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Management Information System
Chapter IV
Customer Relationship
Management:
The Business Focus
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Introduction
Today, customers are in charge. It is easier
than ever for the customers to comparison
shop and, with a click of a mouse switch
companies.
As a result customer relationship havebecome a companys most values asset. These
relationships are worth more than the
companys products, stores, factories and
even employees.
Every companys strategy should address how
to find and retain the most profitable
customer possible.
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Continued
The primary business value of customer
relationships today is indisputable.
Many companies are implementing CRM business
initiatives and information systems as par of a
customer focused or customer centric strategy toimprove their chances for success in todays
competitive environment.
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What is CRM?
Managing the full range of the customerrelationship involves two related objectives:
(a) To provide the organization and all of its
customer facing employees with a single,
complete view of every customer at every
touch point and across all channels.
(b) To provide the customer with a single,
complete view of the company and its
extended channels.
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Continued
CRM uses IT to create a cross functionalenterprise system that integrates andautomates many of the customer-servingprocesses in sales, mktg, and customer
services that interacts with a companyscustomers.
CRM system include a family of softwaremodules that provide the tools that enable a
business and its employees to provide fast,convenient, dependable, and consistentservices to its customers.
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Vendors of CRM
Siebel systems, Oracle, PeopleSoft, SAPAG, and
Epiphany are some of the leading vendors of
CRM software.
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Applications of CRM
Contact & Acct Mgt : CRM software helpssales, mktg, and service professionals capture
and track relevant data about every past and
planned contact with prospects and
customers. CRM system stores the data in a
common customer database that integrate all
customer acct information and makes it
available throughout the company. Sales : A CRM system provides sales reps with
the software tools and company data sources
they need to support and manage their sales
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Continued
activities, and optimize cross selling and up
selling. For e.g. a CRM system would alert a
bank sales rep to call customers who make
large deposits to sell them premier credit or
investment services. Mktg & Fulfillment : CRM system helps mktg
professionals accomplish direct mktg
campaigns by automating such tasks asqualifying leads for targeted markets.
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Continued
Customer service & Support : A CRM systemprovides service reps with software tools and
real time access to the common customer
database shared by sales and mktg people.CRM helps customer service managers create,
assign, and manage requests for service by
customers.
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Retention & Loyalty Programs
It costs 6 times more to sell to a new customer thanto sell to an existing one.
A typical dissatisfied customer will tell eight to tenpeople about his/her experience.
A company can boost its profits 85% y increasing itsannual customer retention by only 5%.
The odds of selling a product to a new customer are15%, whereas odds of selling a product to an existingcustomer are 50%.
70% of the complaining customers will do businesswith the company again if it quickly takes care of aservice problem.
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Phases of CRM
Acquire : A business relies on CRM software
tools and databases to help it acquire new
customers by doing a superior job of contact
management, sales prospecting, selling, direct
mktg.
Enhance : Web enabled CRM help keep
customers happy by supporting superior
service from a responsive networked team ofsales and service specialists and business
partners.
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Continued
Retain : CRM analytical software and database
help a company proactively identify and
reward its most loyal and profitable customers
to retain and expand their business via
targeted mktg and relationship marketingprograms.
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Benefits of CRM
CRM allows a business to identify and target
their best and most profitable customers so
they can be retained a long life customers.
It makes possible real time customization and
personalization of products and services
based on the customers wants.
CRM system can enable a company to provide
a consistent customer experience andsuperior service and support across all the
touch points a customer choose.
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Types of CRM
Operational CRM
(a) Supports customer interaction with greater
convenience through a variety of cannels.
(b) Synchronizes customer interactions
consistently across all channels.
(c) Makes your company easier to do business
with.
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Continued
Analytical CRM
(a) Extracts in-depth customer history,
preferences from your data warehouse.
(b) Allows you to analyze, predict, derive
customer value and forecast demand.
(c) Lets you approach your customers with
relevant information and offer that are
tailored to their needs.
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Continued
Collaborative CRM
(a) Enables easy collaboration with the
customers, suppliers and partners.
(b) Improves efficiency and integration
throughout the supply chain.
(c) Allows greater responsiveness to customers
needs .
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ENTERPRISE RESOURCE
PLANNING:The Business Backbone
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Introduction
ERP is a cross-functional enterprise systemthat integrates and automates many of theinternal business processes of a company.
ERP serves as a vital backbone information
system of the enterprise, helping a companyachieve efficiency and responsivenessrequired to succeed in dynamic businessenvironment.
ERP system track business resources and thestatus of commitment made by the business,no matter which depts. has entered the data.
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Benefits ofERP
Quality and Efficiency.
Decreased Costs.
Decision support.
Enterprise Agility.
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Applications of ERP
Sales/Distribution
Human
Resources
Accounting
&
Finance
IntegratedLogistics
Production
Planning
Customer/
Employee
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Trends in ERP
Four important trends are shaping ERPs
continuing evolution:
1. Improvements in integration & flexibility.
2. Extensions to e-business applications.
3. Broader reach to new users.
4. Adoption to internet technologies.
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SUPPLY CHAIN MANAGEMENT:
The Business Network
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Introduction
SCM is a cross functional interenterprise
system that integrates and automates the
network of business processes and
relationships between a company and its
suppliers, customers, distributors and otherpartners.
The goal of SCM is to create a fast, efficient,
and low cost network of businessrelationships, or supply chains, to get a
companys products from concept to market.
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SCM OBJECTIVES SCM OUTCOMES Objectives
Supply Policies Network Design
Demand forecast
Production, logistics
Inventory targets
Work center scheduling
Order-inventory tracking
Order cycle
Material movement
STRATEGIC
TACTICAL
OPERATIONAL
EXECUTION
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