customer relations management class 6 - lo205 - jan. 24,2001
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Customer Relations ManagementClass 6 - LO205 - Jan. 24,2001
Lecture by Judith Molka-Danielsen
References (not required to read): *“Electronic Commerce: A Manager’s Guide”, Ravi Kalkota and Andrew B. Whinston, Addison-Wesley, chapter 11, 1999. *Related power point notes from Michael Spring, U.of.Pittsburgh, 2000.*“The E-business Revolution”, Daniel Amor, Hewlitt-Packard Professional books, ch.5, 1999.
Overview Summary of Turban Chapter 3, prelude to this. Motivation of Customer Relations Management CRM Subsystems -
– Marketing Management (MM), – Sales Force Automation (SFA), – Customer Service and Support (CSS)
Web Design Rules On-Line Measurement
Turban Ch.3 Summary 1. Consumer behavior - Vendors control the
parts of Logistics, Support Technology, and Customer Service and Support Systems
2. It is important to know customer characteristics
3. It is important to understand the customer decision making process– to understand where you can influence customer
behavior– Intelligent Agents can be used in some steps
Turban Ch.3 Summary 4. Build One-to-One relationships with
customers. – Boost loyalty– boost trust– One-to-One include software to trigger special offers
• BroadVision - recognizes customers and displays products relevant to them.
• Cold Fusion - tool for rapid application development and site design.
• GroupLens - collaborative filtering, with rating services, for contents and products.
• WebObjects - serve data from legacy databases to on-line visitors.
Turban Ch.3 Summary 5. Implement Customer Service to
– retain customers - Look at Web Site Design (Content is King).
– satisfy new needs 6. Doing Market Research involves
– understanding segments of products and groups– classification of customers
Turban Ch.3 Summary 6. (cont.)Doing Market Research involves
– using Data Mining tools to • predict trends, find hidden patterns, find what is ordered
together• Algorithms use association, sequences, classification,
clusters, and forecasting techniques.
– Collect samples on the Internet • larger is better• voluntary through surveys, data accuracy limitations• involuntary through tracking movements, (ie. Cookies)
– Ernst & Young market research: on-line retailing
Turban Ch.3 Summary– Ernst & Young market research: on-line retailing
ProductSegment
Clothes Electronics Toys Food Beauty
HighestSatisfactionRating %
.33 .41 .50 .44 .50
Criteria withGood Rating
quality,ease-use
selection,price,ease-use,quality
quality,selection,cust.svc.,ease-use
quality,selection,cust.svc.,ease-use
quality,ease-use,price,selection,offers,cust.svc.
Turban Ch.3 Summary 7. Intelligent Agents - provide
– auto replys– analyze movements– learn customer behavior and needs
8. Organizationl buyer behavior model– follow organizational purchasing guidelines and
constraints– involve interpersonal influences (power, politics)
Overview Summary of Turban Chapter 3, prelude to this. Motivation of Customer Relations Management CRM Subsystems -
– Marketing Management (MM), – Sales Force Automation (SFA), – Customer Service and Support (CSS)
Web Design Rules On-Line Measurement
B2B Inputs
Manufacturing Process Management
Logistics
Management
Customer Relations
Management
SupportServices
Financial Management
Customer Relations Management
“Pull” supply chains are based on linking customer information gathering to the upstream business processes
CRM involves the integration of traditionally separate systems– Marketing Management– Sales Force Automation– Customer Service and Support
The Motivation of CRM
Marketing and sales account for 15-35% of costs
Customer input can lead to better products Current customers are a predictable source of
future sales Customer assets can be valued as a part of
acquisitions and mergers Customers increasingly expect high quality
personalized service
CRM-MMMarketing management Marketing has been based on product,
price, and promotion Marketing in a global economy across
multiple product categories using different channels requires better tools
Ultimately, customer driven marketing makes it essential to gather customer input
CRM-MMGoals Provide data for data mining and
OnLine Analytic Processing(OLAP) Provide real time accurate data Allow for better inventory management
and input into promotions and sales Provide trend analysis data across
channels to drive operation
CRM-MM
sales
operations
customer
OLTP
System
Data extraction validation integration
OLAP
Data analysisBusiness
Intelligence
Modeling
Visualization
Statistics
Profiling
LocalAccess
InternetAccess
CRM-SFASales Force Automation Two goals in sales force automation
– Support the sales person in the field– Economically integrate sales information increasing
corporate wide coordination A good system will:
– Support salesperson and telemarketing productivity– Automate selected sales processes– Maintain direct mail and email systems– Support sales and marketing management including
compensation management
CRM-SFASupport of Sales Representatives Provision of marketing materials, price
lists, business intelligence online Provision of customer leads and
information captured from all sources Prequalification of sales prospects and
classification of customers Provision of real time product availability
and order entry information
CRM-SFASome basic examples Web information requests are processed
– Through a standard set of followups– To the appropriate sales person– Automated tickler systems
Tracking of contacts – Prospects stored for future use– Datamining of prospects
Provide information– To sales people about current pricing inventory etc,– To other company support units to enhance sales
CRM-SFAMore sophisticated examples Develop intelligent-agents to acquire news
items and competitor information for distribution to the sales force and management
Develop analysis tools to detect trends in customers and sales
Develop network based push promotion and information dissemination
Provide online customer controlled input and tracking information
CRM-CSSCustomer Service and Suppport Customers are increasingly defined as
an important company asset The Web makes new forms of customer
support possible and cost-effective The Web can serve both as a way to
reach out to customers and as a way for them to reach into the company
CRM-CSSGoals Lower support costs Provide global access Create proactive services Empower customers to solve issues
independently Provide an opportunity for customers to
input into the business process
CRM-CSSBasic Processes Provide the customer with product update
information, fixes, new product information Provide a simple registration system that
gathers:– User demographics– Product satisfaction– Agreement to receive targeting notifications
CRM-CSSAdvanced Processes Link sales information and customer ID for
telephone help desk support Use a workflow system to track resolution of
customer issues through involved departments
Feed problem reports lead into research and development operations for action
Use problem tracking data feed into manage operations and field service personnel
Overview Summary of Turban Chapter 3, prelude to this. Motivation of Customer Relations Management CRM Subsystems -
– Marketing Management (MM), – Sales Force Automation (SFA), – Customer Service and Support (CSS)
Web Design Rules On-Line Measurement
Web Design Rules Content - focus first on content and then on design.
Never let users leave your site without giving them information, so they will come back.
Consistency - design your site with consistent content quality, do not bore the customer. Images should give information, not irrelevant images.
Density - break content into small pieces, that fit together. Short pages. Information over pages. No more than 10 links from a page.
Design - use few colors, color theme for pages connected with your site. If possible, give users a choice of format for document download type. Let users decide the sequence that they visit pages (escape from demos).
Size - use small graphics with large impact.
Overview Summary of Turban Chapter 3, prelude to this. Motivation of Customer Relations Management CRM Subsystems -
– Marketing Management (MM), – Sales Force Automation (SFA), – Customer Service and Support (CSS)
Web Design Rules On-Line Measurement
On-Line Measurement Counting can be done by web site owners. They
use web server log files. Can count visits to web pages too. – The counts can be inflated: visits from spiders, visits
from yourself, criteria to increase count after every refresh even within the same session.
– The counts can be under-counted: ISPs save pages in cache files, so the user might see an old copy even between sessions (opening the browser). Proxy servers relay requests from users making 1000 people appear like 1.
– Server can use cookies, but you cannot force users to accept cookies from a web server.
On-Line Measurement Counting - Continued
– Page Views - are all the pages that were viewed by on-line customers.
– Visits - are all page views by a single on-line customer.
– Automated log file analyzers - can import data into a propriatary database to analyze traffic. Can produce graphical reports, tables, charts.
– On-line rating agencies - add software on the users PC to monitor use, instead of at the server.
– Third Party Auditing - I/Pro http://www.ipro.com and MatchLogic http://www.matchlogic.com/ offer programs to address problems with firewalls and proxy servers. (Java applets must be allowed through.)
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