Chapter 10
Customer
relationship
management
Do Thi Thu Ha, MSc.
Do Thi Thu Ha, MSc.
Chapter objectives
After completing this chapter, you should be able to:
Discuss the strategic importance of CRM.
Describe the components of a CRM initiative.
Discuss the implementation procedures used for CRM programs.
Describe how information is used to create customer satisfaction
and greater profits for the firm.
Describe how social media and cloud computing have impacted
CRM
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Do Thi Thu Ha, MSc.
Lecture outline
In this chapter, you will learn about:
1. Customer Relationship Management Defined
2. Key Tools and Components of CRM
3. Designing and Implementing a Successful CRM Program
4. Recent Trends in CRM
5. Summary
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Do Thi Thu Ha, MSc.
Customer Relationship Management Defined
Customer relationship Some company managers simply don’t understand or
management (CRM): care about what their customers want or what their
refers to building and CRM users need.
maintaining profitable collect customers’ purchase, credit and personal
long-term customer information, place it on a database, use it to initiate
relationships. some type of direct marketing opportunity, and
possibly even sell the database information to other
companies no substantive efforts are put forth to
engender a customer’s trust and loyalty
return phone messages, make it easy to return or
service products, and make it easy for customers to
get accurate information and contact the right
people inside the organization
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Do Thi Thu Ha, MSc.
Key Tools and Components of CRM
Elements for Segmenting customers Permission Marketing/ Cross-Selling
the
development Predicting customer Customer Defection Analysis
of effective behaviours
CRM Determining customer
initiatives value
Event-Based Marketing
Personalizing customer
communications
Sales Activity Management/ Sales
Automating the sales Territory Management/ Lead
force Management/ Knowledge Management
Customer Service Defined/ Call Centres/
Managing customer Website Self-Service/ Measuring
service capabilities Customer Satisfaction
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Personalizing Customer Communications
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Do Thi Thu Ha, MSc.
Personalizing Customer Communications
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Do Thi Thu Ha, MSc.
Designing and Implementing a Successful
CRM Program
1) Creating the CRM Plan
2) Involving CRM Users from
the Outset
3) Selecting the Right
Application and Provider
4) Integrating Existing CRM
Applications
5) Establishing Performance
Measures
6) Training for CRM Users
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Do Thi Thu Ha, MSc.
Designing and Implementing a Successful
CRM Program
1) Creating the CRM Plan 2) Involving CRM Users from the Outset
- Objectives of the CRM program Employee should understand how it affects
- CRM’s fit with corporate strategy their jobs:
- New applications to be • Create a project team with members
purchased or developed from all affected organizational areas
- Integration or replacement of • Test with a pilot application
existing legacy systems
- Personnel requirements –
personnel, training, policies, 3) Select the right application & provider
upgrades & maintenance Find an appropriate application &
- The costs & time frame for determine the extend of customization
implementation
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Do Thi Thu Ha, MSc.
Designing and Implementing a Successful
CRM Program 5) Establish performance measures
4) Integrate existing CRM Allows the firm to:
applications • Witness the progression of the system
in meeting its original objectives
CRM is a collection of various
• Compare actual to planned variance
applications implemented over time:
• Customer contact mechanisms 6) Providing CRM training for all users
need to be coordinated so that • Provide & require training for all of the
every year CRM users in the firm initial users & then provide training on an
knows about all the activity ongoing basis as applications are added
associated with each customer • Training can also help convince key
• Centralized database or data users like sales, call centre & marketing
warehouse containing all customer personnel of the benefits & users of CRM
information applications
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Do Thi Thu Ha, MSc.
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Do Thi Thu Ha, MSc.
Recent Trends in CRM
Customer Data Privacy
Social Media
Cloud Computing
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