5 Modules

Managing the customer Implementing CRM

CRM, its Fundamentals lifecycle
and Customer Operational, Analytical,
Relationship Collaborative CRM
Strategic CRM

1
CRM 22-24 batch CM1 Krishna Koppa
 Operational CRM: Sales Force Automation, Marketing
Automation – Benefits and software applications in
marketing*, Service Automation – Customer service,
Service modelling.
Analytical CRM: Developing and managing customer
Operational, Analytical,
related data – developing data base, data integration,
Collaborative CRM data mining, data mart, data warehousing, using
customer related data - Analytics for CRM strategy,
tactics, Analytics throughout customer lifecycle,
Generating customer analytical insights.
Collaborative CRM: Managing networks for CRM
performance, SCOPE Mode*, supplier and partner
relationship management
2
CRM 22-24 batch CM1 Krishna Koppa
 Operational
CRM

CRM 22-24 batch CM1 Krishna Koppa

 The CRM Ecosystem

• Enterprise CRM
• Largest Suites = Vendor
component of solutions targeted
CRM ecosystem for companies
• Strategy with > $1Bn or
Service CRM Solution
consulting (Ex 1000 employees
Providers providers
McKinsey) • Midmarket CRM
• Business Suites = targeted
Consulting (Ex CRM for companies
Accenture) with <1Bn and
Ecosystem
• Application <1000 employees
Consulting (Ex • CRM Specialty
IBM, Accenture) tools = vendors
• Technical that offer narrow
Consulting (Ex functional
• IBM, Blackberry, breadth
Unisys, IBM,
Hardware and Dell and HP
Logica)
provide range of
• Outsource service infrastructure
vendors solutions across
providers (Ex EDS,
hardware
IBM, Acxiom)
spectrum
• Avaya, Genesys
and Siemens
provide telephony
and CRM-related
infrastructure
solutions
CRM 22-24 batch CM1 Krishna Koppa
 Marketing Automation

Marketing Automation is the application of

computerized technologies to support marketers
and marketing management in the achievement of
their work related objectives

CRM 22-24 batch CM1 Krishna Koppa

 Marketing Automation
In Marketing, CRM enables
• Customer /Prospect segmentation
• Campaign to be run
• Leads to be allocated
• Create marketing plans budgeting
• Designing loyalty programs
• Launching new products
• Administering channel partner relationships

CRM Components – Marketing Automation

Permission &
History Customers Attributes
Personalization

Lead/
Segments Lists Campaigns
Opportunities

Marketing
Plans Budgets Responses Activities
funds

Partners

CRM 22-24 batch CM1 Krishna Koppa

 Sales Automation
In Sales, CRM enables
• B2C telesales
• B2B complex sales processes
• Converting opportunity into a ‘close’
• Tracking the sale
• Sales over web

CRM Components – Sales Automation

Customers Buying process Competitors Products Configuration

Quotes, Quotes, Customer

Leads Opportunities
Proposals Proposals products

Sales
Activities Sales team Territory Forecasts
Methodology

Objectives and
Incentives Partners
tactics

CRM 22-24 batch CM1 Krishna Koppa

 Service Automation
In Service, CRM enables
• Tracking service events from Trouble Service Automation is the application of
Ticket(TT)/ service request to
computerized technologies to support Service
completion and issue resolution
• Dispatching and scheduling of service staff and management in the achievement of
requests their work related objectives
• Utilization of scripts in teleservicing

CRM Components –Service Automation

Agreements /
Customers Activities Service team Inventory
warranties

Dialogue Service
Service orders Resolutions
scripts requests (TT)

Customer
Products Known issues Solutions
Products

Maintenance
Manuals Defects
plans

CRM 22-24 batch CM1 Krishna Koppa

 CRM enabling automation of Sales, Marketing and Service is not good enough

CRM Analytics must provide deeper insight in to customer which gets reflected in

 Customer value

 Customer satisfaction and

 Propensity to churn

CRM 22-24 batch CM1 Krishna Koppa

 Currently, CRM Analytics focuses on analysis in 3 imp areas

1. Standard reporting
2. Online Analytical Processing (OLAP)
3. Data Mining

CRM 22-24 batch CM1 Krishna Koppa

 Multichannel CRM

Multiple Communication technology Channels

• Integrating various communication platforms
for customers to communicate and get
consistent experience /dialogue

2 Perspectives of
Multichannel CRM

Multiple Organizational Touchpoints

• Integrating various ‘touchpoints’ for customers
to communicate and get consistent experience
/dialogue

CRM 22-24 batch CM1 Krishna Koppa

 Analytical CRM
(Developing, managing and
using customer-related
databases)

CRM 22-24 batch CM1 Krishna Koppa

 Why customer-related data?

Strategic CRM Operational CRM Analytical CRM

Automation of customer- Mining of customer-related

Identify which customers to…
facing processes like… data for…

Target Win Keep Sales Mktg Service Strategies Tactics

Collaborative CRM

Sharing of customer-related
CUSTOMER-RELATED DATA data with

Partners

It is not ‘customer data’ !

It is customer-related data !!

CRM 22-24 batch CM1 Krishna Koppa

 Why customer-related data?

SALES MARKETING SERVICE LOGISTICS

In a company, customer-related data is FINANCE CHANNELS

collected by different functions for their
operational reasons

Customer-related data is all about…

• Individual customers
• Customer cohorts
• Customer segments
• Entire markets
• Competitor information
• Regulatory data
• Anything that is pertinent to developing customer
relationships

CRM 22-24 batch CM1 Krishna Koppa

 6 steps in developing customer-related data

Define the database functions

Define the information

requirements

Identify the information

sources

Select the database technology

and hardware platform

Populate the database

Maintain the database

CRM 22-24 batch CM1 Krishna Koppa

 6 steps in developing customer-related data

• OLTP (Online transaction processing) for operational

Define the database functions purposes
• OLAP (Online analytical processing) for analytical purposes

• Sales, Marketing, Service teams are the best ones to tell

Define the information what information is needed
requirements • Contact data, contact history, transaction history,
opportunities, products , communication preferences etc

• Internal data
Identify the information
• External data : Compiled data / Census data / Modeled data
sources

Select the database technology • Relational databases / RDBMS

and hardware platform • Oracl SQL Server / Microsoft NT

• Sourcing
• Verifying
Populate the database • Validating
• De-duplicating
• Merging and purging

• Data can degrade

Maintain the database • De-dupe and purge/merge continuously

CRM 22-24 batch CM1 Krishna Koppa

 Critical terms related to maintenance of databases

Data Warehouse Data Mart Data mining

• Data warehouse is a • Data mart is a scaled • Data mining is the

solution for converting down version of data application of
huge data in to warehouse, customized descriptive and
information for use in a particular predictive analytics to
• Data warehouse is a function /department support marketing,
‘repository of large • Technological sales and service
amounts of requirements are less functions
operational, historical • Number of users can be
and other customer- capped
related data • Lower project costs as
• Can reach many compared to data
terabyte levels warehouse

CRM 22-24 batch CM1 Krishna Koppa

 Data mining is the application of descriptive and predictive analytics to
Data mining
support marketing, sales and service functions

Data mining can provide answers to following questions

(imp for strategic and operational CRM)
1. How can our customers be segmented
2. Which customers are more valuable
3. Which customers are more potential in the future
4. What customers are buying our products? Who are not
buying?
5. Are there any purchasing patterns
6. Who are defaulters on payment? What is their profile?
7. What kind of offers can be made to customers?
8. Which customers to be targeted for acquisition?
9. Which customers to be targeted for retention?
10. Who can be upsold / cross sold?

CRM 22-24 batch CM1 Krishna Koppa

 Data mining and its use

Story 1

CRM 22-24 batch CM1 Krishna Koppa

 Data mining and its use

Story 2

CRM 22-24 batch CM1 Krishna Koppa

 SMAC as a facilitator for value co-creation

Source: Krishna Koppa, Business World, Feb 2015

CRM 22-24 batch CM1 Krishna Koppa

 Analytics Big data is not a better data unless we know
what to do with it !

Traditional Predictive Prescriptive

Analytics Analytics Analytics

CRM 22-24 batch CM1 Krishna Koppa

 Analytics

4Vs of Analytics leading to

5th V = Value

 Volume (=amount of data processing)

 Velocity (=speed of data processing)
 Variety (=types of data processing)
 Veracity (= accuracy)

CRM 22-24 batch CM1 Krishna Koppa

 Collaborative CRM
(Managing Supplier and
Partner relationships)

CRM 22-24 batch CM1 Krishna Koppa

 In this chapter we study the relationship the company has with suppliers as they
procure goods and services
Also,
With partners in other parts of value chain(logistics, sales, service, marketing)

CRM 22-24 batch CM1 Krishna Koppa

 S.C.O.P.E Model of CRM

Supplier relationship
management

Employees Suppliers

CUSTOMER

Partner relationship Partners Owners

management (Investors)

The S.C.O.P.E. model

The central constituency in the model is the customer, (C).
The other four constituencies – suppliers (S), owners / investors (O), employees (E) and other
partners (P) – must be managed and coordinated to ensure that preferred value propositions
are created, communicated and delivered to the selected customers.

CRM 22-24 batch CM1 Krishna Koppa

 Supplier relationship Management (SRM)

Supplier relationship management

- Is a back office activity

- Managed through ERP (Enterprise resource planning), SCM (Supply Chain
management) or SRM (supplier relationship management) tools

- Has often been portrayed as conflicted, adversarial power struggle, short-term

oriented

- But, actually there has been a high focus on SRM by many companies to result
in long-term relationships

SRM focuses on following 3 critical things

1 Product Development
2 Supplier accreditation programmes (ISO 9000, 9001 etc or own accreditations)

3 Process alignment (Aligning quality processes, Aligning order fulfillment processes)

CRM 22-24 batch CM1 Krishna Koppa

 Supplier relationship Management (SRM)

Trends in Supplier relationship Management (SRM)

1 Vendor reduction programmes with following benefits

• Reduced transaction costs
• Additional volume discounts
• Performance compliance
• Increased technical copperation

3 Category management – focus is on category of products and not on brands

Category management = management system aiming to reduce the distance from
supplier to customer by defining and managing product categories, rather than
individual brands

3 Product development alliances

4 Electronic procurement – E-shopping, E-procurement, E-auctions etc

CRM 22-24 batch CM1 Krishna Koppa

 Partner relationship Management (PRM)

CRM 22-24 batch CM1 Krishna Koppa

 Partner relationship Management (PRM)

Partners in Value creation

• JV and alliance partners
• Category teams

Partners
• Benchmarking partners
• Regulators
• Customer advocacy groups
• Sponsors

Partners in Value delivery

• Agents /distributors
• Brokers
• Management contractors
• Franchisees
• Licensees
• Other channel partners

CRM 22-24 batch CM1 Krishna Koppa

 Partner relationship Management (PRM)

Partners in Value creation

Strategic alliances
= a business partnership where in two firms maintain their strategic autonomy while
simultaneously establishing activity links or resource sharing

Strategic alliances between non-competing firms

• Market expansion
• Vertical integration
• Diversification

Strategic alliances between competing firms

• Shared supply alliances (sharing supply resources to save costs)
• Quasi-concentration alliances (coming together and making one product)
• Complementary alliances (Coke selling nestle tea through its distribution network)

CRM 22-24 batch CM1 Krishna Koppa

 Partner relationship Management (PRM)

Partners in Value creation

Customer advocacy groups (CAGs)

= CAGs promote and protect the interests of customers (ex: Jaago Grahak Jaago campain)

Sponsors
= Sponsorship is the material or financial support of some sports, causes or arts etc, with
which a firm nor normally associated on the normal course of business

CRM 22-24 batch CM1 Krishna Koppa

 Partner relationship Management (PRM)

Partners in Value Delivery

• Agents /distributors
• Brokers
• Management contractors
• Franchisees
• Licensees
• Other channel partners

CRM 22-24 batch CM1 Krishna Koppa

 Journey so far….

CRM 22-24 batch CM1 Krishna Koppa