Unit 3 - Role of Technology in CRM

  

Technology & 11Cs of Relationship Marketing   The 4 Cs of Marketing have been replaced by 11 Cs of Relationship Marketing. One finds that all of them can be leveraged by use of technology. 1.    Customer: Identify core customers to formulate specific objectives and strategies for them, focusing on individual customer needs and reach. 2.    Categories: Make strategic decisions on the scope of goods and services offered to these core customers. 3.    Capabilities: Utilize appropriate processes, technology, people, and knowledge to effectively deliver relationship marketing. 4.    Cost, profitability & value: Manage the costs of securing, serving, and retaining specific customers, focusing on customer profitability over product profitability. 5.    Control of the contact-to-cash processes: Manage and control all processes involved in the entire order-shipping-billing cycle. 6.    Collaboration & Integration: Integrate customer's business processes with your own company's processes to create mutual value. 7.    Customization: Tailor products, services, and interactions to meet the unique needs of each customer, returning the 'custom' to 'customer'. 8.    Communications, interaction and positioning: Use technology to facilitate interactions and low-value connections with customers through their preferred media. 9.    Customer measurements: Continuously track and understand your best, worst, and average customers, designing business processes accordingly. 10. Customer care: Ensure that customer service is a continuous process throughout the entire customer lifecycle, not just "after-the-sale". 11. Chain of relationships: Manage all stakeholders (employees, suppliers, partners) who contribute to creating the value that customers desire.    Technology can leverage all the 11Cs of Relationship Marketing.

 

  

Key Uses of Technology in CRM   There are six key uses of technology in Customer Relationship Management (CRM).    Technology streamlines various sales, marketing, and customer service functions to improve efficiency and customer retention.     1. Sales Applications: Technology automates scheduling, contact and account management, territory assignment, expense reporting, and pricing, leading to faster and more accurate daily sales reports.   2. Marketing Implications: Web-based tools aid in campaign planning, execution, analysis, budgeting, forecasting, and managing marketing materials and product pricing.   3. Customer Service & Support: Applications like call centers leverage technology for customer interaction and support.   4. Customer Interaction Management: Technology facilitates the overall management of customer interactions.   5. Customer Relationship Portal: Portals consolidate various interaction points necessary for gaining and retaining customers.   6. Interactive Relationship Management: Large transactions (deposits or withdrawals) are integrated with analytical tools to offer customers relevant options or further actions.

 

  

CRM Technology Tools,   The following is a list defining various components and concepts related to Customer Relationship Management (CRM) technology. 1.    Web-Based CRM Technology: Websites allowing users to purchase and utilize customer-centric tools. 2.    Software CRM Technology: Computer programs requiring installation on servers. 3.    Bespoke CRM Technology: Custom-made systems combining web-based and software tools to fit specific business needs. 4.    Social Networking CRM Technology: Utilizing platforms like LinkedIn, X, and Facebook for customer outreach and growth. 5.    Call Center Technologies: Involves Interactive Voice Response and automated call routing. 6.    Customer Service Helpdesk: Directs queries, maintains inquiry status, and stores related communications. 7.    Sales Force Automation: Enables tracking and managing leads, contacts, and opportunities throughout the sales cycle. 8.    Data Warehousing: Implementation of a shared information database. 9.    Data Mining: Specialized software tools used to uncover data relationships and predict customer behavior. 10. OLAP (Online Analytical Processing): Plays a role in secondary analysis after initial segmentation.  11. Decision Support & Reporting Tools 12. Electronic Point of Sale: In addition to sales data, stock levels, price and margin retailers can have information about the demographics,  socio-economic and life -style. 13. System Integration with ERP CRMs are mostly front office automation solutions. When integrated with ERP it helps in automating business functions of production, finance, human resource giving integrated view of business. It helps in faster customer service, tracking and correcting the product problems.

 

Extra Reading

Call Center Technology   1. Interactive Voice Response (IVR) Purpose: An automated telephone system that allows callers to interact with a system and provide or receive information without speaking to a live person. Uses: Common uses include placing orders, purchasing tickets, telephone banking, obtaining balance inquiries, paying bills, and completing surveys. Functionality: Callers can navigate options using a touch-tone keypad or, in more advanced systems, speech recognition. Benefits: IVR reduces customer interaction costs, provides 24/7 service, and helps route callers efficiently, which reduces wait times. Drawbacks: Complex or poorly designed IVR menus can lead to customer frustration.    2. Speech Recognition for Customer Service Purpose: Enables computers to recognize and interpret natural human speech, translating it into text or actions. Functionality: It allows customers to interact with a system using their voice, bypassing traditional, touch-tone menu systems. More advanced systems use AI and natural language processing to better understand user requests. Benefits: Reduces customer effort by eliminating the need to navigate complex menu trees and enables a faster, more conversational self-service experience. Technology: Relies on technologies like natural language processing, Hidden Markov Models, and neural networks to process and interpret spoken language.      3. Computer Telephony Integration (CTI)  Purpose: Connects a company's telephone system with its computer network and software applications. Functionality: Allows agents to manage phone calls directly from their computer using a mouse and graphical user interface. Uses: Common CTI functions include: Making and answering calls: Directly from a computer interface. Holding and transferring calls: Managing calls with simple on-screen controls. Setting up conference calls: Easily initiating multi-party conversations. Caller identification: Displays caller information on the agent's screen ("screen pop") by retrieving data from integrated systems like a CRM. Initiating calls by name: Using a personal or company directory. Benefits: Improves agent productivity by providing immediate access to customer information, which enables more personalized and efficient interactions. CTI also enhances the customer experience and improves reporting and analytics by capturing data from interactions.    4. Automatic Call Distribution (ACD)  These systems are at the heart of inbound call centers.  ACD processes may simultaneously distribute a large number of calls to a group of telephone agents.  Calls are routed to the agent who has been idle the longest.  If all agents are busy, calls are stacked in a queue to wait for the next available agent.  Call distribution can be directed to home-based employees.  Features include: Toll-free phone lines Call hold Call transfer Call forward Three-way calling Call hunting (if one line is busy, the next line is "hunted" or tried)    5. Customer Complaint Management Technology  A complaint management system has the following ingredients: 1. Front End (Customer-facing interface), which has: Customer profile page Customer interaction page 2. Back End (Agent/Internal interface), which includes: Complaint resolution page (to record the solution offered) MIS (Management Information System) to monitor progress and track pending resolutions.

 

 

 

Advantages of e-crm or technology in CRM 1.    Cost Efficiency: Automating processes and using digital platforms significantly reduces operational costs associated with traditional CRM methods like manual data entry or physical mailings.   2.    Enhanced Adaptability and New Technology Integration: e-CRM systems can easily incorporate new technologies and adapt to changing market conditions, ensuring the business stays current and competitive.   3.    Improved Availability and Accessibility: Customers can access information and services 24/7 through various digital channels, such as websites, email, and mobile apps, reducing waiting times and improving overall customer experience.   4.    Seamless Integration and Efficiency: e-CRM platforms integrate various business functions and data sources, streamlining operations, improving efficiency, and reducing costs for both customers and service providers.   5.    Effective Data Collection and Analysis: e-CRM facilitates immediate collection of extensive customer data, including demographics and transaction histories, which helps in building comprehensive customer profiles and personalizing interactions.   6.    Increased Customer Interaction: It provides multiple channels for direct customer engagement, enabling immediate feedback, addressing inquiries quickly, and offering personalized choices, thereby fostering stronger customer relationships.   7.    Greater Manageability and Customization: Businesses can easily update and manage their online presence, including websites and product information, and tailor content to meet individual customer preferences and needs.   8.    Comprehensive Information Delivery: Digital platforms allow for the efficient presentation of rich media content, such as product videos and interactive FAQs, all in one place, providing customers with comprehensive support and information.    9.    Lower marginal cost: Once a website is constructed the cost of adding a new website customer is very low.   10. New Customer service opportunities: Realtime e-mail, retail outlets, can accept return items ordered on the web.   11. Research & Service Personalisation: Greet customers by name, Provide information on product of customer interest, remembers. email address, change in card numbers, prevous orders.   12. Automatic self documentation:   13.               User control: Customers can be given the ability to self direct their search for information.