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Ppt on Customer Relationship Management Process for Marketing Organisations

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					A Customer-Relationship Model for Managing Customer
                     E-services



                      Neil McBride
       Centre for IT Service Management Research
                 De Montfort University



           http://www.cse.dmu.ac.uk/cism/service_management.html
           http://www cse dmu ac uk/cism/service management html




  Centre for IT Service Management Research, De Montfort University   1
       E-services as a new IT service paradigm


       E-service quality


       Relationship marketing


       Relationship marketing and e-service support


       E-service software support


Centre for IT Service Management Research, De Montfort University   2
    "The shift to an online economy directly
    exposes our IT infrastructure to customers. To
    maintain our competitive advantage, we must
           the b t       ibl      i     f
    ensure th best possible experience for
    customers and business partners by keeping
    our Internet banking services available and
    performing well 24x7."

    Susan Blew, senior vice president of
    Enterprise Infrastructure Services at Wells
    Fargo B k
    F     Bank



Centre for IT Service Management Research, De Montfort University   3
         •User to Audiences


                p
         •Development to Production


         •Implementation to Publication




Centre for IT Service Management Research, De Montfort University   4
                                   Service Issues


       A il bilit
      •Availability

      •Performance
       Performance

      •Security

      •Loyalty




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     From the time an end user lands on a website:

      •they’ll wait an average of just 20 seconds to
      see something on the page
      •you have a maximum of 40 seconds to
      complete the home page display
      •within 6 seconds the customer has decided
      to stay or leave the site
      •the customer will use a maximum of 6
      mouse clicks to find the desired information
      •the maximum amount of time spent on a
      site is, on average, 12 minutes

         (Gartner Group)


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       Approximately 50% of Web sites surveyed
       took five or more days to respond, never
                            y       p    ,
       responded or failed to post an e-mail address on
       their Web site for customer requests.




                                           Jupiter Communications




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                               Service Quality Issues
Tangibles
            •Is the E-service website high quality and easy to use?
            •Does it reward the user sufficiently to promote repeat visits?
            •Is it visually appealing and complete?
Reliability
            •How do we differentiate between signal and noise?
            •How d we evaluate the website?
             H do          l t th       b it ?
            •How do we ensure its security?
Responsiveness
            •How do we assure a rapid response time and reply to user
            communications in an order that reflects their priority.
            •How do we deal with the large information / communication volume?
Assurance
            •How do we control customer expectations concerning, for example,
            speed and veracity?
Empathy
            •How do we identify the stage of each customer relationship and
               p     pp p       y
            respond appropriately?
            •How do we assure trust and commitment?
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                         Customer Expectations
                                               Market research
                                               Management Communication
                                                   g


                       Management Perceptions
                                               Service Level Goals
                                               Task Standardisation
    Relationship Maintenance
                         Service Specification
                                                 Roles
                                                 Control
                                                 Teamwork

                        Delivered Service
                                               Staff Communication between departments
                                               Realism in Promised Services

                        Communication to customers


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     Service Quality Attributes
                 Responsiveness

     Operationalised Indicators
                  Response time to e-mail enquiry

     Standards
                    p
                 Response with 15 minutes

     Performance Targets
                  80% of all e-mails responded to in 30 minutes




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                         Traditional Marketing



  •Product based
  •Single-transaction based.
  •Short-term
  •Value for organisation - based on one product
  transaction
   V l for                i     id f     d
  •Value f customer - price paid for product
  •Outcome consumption




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                      Relationship marketing

•Customer-based
 D l
•Develops over many t          ti
                        transactions.
•Long term
 Value
•Value for organisation - ongoing revenue over the
life time of the relationship.
•Value for customer - value of total service
including product and additional services.
•Process consumption




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 Interaction

       • Continuous Two-way dialogue
       • Learning process.


 Communication

        Pl     d d      l
       •Planned and unplanned  d
       •Proactive as well as reactive.


 Value

                           customer's         processes
       •Understanding the customer s internal processes.
       •Understanding the process by which they meet their needs.
       •Relationship cost for the customer



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                   Acts, Episodes and Sequences

         Act

         •Smallest unit of analysis. e.g. click on site's home page.


         E i d
         Episode

                                 g                   g        g
         •A series of acts forming one interaction e.g. Finding and
         submitting an order, dealing with a technical problem.


         Sequence

                       p          g                   year.
         •A series of episodes. E.g. orders with in a y


                                    Relationship

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                               Communication
Before episode
• Providing training to customer.
                       problems.
• Diagnosis of type of problems
• Communicating information about service process.


During i d
D i episode
•Capturing information about the episode.


After Episode
• Evaluation
• Analysis and review of outcome.

Communication should be planned to support expected and
unexpected episodes.


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     Stage         Definition             Key Factors                  IT Involvement
     Awareness     A customer finds out   Surfing.                     Search Engines
                   that the organisation  Advertising.                 Networks.
                   exists
                   exists.                       identity
                                          Brand identity.
                                          Partnerships.
     Exploration   Customer      explores Site layout                  Home          site
                   home site and gains Quality and ease of use         search facility.
                   understanding       of Value of information         Site design and
                   organisation.                                       maintenance
     Expansion     The customer begins Subscription                    Provision       of
                   to use the website for Customer      relationship   customer
                   transactions       and tracking.                    databases       to
                   accessing services     Integration with business    support
                                          processes                    website.
                                                                       Integration
                                                                       support.
     Commitment    The          customer     Information value and     Security:
                   becomes a loyal user      quality.                  Different      IS
                   of            services,   Understanding        of   access for loyal
                   identifying        with   customer.                 website users.
                   organisational values.    Customer involvement      Relationship
                                                                       tracking
                                                                       through
                                                                       customer
                                                                       databases.
     Dissolution   The            customer   Relationship tracking.    Internal access
                   abandons            the   Continuous intelligence   to competitor
                   organisation due to       concerning competitor’s   website.
                   dissatisfaction, better   website.
                   offers      from      a
                   competitor,          or
                   changed in needs and
                   life stage.
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AWARENESS           EXPLORATION



                                         EXPANSION




                                           VALUE




                                          PROCESS




                                         COMMITTMENT

                                                                    DISSOLUTION




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     Customer Relationship Management Support
     Software


     Siebel
     Serviceware
     Talisma
     Primus
         d    y O e s!
     … And Many Others!




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                                 Conclusions



       L lt b                      i i
      •Loyalty becomes an IT service issue
      •Managing an E-service is about managing a
      relationship
      •Planned communication is essential
      •Evaluation of acts, episodes and sequences
      may lead to an improved relationship




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                                          ss o
                                        Mission

       To promote the delivery of IT services within
       organisations and to the public which are
       adaptable, efficient and empathic through
       research which applies concepts of service
       industry management.




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                                Priority Themes


       IT service strategy
       End user computing
       IT Service evaluation
       Technology Adoption
       T h l        Ad ti
       Service delivery
                       support.
       Delivery of IT support
       Development of E-commerce services
       Public Information Systems




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