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Customer Relationship Management - CRM

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  The Evolution of CRM

Knowledge Base
 
 
Relationship marketing has evolved with the development of Internet technology and the fusion of eTechnology with traditional CRM applications.  Now more than ever customers can touch an organisation via a number of different channels. The use of these multi-channels increases business complexity as customer information from each channel must be synchronised, captured and deposited in the CRM database.  

The essence of a CRM system is that customer data is collected from all touch points and deposited into one central data pool for more effective marketing, better order processing, production and accounting.

'The more that processes can be linked to the central customer database, the more efficient the business becomes'.

To read this introduction in full, please download the attached pdf .
 

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  Lifetime Value and CRM

 

Knowledge Base
 
 
Customer Relationship Management (CRM) can help achieve three primary business objectives:

1. Acquisition of new customers
2. Retention of current customers
3. Increased value of your customers

One of the most important analytical tools a marketer can use in assessing and tracking customer relationship profitability is lifetime value (LTV) analysis.  LTV not only underpins CRM marketing programmes but also helps guide overall marketing investment decisions. LTV helps measure, forecast and track future revenues and profit based on transactions and interactions over time.

To calculate LTV you need three inputs:
 
1. Revenue
2. Duration of the relationship
3. Costs

To read this factfile in full, please download the attached pdf .

 

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  CRM and Customer Analytics

 

Knowledge Base
 
 
While many organisations are investing thousands or millions of £s in cutting edge customer relationship (CRM) technology, the effectiveness of the system can be seriously undermined if no thought is given to customer data, its quality or use.  Studies have shown that when companies have no data quality programme in place, customer information is no more than 60-70% accurate.

There are three key elements to a CRM system. 

  1. Customer information is collected from all channels  
  2. This information is deposited into one central CRM database  
  3. The CRM database is made available to customer-facing functions and staff in real time.

Analytical software applications fall into two distinct areas:

  1. Business Intelligence tools  
  2. Customer analytics or customer behaviour modelling

To read this factfile in full, please download the attached pdf.

 

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  CRM: CRM and the Business Model

 

Knowledge Base
 
 
CRM is not a universal panacea to solve all of a business�s ills nor does it support all business models.  So, before plunging into CRM implementation two questions are considered:
  1. What is my business model?   
  2. Will CRM support my business model?

To read this factfile in full, please download the attached pdf.

 

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   CRM: Data, Data Everywhere - and not a byte of use?

Knowledge Base
 
 
Customer knowledge is becoming increasingly critical to businesses.  Paradoxically the more data that is collected seems to highlight the lack of information held and the amount of knowledge distilled from this is paltry by and large. Without the right tools and systems to access vast databases companies cannot discover new knowledge and make better business decisions.

Research is presented by Julie Abbott from IBM Global Business Intelligence Solutions EMEA. The research shows there is a widespread move to CRM and a steady take-up of the Internet as a marketing channel.  The right data is an ongoing challenge for marketers who not only have to get the data in the first place but have to keep it up-to-date and accurate.  There is also the issue of legislation between countries regarding data which can cause a myriad of problems in the e-marketing area, especially as customer information becomes more and more critical to companies.

To read this factfile in full, please download the attached pdf .

 

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  CRM: The Catalyst CRM Methodology

Knowledge Base
 
 
This report has been developed jointly by CustomISe, MACS and SalesPathways, it aims to help organisations overcome problems and balance the competing requirements of introducing a CRM programme. The Catalyst CRM Methodology, as the name implies, acts as a catalyst for CRM projects enabling them to achieve their objectives more reliably and in less time. It allows organisations to benefit from the extensive experience of implementing CRM projects gained by Catalyst�s developers. 

The Catalyst CRM Methodology breaks down what would otherwise be a dauntingly complex task into manageable phases, steps and work components. The five major phases are:

  1. Discovery   
  2. Orientation   
  3. Navigation   
  4. Implementation   
  5. Post Implementation

To read this factfile in full, please download the attached pdf.

 

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  Case Study Index

Knowledge Base
 
Case Study Index
 
Case studies show theory applied in practice and can provide practical 'how to' guides for implementing a CRM system. Below you will find links to the case studies within this canon. These will be updated and added to, please feel free to submit case studies of your own to editor@cim.co.uk.

Icons/greyarrow2.gif, (Grey Arrow Icon (square)) Acco UK
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) 
CIM Company Afilliates

 

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  CRM Systems Questionnaire

Knowledge Base
 
 
Customer Relationship Management (CRM) systems allow an entity to integrate its customer information into a single view in order to facilitate business with that customer and increase sales. As formalised CRM systems become more common many marketers will be using them to store some of their most critical business information.

A questionnaire has been designed to offer support in framing questions for an initial review of a CRM system. The questionnaire is intended to provide assistance in understanding an entity�s approach to CRM � to focus information gathering so there is a better understanding of the client�s key customer relationship management issues.

To view the questionnaire please download the attached pdf .

 

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   CRM: The Future of CRM

Knowledge Base
 
 
Imagine a world where customers are truly in control of their relationship with companies and brands, where communications are tailored to each consumer individually. A world where a consumer never has to give a company the same piece of information twice, where every piece of knowledge pertaining to a customer is always instantly accessible to brand custodians enabling them to concentrate their efforts and budgets on the most profitable customers and reduce wastage on the less profitable ones.  Where the company, in short, knows more about the past relationship between the consumer and the brand than the consumer does and can demonstrate as much in all its interactions with the consumer. This is the Utopian view of the future of Customer Relationship Management (CRM).

To read this factfile in full, please download the attached pdf.

 

 
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  CRM: The CRM Package

Knowledge Base
 
 
In the Customer Relationship Management (CRM) Solutions Guide, a leading independent consultant Jay Chang says 2001 has seen marketing, sales and customer service/support segments of CRM blend more closely together. Customer lifetime value is key, with the focus being placed on the value of a customer from a monetary perspective. Customer expectations of service are rising and companies that can provide good service cheaply and efficiently will win customer loyalty. 

Analytics are becoming more important than ever as web sites generate data in ever increasing amounts. The ability of applications to manage, process and condense this information becomes increasingly important.

The newest area of customer service revolves around data collection and analysis. CRM products that offer marketing automation and management can be seen as providing two major functions: campaign management and demographics analysis. The data generated by customers is fed into marketing, sales and customer service applications to better sell, serve and retain customers.

To read this factfile in full please download the attached pdf.

 

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  CRM: Marketing Automation

Knowledge Base
 
 
In the Customer Relationship Management (CRM) Solutions Guide, a leading CRM services provider Quaero LLC highlights three business trends that characterise the campaign management and measurement automation marketplace today:
  • Rapidly changing technology 
  • Competitive closed loop strategies 
  • Internet growth

Ten steps are offered for selecting a marketing automation tool. These steps reflect the importance of understanding the organisation, its vision for the future, its current realities as well as the tool being evaluated.

To read this factfile in full, please download the attached pdf.

 

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  CRM Deployment

Knowledge Base
 
 
In the Customer Relationship Management (CRM) Solutions Guide, guru and best selling author Dick Lee offers a four step process to CRM implementation:
  1. Establish customer relationship strategies  
  2. Ensure the consequences of the strategies are understood at departmental and management level  
  3. Undertake process re-engineering  
  4. Provide technology support

In his overview, Dick Lee offers several helpful hints for step three: process re-engineering. 

To read this factfile in full, please download the attached pdf.

 

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Knowledge Base
 
 
This collection of resources has been prepared for CIM by the CRM Canon Project Group, led by Peter Jackson, KPMG.

Using the appropriate mix of marketing tools to create and manage relationships with customers, is the theme of this first volume.

 

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Knowledge Base
 
Further Resources
 
Follow the links below to CRM articles and other useful resources.

Icons/greyarrow2.gif, (Grey Arrow Icon (square)) CRM Community: Free CRM White Papers
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) CIO.com: CRM Research Centre
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) Destination CRM: CRM Magazine online
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) What's New in Marketing: CRM / Marketing Management article
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) Times online: Five things you need to know about CRM
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) CRM Forum: Customer Management Insight and Advice
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) BT: CRM Case Studies
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) IBM: CRM Services

Icons/greyarrow2.gif, (Grey Arrow Icon (square)) Books: View CRM books available to buy from CIM Direct
Icons/greyarrow2.gif, (Grey Arrow Icon (square)) Discussion Forum: Join in the CRM discussion (you need to log in to the Workspace to access this)

 

click for bt.com homepage

 

 

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Customer Relationship Management (CRM)

'The coherent management of contacts and interactions with customers'.

 KC-Topic-Peter-Jackson.jpg, (KC Topic - Peter Jackson)  
 

'We have initiated CIM's CRM Canon to address the issue of; 'how do you successfully implement CRM?' By assembling a mix of advisors who have implemented CRM, we have endeavoured to capture their experiences for the benefit of those embarking on implementation or part way through the exercise. I hope you find the information within useful.' Peter Jackson, Steering Group Chair.

 

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Knowledge Base
 
About This Project
 
  

In a recent discussion, the Chairman of a small plc confided in me 'we knew our customers much better 30 years ago when I started the business'.

That, if you like, is the challenge for CRM. Lower cost, more powerful technology that offers the possibility of re-creating the intimacy of one-to-one relationships across all of your thousands or millions of customers. At the same time, the frenzied attempts by software vendors to entice you to buy their  systems has, perhaps, diverted Customer Relationship Management from its true meaning. Too often CRM means IT systems, not creating and maintaining relationships with customers. The acquisition of a CRM system has become a 'silver bullet' - another panacea for a company's problems. With such high expectations, it is little wonder that there are anecdotal accounts of CRM failing to deliver.

Successful implementation

We have initiated the CIM's CRM Knowledge Centre to address these issues; 'how do you successfully implement CRM?' We have put ourselves in the place of the manager charged with leading a company's CRM implementation and asked ourselves what do they need to know? By assembling a mix of advisors who have implemented CRM, we have endeavoured to capture their experiences for the benefit of those embarking on implementation or part way through the exercise. Our aim is not to compete with thought leaders, but support the practitioner implementing CRM in their organisation. Most fundamentally, and perhaps most obviously, CRM will not compensate for a flawed business model or sales strategy. CRM systems do not make up for poor segmentation and inadequate customer propositions. Instead, implementation of CRM exposes those weaknesses. The first question for any organisation is: 'Are we ready?' Too often, implementation of CRM is started without consideration of these issues. This is indicative of the frequent lack of planning before plunging into implementation. The result is confused objectives, lack of buy-in and wrongly specified CRM systems. The imperative to get things done and meet senior management goals too often allows scant time to consider sufficiently how payback will be achieved.

Active involvement

But undoubtedly the biggest challenge is the project management of a CRM implementation. CRM is not the sole preserve of sales or marketing. Implementation requires multi-functional working; IT, finance, manufacturing. The challenge for the project manager is to get the active involvement and support of all these functions despite their often differing objectives and language. This demands skills that aren't common; the ability to connect with and gain the confidence of all relevant functions, and keeping the pressure on whilst retaining a clear  perspective of the project's goals. There are too few people who can operate across internal boundaries and take a whole company perspective. Their task is even harder when the project is international. Selection and briefing of the project team is a vital success factor, as is reflected in some of the articles here.

Gaining buy-in

Implementation can be made easier or harder by the team's awareness (or lack of it) of their own company capabilities and culture. If your company has little experience of large scale projects, is it wise to attempt an ambitious CRM system implementation? Similarly if your company comprises many largely independent   business units, group-wide initiatives may be hard to gain buy-in. Our experience is that projects that use the company culture are much more successful than those that challenge it.

Effective project management

Establishing goals that are feasible within your own company's capability will give the CRM project much more chance of success and much greater buy-in from around the business. Strong customer propositions, sound upfront planning, working within your company's capabilities and effective project management. All are obvious, but how often do we see it in practice?


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Main aims

To identify the fundamental building blocks necessary to create an effective Customer Relationship Management (CRM) programme.                  
To review the thinking behind CRM and the propositions made to support it.                  
To collate best practice in implementing CRM and understand the capabilities required.                  
To understand the broad lessons learned about the impact of CRM on customers and the wider business context.

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Contributors

Steering Group:
Peter Jackson, KPMG (Chair)
Debbie Brown, BT
Sue Seager
Clare Briegal, Caradon Bathrooms
Graham Vann, CISCO
Andrew Robinson, Alliance and Leicester
Andy Jones
Ray Perry, Formerly CIM
Jenni Allen, Formerly CIM
Tess Harris, CIM Fellow
Rosemary Carter, CIM Fellow
Grant Oliver, CIM Fellow
Advisor: Professor Merlin Stone, IBM
Assistant: Simon Hathway

 

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