database systems – crm definitions crm - customer relationship management crm usually refers to a...

Database Systems – CRMDatabase Systems – CRM

DEFINITIONSDEFINITIONS

CRM - Customer Relationship ManagementCRM - Customer Relationship Management

CRM usually refers to a strategic solution that helps businesses CRM usually refers to a strategic solution that helps businesses identify the most profitable customers, customer needs and buying identify the most profitable customers, customer needs and buying habits, and helps pinpoint problems in the sales and fulfillment cycle. habits, and helps pinpoint problems in the sales and fulfillment cycle.

In short, CRM is designed to build and maintain relationships with In short, CRM is designed to build and maintain relationships with customers.customers.

CRM is the strategic use of information, processes, technology, and CRM is the strategic use of information, processes, technology, and people to manage the customer’s relationship with your company people to manage the customer’s relationship with your company across the whole customer lifecycle. across the whole customer lifecycle.

CRM presents a single view of a customer – a customer centric CRM presents a single view of a customer – a customer centric approachapproach


Direct Mail TargetingDirect Mail Targeting


USES AND REASONSUSES AND REASONS

CRM softwareCRM software packages (solutions) are made to solve business packages (solutions) are made to solve business problems. The business problem usually isn't a lack of information;but problems. The business problem usually isn't a lack of information;but the inability to take action that is based on that information. the inability to take action that is based on that information.

There is not one single software package that can force business to take There is not one single software package that can force business to take action on the information that they have gathered.action on the information that they have gathered.

Software is there to facilitate that action and allow for the information to Software is there to facilitate that action and allow for the information to be used in meaningful and actionable programs, that establishes and be used in meaningful and actionable programs, that establishes and builds customer relationships. builds customer relationships.

Who should implement CRM? Who should implement CRM? – Any business that needs to do the following should implement CRM:Any business that needs to do the following should implement CRM:

understand their customers understand their customers respond to their customer needsrespond to their customer needs apply sales and retention dollars to the right placesapply sales and retention dollars to the right places offer products and services that are valuable to their customersoffer products and services that are valuable to their customers


HYPE VS. REALITYHYPE VS. REALITY

CRM does not always live up to it’s hype. This is often because:CRM does not always live up to it’s hype. This is often because:

Lack of PlanningLack of Planning– Some companies fall for a hard sales pitch and buy Some companies fall for a hard sales pitch and buy

packages that do not include features they really needpackages that do not include features they really need

Lack of understandingLack of understanding– Others buy systems and features that are more complex Others buy systems and features that are more complex

than what they were led to believe these applications would than what they were led to believe these applications would bebe

Implementation IssuesImplementation Issues

Lack of SkillsLack of Skills– Not having right skills in IT and marketingNot having right skills in IT and marketing


HYPE VS. REALITYHYPE VS. REALITY

Company Culture and PhilosophyCompany Culture and Philosophy– Product Centric vs. Customer Centric Product Centric vs. Customer Centric – Desire for quick resultsDesire for quick results– Search for silver bulletSearch for silver bullet

CostCost– High cost of CRM implementation (if you buy everything)High cost of CRM implementation (if you buy everything)– Longer ROILonger ROI

ComplexityComplexity– Systems are too flexible, therefore, are complicated at same Systems are too flexible, therefore, are complicated at same

timetime


HOW TO AVOID THE TRAP?HOW TO AVOID THE TRAP?

The best method is simply to assess the firm's needs realisticallyThe best method is simply to assess the firm's needs realistically– Let business needs drive technology, not the other way Let business needs drive technology, not the other way

aroundaround– Ask questions before making a decisionAsk questions before making a decision– Hire experts to evaluate the needs and recommend right Hire experts to evaluate the needs and recommend right

solutionsolution

Compare those needs with the features of the CRM application Compare those needs with the features of the CRM application being consideredbeing considered

– Don’t let sales team dictate business solutionDon’t let sales team dictate business solution– Don’t let internal IT decide features that they think are Don’t let internal IT decide features that they think are

importantimportant

Check references and consult with them Check references and consult with them

Don’t buy more than you can handleDon’t buy more than you can handle


WHAT’S IMPORTANT TODAY?WHAT’S IMPORTANT TODAY?

In terms of features:In terms of features:

1.1. Applications' ease of use by business usersApplications' ease of use by business users

2.2. Advanced analyticsAdvanced analytics

3.3. Ability to support a centralized master customer data Ability to support a centralized master customer data systemsystem


CURRENT CRM AT PEP BOYSCURRENT CRM AT PEP BOYS

Campaign ManagementCampaign Management– About 7 million pieces of mail About 7 million pieces of mail – Ongoing direct mail using single or two stage segmentationOngoing direct mail using single or two stage segmentation– Ad-hoc direct mailAd-hoc direct mail

Campaign ReportingCampaign Reporting– Tracking responsesTracking responses– Developing data for analysisDeveloping data for analysis

Learning from “doing it”Learning from “doing it”


FUTURE OF CRM AT PEP BOYSFUTURE OF CRM AT PEP BOYS

Smarter Customer SegmentationSmarter Customer Segmentation– Target better - Get more from lessTarget better - Get more from less– Use analytics to learn about customersUse analytics to learn about customers– Use campaign management to take action Use campaign management to take action

Advanced AnalyticsAdvanced Analytics– Develop customer profilesDevelop customer profiles– Develop tracking of customer behaviorDevelop tracking of customer behavior– Update campaigns based on analyticsUpdate campaigns based on analytics

Loyalty ProgramsLoyalty Programs– Reward customers who improve and change behaviorReward customers who improve and change behavior– Reward customers who maintain spendingReward customers who maintain spending


DRM SOFTWARE BUNDLE AT PEP BOYSDRM SOFTWARE BUNDLE AT PEP BOYS

Siebel eMarketing 7.5.2Siebel eMarketing 7.5.2 Siebel Analytics 7.5Siebel Analytics 7.5 Informatica (ETL Tool) 5.1Informatica (ETL Tool) 5.1 SPSS Predictive Analytics BundleSPSS Predictive Analytics Bundle Data Cleansing ServiceData Cleansing Service


CHALLENGES FOR THE “OUT OF THE BOX” SOLUTIONCHALLENGES FOR THE “OUT OF THE BOX” SOLUTION

Will the software work in my environment?Will the software work in my environment? Multiple PlatformsMultiple Platforms Multiple VendorsMultiple Vendors What are the hardware requirements?What are the hardware requirements? How much data do we need to keep?How much data do we need to keep? How can I get all these vendors on the same page?How can I get all these vendors on the same page? How can I satisfy all requirements in the allotted time within my budget?How can I satisfy all requirements in the allotted time within my budget?


CRM DATA FLOWCRM DATA FLOW

Data Sources

Data Cleansing(Contacts)

Data Warehouse

CRM

Data Mining

OrdersLine ItemsVehicles

60%


FUTURE TECHNICAL INITITIVESFUTURE TECHNICAL INITITIVES

Stay Current / UpgradeStay Current / Upgrade Real-Time CleansingReal-Time Cleansing Mining the DataMining the Data Centralized Data SourceCentralized Data Source


LESSONS LEARNEDLESSONS LEARNED

• Engage all stakeholders at beginning

• Know Your Partners(Low Cost not best)

• Start Small, Learn, Then Grow

• No Substitute for Experience

• Have a Technical and Business Plan

• Know Your Data

• No Store, Service input

• Inexperience, mistakes = delays

• No quick hits, I.e. No quick Returns

• No In-House CRM Expertise

• Technology in Place; how do we use it?

• Campaigns yielding unexpected results

Lesson Impact

Lessons LearnedLessons Learned

•Engage all stakeholders at beginning

•Know Your Partners(Low Cost not best)

•Start Small, Learn, Then Grow

•No Substitute for Experience

•Have a Technical and Business Plan

•Know Your Data

•No Store, Service input

•Inexperience, mistakes = delays

•No quick hits, I.e. No quick Returns

•No In-House CRM Expertise

•Technology in Place; how do we use it?

•Campaigns yielding unexpected results

Lesson Impact

database systems – crm definitions crm - customer relationship management crm usually refers to a...

Documents

customer relationships

customer lifecycle

customer needsapply

customer centric desire

business problems

timedatabase systems

business solutiondont

crm application