1. ANALYTICAL & Operational CRM

2. THREE ASPECTS OF CRM
• Operational - automation of customer
processes that offers support to a company’s
sales or service representative
• Collaborative - the program communicates to
customers without a company’s sales or
service representative (self service)
• Analytical - analysis of customer information
for multiple purposes

3. Operational CRM
• Operational CRM streamlines the business process of an
organization.
• It mainly focuses on automation and improvement of
customer facing and customer touching business processes.
• It includes Sales automation, Marketing automation and
Service automation.
• Main purpose of Operational CRM system is to generate
leads, convert them into contacts, capture all required
details and provide support throughout customer lifecycle.

4. Operational CRM includes
• Sales Force Automation
• Customer Service & Support (Automation)
• Marketing Automation
(Cycles within CRM process)

6. Sales force Automation
● Sales Force Automation
(SFA) helps an organization
to automate sales process
from lead generation to
closing sale.
● Main purpose of sales
automation is to set
business standard within
the organization to acquire
new customers and deal
with existing customers.
It includes various CRM sales
modules like
Lead Management
Contact Management
Account Management
Customer MIS, Demographics,
Preferences, history
Campaign Manager
Quote-to-Order management
Sales Forecasting

7. Customer Service & Support
• This involves automation and coordination of all the service
operations and customer support processes which include
service requests, product returns, customer complaints, and
enquiries. These services and support can be provided
through contact center, call center, web portal, or
face-to-face interaction at a remote location in the field.
• Call Management automation helps to route customer call to the
most appropriate help desk person and retrieve all required
information related to the call.

8. Customer Service & Support
Case/Incident Management helps the organization to assign
customers’ problems to the right person, provide solution within
the time limit, capture customer response and analyze
effectiveness.
Knowledge Management captures information from various
sources and makes a pro active approach to give value addition
to customers.
Service Level Management enables business to analyze quality of
service based on key performance indicators.

9. Marketing Automation

10. Marketing Automation contd
Marketing Automation helps the organization to streamline marketing process,
automate and measure marketing task to increase sales and earn revenue
faster. It includes various CRM marketing modules like Campaign
Management, Event Based Marketing.
Campaign Management helps business to design campaign, decide
communication channels (like email, call, website, social media, TV ads),
segment contacts, allocate budget and analyze effectiveness or quality of the
campaign.
Event based marketing helps to reach out customers with more relevant
products or services based upon what’s going on in their lives at that moment,
like first job or buying new car or getting married.
Marketing Automation can automate response to customer queries, inform
sales team about new opportunities.

11. Analytical CRM
• Analytical CRM includes a sound analytical infrastructure
that help to gather all the relevant information about the
customers and organize it consistently.
• It help in achieving a 360-degree view of customers,
through which company can maintain and build truly
interactive, mutually beneficial, and profitable
relationships.
• It helps the company to identify the new trends in the
market.
• It help in gaining further insights into customer needs
and preferences.

12. Impact of Analytical CRM
• Customer Acquisition
– Cross Selling
– Up Selling
• Customer Retention
– Retain Customers , renewals
• Customer Information
– Dashboards
– Reports

14. Analytical CRM analyzes customer data for a
variety of purposes:
• Design and execution of targeted marketing campaigns to
optimize marketing effectiveness
• Design and execution of specific customer campaigns,
including customer acquisition, cross-selling, up-selling,
retention ..
• Management decisions, e.g. financial forecasting and
customer profitability analysis.
• Prediction of the probability of customer defection (churn
analysis) .
• Analytical CRM generally makes heavy use of data mining.

15. Analytical CRM ‘Power Tools’
Capabilities that Companies Must Have
• Broad range of actionable analysis
and predictive modeling
capabilities
• Holistic view of customer
interactions to understand the
whole customer
• Means to understand and
automate the event rules that
drive the business and
communicate with
individual customers

16. Manage the Total Communications
Environment with Analytical CRM
•
•
Direct
Mail
E-Mail/Fax
ATM/Kiosk
Call Center
Agent
Store /Branch
Analytical CRM

17. THE VALUE ANALYTICAL CRM ADDS TO
BUSINESS DESIGN
• Acquire new profitable customers by cloning best
customers.
• Improve relationships with existing customers by
addressing their individual needs
• Optimize cross-selling and up-selling opportunities
• Improve customer loyalty and reduce customers'
propensity to churn

18. Scope of Analytical CRM
• Customer behavior modeling
• Customer value assessment
• Customer profitability
• Customer lifetime value
• Customer profiling and scoring
• Customer portfolio optimization
• customer interaction.

19. Applications of Analytical CRM
• Programme Evaluation
•Financial Forecasting
• Price Optimization
• Customer Satisfaction Evaluation
• Customer Satisfaction Growth
• Product Development
• Fraud Detection
• Risk Management
• Contact Optimization
• Sales Coverage Optimization

20. Achieve Positive Business Results
… Over Time
CRM is an ongoing, scientific process …
…not an isolated campaign
or marketing plan

21. CRM Process Must Balance
Quality of
Customer
Experiences
Achieve Positive
Business
Results

22. CIGNA Case Study

23. Cigna Corporation is one of the largest health insurance companies in the
United States. In 2002, Cigna undertook a $1 billion initiative to overhaul
their technology infrastructure and implement a CRM system. The
impetus behind the initiative was to improve enrollment, eligibility, and
claims processing with integrated processes and systems. With such
systems in place, Cigna would hypothetically be able to process medical
claims more quickly and efficiently, while also providing their customer
service agents with a unified view of Cigna members.
Such changes would require integrating back-end processes with the CRM
applications on the front end, as well as implementing new processes to
accommodate the new enrollment, eligibility, and claims procedures that
Cigna wanted to implement. This, in turn, would necessitate training staff
on how these new processes would work and a revamp of customer
service procedures to complement the new systems being put in place.

24. Though the Chief Information Officer for Cigna, Andrea Anania, carefully
monitored the progress of the Cigna CRM implementation project,
problems sprang up almost immediately. A mass migration to the new
infrastructure was carried out, which resulted in Cigna members being
unable to access information about their coverage, which then led to an
inundation of customer inquiries that the customer service department
was unprepared and unable to
respond to.
As a result, membership dropped from 13.3 million to 12.5 million with
Cigna suffering a net loss of $398 million in revenue.

25. Questions
i. With respect to above discuss why the CRM
implementation went wrong ?
ii. Explain what could have been the strategy that
Cigna should have used to roll out its CRM change
program?
iii. Explain the aspects to be considered in project
management steps and the steps that Cigna should
have adopted for its CRM roll out?