CustomerCustomer RelationshipRelationship ManagementManagement (CRM)(CRM)
DrDr A.A. AlbadviAlbadvi Asst.Asst. Prof.Prof. OfOf ITIT Tarbiat Modarres University Information Technology Engineering Dept.
Affiliate of Sharif University of Technology School of Management & Economics
Sept. 2003
WWW.albadvi.net Session#2:Session#2: AgendaAgenda
CRMCRM TechnologiesTechnologies CRMCRM solutionsolution structurestructure OperationalOperational CRMCRM
Sales Force Automation (SFA)
Customer Service & Support (CSS)
Enterprise Marketing Automation (EMA) AnalyticalAnalytical CRMCRM
Tools & examples CollaborativeCollaborative CRMCRM
2003 A. Albadvi 33 TypesTypes ofof CRMCRM TechnologTechnologiesies
Call Center Marketing
Collaborative Analytical Operational CRM CRM CRM Service Web Sales Marketing & Service data Sales Web Customer Personalization Data Sales Data
2003 A. Albadvi 33 TypesTypes ofof CRMCRM TechnologTechnologiesies
Operational CRM
Customer-facing applications that integrate the front, back and mobile offices, including sales-force automation, enterprise marketing automation, and customer service and support Analytical CRM
Applications that analyze customer data generated by operational tools for the purpose of business performance management Collaborative/Communicational/Interactive CRM
Collaborative services that facilitate interactions between customers and businesses
Help to establish the lifetime value of customers beyond the transaction by creating a partnering relationship
2003 A. Albadvi OperationalOperational CRM:CRM: TouchingTouching thethe customercustomer
Customers Customers
Web Usage Fax Customer access Touchpoints Call Direct E-mail Center Sales
Refined Business Actions
2003 A. Albadvi AnalyticalAnalytical CRM:CRM: UnderstandingUnderstanding thethe CustomerCustomer Refined Business Actions
Analysis Business Process intelligence improvement
Information Integrated Database
Business systems Provisioning Sales
Accounts Billing Call Center payable/rec’bles 2003 A. Albadvi OperationalOperational CRMCRM
AlsoAlso knownknown asas ““frontfront--officeoffice”” CRM,CRM, involvesinvolves thethe areasareas wherewhere directdirect customercustomer contactcontact occursoccurs ------””TouchpointsTouchpoints”” Analytical CRM
Also known as “back-office” or “strategic” CRM, involves understanding the customer activities that occurred in the front office
2003 A. Albadvi 33 TypesTypes ofof CRMCRM TechnologyTechnology
Operational CRM Roles and workplaces Analytical CRM implementing best- Underlying business business-practices business-practices warehouse and Collaborative CRM knowledge Collaboration across all management channels (mobile, phone, Internet)
2003 A. Albadvi CRMCRM SolutionSolution StructureStructure Communicational
Email Mailings Telephone CRM Internet WAP Personal Customer Contact Interaction Center TV/Radio Operational Operational
Front Marketing Sales Service CRM Office Automation Automation Automation
Data OLAP Mining Analytical CRM
Customer Data Warehouse Back Supply Chain Computer Integrated ERP … Office Management Manufacturing
2003 A. Albadvi 1.1. OperationalOperational CRMCRM
MeansMeans supportingsupporting thethe soso--calledcalled "front"front office"office" businessbusiness processes,processes, whichwhich includeinclude customercustomer contactcontact (sales,(sales, marketingmarketing andand service).service).
TasksTasks resultingresulting fromfrom thesethese processesprocesses areare forwardedforwarded toto employeesemployees responsible,responsible, informationinformation necessarynecessary forfor carryingcarrying outout thethe taskstasks andand interfacesinterfaces toto backback--endend applicationsapplications areare beingbeing providedprovided andand activitiesactivities withwith customerscustomers areare beingbeing documenteddocumented forfor furtherfurther reference.reference.
2003 A. Albadvi ObjectivesObjectives ofof OperationalOperational CRMCRM
HigherHigher customercustomer satisfactionsatisfaction byby improvedimproved qualityquality ofof contactscontacts CostCost savingssavings byby crosscross--functionalfunctional integrationintegration ofof processesprocesses andand processprocess supportsupport CostCost savingsaving byby deeperdeeper integrationintegration ofof communicationcommunication withwith customerscustomers withwith companycompany--internalinternal processesprocesses
2003 A. Albadvi BenefitsBenefits ofof OperationalOperational CRMCRM
Sales people and service engineers can access complete history of all Delivers customer interaction with personalized and your company, regardless efficient of the touch point marketing, sales, and service through multi- Enables a 360-degree channel view of your customer collaboration while you are interacting
2003 A. Albadvi 33 AreasAreas inin OperationalOperational CRMCRM
SalesSales FForceorce AAutomationutomation (SFA)(SFA)
CustomerCustomer ServiceService EnterpriseEnterprise MMarketingarketing andand SupportSupport (CSS)(CSS) AAutomationutomation (EMA)(EMA)
2003 A. Albadvi SalesSales FForceorce AAutomationutomation (SFA)(SFA)
SalesSales FForceorce AAutomationutomation (SFA):(SFA):
Critical functions e.g. lead/account management, contact management, quote management, forecasting, sales administration
Key infrastructure requirements are mobile synchronization and integrated product configuration
SFA tools are designed to improve field sales productivity
2003 A. Albadvi CustomerCustomer ServiceService andand SupportSupport (CSS)(CSS) CustomerCustomer ServiceService andand SupportSupport (CSS):(CSS):
Internal help desk and traditional inbound call-center support for customer inquiries
Now evolved into the "customer interaction center" (CIC), using multiple channels (Web, phone/fax, face- to-face, kiosk, etc)
Key infrastructure requirements include computer telephony integration (CTI), high volume processing capability, and reliability
2003 A. Albadvi EnterpriseEnterprise MMarketingarketing AAutomationutomation (EMA)(EMA) EnterpriseEnterprise MMarketingarketing AAutomationutomation (EMA):(EMA):
The execution side of campaign and lead management. Demographic analysis, variable segmentation, and predictive modeling occur on the analytical (Business Intelligence) side and are CPU intensive
The intent of EMA applications is to improve marketing campaign efficiencies Tailor Answer to Each Request
2003 A. Albadvi CRMCRM SolutionSolution StructureStructure Communicational
Email Mailings Telephone CRM Internet WAP Personal Customer Contact Interaction Center TV/Radio Operational Operational
Front Marketing Sales Service CRM Office Automation Automation Automation
Data OLAP Mining Analytical CRM
Customer Data Warehouse Back Supply Chain Computer Integrated ERP … Office Management Manufacturing
2003 A. Albadvi 2.2. AnalyticalAnalytical CRMCRM DataData gatheredgathered withinwithin operationaloperational CRMCRM areare analyzedanalyzed toto segmentsegment customerscustomers oror toto identifyidentify crosscross-- andand upup--sellingselling potentialpotential DataData collectioncollection andand analysisanalysis isis viewedviewed asas aa continuingcontinuing andand iterativeiterative processprocess
Ideally, business decisions are refined over time, based on feedback from earlier analysis and decisions
Graphic showing customer relationship lifecycle responding to analysis of acquisition, growth and retention efforts
2003 A. Albadvi AnalyticalAnalytical CRMCRM CCanan PProviderovide……
Customer segmentation Event monitoring groupings for example, when a
dividing customers into customer reaches a certain those most and least likely dollar volume of purchases to repurchase a product What-if scenarios
Profitability analysis how likely is a customer or
which customers lead to customer category that the most profit over time bought one product to buy a similar one Personalization Predictive modeling the ability to market to individual customers based for example, comparing on the data collected about various product them development plans in terms of likely future success, given the customer knowledge base 2003 A. Albadvi AnalyticalAnalytical CRMCRM
AnalyticalAnalytical CRMCRM isis inextricablyinextricably tiedtied toto aa DataData WarehouseWarehouse architecture,architecture, andand useuse analyticalanalytical applicationsapplications toto leverageleverage optimizedoptimized functionalityfunctionality forfor analysisanalysis andand reportingreporting
AdAd--HocHoc QueryQuery
ReportingReporting
OLAPOLAP
DataData MiningMining
2003 A. Albadvi DataData MiningMining DefinedDefined
DataData miningmining isis
the non-trivial extraction of implicit, previously unknown, and potentially useful knowledge from data
a variety of techniques used to identify nuggets of information or decision-making knowledge in bodies of data, and extracting these in such a way that they can be put to use in areas such as decision support, prediction, forecasting, and estimation
Extracting actionable intelligence from large datasets
2003 A. Albadvi ExampleExample ofof AnalyticalAnalytical CRMCRM Tool:Tool: EISEIS WhatWhat isis anan EIS?EIS? ““ AnAn EISEIS isis aa computercomputer--basedbased systemsystem thatthat servesserves thethe informationinformation needsneeds ofof toptop executives.executives. ItIt providesprovides rapidrapid accessaccess toto timelytimely informationinformation andand directdirect accessaccess toto managementmanagement reports.reports. EISEIS isis veryvery useruser--friendly,friendly, supportedsupported byby graphics,graphics, andand providesprovides exceptionsexceptions reportingreporting andand ““drilldrill--downdown”” capabilities.capabilities. ”” - Rockart and DeLong
2003 A. Albadvi CharacteristicsCharacteristics ofof EISEIS
DrillDrill DownDown ExceptionException ReportingReporting NavigationNavigation ofof informationinformation underunder differentdifferent formatsformats CriticalCritical SuccessSuccess FactorsFactors (CSF)(CSF) Strategic or operational Derived mainly from 3 sources: 90% 1- Organizational factors 90 80 70 2- Industry factors 60 2- Industry factors 50 40 30 3- Environmental factors 20 10 0 1er 2e 3e 4e trim. trim. trim. trim.
2003 A. Albadvi EISEIS BenefitsBenefits
FacilitatingFacilitating thethe attainmentattainment ofof organizationalorganizational objectivesobjectives byby
☺ RenderingRendering thethe useruser (management)(management) moremore productive:productive: ☺Increasing the quality of decision-making ☺Increasing communication capacity and quality ☺Facilitating information access ☺Saving time
2003 A. Albadvi ExamplesExamples ofof EISEIS ProductsProducts
CommanderCommander centercenter CommanderCommander EISEIS SASSAS PowerPlayPowerPlay MediaMedia
2003 A. Albadvi ExampleExample ofof AnalyticalAnalytical CRMCRM Tool:Tool: OLAPOLAP OnOn--LineLine AnalyticalAnalytical ProcessingProcessing (OLAP)(OLAP)
a category of software technology
enables analysts, managers and executives to gain insight into data
through fast, consistent, interactive access to a wide variety of possible views of information transformed from raw data
to reflect the real dimensionality of the enterprise as understood by the user CombinedCombined EISEIS andand DSSDSS capabilitiescapabilities
2003 A. Albadvi BenefitsBenefits ofof AnalyticalAnalytical CRMCRM
Decreases Enables Increases sales segmentation customer churn segmentation per customer by rate by by customer up-selling and value identification of value cross-selling customer which customer which Allows quick design and are likely to quit are likely to quit develop value-added and increase and increase products and services that loyalty loyalty meet customer needs
Increases Improves supply chain profitability and management, resulting in control costs lower costs and more competitive pricing 2003 A. Albadvi CRMCRM SolutionSolution StructureStructure Communicational
Email Mailings Telephone CRM Internet WAP Personal Customer Contact Interaction Center TV/Radio Operational Operational
Front Marketing Sales Service CRM Office Automation Automation Automation
Data OLAP Mining Analytical CRM
Customer Data Warehouse Back Supply Chain Computer Integrated ERP … Office Management Manufacturing
2003 A. Albadvi 3.3. CollaborativeCollaborative CRMCRM
FFacilitatesacilitates interactionsinteractions withwith customerscustomers throughthrough allall channelschannels (personal,(personal, letter,letter, fax,fax, phone,phone, web,web, ee-- mail)mail) andand supportssupports coco--ordinationordination ofof employeeemployee teamsteams andand channelschannels AA solutionsolution thatthat bringsbrings People,People, ProcessesProcesses andand DataData togethertogether soso companiescompanies cancan betterbetter serveserve andand retainretain theirtheir customerscustomers TheThe data/activitiesdata/activities cancan bebe structured,structured, unstructured,conversational,unstructured,conversational, and/orand/or transactionaltransactional inin naturenature
2003 A. Albadvi BenefitsBenefits ofof CollaborativeCollaborative CRMCRM
Enables efficient productive customer interactions across all communications Integrates view of channels the customer while interaction at the Enables web Enables web transaction level collaboration to reduce customer Integrates call service costs centers enabling multi-channel personal customer interaction
2003 A. Albadvi CollaborativeCollaborative CRMCRM ExampleExample
CustomersCustomers meetmeet problemsproblems sometimessometimes
e.g.e.g. whenwhen usingusing ee--bankingbanking wherewhere theythey needneed toto fillfill inin ∞∞ amountamount ofof infoinfo TheyThey cancan seekseek forfor helphelp fromfrom
OnlineOnline FAQsFAQs
SalesSales repsreps byby phonephone
VirtualVirtual salessales repsreps
2003 A. Albadvi