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Customer and Service Management:

Utilizing CRM to Drive Value to the


Customer
Course Objectives
After completing this unit, you’ll be able to:
• Define CRM, detail its prominent characteristics, and outline its
primary mission.
• Discuss the shifts to outlining a portrait of today’s customer
profile and that customer requires a customer-centric
organization.
• Describe e-CRM technology applications
• Describe two of today’s most important customer management
technologies: customer experience management (CEM) and social
networking.
Course Contents
• Creating the Customer-Centric Supply Chain
• Applying Technology to CRM
• CRM and the Supply Chain
• New Concepts in Customer Management Technologies
Creating the Customer-Centric
Supply Chain
Introduction
• Responding to such a diverse array of requirements has forced
most companies to explore radically new ways to reach and
understand their customers.
• This movement has spawned a new science of customer
management—customer relationship management (CRM)—and
has simultaneously transformed and posed radically new
challenges to how companies should be structured to execute the
functions of marketing, sales, and service.
The Advent of CRM

• All businesses, whether product or services oriented, have a


single, all-encompassing goal: retaining loyal customers and
utilizing whatever means possible to acquire new customers.
• The objective of CRM is to enable the continuous architecting of
the value-generating productivities of enterprises and the supply
chain networks in which they are participants in the search to build
profitable, sustainable relationships with customers.
• CRM is a complete system that:
1. provides a means and method to enhance the experience of the
individual customers so that they will remain customers for life,
2. provides both technological and functional means of identifying,
capturing, and retaining customers, and
3. provides an unified view of the customer across an enterprise.
Characteristic of CRM
• CRM Is a Strategic Tool
• CRM Is Focused on Facilitating the Customer Service Process
• CRM Is Focused on Optimizing the Customer’s Experience
• CRM Provides a Window into the Customer
• CRM Assists Suppliers to Measure Customer Profitability
• CRM Is about Partnership Management
• CRM Is a Major Facilitator of Supply Chain Collaboration
Characteristic of CRM
• CRM Is a Strategic Tool
• Fundamentally, it is a business strategy to try to optimize profitability,
revenue, and satisfaction at an individual level
• perceived as a strategic technology focused on increasing profitability,
enhancing the marketing plan, and expanding competitiveness
• CRM is a comprehensive toolkit encompassing marketing, sales, service, and
supporting technologies focused on forging customer relationships that
provide mutual value, revenue, efficiency, and unique solutions to
business problems
• CRM Is Focused on Facilitating the Customer Service Process
• Being more responsive to the customer requires that sales and service
functions be able to make effective customer management decisions and
design superior responsiveness based on their capability to identify what
brings value to the customer.
Characteristic of CRM
• CRM Is Focused on Optimizing the Customer’s Experience
• The fundamental objective of CRM is the goal of “owning the customer experience.”
• CRM initiatives that continually win customers can mean anything from providing
a level of personalized service and customized products to utilizing advertising, ease
in ordering a product, or ensuring a service call-back that will positively influence a
customer’s perception of the buying experience.
• The end result is to make customers feel they are dealing with a winner and are
personally connected to their supplier.
• CRM Provides a Window into the Customer
• An effective CRM system ensures that all service nodes along the supply chain that
can influence the customer experience are provided with critical information about
the customer, what that customer value the most, and how they can ensure the
customer has a positive buying experience each and every time.
• Intelligence as to customer winning attributes, such as buying habits, pricing and
promotions, channel preferences, and historical contact information, must be all-
pervasive, integrated, and insightful.
Characteristic of CRM
• CRM Assists Suppliers to Measure Customer Profitability
• Effective customer management requires that companies be able to
determine which customer segments, if not each individual customer, are
profitable and which are not, what product/service values drive
profitability for each customer, and how marketers can architect
processes that consistently deliver to each customer the values they
desire the most.
• CRM Is about Partnership Management
• Effective customer management is about knowing the needs, values, and
visions of each customer.
• CRM is about nurturing mutually beneficial, long-term relationships
intimate enough to provide improvement opportunities and tailored
solutions to meet mutual needs beyond physical product and service
delivery.
• The end-point is to build unbreakable customer loyalty regardless of
what actions are pursued by the competition.
Characteristic of CRM
• CRM Is a Major Facilitator of Supply Chain Collaboration
• No customer transaction can be executed in a vacuum but is actually an
instance in what is often a long chain of events as products and
information progress from one supply chain entity to the next.
• Firms that can create integrated, synchronized processes that satisfy the
customer seamlessly across the supply channel network will be the ones
that will have the most loyal customers, be the most attractive to new
customers, have the most effective collaborative relationships, generate
the highest revenues, and have sustainable competitive advantage
Applying Technology to CRM
Mapping the Cluster of CRM Components

• Clustered around the customer are seven critical technology-


driven processes:

CRM management sphere


Mapping the Cluster of CRM Components

• EBS - Provides the “backbone” for all aspects of customer


management. A firm’s EBS consists of five critical applications:
• customer database, contains a complete profile of the customer from
contact information and accounts receivable data to order management
and shipping preferences
• transaction maintenance, enables the entry and maintenance of sales
orders and today is often driven by Internet-driven shopping functions
with the results of sales transactions are then kept in the sales history file
for use by standard EBS reporting functions and CRM analytical tools
• availability of easily configurable yet very powerful displays of the status
of open and closed sales orders.
• Information. the EBS provides sales management personnel with
visibility to such data files as pricing, promotions, and inventory balances
• EBS contains financial detail used for accounts receivable balance
information, payment aging, interest charges, collections, insurance, and
financial analysis
Mapping the Cluster of CRM Components

• Web Systems - Effectively constructed Web sites enable


customers to visit catalogs, enter orders, review pricing, configure
orders, participate in auctions, and perform a host of self-service
functions from order status review to online learning
• Marketing - The ability to communicate product, brand, service,
and company information is at the heart of customer management
• Its role is to identify the wants and needs of the customer, determine
which target markets the business can best serve, decide on the
appropriate mix of products, services, and programs to offer these
markets, and generally motivate the organization to continuously focus
on optimal customer service
• Concerned with identifying what value each customer expects to receive
from the company’s products and services, what are the firm’s selling,
campaign, and pricing strategies, and how to generate profits by ensuring
customer satisfaction.
Mapping the Cluster of CRM Components

• External Data – Relate to information from internal and network


nodes (within the organization and across resellers, suppliers, and
channel support partners) are critical in devising everything from
promotional/product bundling, financing, and packaging design, to
fulfillment, merchandising, and transportation
• CRM Applications - CRM technology can be separated into three
segments:
• The first, operations CRM, consists of the traditional functions of
customer service, ordering, invoicing/billing, and sales statistics found in
the EBS backbone. This also includes e-CRM Internet-driven applications
like portals and exchanges, e-mail, EDI, SFA, and wireless customer
management.
• The second, collaborative CRM, focuses on channel spanning functions
such as forecasting and process design.
• The third segment, analytical CRM, consists in the capture, storage,
extraction, reporting, and analysis of historical customer data.
Mapping the Cluster of CRM Components

• Analytics - The goal of CRM analytics is to deploy the ability to act on the
data and analysis mined from customer and marketing repositories to
improve business processes so that they are more customer-centric.
information used for analysis and reporting can come from:
• sales activities and can include databases containing customer
prospecting, product lists, and payment data.
• marketing and can include information such as sales revenues, customer
segmentation, campaign responses, and promotions history.
• service and can consist of customer contacts, support request incidents,
and survey responses
• Service - The last component in the cluster of CRM functions is CSM
(Customer Service Management)
• Being able to efficiently and effectively respond to the customer after the
sale is critical in keeping current customers and acquiring new ones
• Whether they are termed contact centers, CIC, or customer care centers,
the strength of this support functions is essential in enriching customer
relationships
Today’s Customer Dynamics

• CRM is about providing companies with the ability to explore new ways of
responding to the realities of the expanding power of today’s customer
• Today’s customer is in actuality being driven by two very powerful needs:

Strong
relationships
Value Driven
with
suppliers

• By combining the metrics and relationship-building capabilities of CRM and


the electronic linkages provided by Internet technologies, the supply chain
can become more responsive and able to facilitate continuous product and
fulfillment planning.
Today’s Customer Dynamics
Value Driven
• The contents of what provides value to the customer can be
decomposed into three regions:
• Economic Value - Customers receive economic value when they can
leverage a product or service to generate additional value beyond the
initial cost
• Solution Value - the capability of the function/feature to provide a
desired level of performance or capability
• Psychological Value - customers’ perception of product/service value.
The believe that they are receiving value beyond direct economic or
solution-driven benefits.
• Normally focused around the concept of brand
Today’s Customer Dynamics
Strong Relationship With Suppliers
• Relate to brand loyalty
• Consumers are looking to their suppliers as “brands” that they can
consistently count on to provide expected value regardless of the
actual products or services purchased
• Businesses must continuously reinvent their “brand-image” in
often radically new ways that makes their customers feel as if they
are always getting a superlative level of value, that they are in
control of their purchasing experience, that they have confidence in
what they buy and who they are buying from.
Creating the Customer-Centric Organization

• Creating a customer-centric company capable of consistently


delivering customer value while building customer loyalty is a multi
phased process that involves reshaping the infrastructures of both
individual organizations and accompanying supply chains as
much as it does implementing computerized CRM functions
• The following steps should be considered in architecting such
individual companies and supply chains systems:
1. Establish a Customer-Centric Organization
2. Determine Existing Customer Positioning
3. Devise a Map of Customer Segments
4. Develop and Implement the Solution
5. Monitor, Measure, and Refine
Creating the Customer-Centric Organization

• Establish a Customer-Centric Organization


• Usually, An emerging management position organizations have been
establishing to achieve customer-centric organizations is the chief
customer officer (CCO).
• CCO will identify customer touch points, define and enforce service
standards, assist customers to navigate the organization, and search for
methods to enrich the customer experience
• Strategically, the CCO will be responsible for “integrating and leveraging
customer information across the organization or owning and managing
customer segments as units of optimization
• Determine Existing Customer Positioning
• The goal is to unearth what each customer values and from these metrics
to design the products, services, and communication infrastructure that will
drive increasing customer loyalty.
• Begin by measuring the customer landscape, followed with Qualitative
Surveys and finally, applying Quantitative research tools
Creating the Customer-Centric Organization

• Devise a Map of Customer Segments


• The map should provide a clear geography of the customer base and
illuminate key drivers, such as convenience, price, reliability, and so on, of
loyalty, value, and satisfaction
• The map should pinpointing what provides true customer differentiation,
competitive advantage factors can be leveraged to consistently enhance
customer value at every touch point across the internal and supply chain
organization
• the map should reveal the effectiveness of current company product and
service strategies and the core competencies of the organization.
• Develop and Implement the Solution
• Transforming the CRM programs into meaningful marketplace initiatives,
promotions, and points of customer contact that improve company
visibility, confirm customer value expectations, and cement loyalties is
the next step in the process of generating a customer-centric organization
Creating the Customer-Centric Organization

• Monitor, Measure, and Refine


• continuously research and document what is working and what is not by
utilizing the analytical tools available within most CRM applications
• Should provide ongoing quantitative tracking of buying patterns, customer
attitudes, and degrees of satisfaction for all market segments and points of
contact.
• Such a procedure will enable effective monitoring of the qualitative input
to assist in massaging the quantitative results of performance metrics.
Applying Technology to CRM
• CRM can be divided into three major functions:
• Marketing, the activities associated with creating company branding,
identifying the customer, selecting product/ service offerings, and
designing promotions, advertising, and pricing;
• Sales, the actual selling and distribution of products and services; and
• Service, activities encompassing customer support, call-center
management, and customer communication.
• The mission of these functions is to inform the organization of
who its customers are, how to better understand what customers
want and need, what is to be the product and service mix to be
taken to the market, and how to provide the ongoing services and
values that provide profitability and expand relationships.
• These functions also detail the technologies that will be used to
market to the customer base, conduct transactions, respond to
customer service issues, collect marketplace metrics, and format
customer contact information for review and analysis
Range of CRM Functions
CRM and Internet Sales
• Today, Web-driven applications have opened radically different
opportunities for technology-assisted selling.
• It has trigger movement of CRM to the Internet (e-CRM) and make
a new definition of CRM as “using digital communications
technologies to maximize sales to existing customers and encourage
continued usage of online services”
• The salesperson role, in turn, has become more important than
ever in developing circles of closely defined business and mutually
supportive relationships between their companies and their
customer base.
CRM and Internet Sales
• Todays, the role of the sales force in an e-business environment takes
on added significance by performing the following functions:
• Acting as an advocate for the customer
• Exploration of personalization and mass customization to focus in on customer
buying habits
• Providing information about company products and services
• Coordinating company resources to ensure superlative response to customer needs,
and linking channel resources with customer demand requirements
• Acting as an initiator for the conveyance of information regarding process
improvement changes from the company to the demand channel targeted at
realizing mutual advantage
• Providing a medium by which critical company resources in the form of marketing
information, training, logistics opportunities, customer and supply channel
diagnostics, and collaborative planning initiatives are made available to each
customer
• Managing online service quality to ensure buyers always enjoy a winning
experience an motivate them to return
• Managing the multichannel customer experience to blend in different media to
ensure customer satisfaction each and every time
CRM and Internet Sales
• One of the primary Web-based tools offered by companies today is
the customer portal.
• Some of the basic application functions available can be described
as follows:
• Online catalogs
• Online order processing
• Online order configurability
• Lead capture and profiling
• Online surveys
• Literature fulfillment
• E-mail marketing
Sales Force Automation (SFA)
• SFA was conceived as an electronic method to collect and analyze
customer information from marketing and contact center
organizations that in turn could be used to advance opportunities
for customer retention and acquisition as well as enhance
marketplace relationships and revenues.
• the sales force needed automation tools that could assist them to
more effectively manage their existing accounts, prospect for new
customers, track the impact of pricing, promotions, campaigns,
forecasts, and other sales efforts on their pipelines, generate
meaningful analysis and statistics from their sales database,
become more mobile, organize their contact lists, and have real-
time customer information in an easily accessed presentation
• the mission of SFA was “to put account information directly in the
hands of field sales staff, making them responsible for it, and
ultimately rendering them (and the rest of the company) more
profitable.”
Sales Force Automation (SFA)
• SFA posses these following functionality:
• Contact Management - enable the organization and management of
prospect and customer data, such as names, addresses, phone numbers,
titles, and so forth, the creation and display of organizational charts, the
ability to maintain marketing notes, identification of decision makers, and
capability to link to supplementary databases
• Account Management - designed to provide detail information regarding
account data and sales activity that can be accessed on-demand. it also
permit managers to effectively develop and assign field sales and
marketing teams to match customer characteristics
• Sales Process/Activity Management - provide imbedded, customizable
sales process methodologies designed to serve as a road map guiding sales
activity management. Each of the steps comprises an aspect of the sales
cycle and details a defined set of activities to be followed by each sales
rep.
Sales Force Automation (SFA)
• Opportunity Management - Also known as pipeline management.
Concerned with applications that assist in converting leads into sales. In
general, these toolsets detail the specific opportunity, the company
involved, the assigned sales team, the revenue credits, the status of the
opportunity, and the proposed closing date
• Quotation Management - assist in the development of quotations for
complex orders requiring product configuration and pricing.
• Knowledge Management – Provide source of information (might include
documentation such as policy handbooks, sales/marketing presentation
materials, standardized forms and templates such as contracts and
estimating, historical sales and marketing reporting, and industry and
competitor analysis). Often termed knowledge management systems,
these applications can act as a repository for all forms of information that
can be easily added to and referenced through online tools
e-CRM Marketing
• Automating the marketing function requires the use of software
applications that enable companies to compile, search, and utilize
customer databases to define who the customer is and then
generate targeted marketing campaigns via e-mail, e-fax, the Web,
the telephone, or other technology tools to reach the marketplace
• Todays, the focus has come to be known as Enterprise Marketing
Automation (EMA) is campaign management. EMA provides the
capability to automate the entire campaign process
• Below are the major components of an EMA-driven marketing
campaign:
• Promotions
• Cross-Selling and Up-Selling
• Marketing Events
• Customer Retention
• Response Management
e-CRM Marketing
Promotions
• provides the ability to bring the promotional side of a campaign directly before a customer
• Once data are captured, it can be directly input into the marketing database and used for ongoing review and campaign
modification

Cross-Selling and Up-Selling


• Cross-selling is the practice of offering to the customer related products or services during the buying process
• Up-selling is the practice of motivating customers to purchase more expensive (and more profitable) products

Marketing Events
• Able to broadcast the latest marketing information through online newsletters, Web-based seminars, and special
webcasts.

Customer Retention
• Assist companies not only to isolate and rank customers most likely to leave but also to weigh the possible impact of
promotional efforts on this class of customers.
• The goal is to mine the customer data and devise models that can assist in the prediction of customer behavior

Response Management
• Once data from a marketing campaign begins to stream in, marketers need to be able to utilize the information to
perform several crucial tasks.
• First, they must be able to gather, extract, and analyze the data.
• Second, they must be able to determine the impact of the campaign by calculating actual customer profitability
• Assist in refining and possibly altering the course of the campaign
Customer Service Management (CSM)
• Total customer care is the cornerstone of the customer-centric organization.
the mission of customer care functions include the following:
• Improve customer service while reducing costs.
• Put the customer in control by providing self-service and solution-centered
support.
• Segment customer behavior one-to-one to individualize goods and services.
• Earn customer loyalty to gain a lifetime of business.
• Today, CSM through the contact center or known as Customer Interaction
Centers (CIC ), service functions sought to deploy a range of multimedia
tools to not only relate order and account status, but also to manage every
component affecting the customer from product information to maintenance,
warranties, and upgrades
• The mission of these applications is to enable companies to activate open,
productive dialog with the customer that are personalized in that they reflect each
individual customer’s needs, self-activating in that they permit the customer to
successfully self-service their questions, immediacy in that critical information can be
conveyed in real-time, and intimate in that the customer feels the supplier is sincerely
concerned about their issues and that the outcome will provide a basis for future
sales and service interaction
Customer Service Management (CSM)

• CIC has these technologies that currently in use:

Automatic Call
Distribution
(ACD)

Performance Interactive Voice


Measurement Response (IVR)

Computer
Call-Center
Telephony
Analytics
Integration (CTI)

Service
Internet Call
Cyberagents,
Management
Bots, and Avatars
Customer Service Management (CSM)
Automatic Call This technology provides for routing incoming customer calls to the proper service
Distribution (ACD) resources based on defining characteristics.

Interactive Voice provide 24/7/365 routing of service calls based on the customer’s response typed on
Response (IVR) the telephone keypad.

Computer Telephony provide the technologies necessary to integrate data with telephones.
Integration (CTI)

Internet Call the customer is able to enjoy a significant level of self-driven interactivity. Information ranging from
Management proactive notification of new products to troubleshooting tools, support guides, and online forums
has changed the scope of service management

Service Cyberagents, The goal is to equip bots with specific expertise, instruct-ability, simplified reasoning,
Bots, and Avatars and the ability to cooperate with other bots to guide cyberagents in solving problems
for customers
Call-Center Analytics enable service reps to model the customer and architect the service criteria necessary
to respond effectively to customer needs

Performance possess analytics gathering to record and evaluate customer service interactions as
Measurement well as metrics to evaluate, measure, and manage service rep quality and productivity
CRM and the Supply Chain
Partner Relationship Management (PRM)

• PRM has a mission to increase the long-term value of a firm’s


channel network by assisting companies to select the right sales
partners, supporting them by offering timely and accurate
information and knowledge management resources to deal
successfully with channel customers, collectively searching for
ways to improve sales, productivity, and competitiveness, and
ensuring that each trading partner contributes to customer
satisfaction
• PRM functionality can be separated into five categories:
• Partner Recruitment, Development, and Profiling
• Marketing Development
• Sales Management
• Services Management
• PRM Collaboration
Partner Relationship Management (PRM)

• Partner Recruitment, Development, and Profiling


• assist in the recruitment and qualification of potential channel partners.
• assist in ranking the partner database for ongoing marketing/sales
assignments
• enable companies to manage the life-cycles of their partners by providing
visibility to partnership risks and rewards, ongoing contract maintenance,
forecast of planned revenues, and availability of metrics bearing on
profitability and loss
• Marketing Development
• concerned with communicating marketplace opportunities to the partner
network
• enables parent companies to match customer leads with partners based on
their capability profiles
• includes functions to link channel partners to campaigns and promotions and
to measure their results
• provides for the allocation and budgeting of cooperative marketing funding,
charts the productivity of marketing spending, and illuminates methods for
improving accountability of partners and promotional campaigns
Partner Relationship Management (PRM)

• Sales Management
• Consists of several function that include team selling, catalog management, needs
analysis, and order management.
• Provide for quotation management and configuration capabilities that can activate
interactive selling tools to customize partner and marketplace needs
• Provide partners a window into channel product availability, order status, and
service requests and warranties.
• Services Management
• provide for the ongoing training and certification of partners and activation of
support capabilities.
• Provide partners with interactive demos and presentation software that combine
content and configurability capabilities that dramatically present product to
prospects.
• PRM Collaboration
• Facilitate channel networks to co-develop marketing programs and joint business
plans.
• transmit analytics and metrics of customer performance, channel sales forecasts,
and general marketplace feedback.
Electronic Bill Presentment and Payment (EBPP)

• The merger of EBPP and CRM provides the Company with


radically new opportunities to develop customer relationships:
• enables companies to offer greater convenience when it comes to
customers accessing their accounts and answering questions about
financial issues
• Provides greater personalization that will enable the biller to customize
financial transactions and draw the customer closer to the biller’s Web
site and other services
• CRM customer service functions will be enhanced by the addition of bill
and statement information
• customers will gain another avenue for self-service and personal
management by providing them with the ability to manipulate and
analyze financial data, thereby driving down biller services costs,
increasing “mind-share,” and informing customers in real-time about new
policies and procedures
CRM Analytics
• The goal of CRM analytics is to provide companies with statistical,
modeling, and optimization toolsets that empower organizations to
analyze, combine, and stratify their data to better understand the
state of their businesses and the status of their customers by group
and individual needs.
• Ultimately, the goal is to provide an information conduit enabling
decision makers to architect their organizations in an effort to
continually identify and exploit opportunities wherever they may
arise in the supply chain.
Analytical CRM architecture
Implementing CRM
• Ensuring an effective CRM system requires a comprehensive
implementation plan.
• There are several step that need to be considered:
• Define the projected objectives and benefits of the project.
• Assembling the CRM suite of products to select for
implementation
• As discussed earlier, a CRM system consists of three integrated
functions:
• Operational (such as transaction, event, and service management);
• Collaborative (such as forecast, process, and information sharing); and
• Analytical (such as churn analysis and prediction)
• Match these CRM three Integrated tool functionality to the
required solution
• As the project is implemented, CRM analysts must make sure that
the proper performance metrics have been closely defined
Implementing CRM
• There are most common causes CRM Failure :
• Too much concentration on the technology and not enough on
understanding the customer
• Requirement to change entrenched, product-based marketing
organizations
• Poorly conceived objectives and goals to be attained by the CRM system
• Lack of employee and management skills to properly operate the CRM
system and deploy functionality to accomplish customer-value generating
intelligence
• Insufficient budgeting of training and organizational dollars ◾◾ to
successfully configure, test, and implement the chosen solution
• Minimal to no return-on-investment targets that will demonstrate CRM’s
value to employees, management, shareholders, and customers
• Lack of commitment by senior management for the CRM project
New Concepts in Customer
Management Technologies
New Concepts in Customer Management
Technologies
• in today’s global economy, companies need to do more than just
deploy analytical tools to generate data from repositories of
customer history:
• they need to become “intimate” with what their customers really want,
with increasing the customer experience, if they want to drive customer
loyalty and commitment.
• A new concept called social networking has emerged that, by
tapping into the connectivity capabilities of the Internet, enables
individuals to communicate in real-time with potentially huge
peer communities wielding the power to influence the actions of
organizations, businesses, and even public opinion.
• Far from being a temporary phase in the evolution of CRM, social
networking and customer intimacy stand at the forefront of
today’s customer management environment
Customer Experience Management (CEM)
• CEM is a totality of an individual customer’s interactions with a
company and its brand over time.
• It essentially ensures that each department and touchpoint from sales to
billing to returns act collectively in the customer’s best interests to generate
long-term loyalty.
• It requires starting from the customer’s view first (not the company’s), then
aligning people, processes, and technology to ensure that interactions are
valuable from the customer’s vantage point.
• is a business management strategy and not a “marketing concept.”
• is about how companies and their partners can use their products and
services to provide customers with exceptional and fulfilling buying
experiences, rather than just an endless parade of features, options, and brand
proliferation.
• CEM seeks to build loyalty and grow profitability by making an emotional
connection with the customer that transcends the value of the goods and
services they offer.
• CEM provides a realistic, measurable approach to creating value built on the
strong identification and conscious preference of the customer for a brand
based on long-term experience and expectation at the “moment of truth”
when the transaction occurs
Merging CRM and CEM

• The best way to perceive CRM and CEM is view them as consisting
of two integrated spheres
• one focused on ensuring the highest level of customer equity
• the other on achieving the deepest, most enduing relationships between a
customer and the companies and brands it does business with
• There are four critical support technologies that enable the
linkage of CRM and CEM
• Business Enterprise Backbones
• Demand Sensing
• Operations Optimization
• Demand Shaping
Merging CRM and CEM
• Business Enterprise Backbones
• IT systems in this area are used to consolidate all customer information in
databases that are shared across the supply chain network.
• Demand Sensing
• Technologies in this area are used to provide a complete view of customer
interactions across all channels
• Operations Optimization
• IT systems in this area are used to engage lean concepts and practices to
reduce costs and wastes at each channel touchpoint
• Demand Shaping
• Technologies in this area are used to provide customer-facing functions
with focused order management tools and information to service the
customer.
Defining the Content of Social Networking
Technologies
• Technologies targeted at social networking must be capable of
empowering customers to utilize these critical networking
capabilities:
• Communications Repository Management - Software applications must be able
to capture and then be searchable to allow marketers to mine histories of customer
interactions with the business, organizational responses, and
situational/contextual circumstances that could uncover value for future use
• Advanced Networking - Customer-to-customer or peer-to-peer networking
provides an essential window that enables individuals and companies to stay
connected to peers, thought-leaders, or just the buzz of the marketplace. It
improves the customer experience and also reduces service operating costs by
reducing overheads while expanding support
• Innovation - companies can utilize their social media tools to source reservoirs of
knowledge, ideas, and metrics through keyword searches across social networks to
locate information relating to just about any research, problem, or opportunity
area under review to get ideas for improvements and new capabilities from their
customers
• Promotion - Loyal, happy customers will provide a potent positive message that
will penetrate and main thoroughfares and isolated backroads stretching across a
global terrain impossible even through the most robust viral marketing campaigns.
References
• D. F. Ross, Supply Chain Management Technologies, 2nd Edition.
Unites States of America : CRC Press, 2011.
• J. Strauss and R. Frost, E-Marketing, 7th Edition. Unites States of
America: Pearson, 2014.
• C. Schuh, et al., Supplier Relationship Management – How to
Maximize Supplier Value and Opportunity. New York: Apress,
2014.
Question & Answers

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