2.1 relationship marketing - operational and analytic crm 2016 short

Customer Relationship Management

Relationship Marketing: Operational and Analytic CRM

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

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

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.

The Marketing Challenge: The Relationship Marketing Solution

Time Horizon. Market Segmentation. Product or Service Design. Market Research. Marketing Communications. Customer Service. Pricing.

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.

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.

Example: Not target but PersonasInformazione Profilo A Profilo B Profilo C

FotoNome profilo referente ICT piccola azienda Professionista / socio studio imprenditore piccola aziendaEtà 30-40 35-45 35-50Sesso M M MDimensione 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 collaboratoriArea aziendale ICT Avvocato, commercialista DirezioneRuolo aziendale esperto tecnico Socio o proprietario CEO o top managerLivello aziendale funzionario o cosnulente esterno Socio o proprietario Manager o socioGenerazione di riferimento X baby boomers, X baby boomers, XBudget a disposizione ICT 20.000 € 30.000 € 50.000 €Tempo passato online 10 ore al giorno 4 ore al giorno 2 ore al giornoPunto di accesso uffi cio, casa, cellulare uffi cio, casa uffi cio, cellulareVelocità di connessione Larga banda Larga banda Larga bandaTipo di device PC, laptop, server, smatphone portatile, desktop ipad, portatile smartphone

Cosa cerca onlinesiti 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 oreAttitudine al web alta media poca

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.

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.

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.

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.

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.

Relationship Marketing

CRM

From transaction-based marketing to relationship marketing…

• Transaction–based marketing (Simple exchanges)

• Relationship marketing– Lifetime value of a customer– Converting new customers to advocates

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 MarketingDirect Marketing

practicesBooths at community fairsVisit community eventsPhone calls to key individuals

in the communityCultural guidesPartnership with other

community programs

Ethnic Marketing:Consider ethnic diversity of the

target groupDetermine the level of ethnicityDevelop and implement your

campaign based on those two factors

IS NOT

From transaction-based marketing to relationship marketing…

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


• 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.

Aspects of customer relationship management1. 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


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.

Steps to implement a Relationship MarketingSteps 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.

Example:Barilla

http://www.nelmulinochevorrei.it/

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

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.


• 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.

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.

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.


• 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

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

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.

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

Building Customer Loyalty

Five customer loyalty promotions examples:

1. Develop catalog with Gifts available with proof of purchase2. Establish an ‘insiders’ or ‘special privilege’ club3. Create a prestige offering, made both of practical benefits

and self-image symbols4. Establish an apparently personal relationship via social

networks5. Provide extra conveniences that have secondary purpose

of increasing consumption

Examples

http://www.nelmulinochevorrei.it/

Example

• Electricity 100% from renewable sources

• Customer connections drive big discounts

• Customer can become Energy Broker and sell the “vision” and the products

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


• 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


• 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)

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)

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.

Customer Evaluation

Valuing High Growth Businesses

1. Traditional finance approach»Price/Earning ratio

2. Marketing approach–Customer Lifetime Value (CLV)

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.

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.

Relationship Lifecycle

Customer relationship lifecycle Baines, et al, 2011, p. 568

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

Opportunity Management in a Relation Marketing Framework

10 minuti

Exercise

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

Behavioral brand loyalty

Measured by proportion of purchase:

• Undivided loyalty AAAAAAAAAA• Occasional switcher AAABAAACAA• Switched loyalty AAAAAABBBB• Divided loyalty AAABBBAABB• Indifference ABCDADCDBD

Loyalty Ladders

Partners

Clients

Customers

Prospects

Members

Advocates

Partners

Clients

Repeat Cust

Prospects

Members

Advocates

1st Time Cust

SuspectsTrad

ition

alM

arke

ting

Rela

tions

hip

Mar

ketin

g

Payne et al 1995 Kotler 1997 Baines, et al 2011

Types of Loyalty

Source: Baines, et al (2011, p. 573)

How much are customer worth?Acquired Customer

Base Year Value US$ millions Acquirer Thousands of

CustomersPer 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

Utility customer lifetime value

Customer Lifetime Value

Customer Loyalty

Gradient represents customer profitability

Length of Relationship (Months)

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 -


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


• 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.

rirmCLV

1

Exercise 1

• Post-paid cellular mobile phone subscription:• Monthly payment: $ 25• COGS: $ 15• Retention rate 50%• Discount rate 10%

• Calculate the CLV

Finite

CLV = 10 x (0.5/(1-0.4))= 10 x 0.83333= $ 8.334 per month

per customer

rirmCLV

1

Exercise 2 - Sehat Sentosa Gym

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

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%

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

Managerial question

Sehat Sentosa Gym currently faces two options to boost revenue1. 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?

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%

Customer Touch Points

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’.

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.

CRM StrategiesCustomer 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 ProductivityEnhance your e-business strategies.

Total Customer Development™ Hierarchy

Interactive Marketing 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

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.

Types of Customer Relationship Management

Operational CRMAnalytical CRM

Collaborative CRM

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.

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

Components of Operational CRM

• Sales force automation (SFA)

• Enterprise marketing automation (EMA)

• Customer service and support (CSS)

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.

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.

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)

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

Example

1. Help Desk2. Accident and emergency units

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.

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.

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.

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

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.

Benefits to Business

• Segmentation of customers to feed into enterprise marketing (EMA) systems

• Identifies customers in danger of churning• Aids Decision Making

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)

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)

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.

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

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.

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.

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

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?

Process to implement CRM :

Video Demo CRM Online Microsoft

https://youtu.be/Kc0xXxqgtM0

2.1 relationship marketing - operational and analytic crm 2016 short

Documents