internal
objectives arrived at must processes and functions is
support and be supported enormous and if not rolled
by those of the core out in manageable
organizational strategies. sections will overwhelm
the organization`s ability
• Technology choice will be critical to integrate its
capabilities. Equally the
No existing CRM package staging of the rollout
will fulfill all your allows the organization to
immediate needs. The review both the strategy
CRM strategy needs to and the priority schedule
identify, in priority order, to reflect changing market
the requirements that and user needs / trends.
must be delivered in
sequence. This allows the • Allow no exceptions
technical teams to clearly
vet the technology offers CRM can only be
in line with their ability to successful where it
address the organization`s guarantees a consistency
priorities. Ease of doing of customer management
business and integration and service across all
simplicity must be key channels, functions and
criteria for application processes. An organization
choice. ill prepared to align all
channels, functions and
• Simplify project management processes in support and
use of the CRM
The organization must deliverables has
appoint one single undermined the project
accountable and from the beginning.
empowered manager to
deliver against the • Measure the process
strategy. Failure to have a
distinct leader, explicitly CRM will, where staged deploy into an
supported by senior organization that will have existing and
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5. Customer Relationship Management /5
new processes running in parallel for a
period. It is critical that the metrics used
allows the value of both existing and new
processes to be measured to comparable
criteria. This allows the effectiveness of
the new to be measured against the old
and allows for business plans to be re-
addressed to ensure reality is reflected in
them. These consistent measures also
allow processes to be analyzed to see
inefficiencies or gains that are less that
projected. This allows ongoing
realignment of the processes and
supporting technologies to provide
expected or better service levels.
Some Things to remember
• A dissatisfied non-Internet
customer tells on average 9
people of their bad experience. A
dissatisfied Internet customer can
tell the world.
• Selling to an existing customer is
500% cheaper than selling to a
new customer
• A 5% customer retention
improvement can increase
profitability by 85%
• Good customer care will ensure
that 70% of complaining
customers trade again
Existing customers are successfully sold
new products in 50% of cases. For new
customers the figure is 15%.
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