Customer Relationship
Management
Small Business Information Systems
Professor Barry Floyd
Agenda
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Defining ERP
Implementation tasks for CRM
CRM Overview / Demos
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Conceptual Overview
An application perspective of CRM
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Operational
Analytical
Lab component:
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Hands on use of CRM with Microsoft
Use of ERP software in the curriculum – Defining ERP?
Defining ERP
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“In 1990, research firm Gartner Group coined the term
Enterprise Resource Planning, or ERP. It quickly
became a catchall for back office enterprise functions
that included financials, human resources, accounting,
purchasing, ordering and costing.”
“ERP II takes the ERP foundation and extends it
outward, to position the enterprise in the supply an
value chains (e.g., Supply Chain Management (SCM),
Customer Relationship Management (CRM), Product
Life Cycle Management (PLM) .”
Conceptual Overview
Sales?
Conceptual Overview
A shift in thinking …
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Transaction  Learning relationship
Mass Marketing  Individual marketing
Transaction Value  Life time value
Conquest Marketing  Retention marketing
Product Life Cycle  Customer Life Cycle
Customer Satisfaction  Customer Loyalty
Share of the market  Share of the customer
Product differentiation  Customer differentiation
What’s a relationship?
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Can an organization have a ‘relationship’ with a
person?
Emphasis on CRM is the notion of a ‘learning
relationship’
Knowledge
 Intent
 Trust
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Customer Satisfaction  Customer Loyalty
The Death of Customer Satisfaction: CRM in
the Internet Age by Tony Zingale
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Fulfillment – The company
has what I want.
Value – The price meets my
expectations.
Convenience – The product
is easy to get.
Trust – I’m reasonably
confident the product is
reliable.
PeopleSoft CRM
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Consider the ‘front-facing’ CRM application developed
by PeopleSoft (not a product line of Oracle).
A ‘front-facing’ application is an application that the
customer sees.
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Contrast with ‘back-office’ operations like we have been
working with using GP Dynamics 9.0
In this clip, a customer wishes to file a damage claim.
Key points:
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Customer centric, can see all interactions with this ‘insurance
company’, customer-driven, is an example of mass
customization and personalization
PeopleSoft –
Customer Request
Customer Satisfaction  Customer Loyalty
The Death of Customer Satisfaction: CRM in
the Internet Age by Tony Zingale
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Satisfaction – My basic
transactional needs are met
Bonding – The company is
acting in my best interests.
Personalization – The
company demonstrates that it
understands and anticipates
my needs.
Empowerment – The
relationship is on my terms
and under my control.
Customer Differentiation
vs. Product Differentiation
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Research by Professors Cooper and Kaplan at the
Harvard Business School has shown that in a large
number of companies 20 percent of customers account
for 225 percent of profits and the 80 percent `lose’ 125
percent of profits.
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But the trouble is that most companies do not know
which customers make up the 20 percent and which
make up the 80 percent.
Enterprise Strategy Map
Ability to
Interact with
Customers Individually
Interacting
Customers addressed
only in mass media
C
u
s
Database
Marketing
1 to 1 learning
relationship
Mass Marketing Niche Marketing
Standard
products
Tailoring
Source: Pepper / Rogers, Enterprise One to One,
New York: Doubleday/Currency, 1997.
Tailored
products
Needs Satisfied
Needs Satisfied
Share of the Market
vs. Share of the Customer
Customers Reached
Customers Reached
Themes
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Customers as assets
Market based assets, including customer
relationships
 Companies executives will need to report their
customer relationship management performance to
investors
 Holistic view of the customer
 Analysis out of the hands of the statisticians
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Four implementation tasks for
creating and managing customer
relationships
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IDIC
Identify
 Differentiate
 Interact
 Customize
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Reference: Peppers and Rogers,
Managing Customer Relationships,
A Strategic Framework
Four implementation tasks for
creating and managing customer
relationships
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IDIC
Identify
 Differentiate
 Interact
 Customize
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Reference: Peppers and Rogers,
Managing Customer Relationships,
A Strategic Framework
Identify
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Relationships are individualistic, not with
markets or groups of people
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Must be able to identify your customers individually
and recognize them when interacting with them
Without identification, you cannot understand who
they are and what their needs are.
Difficult to do, can be almost impossible if channels
of communication involve intermediaries
Steps
1.
2.
How much customer identification does a company
already have (what info do you need)
Get customers to identify themselves
Four implementation tasks for
creating and managing customer
relationships
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IDIC
Identify
 Differentiate
 Interact
 Customize
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Reference: Peppers and Rogers,
Managing Customer Relationships,
A Strategic Framework
Differentiate
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Some customers are worth more than others
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Knowing value of customer to the enterprise allows
prioritization
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80/20 rule
Want to better understand customer ‘needs’ vs. demographics
Want to better understand the value of that customer to the
enterprise
Lifetime value (LTV) … net present value of the stream of
expected future contributions from the customer.
Most valuable customers, most growable customers, belowzeros, migrators
Differentiate customers based on needs
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Refers to why customer buys rather than what they buy.
PeopleSoft CRM –
Insurance Company’s Response
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What support is provided by the company to help the
“Customer Support Agent”
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What information does this agent have about the client?
Where does it come from?
How useful is it?
What information does the agent have about their own
performance?
Consider
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What information has the claimant provided to the Insurance
Company?
How does this interaction reflect a ‘partnership’
How much trust is there?
PeopleSoft –
Customer Support Agent Response
Four implementation tasks for
creating and managing customer
relationships
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IDIC
Identify
 Differentiate
 Interact
 Customize
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Reference: Peppers and Rogers,
Managing Customer Relationships,
A Strategic Framework
Interact
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Goal of interaction is ‘to get more information directly
from a customer in order to serve him in a way no
competitor can who doesn’t have the information’
Want to turn the interaction into a collaboration in which
the enterprise and customer work together to make
transactions beneficial to both parties … a learning
relationship
Important issue in the interaction is privacy. Research
has indicated that individuals are willing to provide
information
Four implementation tasks for
creating and managing customer
relationships
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IDIC
Identify
 Differentiate
 Interact
 Customize
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Reference: Peppers and Rogers,
Managing Customer Relationships,
A Strategic Framework
Customize
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Use knowledge of customer to figure out what
he/she needs
Key term is ‘mass customization’
Can be product based
 Or service based on standard products
 Use of information technologies key
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PeopleSoft CRM –
Insurance Company’s Response
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What support is provided by the company to help the
“Sales Agent’s Response”
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Are we wasting the Sales Agent’s time? Why not?
When the Sales Agent calls the client, will it be consider
intrusive?
How are gaining ‘share of the customer’ (in contrast to ‘share
of the market’?)
Again consider …
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What information has the claimant provided to the Insurance
Company?
How does this interaction reflect a ‘partnership’
How much trust is there?
PeopleSoft – Sales Agent Response
How does technology play a role?
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Enabler ….
Managing all touch points with the customer to
develop knowledge so that the ‘relationship’ part
of the interaction becomes meaningful.
Note, technology is only an enabler, people and
organizational design play critical roles in CRM
success
CRM Overview / Demos – An application perspective of CRM
PeopleSoft CRM View
PeopleSoft® Enterprise Customer Relationship
Management (CRM) is a comprehensive solution
offering greater user adoption, an improved user
experience, and real-time intelligence for your enterprise to
make smarter decisions. Every customer interaction can
now be an opportunity to build business value with your
customers.
CRM Overview / Demos – An application perspective of CRM
PeopleSoft CRM View
“Get immediate, seamless integration among your
customer, financial, supply chain, and employee
management systems.”
CRM Analytics
 Marketing Solution
 Sales Solution
 Service Solution
 CRM Industry Solutions
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Operational CRM
Analytics CRM
CRM Overview / Demos – An application perspective of CRM
Operational CRM
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“Operational CRM is the automation of horizontally
integrated business processes involving front-office
customer touch points across sales, marketing and
customer service via multiple, interconnected delivery
channels. ”
Meta Group
CRM Overview / Demos – An application perspective of CRM
PeopleSoft CRM View
MARKETING
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New product campaign
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Email wave
Telesales wave
Free software offer
SUPPORT
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Installed Product
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SALES
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Forecasts
Leads/Opportunities
Sales Reps
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Agreement
Warranty
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Call Center Agent
Resolution Database
Specialist
Competencies
Call Center Agent
Resolution Database
FIELD SERVICE
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ANALYTICS
HELPDESK
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Service Order
Technician
Competencies
INTERACTION
MANAGEMENT
CRM Overview / Demos – An application perspective of CRM
CRM Demos – User Perspective
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Customer Perspective
Customer Support Agent
Sales Representative
Sales Manager
CRM Overview / Demos – An application perspective of CRM
Example Business Process:
CRM Marketing and Sales Business Process
Flow
Analyze Customer
Performance and
Generate Target
Audience List
Create Campaign
Create Wave
CRM Marketing
Business Process
CRM Sales
Business Process
Lead Generation
Manage Leads
Measure Campaign
Measure Opportunity
Performance
Generate Forecasts
and Rollup
Forecasts
Create Opportunity
CRM Overview / Demos – An application perspective of CRM
Two key features of business process
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Embedded Analytics
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Allows for data analysis within the business process
stream
Interaction Management
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Provides a 360-degree view of the customer’s
interactions (cases, leads, installed products, service
orders, agreements, returned materials, interactions)
CRM Overview / Demos – An application perspective of CRM
Analytical CRM
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”Analytical CRM is the analysis of data created on
the operational side of CRM and through other relevant
operational data sources for the purposes of business
performance management and customer-specific analysis.
”
Meta Group
CRM Overview / Demos – An application perspective of CRM
CRM Analytics Solution
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CRM Portal Pack
CRM Warehouse
Customer Behavior Modeling
Customer Scorecard
EPM Portal Pack
Predictive Analytics
CRM Overview / Demos – An application perspective of CRM
Customer Behavior Marketing
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Which customers are most likely to purchase
your product
Which customer segment will maximize your
ROI on marketing campaigns
Which personalized, targeted offers your call
center reps should present
Which customers are at risk of attrition
PeopleSoft – Sales Manager
Predictive analytics
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An application that leverages a companies’
operational data about customers and past
events and uses it to predict a customer’s future
behavior.
Goal is to distribute the value of statistical
analysis to non-statisticians in the organization.
CRM Demo Resources
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Siebel: http://www.siebel.com/bestpractices/examples.shtm
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SalesForce.com:
http://www.salesforce.com/us/products/demo-center.jsp
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Microsoft:
http://www.microsoft.com/dynamics/crm/default.
mspx
 http://mscrm.demoservers.com/
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Avaya:
http://www1.avaya.com/enterprise/resourcelibrary/demos/crm
_callcenter.html
CRM Resources
http://crm-daily.newsfactor.com/
http://www.destinationcrm.com/
http://searchcrm.techtarget.com/
http://crm.ittoolbox.com/
http://www.crmguru.com/
TeraData Center,
Duke University
CRM Lab
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Go to the following web site:
http://mscrm.demoservers.com/
 Register
 Once you’ve registered, log in and do the SALES
CRM lab.
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I’ve given you a handout on this.
Summary
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CRM is an exciting application that provides an
integrated view of critical business processes
and allows the student to develop a real-world
understanding
Integration with other modules like Supply
Chain Management, Financials, and HR is
critical for a complete view of the customer