Prof. Ayşegül Özsomer. With. Prof.s Skander Esseghaier, Maik Eisenbeiss, Stefan Wiesel. and. the generous participation of

Transcription

1 Koç University - CEMS MIM Block Seminar Syllabus Customer Relationship Management (CRM) 3-7 September 2012 Koç University, Rumeli Feneri Campus, Istanbul Turkey By Prof. Ayşegül Özsomer With Prof.s Skander Esseghaier, Maik Eisenbeiss, Stefan Wiesel and the generous participation of Yapi Kredi Bankası, Boyner and TURKCELL

2 Contents 1. General Description Objectives Method Grading Assessments 50% Class Participation 10% Group Case Analysis Total 35% Peer Review 5% Seminar Venue... 5 Program and Schedule*... 6 September 3, 2012 Monday... 6 September 4, 2012 Tuesday... 7 September 5, 2012 Wednesday... 8 September 6, 2012 Thursday... 9 September 7, 2012 Friday Page 2

3 1. General Description Customers are intangible assets of a firm. Therefore, they should be valued and managed. Customer Relationship Management (CRM) focuses on using information about customers to create marketing strategies that develop and maintain desirable customer relationships. By increasing customer value over time, organizations try to retain and increase long term profitability through customer loyalty. In this 5 day Block Seminar, we will blend academic perspectives with case analysis and corporate experience to provide well-rounded insights and understanding into a timely business topic. 2. Objectives The aim of this seminar is to provide students with a profound understanding of the opportunities and challenges provided by CRM applications. Through participating in the seminar the students will: learn the importance and value of building and sustaining long term customer relationships, understand the strategic importance of CRM understand what CRM metrics are and how to use them implement CRM with company examples and case analyses. The specific topics covered to reach the learning objectives include: What is CRM? Why is it important? What are objectives of CRM? What role do brands play in building developing, retaining, and growing profitable customers? CRM Strategy and the strategic component of CRM Implementation issues associated with CRM strategies and industry applications CRM objectives and the need for data mining, data sources and variables for CRM (from exploratory analysis to predictive modeling). Managerial evaluations and industry examples of CRM 3. Method The course integrates various teaching methods such as theory lectures, discussions, cases, company visits and group work. Substantial classroom discussion is encouraged and expected. There will be two written assessments: on Monday, September 3rd (13:30-14:30 one hour) covering the advance readings; and on Friday, September 7th (8:30-9:30 one hour) covering the class material discussed during the Block seminar. 4. Grading Students will be assessed on their: Ability to understand the uses, objectives, applications, strategic issues and data applications of CRM. Active preparation and participation in class The performance in the assessments. Ability to work in teams, prepare presentations, present and defend positions. Page 3

4 The final grade will be based on: Individual Assessment written assessment on Monday 25% participation and active involvement in class 10% written assessment on Friday 25% Group Assessment group case analysis (Total 35%) 35% Boyner 15% YKB 20% group peer review 5% The following evaluation scheme is applied: Grade Points A > 86 EXCELLENT - outstanding performance with only minor errors B VERY GOOD - above the average standard but some errors C GOOD - generally sound work with a number of notable errors D SATISFACTORY - fair but with significant shortcomings Fail <50 FAIL - performance does NOT meet the minimum criteria; considerable further work is required 4.1. Assessments 50% An exam will be given on Monday, September 3rd (13:30 14:30) covering the advance readings provided in the reading pack. The assessment questions will consist of a selection of preparatory questions provided. A second exam will be given on Friday, September 7th (8:30 9:30) covering the class material taught during the block seminar. You will have one hour for both exams Class Participation 10% While participation is worth 10%, it could represent the difference between an A or a B. The criterion for evaluating student class participation is the degree of consistency that is participating consistently in every class and substantiality that is quality of your contribution Group Case Analysis Total 35% The objective of these cases is to provide you with experience in applying the CRM concepts. The cases allow for applying the theoretical knowledge acquired in the class sessions, to real-life challenges. The Boyner case is due at 21:00 on Thursday evening, September 6, The YKB case will be introduced and solved on company premises on Friday, September 7 th. Further details on the Group case analyses will be provided in the first session. Page 4

5 The group cases will be evaluated based on the following criteria: Thoroughness. Analysis hits on all major, relevant topics. Focus. The key issues are identified and illuminated. Sound argument. The content is logical & internally consistent. The reader/grader may not agree with your conclusions and recommendations, but he/she will understand how you got there and respect your argument. Makes the point. Summarizes findings and/or conclusion for the reader/grader. Presents results professionally and communicates well. 5.2.Peer Review 5% Each team member is required to submit a peer rating form. This form contains an evaluation of each team member excluding yourself. The form will be kept in strict confidence. You should award the 100 points among your team members based on a consideration of the following (excluding yourself): 1. Willingness of the individuals to carry out jobs assigned. 2. Ability of the individual to meet deadlines. 3. Cooperation with other team members. 4. Quality of the individual s work. 5. Individual s overall contribution to completion of the two case analyses. 6. Seminar Venue The seminar will be held at Koç University Rumeli Feneri Campus, Istanbul. (Rumeli Feneri Yolu, Sarıyer, Istanbul.) A detailed Google map can be accessed from the below link Classes will be held in Z48 and Z08 College of Administrative Sciences & Economics Building (CAS) Ground floor. CEMS Office is located in CAS 116 in the Graduate School of Business quarters. 7. Contact Persons Prof. Ayşegül Özsomer Block Seminar Course Developer & Lecturer ozsomera@ku.edu.tr (Please contact Prof. Özsomer only for questions on the content of the Block Seminar) Burçak Çullu bcullu@ku.edu.tr CEMS Program & Corporate Relations Manager, tel: or GSM: Özlem Ölmez oolmez@ku.edu.tr GSB Administrative Assistant, tel: Page 5

6 Program and Schedule September 3, 2012 Monday 08:30-09:00 Welcome coffee CAS Z 48 09:00-10:00 Welcome session (official welcome, group formation and assignment) CAS Z 48 (Professor: Ayşegül Özsomer, Koç University) Introduce the professors and the course format Outline and introduction of expectations 10:00-12:30 Ice-breaker workshop 12:30-13:30 Lunch 13:30-14:30 Assessment on Readings (Professor: Ayşegül Özsomer, Koç University) 14:30-14:45 Coffee Break The Role of the Brand in CRM (Professor: Ayşegül Özsomer, Koç University) Founders Hall Student Center, -2 CAS Z 48 CAS Z 48 The brand-customer connection The differential impact of brand-centric and customer-centric approaches Relationship between satisfaction and brand preference 14:45-16:45 Advance Reading: Keiningham, T Timothy L., Aksoy, Lerzan, Perkins-Munn, Tiffany, and Vavra, Terry G. (2005), The Brand- Customer Connection, Marketing Management, July- August 2005, Bick, Geoffrey N. C. (2009), Increasing shareholder value through building Customer and Brand Equity, JOURNAL OF MARKETING MANAGEMENT, Vol. 25, No. 1-2, pp Preparatory Questions: 1. Why are both brand-centric (such as brand preference) and customer-centric measures (such as customer satisfaction) needed in order to accurately predict future purchase behavior? 2. What are dangers of using retention as the ultimate measure of loyalty? 3. What is share of wallet and how is it related to customer satisfaction & Brand preference? 4. What is brand Equity? What is Customer equity? How are they related? Page 6

7 17:45-18:30 Transportation to 360 Suada Club by bus 18:30-21:30 Welcome cocktail at 360 Suada Club 21:30-22:00 Transportation to Taksim (optional); Transportation to West Campus Dormitories 00:00 Transportation to West Campus Dormitories from Taksim September 4, 2012 Tuesday Tuesday Sept. 4 th, 2012 Morning Session 09:00-10:30 Definitions and Objectives of CRM Prof. Skander Esseghaier, Koç University A Strategic CRM: Importance and Value of Long Term Relationships Introduction to CRM The Loyalty Effect The Satisfaction-Profit Cycle Organizational Issue Toys R Us CAS Z 48 11:00-12:30 B Strategic CRM: Customer Selection and Relationship Building Importance of Customer Selection: The Whale Curve Customer Profitability: Customer Lifetime Value Customer Acquisition: Choosing the Right Customer Importance and Drivers of Customer Retention 12:30-13:30 Lunch Break Student Center, -2 Afternoon Session C Group Exercise: Fashion Direct Inc. CAS Z 48 13:30-14:30 14:45-15:45 16:00-16:20 Group work Class Discussion Class and Day Wrap Up Advance Reading: A Framework for Customer Relationship Management, Russell Winer, California Management Review, 43 (4), 2001, p Diamonds in the Data Mine, Gary Loveman, Harvard Business Review, May 2003 Preparatory Questions: 1- According to the CRM framework, on what basis should firms select customers? 2- What are the key issues in creating a database for CRM? 3- What is the value for Harrahs of having the Total Rewards card? 18:30-22:30 Boat Tour on Bosphorus 22:30 Transportation to West Campus Dormitories Page 7

8 September 5, 2012 Wednesday CRM Strategy Professor: Maik Eisenbeiß, U. of Cologne The strategic component of CRM Case Study: Customer Relationship Management at Capital One How to translate CRM into the strategy, organizational design, marketing, hiring process, and IT infrastructure of a company? How to organize to create the service climate for effective CRM implementation within the organization? How to motivate and evaluate employees? CAS Z 48 09:00-12:00 Advance Reading: Day, George (2000) Managing Market Relationships, Journal of the Academy of Marketing Science, Vol. 28 (1). Rust, Roland T, Christine Moorman, and Gaurav Bhalla (2010) Rethinking Marketing, Harvard Business Review, Vol. 88 (1/2). 12:00-13:00 Lunch Preparatory Questions: 1. What are the key differences between transactional and collaborative exchanges? 2. What are the key elements a firm has to master in the development of relationship-based competitive strategies? 3. What is the general idea behind reinventing the marketing department as a customer department? And what specific structural changes are required to accomplish that goal? 4. What are the core tasks and responsibilities of a successful chief customer officer (CCO)? Provide examples to illustrate your answer from the HBR paper Rethinking Marketing. 5. What makes a good customer manager and how does he/she differ from a product/brand manager? Case study Customer Relationship Management at Capital One (UK), INSEAD 04/ (will be covered in class) Student Center, -2 13:00-16:00 CRM Strategy continued CAS Z 48 Free Evening to work on the case analysis Page 8

9 September 6, 2012 Thursday Selected Topics and Issues in CRM (cases) Professor: Stefan Wiesel, Vienna University of Economics and Business CAS Z 08 Selected Topics and Issues in CRM (cases) 9:00 12:00 morning session 12:00-13:00 lunch (Student Center, -2) 13:00-16:00 afternoon session Translation of key concepts discussed in the previous modules into practice Implementation issues associated with CRM strategies Presentation and discussion of industrial applications: Automated pricing Targeted campaigning New product development Advance reading Hanssens, D. Thorpe, D., Finkbeiner, C. (2008): Marketing when Customer Equity Matters. Harvard Business Review. 86 (5) Rigby, Darrell K., Reichheld, Frederick F., Schefter, Phil (2002): Avoid the Four Perils of CRM. Best Practice. Harvard Business Review, Vol. 80 (2) Preparatory Questions 1. Why can it be important to include external parameters like economic indicators or seasonality when modeling the impact of marketing mix variables on customer equity? What are possible consequences when omitting them? 2. Describe the model connecting marketing-mix elements to customer equity in the Wachovia case-study. 3. Describe the relationship between annual marketing spending and customer equity and discuss the different zones and the consequences for marketing spending. 4. What are the key challenges in implementing CRM and how might they be addressed? Evening: Working on cases 16:00-16:30 Coffee Break 16:30-17:30 Guest Speaker, İnanç Çakıroğlu, TURKCELL, CRM Solutions Management Unit Manager CAS Z 08 Free Evening Soft copy versions of Group case solutions due at 21:00 (mail to aozsomer@ku.edu.tr) Page 9

10 September 7, 2012 Friday 08:30-09:30 Exam on Class Material CAS Z48 09:30-10:30 Case Discussion and Course Evaluation Prof. Ayşegül Özsomer and BOYNER Group CRM 10:30-12:00 Transportation to Yapı Kredi Bank /UniCredit Group 12:00-13:00 Lunch at Banking Academy (YKBA) 13:00-13:15 Opening & YKB Corporate presentation 13:15-13:35 13:35-13:50 Presentation - Big Data, Mr. Hamdi Özçelik, Card Payment Systems Portfolio Analytics and Optmization Manager at Yapı Kredi Bank Presentation - Cards Payment Systems Portfolio Management Mr. Gürcan Kırmızı, Card Payment Systems Portfolio Management Vice President at Yapı Kredi Bank 13:50-14:00 Coffee Break 14:00-14:10 Case study Introduction 14:10-14:50 Group study for case 14:50-15:00 Coffee Break 15:00-16:15 Case presentations of teams (7 teams, each max 10 min) 16:15 16:30 Voting & Closing 16:30 Transportation to West Campus Dormitories Page 10