information technology for crm

8/6/2019 Information Technology for Crm

1/52

Customer Relationship Management:Customer Relationship Management:

Concepts and ToolsConcepts and Tools

CUSTOMER RELATIONSHIP MANAGEMENT:

CONCEPTS AND TOOLS

Information Technology For CustomerRelationship Management


2/52



ManufacturerWholesaler

Retailer

Distribute Sell

Supply

Demand

Consumer

ConsumeProduce

$

$

$

Purchase

Enterprise Systems

Enterprise Resources Planning

Supply Chain Management

Customer RelationshipManagement

Customer RelationshipManagement


3/52



Origins of CRM technology

Stand-alone technologies Call centresSales force automation systems

Data analytics

Customer information files


4/52



Why is technology necessary?

As companies grow they become separatedfrom the customers and cultures they intuitivelyunderstand

Customer knowledge is maintained in both drymemorynnn Documents, nnn Spreadsheets, nnn Emails

nnn Customer cards, nnn Reports

and wet memory, i.e. the heads of people

CRM technology captures, stores, analyses anddistributes this information for marketing,sales and service operations


5/52



ERPBack Office

Internet

Support

Customer

Management

Sales

Marketing

Card

Card

Report

Report

Report

Spreadsheet

S

preadsheet

Document

Document

Document

Document

Document

Document

Spreadsheet

S

preadsheet

email

email

email

Spreadsheet

S

preadsheet

Single view of the customer?


6/52



Ultimate goal of CRM technology

The ultimate goal is consistently excellent customerexperience across all channels, i.e. multi-channel CRM

All customer contact channels such as sales, partners,

marketing, and the service centre are consolidated intoa single view of the customer, across all communicationmedia including face-to-face, voice telephony, email,web, and wireless.

Customers expect continuous, consistent dialogue with

a company, irrespective of the systems anddepartments within


7/52


8/52



Courtesy: PeopleSoft

360 degree view of the customer


9/52



What must CRM technologies accomplish?

CRM must

be flexible enough to stay in touch with a changingaudience (the customer)

meet different operational requirements in different

industries be accessible to external stakeholders and mobile

professionals such as salespeople and field technicians.

operate over any communication channel

must integrate with other systems to provide a single viewof, and for, the customer.

must be implemented in such a way that appropriate workpractices and skills are deployed, as many of therequirements of CRM cannot be solved by technologyalone


10/52



Global Enterprise Application Software sales

0

2

4

6

8

10

12

14

16

1997

1998

1999

2000

2001

2002E

2003E

2004E

2005E

USDB

illion

ERP

CRM

SCM

Total

Source: Gartner Dataquest


11/52



EAS points of note

CRM software valued at over one-third ofoverall EAS sales

CRM software touches both sides of the profitequation: revenues and costs

ERP and SCM software touch cost-side only

Many more user seats needed for customer-side software, than ERP or SCM: marketers, salespeople, contact centre, field

technicians, partners, customers, distributors


12/52



Early adopter profiles

GeographyNorth America, Europe

IndustriesBanking

Finance

Telecommunications


13/52



CRM issues vary by industry

CRM?

Telcos andBanks

AutomotiveManufacturers

High

Technology

Consumer GoodsBeverage

ChurnShare of walletCall centresData mining

Dealer networksService and maintenanceCustomer knowledgePortals

Complex sellingChannelsProduct configurator

Partner portal

Retail tradeTrade spend and promosStore auditsComplex customer structures


14/52



Some members of the CRM ecosystem

Service ProvidersPeppers & RogersCustomer Connect

AccentureIBM

Unisys

EDS

Hardware and InfrastructureIBM

Hewlett-PackardGenesysSiemensAvaya

Midmarket SW VendorsPivotalOnyx

MicrosoftSaleslogix

CRM SW VendorsSiebel

PeopleSoftOracle

SAP

Specialist SW VendorsSASNCR

salesforce.comO4


15/52



Classifying CRM service providers

Service Details Examples of service

providers

Strategy consulting consulting support for the formulation of customer

strategy, contact strategy, channel strategy, CRM

strategy.

McKinsey, Peppers and

Rogers

Business consulting services around business process re-engineering,

process improvement, and best practices for CRM.

Accenture, Bearing

Point, CGEY

Application consulting design and development of application

modifications, project management of software

package implementation and training.

CRM vendors,

Accenture, CGEY,

Bearing Point, IBM

Technical consulting design and implementation of technical

infrastructure, and integration of this infrastructure

with the existing business processes and

applications.

Unisys, IBM, Logica

Outsource service

providers

technology outsourcers and business process

outsourcers.

EDS, IBM, CSC,

Acxiom


16/52



Issues in CRM architecture

Architecture is the way in which the system isconstructed

CRM systems must be able to operate in the office, out

of the office, and over the web. CRM systems must tie together multiple communication

channels each using very different technologies (web,email, telephone).

CRM systems must perform well enough, and be flexible

enough, to suit a constantly changing, potentiallygrowing user community.

Some users may be both partners and competitors. Thearchitecture must recognise this


17/52



Contemporary architectural challenges

Growth in number of communicationtechnologiesvoice phone, fax, email, web, SMS, advertising,

direct mail, salespeople

Growth in number of company touch pointsBranch, contact centre, field service, service desk


18/52



Architectural excellence 1

1. Usability Ease of navigation or use

Intuitive, requiring minimal effort to reach thedesired outcome

Little training needed Perceived as highly responsive by the customer

1. Flexibility An applications flexibility determines how many

alternatives are available to the user at any given

time These alternatives are often implemented through

hyperlinks, buttons, or screen


19/52



Architectural excellence 2

3. Performance All technologies must be aligned Performance of the overall system is often

determined by the performance of the weakest link

Network performance, database performance andserver performance all influence CRM system overallperformance

Integration and synchronisation issues

4. Scalability

As the CRM system grows, and is used by moreinternal and external people, the scalability of thesystem becomes important


20/52



Typical CRM architecture

TelemWeb

(customer, partner)


21/52



CRM Challenge Architectural SolutionSingle customer view across theorganization

Multi-channel CRM across asingle database

Suitability for customer-facing situations Usable, flexible, high-performing architecture

Complex, many-to-many relationships,varying across customers and industries Flexible data modeling

Deployment to field operations (sales,service)

Mobile and wireless

Efficient changing and upgrading of thesystem

Business Rules Repository(metadata)

Unstructured, widely dispersed informationKnowledge Management

Deployment outside the organization Web Browsers

Effective modelling of customer-facingprocesses

Workflow and Assignment

Information flow with the back office and Integration

Architectural solutions for CRM challenges


22/52



Mobile and wireless technologies

Many businesses go to the customers premises

Salespeople, service technicians.

Important to overall customer experience

Need current customer and product information Two main technologies available to support mobile

professionals

mobile (synchronised)

handheld or laptop device, with a small resident database

wireless (online) handheld device connected to the main system using a

wireless connection such as a mobile phone


23/52



Metadata

Metadata are data about data

Meta data includes data about the layout of thecolumns, rules for validation, lists of values, even the

processes to be represented on a devices screen Metadata stored in a separate database

The final result on the screen is a combination of thecore processing logic, the metadata (business rules),and the data itself (extracted from customer records).

The metadata repository is typically modified using aset of tools, provided by the CRM software vendor

Examples: PeopleTools (PeopleSoft), Siebel Tools, andStudio (E.piphany).


24/52



Knowledge management

A central element to effective CRM is storingand leveraging knowledge about the customerstructured, transactional data such as contact history

and account balancesunstructured information such as letters and faxes

from the customer, and notes on telephoneconversations

The success of CRM depends largely on howwell this information is converted intoenterprise-wide knowledge


25/52



Browser interface

Courtesy:Oracle


26/52



CRM benefits from browser technologies

The hyperlink-driven user interface is ideal for theloosely structured flow of most customer-facingdialogues.

The ubiquitous nature of the web also makes it

relatively easy for people to learn how to navigate insuch an application. Particularly important with customer- and partner-facing

applications

Web technologies also play in important role in

integration and mobile solutions. XML (extensible mark-up language), a standard, flexible

format for the description of documents over the web, isbecoming a standard language for integration betweenapplications


27/52



Workflow within CRM

In CRM many customer-related processes arepredefined and automated

Business rules that are critical to the success

of sales, marketing and service no longer needto be manually managed.

Workflow technologies can be programmed tomonitor for predefined conditions.

The end result is that customers receive aconsistent, predictable experience


28/52



Workflow for sales lead assignment

Courtesy: Siebel

Assign Lead

Assign

error

activity

Quality

High priority

assignment

Low priorityassignment

Create

opportunity

note

End

Error

High

Low

Unknown

Start


29/52



Contexts of workflow automation 1

1. Process automation

when an email comes in from a customer in southernregion, automatically respond with the following

1. Escalation if a service call is 20 hours old, of high severity, and from

a high value customer, and the status is not resolved,page the service manager

1. Assignment

when a lead comes in from the web site, look at theproduct being offered, the territory, and the currentworkloads of my salespeople, and assign the lead to thebest person


30/52



Contexts of workflow automation 2

1. Integration

if the customer submits a confirmed order, automatically postit to the fulfilment system for verification and dispatch

1. Dialog scripting

when a customer calls in, prompt the call centre agent with astandard welcome script. Register the customers response,then determine the best course of action, and offer the agent ascript accordingly. Continue this process to increase thechance of up-selling the customer

1. Process navigation if the customer does not offer their password, automatically

navigate the user to the customer identification screen

l hC R l i hi M


31/52



Types of integration

Batch processingStores information up in a file or batch, then moves

the information across the interface into the

destination system in one batch.The cost is opportunities lost in the wait before moving

the information

Real-timeOccurs immediately

once a customer record is updated in one system, thechange is immediately reflected in the destinationsystem

C t R l ti hi M tC t R l ti hi M t


32/52



4 areas of CRM integration 1

1. Application integration

Integrates front-office systems with back-office

accounting, billing, inventory and human resources

1. Telephony integration Ties the CRM application in to the telephone system,

inbound calls can be routed to the right person

allows outbound calls can be made from the contactcentre desktop

C t R l ti hi M tC t R l ti hi M t


33/52



4 areas of CRM integration 2

3. Email integration Can involve both the generation of emails as a

result of an internal workflow process, and as an

automated email response3. Web integration

Integration of the web site into the CRMimplementation

May also involve web chat or web collaboration

C t R l ti hi M tCustomer Relationship Management:


34/52



CRM applications

DataKnowledge

BaseWarehouse

CRM SystemMarketing(analysis,

promotionsactuals)

Sales(synchronised,

field information)

Service(orders,

complaints) Management(decision support,performance)

Partner

(promotions,funds, portals)

Consumer(web, clubs)

Other systems, email, telephone

We

b



35/52



Marketing automation

CustomersHistory Attributes

Segments

Plans Budgets

ListsCampaign

s

Marketingfunds

Partners

Permission &personalisati

on

Leads /opportunities

ActivitiesResponses



36/52



Marketing automation: example 1

Courtesy: E.piphany,



37/52



Marketing automation: example 2

Courtesy: Pivotal



38/52



Sales force automation (SFA)

Customers

LeadsOpportuniti

es

Quotes,presentatio

ns,proposals

Salesorders

Customerproducts

ProductsConfiguratio

nBuyingprocess

Competitors

Salesteam

Partners

ActivitiesSales

methodology

Objectives

and tactics

Territory Forecasts

Incentives


39/52



40/52



Service and support automation

Customers

Dialoguescripts

Servicerequests

Agreements &

warranties

ServiceOrders &Return

MaterialAuthorisati

on

Resolutions

Serviceteam

Activities Inventory

Customerproducts Products

ManualsMaintenanc

e plans

Knownissues

Defects

Solutions



41/52



Portal: example 1

Courtesy: Pivotal



42/52



Portal: example 2

Courtesy: SAP



43/52



CRM analytics: basics

Management wants to measures key results customer value, satisfaction and propensity to churn

The three levels of analysis in todays CRM

systems, in increasing order of complexitystandard reporting

online analytical processing

data mining.



44/52

Customer Relationship Management:p g


Reporting: standardised or query-based

Standardised reports aretypically delivered withthe CRM softwareapplication, but oftenrequire customisation

Query-based reportingpresents the user with aselection of tools, whichcan then be used toconstruct the report thatis currently required.

Far more flexible, but isnot suitable for theregular, standard

operational requirements



45/52

p gp g


OLAP

Online Analytical Processing (OLAP)OLAP technologies allow information to be

transformed into a format that suits analysis and ad-hoc inquiry, and stored in a data warehouse

Supports rapid slicing and dicing, allowing users to

drill down on graphs and tables to analyse where acertain figure or problem may have arisen

ApplicationsSales people can analyse their territory to determine

revenue and profitability by customer.

Service people can analyse call response rates andtimes.

Partner managers can analyse the performance ofpartners by marketing fund approvals and partner-generated revenues.



46/52

p gp g


Analytics: example 1

Courtesy: Siebel



47/52

p gp g


Analytics: example 2

Courtesy: E.piphany



48/52


Analytics

Customer value Customer

satisfaction

Next purchase

Channels

Partner contribution

Web activity

CRMTransactions

CRM Analytics(OLAP)

ERP

Other Data

Supplier evaluation Campaign success

Sales activity

Segmentation

Customer profiling

Risk scoring Prospecting

Propensity to buy

Revenue

Volume

Brand Profitability



49/52


Other CRM stakeholders

Partners

Employees

Suppliers

Investors



50/52


Partner relationship management

Customer Relationship Management:Customer Relationship Management:d l


51/52


CRM technologies across the CRM value chain 1

Customerportfolioanalysis

Customer

intimacy

Network

development

Value

propositiondevelopment

Manage the

customerlifecycle

Customers

and

Products

Customer

structures

Customer

profiles

Customer

management

Product and

pricing

definition.

Customer

expectations

Defect

tracking

Marketing Segmentation Predictive

modelling

Partner

marketing

development

funds

Competitive

positioning,

promotions,

customization

Campaign

management,

event

management,

emailmarketing

Sales Forecasting Historical

data,

revenue

analytics

Partner sales

analytics

Sales

methodology

Order entry,

order

configurator,

enterprise

selling, webshopping,


d lC t d T l


52/52


CRM technologies across the CRM value chain 2 Customer

portfolio

analysis

Customer

intimacy

Network

development

Value

proposition

development

Manage the

customer

lifecycle

Service

Cost-to-serve

Historical

data,

complaint

tracking, CSat

analytics

Partner self

service

Service level

agreements

Service request

management,

service orders,

self service,

field service

PRM Partnerrecruitment Partner portal Partner management Marketingdevelopment

funds

Partner teamselling

Other

stakeholders

ERM, SRM,Investor portal

Performancereview

Analytics Customer life-

time value,

acquisitioncosts,

retention costs

Customer

needs,

customerpreferences,

C.Sat

Partner

performance

Pricing,

profitability and

incentives

Sales

performance,

serviceperformance,

bal. scorecard

Data mining Customer

profitability

analysis

Customer

insight

Partner analysis Churn scoring,Propensity-to-

buy scoring

Activity based Cost modelling Cost actuals