CRM Chapter 1 Spring 2009

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CRM Chapter 1 Spring 2009 Powered By Docstoc
					CRM Chapter 1

What is CRM?

The good, the bad, and the ugly of CRM
Importance of CRM

  2002 Goldman Sachs survey – 2nd most
   important business initiative behind
   security

  As of 2003, 37 percent of business were
   implementing CRM, 43 percent
   considering it (Forrester Research)
CRM Transition

  From Technology driven to business
   process (Late 1990s-Today)

    Not just about automating customer service
    Balancing efficiency with quality service
    Vendors try to sell solutions not software

         ANGELA Example
Discussion Questions?

  Can you think of ways in which internet
   and e-technology has helped and will
   help companies focused on CRM?

  What is customer loyalty?

  Why do I say CRM is an evolution of
   customer loyalty?
Loyalty
  Loyalty is emotional, not rational

     In essence, customer loyalty is training our
      customers to ultimately behave in a way that is
      mutually beneficial

  Impact of Loyalty

     5% increase in loyalty (customer retention) can
      increase profits from 35-100%
           Reichold & Bain study
Developing Loyalty

  How is loyalty developed?

    Positive experiences and value perception

    How can companies develop loyalty?
Customer Intimacy

  Discussion

    How does customer intimacy impact loyalty?
    What do you value with companies that offer
     intimacy?
Operational Efficiency

  How does operational efficiency impact
   CRM?
What is the purpose of
CRM?
  Gain a better understanding of customers and
   profitability
  Quality of company/customer interaction
  Improved operations
  Shift from product to consumer focus**
  Improve front-end customer interaction through
   data awareness

    META Group 2000
Biggest cause for CRM
failure
  Lack of attention to the customer!

    “Put the C back in CRM”
Who is involved in CRM?

    Paying clients/customers
    Your employees
    Business partners
    Suppliers/vendors

  http://www.youtube.com/watch?v=YEa_R
   NSX5Xo&feature=related
CRM ROI
 Goals of CRM help establish ability to
  determine return on investment (ROI)

     Increasing customer acquisition rate
     Decreasing churn (defection) rate
     Increasing share of customer
     Improving customer satisfaction
     Decreasing front office staffing costs

        How can an organization decide where to focus?
7 Tips for Effective CRM
  Align with corporate strategy
  Create an overall CRM vision for company
  Evaluate process, people and tech changes
  Secure commitment and buy-in of senior
   management
  Develop iterative and incremental approach
   going after highest value opportunities first
  Recognize changes and motivation required
  Measure effectiveness and create
   accountability

				
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posted:8/13/2011
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