Indian Institute of Management Bangalore. Customer Relationship Management

Transcription

1 Faculty: Prof. G. Shainesh Indian Institute of Management Bangalore Customer Relationship Management Term VI PGP ( ) 3 Credit Course Background The primary purpose of any business is to win and keep customers. Its competitors also seek to do the same. Most successful firms have developed capabilities for attracting customers through their marketing programs. But they have shown mixed results when it comes to retaining these customers. Customer Relationship Management helps businesses in successfully implementing strategies aimed at winning and retaining customers profitably. It is also helping businesses shift from a short-term transaction based mode of operation in their interactions with customers to a long-term relationship mode. Objectives The objective of this course is to help students understand the concept and practice of CRM derived from research and applications across businesses. These concepts and applications from real life case studies will help identify opportunities, which can be successfully implemented for long term profitability. Pedagogy The teaching methodology will include a mix of lectures, discussions of prereadings, presentations by practitioners, exercises and case analysis. The cases are integrative in nature but will also help develop an appreciation of specific elements of CRM. Group Project Option 1 - Identify any organisation which is practicing some form of CRM. Start working with them to understand the objectives, strategy, structure and process of relationship management. Identify the key issues they faced in implementation especially related to financial and marketing evaluation of the program. Interview some relationship customers of this organisation to understand the customer perspective. Option 2 Choose any topic in CRM and write a paper based on literature review or use a data set for analytics to identify opportunities for CRM. Evaluation Case Analysis & Presentations - 30% Group project - 30% Exam - 40% Textbook - G. Shainesh and Jagdish N Sheth (2006), Customer Relationship Management A Strategic Perspective Macmillan: New Delhi. 1

2 Customer Relationship Management Course Outline - PGP ( ) Coverage The course is divided into four modules - Module 1 - CRM Concepts, Module 2 - CRM Applications in Consumer and Business Markets, Module 3 - CRM Tools, Techniques and Technologies, and Module 4 - CRM Implementation Module 1: Sessions 1-5 The Concept of Customer Relationship Management Text: Chapters 1-4 This module focuses on the conceptual and theoretical foundations of CRM. A number of theoretical perspectives developed in economics, law and social psychology are being applied in CRM. These include transactions cost analysis, agency theory, relational contracting, social exchange theory, network theory, game theory and interorganizational exchange behavior. Resource allocation and resource dependency perspectives and classical psychological and consumer behavior theories have also been used to explain why organizations and consumers engage in relational behavior. An overview of these theories will help develop insights on CRM from multiple perspectives. Other topics include Evolution of customer relationships Benefits of CRM Transaction vs. Relationship orientation Relationship building as a process The ladder of loyalty Bonding for customer relationship Zero Customer Defections Market share vs. share of customer Lifetime value of customers Session 1 : CRM : The Strategic Imperatives Reading Chapter 1 Session 2: Conceptual Foundations of CRM Reading Chapter 2 Case Analysis Angels and Devils: Best Buy s New Customer Approach Session 3: Building Customer Relationships Reading Chapter 3 Case Analysis A Fruitful Passion for Orange 2

3 Session 4: Economics of CRM Reading Chapter 4 Case Analysis - Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value Session 5: Case Analysis CRM at Capital One Roland Rust, Valarie A. Zeithaml,and Katherine N. Lemon (2004), Customer-Centered Brand Management, Harvard Business Review, September, pp Parvatiyar, A and Sheth, J.N. (2001), Conceptual Framework of Customer Relationship in Customer Relationship Management Emerging Concepts, Tools and Applications, Sheth, J.N., Parvatiyar, A. and Shainesh, G., Eds., New Delhi: Tata McGraw Hill, pp Fournier, S, Dobscha, S, and Mick, D. G. 'Preventing the Premature Death of Relationship Marketing', Harvard Business Review, January - February 1998, pp Payne, A., 'Relationship Marketing : A Broadened View of Marketing', in Adrian Payne (Ed.), Advances in Relationship Marketing, Kogan Page, 1997, pp Juttner, U. and Wehrli, H. P., 'Relationship Marketing from a Value System Perspective', in Adrian Payne (Ed.), Advances in Relationship Marketing, Kogan Page, 1997, pp Module 2: Sessions 6-10 CRM Application in Consumer and Business Markets Text: Chapters 5-6 This module focuses on applications and practices of CRM in different business contexts. CRM has been applied in consumer and business markets covering goods as well as the services sector. Rewards / loyalty programs are the most visible aspect of of CRM in consumer markets while CRM manifests itself as Key Account Management (KAM) in business markets. Marketers in the services businesses have been pioneers in adopting CRM. Review of the concepts and practices of service quality, service recovery and service guarantees will be done in this module. CRM practices in telecom, hospitality, retail and airlines and in the durables and automobile markets will be highlighted through select cases. In addition to KAM, the concept and practice of Customer value management (CVM) will be covered. Session 6-7 : CRM in B2C Markets Reading Chapter 5 Case Analysis : Federal Express (A) : The Money Back Guarantee Session 8 : CRM in B2B Markets Reading Chapter 6 3

4 Session 9 : Case Analysis P&G : Improving Consumer Value Through Process Design Session 10: Case Analysis Bose Corporation: The JIT II Program Gronroos, C., 'Relationship Approach to Marketing in Service Contexts : The Marketing and Organizational Behaviour Interface', in Adrian Payne et al. Relationship Marketing for Competitive Advantage - Winning and Keeping Customers, Butterworth - Heinemann, 1997, pp Shainesh, G., and Ramneesh, M., (2000), 'Status of Customer Relationship Management in India - A Survey of Service Firms', in Customer Relationship Management Emerging Concepts, Tools and Applications (2000), Sheth, J.N., Parvatiyar, A. and Shainesh, G., (Eds.), New Delhi: Tata McGraw Hill. Millman, T.,'Key Account Management in Business -to-business Markets', in Adrian Payne (Ed.), Advances in Relationship Marketing, Kogan Page, 1997, pp Reinartz and V. Kumar (2003), The Mismanagement of Customer Loyalty, Harvard Business Review, 80 (July) Uncles, Mark D., Grahame R. Dowling, and Kathy Hammond (2003), Customer Loyalty and Customer Loyalty Programs, Journal of Consumer Marketing, 20 (4/5), Module 3: Sessions CRM Tools, Techniques and Technologies Text: Chapters 7-9 Information and communication technologies have played a key role in the rapid adoption of CRM by businesses. These technologies, many of them developed in the last decade, have helped in automating the customer facing functions of sales, marketing and service. An overview of the components of ecrm Solutions help understand the technologies which enable an organization to get a single unified view of its customers across various points of contact. A balanced approach of CRM combines both operational and the analytical technologies. Data warehouseing and data mining form the support base for both operational as well as analytical CRM. The role of datawarehousing and datamining tools and applications are highlighted to help appreciate the analytical aspects of CRM. Coverage includes the three main components of comprehensive CRM solutions include Campaign Management, Sales Force Automation, and Customer Service and Support. The functionalities and applications of a few popular CRM products targeted at large enterprises (Siebel, SAPCRM) and a few targeted at the small and medium enterprises (SalesLogix, Microsoft CRM) will be covered. An overview of the emerging hosted CRM products (Salesforce.com) is also provided. Finally the role of contact centers in building customer relationship is highlighted. 4

5 Topics include Sales Force Automation Customer Service and Support Marketing (Campaign Management) Datawarehouse & datamining Evaluating technological solutions for CRM Role of a contact center in building relationships Components of a contact center Economics of a contact center Session 11: Components of ecrm Solutions Reading Chapter 7 Session 12: Case Analysis Pilgrim Bank: Customer Profitability Session 13 : Product Offerings in the CRM Market Space Reading Chapter 8 Session 14: Contact Centers for CRM Reading Chapter 9 Session 15: Case Analysis Hilton Hotels: Brand Differentiation through CRM Zeithaml, Valarie A., Roland T. Rust, and Katherine N. Lemon (2001), The Customer Pyramid: Creating and Serving Profitable Customers, California Management Review, 44 (Summer), Shoemaker, Mary E. (2002), A Framework for Examining IT Enabled Market Relationships, Journal of Personal Selling and Sales Management, 21 (Spring), Harrison-Walker L. Jean and Sue E. Neeley (2004), Customer Relationship Building on the Internet in B2B Marketing: A Proposed Typology, Journal of Marketing Theory and Practice, 12 (Winter), Reinartz, Werner J. and V. Kumar (2000), On the Profitability of Long-Life Customers in a Noncontractual Setting: An Empirical Investigation and Implications for Marketing, Journal of Marketing, 64 (October), Rust, Roland T., Valarie A. Zeithaml, and Katherine N. Lemon (2004), Customer-Centered Brand Management, Harvard Business Review, 81 (September),

6 Module 4: Sessions CRM Implementation Text: Chapters The last module will focus on issues related to CRM implementation. The organizational challenges of implementing CRM is underscored by the high levels of failures in implementing technology intensive CRM solutions. This module adopts a process oriented view of CRM implementation. Topics include The CRM Roadmap Defining a CRM strategy Developing a relationship orientation Internal marketing Budgeting for Attraction vs. Retention Learning from Customer Defections Evaluating Retention Programs Session 16-17: The CRM Roadmap Reading Chapter 10 Case Analysis Cineplex Entertainment: The Loyalty Program Session 18: Operational issues in implementing CRM Reading Chapter 11 Case Analysis Customer Profitability and CRM at RBC Financial Group Session 19: Group Project Presentations Mookerjee, A. and Shainesh, G., (2000), 'Developing Measures for the Service Quality and Relationship Strength Determinants of Customer Loyalty', in Raghavachari, M. and Ramani, K. V., Delivering Service Quality : Managerial Challenges for the 21 st Century, Macmillan India Ltd.: New Delhi, pp Reichheld, F. F., 'Learning From Defections', Harvard Business Review, March-April 1996, pp Rust, Roland T., Katherine N. Lemon, and Valarie A. Zeithaml, Return on Marketing: Using Customer Equity to Focus Marketing Strategy, Journal of Marketing, 68 (January), Timothy L. Keiningham, Bruce Cooil, Tor Wallin Andreassen, & Lerzan Aksoy (2007), A Longitudinal Examination of Net Promoter and Firm Revenue Growth, Journal of Marketing, Vol. 71, July,, Thomas, Jacquelyn S., Werner Reinartz, and V. Kumar (2004), Getting the Most out of All Your Customers, Harvard Business Review, 81 (July-August), Session 20: Case Analysis Implementing a Technology Based CRM Solution - The ICICI Experience (pp of text book) 6