Download CRM has been defined in a multiple ways

CRM has been defined in a
multiple ways
- A way to identify, acquire, and retain customers
- A way of automating the front office functions of
sales, marketing, and customer services
- Vendors: whatever their current product may be
Meeting Customer-Knowledge
Management Objectives
- Segment the customer base
- Prioritize customer
- Know what your customer want to know
- Understand your customer behavior
- Engender customer loyalty
- Innovate existing products
- Extend products or services
- Improve success in cross-selling
Data Mining
It is the search for actionable patterns in data
It rest on three legs:
- Business Needs
- Data
- Data Mining Techniques
Data Mining Tools
There are a handful of leading tool vendors that
offer powerful algorithms (decision trees, neural
networks, and clustering:
Silicon Graphics (Mineset)
SAS (Enterprise Miner)
IBM (Intelligent Miner)
ISL (Clementine)
Angoss (KnoledgeSTUDIO)
Thinking Machines (Darwin)
CRM
Is a technology-enabled business strategy
whereby
companies leverage increased customer knowledge
to build profitable relationships,
based on optimizing value delivered to
and realized from their customers.
CRM
- It is a strategy, not an application, technology,
or suite of products
- It is not a grassroots initiative
- It is for B2B and B2C
- No one vendor provides all needed applications
A great CRM strategy includes:
- Realign / reinvent business processes
- Use the full range of technology
- Sell the company as well your wares
- Use technology to maximize customer contacts
- Put current application to strategic use
A Strategic
Framework
for CRM
Offer
targeted
products/
services
Capture/
integrate
customer
information
Create
customer
profile
Implement
targeted
customer care
relationship
program
Increased
customer
knowledge
Segment
customers
by potential/
profitability
LEGEND
Knowing your customer
Divesting customers
Increasing value-add
Capturing increased value
Customer interaction
Customer base
Ultimate benefits
Increased
customer
loyalty
Implement
targeted
marketing
programs
Create
flexible
integrated
channel
architecture
Implement
targeted
sales
campaigns
Divest
unprofitable
customers
Increased
prices
Increased
value-added
for the
customer
Increased
customer
revenues
Increased
customer
base
Increased
marketing/sales/
customer care
effectiveness
Increased
marketing/sales/
customer care
efficiency
Increased
profits
Improved
customer
acquisition
Decreased
costs
Technological
Underpinnings of CRM
- Database --not simply storage capacity,
but the ability to analyze and map data
- Interactivity --Websites, call centers, and any
other means used to interact with customers
- Mass customization --or standardization,
enabling to break products/services into
modules or templates
CUSTOMER VALUATIONS
Uniform
Highly
differentiated
Who Needs CRM?
III
IV
Airlines
Packaged goods mfrs.
I
Pharmacies
Computer firms
II
Gas stations
Bookstores
CUSTOMER NEED
Uniform
Highly
differentiated
Interesting Resources
CRM UNIVERSE
http://www.crmuniverse.com/
CRM FORUM http://www.crm-forum.com/
ECRM GUIDE http://www.ecrmguide.com/
Changing Customer
Expectations
FROM
TO
Focused on making/selling
products
Sensing customer needs and
responding with products
Mass marketing (e.g. TV)
Marketing to segments of one
Business-centric interactions Customer-centric interactions
designed for efficiency and designed for customer’s
convenience
efficiency and convenience