a framework for customer relationship management by russell s. winer presented by team jjems john...
Post on 20-Dec-2015
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A Framework forCustomer RelationshipManagement
by Russell S. Winer
Presented by Team JJEMSJohn Follett Article Synopsis
Matt Baker The Business Case for CRM
Judi DeBord How to Implement CRM
Eric Nill Infrastructure and Examples
“The essence of the information technology revolution and, in particular, the World Wide Web is the opportunity afforded companies to choose how they interact with their customers.” Russell Winer
What is Customer Relationship Management (CRM)?
Some say the new “mantra” of MarketingTracking Customer BehaviorPredicting Future Customer Communicating with Customers
Results:Allows Management to better focus marketing effort
1:1 MarketingLCV “Lifetime Customer Value”
Customer Relationship Management Model
(7 basic components) Create a Database
Analysis
Customer Selection
Customer Targeting
Relationship Marketing
Privacy Issues
Metrics
The Business Case for CRM
Who Are Our
Profitable Customers?
Retention = Net ProfitsReichheld
Repeat vs. New Customer
Mckinsey
Data Driven Approach !
Customer Buying Data
LCV Analysis
Customer Segmentation
Customer Focus Strategy
CRM
Tools for Building Customer Relationships
1:1 Marketing
• Develop Relationship• Cost Effective• Begin Dialog
CustomerService
• Proactive v. Reactive• Touch Points• Customers have Choices
LoyaltyPrograms
• Cost Effectiveness• Switching Costs• Web Shopping – Loyal Behavior
CommunityPrograms
• Connect to Peoples Interests• Support Communities
The Business Case for CRM
Sales Process
Visibility
Predictability
Consistency
Scaleability
Sustainability
• You can’t manage what you can’t measure;• If you can’t see it, you can’t measure it;• If you can’t measure it, you can’t understand it;• If you can’t understand it, you can’t improve it.
The First Axiom about Improvement
CRM enables the systemization of a sales process
Unconscious Conscious, Repeatable, Predicable
How to “Do” CRM
Develop a customer-centric strategy– You’ll be listening to your customer
rather than ‘telling’ them– Reorganize internal functions and
systems to support your customer (ERP)– Cultivate cross-functional cooperation
within your business– Overcome the inevitable internal
resistance to change
How to “Do” CRM
Assess technical capabilities Define the desired outcome of your
CRM initiative – establish metrics Define your programs:
– Reward, Community, Loyalty, etc. Build teams to select and
implement the software to get you to your destination
Physical Layer (Hardware)
– Internally Managed– Hosted Externally(Application Service Provider)
How CRM Gets “Done”
Data Source–Sales History–Opt-in Lists
•Surveys/Kiosks
–Purchased List
How CRM Gets “Done” Contact Types
– Marketing campaign(Broad coverage vs. Spam)
– B2C <--> B2B– Portal, Affinity Site
3rd Party Services–Clickstream analysis
(Customer metrics)
–AdWords/banner ads(Customer
acquisition)
How CRM gets “Done”
System Security– External Threats
(Hackers, ID Theft)
– Internal Threats(Info as Co. Asset)
Data Management– Organization of
Desired Info.– Back up & Restore– Business Continuity
“You sold us on the price, mileage, and safety features… it’s the company’s IT performance we’re still mulling over”.
How CRM gets “Done”
How CRM gets “Done”As part of integrated
part of data base management.
Primary for close customer contact and business retention tool.
Cost effectiveness of technology and growth of Internet makes Customer Acquisition through this electronic media something to consider.
Questions?