Chapter 3 Types of CRM

Transcription

1 Chapter 3 Types of CRM 1

2 Learning Objective To know about the Operational CRM To understand Collaborative CRM To Understand Analytical CRM 2

3 Introduction to Types of CRM CRM recognises that customers are the basis and crux of a business and that the company s success depends on effectively managing relationships with them. CRM requires a customer centric business philosophy and culture to support effective marketing, sales and service processes. 3

4 Introduction to Types of CRM Broadly there are three types of CRM Operational CRM Collaborative CRM Analytical CRM 4

5 Operational CRM Part of CRM that supports daily sales, marketing or service tasks Involves creating target groups based on criteria revealed by the data analysis or managing event attendance e.g. in seminars Mostly involves areas where there is a direct customer contact Deals with customer touch points e.g. a call to a customer support helpline 5

6 Components of Operational CRM Sales Force Automation Enterprise Marketing Automation Activity Management Campaign Management 6

7 Sales Force Automation A type of program that automates business tasks such as inventory control, sales processing and tracking of customer interactions Information system that efficiently automate the sales process and management of the sales force 7

8 Key benefits of Sales Force Automation (SFA) Contact management and diary management Account management Driving leads and managing opportunities Generating quotes 8

9 Key benefits of Sales Force Automation (SFA) Sales forecasting Tracking competitors Reports and Analytics Mobile applications 9

10 Common pitfalls to success of SFA Lack of buy in Improper and incomplete data input A non-responsive system Limitations of access to the system Poor training and lack of proper customisation 10

11 Enterprise Marketing Automation (EMA) Main function of the EMA is to run different marketing programs in the organisation Helpful in running efficient marketing campaign Necessary information includes appropriate segmentation of customers and a robust segmentation strategy 11

12 Key components of EMA Promotions Event based marketing Loyalty and loyalty programs Partner management Response management 12

13 Parameters for customer segmentation Homogeneity within a particular customer segment Heterogeneity across different industry and customer segment Customer should respond in an identical manner to a particular marketing campaign Customer should be reachable through the campaign Organisations should be able to create a marketing strategy for the group 13

14 Segmentation Strategy Organisations are better able to understand and satisfy the needs of the customer Organisations are able to generated higher profits Provides a great opportunity for growth Creation of a long and fruitful customer relationship Lead to higher market share 14

15 Activity Management An integral part of the CRM and administers all activities undertaken by the company s employees Can be treated as subsequent documents for a wide variety of other business transactions such as opportunities, leads sales orders and contracts 15

16 Campaign Management Systems Campaign management systems are primarily characterised for the following key functionalities Opportunity identification Relationship planning Campaign management Customer interaction Measuring and evaluating 16

17 Collaborative CRM Collaborative CRM broadly consist of two major aspects Interaction Management Channel Management 17

18 Analytical CRM Analytical CRM supports back office operations and analysis, It deals with all the operations and processes that do not directly deal with customers Primary Goal of Analytical CRM is to develop, support and enhance the work and decision making capability of an organisation 18

19 Features of Analytical CRM Seizing all the relevant and essential information of customers for creation of knowledge repository Determining, developing and analysing inclusive set of rules and analytical methods to scale and optimise relationship with customers Implementing or deploying the results to enhance the efficiency of CRM system and processes 19

20 Features of Analytical CRM Combine and integrate the values of customers with strategic business objectives Analytical CRM is a solid and consistent platform which provide analytical applications to help predict, scale and optimise customer relations 20

21 Advantages of Analytical CRM Leads in making more profitable customer base by providing high value services Helps in retaining profitable customers through sophisticated analysis and making new customers that clones best customers Helps in addressing individual customer s needs and efficiently improving the relationships with new and existing customers Improves customer satisfaction and loyalty 21

22 Analytics has following role in the Customer life Cycle Management Customer analytics Marketing analytics Sales Analytics Service Analytics Channel Analytics 22

23 Summary CRM is a business strategy to select and manage customers to optimise long term value CRM requires customer centric business philosophy and culture to support effective marketing, sales and services Three types of the CRM Operational Collaborative Analytical 23