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Achieving Operational Excellence and Customer Intimacy Enterprise Applications - Part 02

CRM systems help firms achieve customer intimacy by capturing and integrating customer data from across an organization, consolidating and analyzing it, and distributing it to customer touchpoints. This provides a single enterprise view of customers. CRM software includes modules for sales force automation, customer service, marketing, and tools to assess partner relationships. It allows firms to increase customer satisfaction, reduce marketing costs, improve marketing effectiveness, lower customer acquisition and retention costs, and increase sales revenue. Enterprise applications face challenges from high costs, technology changes, and data issues but are taking advantage of new technologies like cloud computing, mobile functionality, social CRM, and business intelligence capabilities.

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Rashmi Rathnayaka
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276 views16 pages

Achieving Operational Excellence and Customer Intimacy Enterprise Applications - Part 02

CRM systems help firms achieve customer intimacy by capturing and integrating customer data from across an organization, consolidating and analyzing it, and distributing it to customer touchpoints. This provides a single enterprise view of customers. CRM software includes modules for sales force automation, customer service, marketing, and tools to assess partner relationships. It allows firms to increase customer satisfaction, reduce marketing costs, improve marketing effectiveness, lower customer acquisition and retention costs, and increase sales revenue. Enterprise applications face challenges from high costs, technology changes, and data issues but are taking advantage of new technologies like cloud computing, mobile functionality, social CRM, and business intelligence capabilities.

Uploaded by

Rashmi Rathnayaka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Achieving Operational Excellence

and Customer Intimacy:


Enterprise Applications

Jayani Rajakaruna
Learning Objectives
• How do customer relationship management systems help firms
achieve customer intimacy?

• What are the challenges posed by enterprise applications and how


are enterprise applications taking advantage of new technologies
Customer Relationship Management Systems
• Customer relationship management (CRM)
- Knowing the customer
- In large businesses, too many customers and too many ways
customers interact with firm
• CRM systems:
- Capture and integrate customer data from all over the organization
- Consolidate and analyze customer data
- Distribute customer information to various systems and customer
touch points across enterprise
- Provide single enterprise view of customers
Customer Relationship Management Systems
Customer Relationship Management (CRM)
Customer Relationship Management Systems
• CRM software
- Packages range from niche tools to large-scale enterprise applications.
- More comprehensive have modules for:
• Partner relationship management (PRM)
– Integrating lead generation, pricing, promotions, order configurations, and
availability
– Tools to assess partners’ performances
• Employee relationship management (ERM)
– Setting objectives, employee performance management, performance-based
compensation, employee training
Customer Relationship Management Systems
• CRM software (cont.)
- CRM packages typically include tools for:
• Sales force automation (SFA)
– Sales prospect and contact information, sales quote generation capabilities
• Customer service
– Assigning and managing customer service requests, Web-based self-service
capabilities
• Marketing
– Capturing prospect and customer data, scheduling and tracking direct-
marketing mailings or e-mail, cross-selling
Customer Relationship Management Systems
How CRM Systems Support Marketing
Customer Relationship Management Systems
CRM Software Capabilities
Customer Relationship Management Systems
Customer Loyalty Management Process Map
Customer Relationship Management Systems
• Operational CRM:
- Customer-facing applications such as sales force automation, call
center and customer service support, and marketing automation
• Analytical CRM:
- Based on data warehouses populated by operational CRM systems
and customer touch points
- Analyzes customer data (OLAP, data mining, etc.)
• Customer lifetime value (CLTV)
Customer Relationship Management Systems
Analytical CRM Data Warehouse
Customer Relationship Management Systems
• Business value of CRM systems
– Increased customer satisfaction
– Reduced direct-marketing costs
– More effective marketing
– Lower costs for customer acquisition/retention
– Increased sales revenue
• Churn rate:
– Number of customers who stop using or purchasing products or
services from a company
– Indicator of growth or decline of firm’s customer base
Enterprise Applications: Challenges and Opportunities
• Enterprise application challenges
– Highly expensive to purchase and implement enterprise applications
• Average cost of ERP project in 2015—$6.1 million
– Technology changes
– Business process changes
– Organizational learning, changes
– Switching costs, dependence on software vendors
• Integrating cloud applications
– Data standardization, management, cleansing
Enterprise Applications: Challenges and Opportunities
• Next-generation enterprise applications
– Enterprise solutions/suites:
• Make applications more flexible, Web-enabled, integrated with other systems
– SOA standards
– Open-source applications
– On-demand solutions
– Cloud-based versions
– Functionality for mobile platform
Enterprise Applications: Challenges and Opportunities
• Next-generation enterprise applications (cont.)
– Social CRM
• Incorporating social networking technologies
• Company social networks
• Monitor social media activity; social media analytics
• Manage social and Web-based campaigns
– Business intelligence
• Inclusion of BI with enterprise applications
• Flexible reporting, ad hoc analysis, “what-if” scenarios, digital dashboards,
data visualization
Thank You !

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