History and Development of Customer Relationship Management

The Origins of CRM

1. Relationship marketing
2. Marketing research
3. B2B relationships
4. MRP, SAP, and ERP
5. Customer contact centers
6. Sales force automation
7. Campaign management tools
8. Web and channel integration
9. Diffusion of PCs and analytical CRM
10. Success of direct response marketing such as toll-free calling and direct mail
11. Relational databases
12. Industrial and services marketing

1.     Relationship Marketing and Relationship Database

a)      Database construction is easiest for firms having frequent and direct customer interaction

i)        It is most difficult for firms having infrequent and indirect customer interaction.

ii)      It is of intermediate difficulty for firms having frequent but indirect customer interaction or direct but infrequent customer interaction.

2.     Ease of Difficulty of Database Construction

3.     CRM: Why Now?

a)      Advancements in computer and information technology

b)      Substantial changes in the business environment

4.     Changes in the Business Environment Leading to Adoption of CRM

a)      Increasing number of high-quality products

b)      Erosion of effectiveness of the traditional 4 P’s

c)      Changes in the pace of life

d)     The Internet and multichannel usage

5.     Quantitative Benefits of CRM Using Revenue Enhancement Metrics

a)      Acquisition/prospect increase             27-45 percent

b)      Expense per convert decrease             30-60 percent

c)      Renewal rate increase                        5-15 percent

d)     Cross-sell/up-sell increase                   3-25 percent

e)      Share of wallet increase                      3-25 percent

f)       Service and churn decrease                 30-80 percent

g)      Campaign cycle time decrease            50-70 percent

h)      Campaign conversion increase            20-50 percent

i)        Win-back increase                               25-33 percent

6.     Three Major Ways to Overcome Barriers in Implementing CRM

a)      Through Communication

i)        Adopt a CRM philosophy

ii)      Detail the benefits to all employees

iii)    Top executive support

b)      Through Integration

i)        Business strategy should drive CRM

ii)      IT and business managers must be integrated

iii)    Customer data must be integrated

c)      Through foresight relating CRM tactics to success factors in the industry

7.     Overcoming Barriers

a)      The organization must adopt a relationship marketing philosophy across all functional areas.

b)      The organization must detail and communicate the benefits of a CRM orientation to all managers and staff.

c)      Top executive support must be obtained and maintained throughout CRM development.

d)     Business strategies must drive CRM development rather than the other way around.

e)      If separate “quick-results” CRM projects are being implemented as opposed to an all-encompassing CRM suite, then these separate projects must be integrated and functionally aligned.

f)       Include both IT and business unit managers in CRM start-up teams.

g)      Customer data must be integrated and maintained.

h)      Build a business case and conduct a business analysis before deciding on a CRM solution.

i)        Develop success metrics to assess the effectiveness of your CRM efforts.

8.     Developing CRM from a Tactical Perspective

a)      A checklist for customer service success

i)        The importance of the customer contact center

ii)      Put process blueprints in place

b)      Customer analytics

i)        Use your databases more effectively

ii)      Segment and identify the value of segments

iii)    Build customer relationships

c)      Product selection

9.     Extending the Meaning of CRM?

a)      Should colleges only focus on students? What about alumni, donors, and legislators?

b)      Companies do not forget suppliers, distributors, manufacturers, and facilitating agencies.

c)      Do not forget VAPs as well as VANs.

d)     CRM is really PRM.                          

10.            Can CRM Create 1:1 Relationship that are Truly Viable?

Point

a)      Consumers are faced with too many 1:1 relationships.                                                                                                                     

b)      Companies ask for more and more info but give little in return.

c)      Customers not in a company’s loyalty program feel like second-class citizens.

d)     Today’s proliferation of products and catalogues is mind-boggling.

Counterpoint

a)      Consumers can opt-in or opt-out as they see fit.

b)      Not so -- look at supermarkets and hotels.

c)      Consumers today are savvy enough to realize there are different levels of service for different levels of loyalty.

d)     The former is not really due to CRM, and CRM should reduce the number of catalogues.

                 

Tambahan, BACA JUGA Environment Analysis