1. What Is Relationship Management
Customer
“CRM”
Becoming a common and important concept in many
industries
Beyond mere ‘Contact Management’
Knowing the customer and the Touch points
Single undertaking view of customers
Most industries have CRM software to help sales
process, on-going service, and even accounting
2. The Value of CRM
Gain more control in interaction with customers
Manage expectations better
Increase trust
Provide products that better serve customers
Understand what customers really want
Understand the nature of customer service
3. CRM Strategies
Customer Acquisition
Gain the greatest number of new “Best” customers as early in
their “lifespan” as possible.
Customer Retention
Retain and expand your business and relationships with your
customers through up-selling, cross-selling and servicing.
Customer Loyalty
Offer programs to ensure that your customers happily buy what
you offer only from you.
Customer Evangelism
Enable loyal customers to become a volunteer sales force.
Cost Reduction
Reduce costs related to marketing, sales, customer service
and support.
Improve Productivity
Enhance your e-business strategies.
4. From the Customer’s Perspective
What Is Customer Service?
- Anything we do for the customer that enhances the customer experience.
What is Customer Satisfaction?
- The customer’s overall feeling of contentment with an interaction.
What is Customer Expectations?
- Customer’s personal vision of the result that is based on their experience.
What is Customer Perceptions?
- The way customer’s see something based on their experience
5. Levels of Expectations
Primary expectations: the customer’s most basic
requirements of an interaction.
Secondary expectations: expectations based on our previous
experiences that are enhancements to our primary
expectations.
6. A Company with a Good Reputation
Is very responsive to customers
Is a company you can trust
Delivers on its promises to customers
Provides excellent value to customers
Has excellent communications
Is ethical and honest
Conducts business in a human/caring way
Has excellent top management
Is able to adapt to changes in the industry
Is a technological leader in the industry
Is committed to the environment
7. Techniques for Exceeding Customers’
Expectations
Become familiar with your customers.
Ask your customers what their expectations are.
Tell your customers what they can expect.
Live up to their expectations.
Maintain consistency.
8. Cost of Losing a Customer
We lose the current dollars that our business relationship
created.
We lose the jobs that our clients provide.
We may suffer from a loss of reputation.
We may lose the intangible variable of future business.
9. What to do When You Are Wrong
Review the situation.
Observe the customer’s reaction.
Admit the mistake.
Apologize for your actions or error.
Find a solution and implement it.
10. Six Super Ways to Cope with
Challenging Customers
1. Listen
2. Ask questions
3. Show empathy
4. Solve the problem
5. Follow up
6. End on a positive note
11. Customer Retention
The continuous attempt to satisfy and keep current
customers actively involved in conducting business.
Churn (or Churn Rate)
The number of customers who leave a business in a year’s
time divided by the number of new customers in the same
period.
12. Defection Rate
The percentage of customers who leave a business in one
year.
Customer Lifetime Value
The net present value of the profits a
customer generates over the average
customer life.
13. Determining the Need for Customer
Relationship Program
Is customer retention your primary management objective?
Is customer satisfaction measured and assessed regularly?
Is there a constant effort to enhance customer satisfaction?
Do you measure quality standards and communicate results with your
employees?
Do you train and retrain your customer service providers?
Do you have employee turnover problems?
How much do you spend to keep current customers?
What is your current cost for acquiring a customer?
What is your average annual customer dollar value?
What is your current customer defection rate?
How do you get lost customers back?
Do you constantly deliver what you promise to your customers?
14. Guidelines for Establishing a
Customer-Relationship Program
1. Examine who your customers are and what specific
needs they have.
2. Identify specific objectives to be realized by the
program.
3. Create a manageable program of customer retention.
4. Create a culture that stimulates customer interest.
5. Determine a timetable for evaluation.
15. Sources of Information to Measure
Customer Satisfaction
Informal surveys
Comment cards
Verbal comments
Historical data (point of sale)
Sales
Corporate generated surveys
Discussions with internal customers
Focus groups
Toll-free phone numbers
16. A Few Basic CRM Concepts…
Market Segmentation
Do you treat all of your guests the same?
Consider the difference between a guest that stays once ever in
a 2 bedroom cottage and a guest that has stayed each of the last
10 years in a 6 bedroom home
We shouldn’t treat the one-timer badly, they may come back many more
times
We should realize that the higher value guest deserves the best that we
can offer.
17. Market Segmentation Examples
Saks Fifth Avenue
High value customers ($2000/yr) are routed to special CSR’s.
The calls are routed such that a high value customer is
connected to a CSR in one second or less.
Could we coin a new acronym here:
HVG – High Value Guest?
18. General Statistics
The average business never hears from 96% of its unhappy customers,
91% never come back
Those people will tell a minimum of 4 other people,
Getting a repeat customer from this group is 1 in 11,
Dissatisfied customers may tell 9-10 people about their experience,
For every positive they tell 4-5 people,
For every complaint received the average business in fact has 26 customers with the
similar concern,
19. General Statistics…
Of the customers who register a complaint, as many as 70% will do business
again with your organization if the complaint is resolved effectively,
This figure goes up to 95% if the complaint has been resolved quickly,
40% of complaints are the result from customer mistakes or incorrect
expectations,
A complaint that is handled efficiently is actually better than no complaint at
all,
Customers who complain and get satisfactory results are 8% more loyal than if no
complaint at all,
20. Operational and Analytical CRM
Operational CRM: effective and efficient use and management
of people, process and technology
Analytical CRM: the measurement of people, process and
technology
25. Customer Lifetime Value
R = annual revenue received from a loyal customer
i = the relevant interest rate or opportunity cost of money per period
N = the number of periods in which a customer makes purchases
26. Customer Lifetime Value
Go www.benchmarkportal.com
to download the excel spreadsheet
to calculate Customer Life time Value
27. Summary
CRM is the strategic use of information, processes,
technology and people to manage the customer’s relationship
with a company’s (marketing, sales, services and support)
across the entire customer cycle.
The Plan and Practice of managing the lifetime relationship
with your customer
28. eCRM is the application of CRM to an e-business’ strategy
Includes the personalization and customization of customers’
experiences and interactions with the e-business
Relationship between merchant and customers is distant
Less expensive to keep customers than to acquire new ones
Repeat customers have higher lifetime value than one-time
buyers
A customer’s lifetime value is the expected amount of profit derived
from a customer over a designated length of time
Evaluate the potential to profit from a customer
29. Tracking and Analyzing Data
Employ tracking devices
Personalize each visitor’s experience
Find trends in customer use
Measure the effectiveness of a Web site over time
Click-through banner advertisements
Click-through advertisements enable visitors to view a service or product
by clicking the advertisement
Advertisers can learn what sites generate sales
30. Log-File Analysis
When visiting a site, you are submitting a request for
information from the site’s server and the request is
recorded in a log file
Log files consist of data generated by site visits, including each
visitor’s location, IP address, time of visit, frequency of visits
and other information
Log-file analysis organizes and summarizes the information
contained in the log files
Can be used to determine the number of unique visitors
Can show the Web-site traffic effects of changing a Web site or
advertising campaign
31. WebTrends Feature
WebTrends provides solutions for tracking visitors
User specifies source of log files, types of reports and location
where data is stored
The analysis is conducted automatically
Collected information can be used to evaluate e-commerce
methods, customer service and Web-site design
Graphical interpretation of the log files can be presented
Can view demographic and geographic data, technical analysis of a
Web site’s effectiveness and top-referring sites—sites that most
frequently refer visitors to your site
32. Customer Registration
Customer registration
Requiring visitors to fill out a form with personal information that is then
used to create a profile
Recommended when it will provide a benefit to the customer
When customers log on using usernames and passwords, their actions can
be tracked and stored in a database
Require only minimum information
Give customers an incentive to register
Free-trial run or a free demonstration to familiarize the user
After customer registration, send an e-mail including
customer usernames and welcoming them to your Web site
33. Intelligent Agents
Intelligent agent
A program that can be used on the Web to assist a user in the
completion of a specified task, including searching for
information and automating tasks
Can be used as personalization mechanisms by providing
content related to the user’s interests
Can observe Web-surfing habits and purchasing behavior
to recommend new products to buy or sites to visit
Can help e-businesses offer a level of customer service
similar to person-to-person interaction
34. Contact Centers
Traditional call centers house customer-service
representatives who can be reached by an 800 number
Call center, e-contact center or multimedia contact center
Purpose is the same—to provide a personal customer service
experience that is individualized to each customer’s needs and
questions
Allow customers with Internet access to contact customer
service representatives through e-mail, online text chatting or
real-time voice communications
Integration of all customer service functions
35. Frequently Asked Questions (FAQs)
A Frequently Asked Questions (FAQ) section on the site
Will help customers find answers to some of their questions
Frees up time for CSRs to handle questions that can not be
answered without human interaction
Self-service FAQ software and Web FAQ software
Place phone numbers and e-mail addresses nearby FAQ
Include a search engine on your site
Allowing users to type in a word or phrase to find information
on your site relevant to their particular question
36. e-Mail
E-mail can provide a less expensive customer service
solution
Customers can use e-mail to ask questions or comment on your
company’s services or products
Only appropriate if you have resources to handle
demands
Customers may be not be willing to wait long for an e-
mail reply
Ideally, a response to a customer’s e-mail inquiry should
be completed within forty-eight hours
37. Online Text Chatting
Online text chatting
Provides a real-time form of communication between
customers and service representatives
Service representatives may be able to handle more than one
text chat at a time
Customers can continue to view the Web site as they chat
with a service representative
Allows the service representative to see what the customers are
looking at as they pose their questions
38. Online Text Chatting
“Instantaneous”
If representatives are busy with many chat sessions, customer
may experience delay in responses
Can lose the dynamics of human communication
the meaning of a message may be misinterpreted
FaceTime Communications, CLICKiCHAT and
LivePersonSM
39. Voice Communications
Internet provides another channel for human-to-human
voice communication
Voice over Internet Protocol (VoIP)
VoIP products and applications allow people to communicate
with speech over the Internet
Internet telephony allows people to make phone calls over
the Internet
Quality of transmission yet to match regular telephone
Many companies are using PC-to-phone communication
because it is of higher quality than PC-to-PC
A person speaks from a computer to another person who responds
through another computer
40. Voice Communications
PC-to-phone (computer-to-phone) voice communication
Allows a visitor to a Web site to continue browsing while
talking to a customer-service representative over the Internet
Allows dial-up Internet users who have only one phone line to
chat with a CSR without having to disconnect from the Internet
HearMe, RealCall, Web Call Back and ITXC
Wizard
Software program that walks you through the steps needed to
complete a task on your computer
41. Business-to-Business e-CRM
Key to (B2B) e-commerce is effective (CRM)
When selling to another business, you may be selling to someone
who is not the direct user of your product
Ask your contact to speak with the end users
Developing good partner relationship management (PRM) includes
increasing efficiency in operations and processes between a
business and its partners
Partners can include resellers, distributors and businesses that improve your
product or service
Integrating systems to combine selling, buying and marketing operations of
partners will streamline processes and provide technical conformity
ChannelWave Software, Inc., Allegis and Partnerware
42. An example
The Elements of CRM
Sales Customer service/call Marketing
force center management automation
automation
Call center telephone sales Call Centers Campaign
Managing aspects management
E-commerce Of customer contact
Field sales
Web-based Content
Retail self service management
Data analysis
Third-party brokers, Field services
And business
Distributors, agents and dispatch
Intelligence tools
Data warehouse and data cleaning tools
*Source: Computerworld
Notes de l'éditeur
People make buying decisions. People have loyalties. Relationships can only be developed between people. A CRM program must be centered around these facts. CRM is an approach to organizing a company’s interactions with their customers that starts with a customer centered point of view.
CRM is an entire discipline, not a single activity. This viewpoint ensures that a company’s plans, activities, and communication that directly touch the customer will be seen as an integrated ‘whole concept’ that supports the company’s promise.