Marvilyn R. Salvosa-Arquero Yvonne Joyce G. Tuliao

MARVILYN R.
SALVOSA-
ARQUERO
YVONNE JOYCE G. TULIAO
Customer Relationship
Management
A business strategy that aims to understand, anticipate and manage
the needs of an organization’s current and potential customers.
A comprehensive approach which provides seamless integration of

every area of business that touches the customer namely marketing,
sales, customer services and field support through the integration of
people, process and technology.
Is concerned with the creation, development and enhancement of

individualized customer relationships with carefully targeted customers and
customer groups resulting in maximizing their total customer life-time value.
OBJECTIVES OF CRM
• Creating value for the customer
• Creating Value of the company over the longer term
• Organizations to gain competitive advantage
• Increase in customer service
• Increase in efficiency
• Lowering marketing cost
• Aiding the department
TRADITIONAL VS CRM
TRADITIONAL MARKETING CRM
Goal: Expand customer base, increase market Goal: Establish a profitable, long-term, one-t0-
share by mass marketing one relationship with customers; understand
their needs, preferences, expectations
Product Oriented View Customer Oriented View

Mass marketing/ mass production Mass customization, one-to-one marketing
Standardization of customer needs Customer-supplier relationship
Transactional relationship Relational Approach
BENEFITS OF CRM
RFM FORMULA
1. How recently a customer purchased items
2. How frequently a customer purchases items.
3. The monetary value of each customer purchase
BENEFITS OF CRM
Effective and efficient operations
Reduced Costs
Increased customer satisfaction
External growth in numbers of customers
Increased access to a source of market and competitor information
Long term profitability and sustainability
Increased Revenue
Expect immediate, High quality, personalized 24-7 service
• Foresee Customer Needs Acquiring New Customers
• Grouping Customers Details of a Customer
• Cost Effective Handy Details
• Customer Satisfaction Customer Loyalty
IMPORTANCE OF CRM
REPORTING ANALYZING PREDICTING
Customer Identification: Asking Customer Segmentation: Asking Customer Prediction: Asking What
What Happened Why It Happened Will Happen
• What is the total revenue by • Why did sales not meet • What customers are at risk of
customer? forecasts? leaving?
• How many units did we make? • Why was production so low? • Which products will our
• What are the total sales by • Why did we not sell as many customer buy?
product? units as previous years? • Who are the best customers for
• How many customers do we • Who are our customers? marketing campaign?
have? • Why was revenue so high? • How do we reach our
• What are the current inventory • Why are inventory levels low? customers?
levels • What will sales be this year?
• How much inventory do we
need to preorder?
OPERATIONAL
AND
ANALYTICAL CRM
OPERATIONAL CRM
It mainly focus on automation, improvement, and
enhancement of business processes which are based on
customer-facing or customer supporting.
ANALYTICAL CRM
It is designed to analyze deeply the customer’s information
and data and unwrap or disclose the essential convention and
intension of behavior of customers on which capitalization can
be done by the organization.
OPERATIONAL CRM
TECHNOLOGIES
Marketing Operational CRM Sales Operational CRM
Technology Technology
List Generator Sales Management

Campaign Management Contact Management
Cross-Selling and Up-Selling Opportunity Management
Customer Service Operational

CRM Technology
Contact Center
Web-Based Self-Service
Call Scripting
List Generator
• Compile customer information from a variety of sources
and segment it for different marketing campaigns.
• These sources include web-site visits, surveys, marketing
mailers, etc.
• Provide the marketing department with valuable
information on the type of customer it must target to find
success for a marketing campaign
• Advanced Systems can even calculate profitability
and track the results for each marketing campaign.
CAMPAIGN MANAGEMENT
Cross-Selling and Up-Selling
Cross-Selling
Selling additional products or services
to an existing customer.
Up-Selling
Increasing the value of the sale
• Automate each of the phase of the sales process, helping
individual sales representatives coordinate and organize
all their accounts.
• These systems can even provide an analysis of the sales
cycle and calculate how each individual sales
representative is performing during the sales process.
Sales Management CRM Systems

Contact Management
CRM Systems
• Maintains customer contact information
and identifies prospective customers for
future sales, using tools such as
organizational charts, detailed customer
notes, and supplemental sales
information.
Opportunity Management
CRM Systems
• Target sales opportunities by finding new
customers or companies for future sales.
• The difference between contact
management and opportunity
management is that contact management
deals with existing customers and
opportunities with new or potential
customers
Contact Center
• Where customer service representatives answer customer
inquiries and solve problems, usually by email, chat or
phone.
• It is one of the best assets a customer-driven organization
can have because maintaining a high level of customer
support is critical to obtaining and retaining customers.
Web-Based Self-Service
• Allow customers to use the web to find answers to
their questions or solutions too their problems.
Call Scripting
• Gather product details and issue resolution
information that can be automatically generated into
a script for representative to read to the customer.
• This feature not only helps representatives answer

difficult questions quickly but also presents a uniform
response so customers don’t receive different
answers.
Analytical CRM
• Find New Profitable Customers Exceed customer expectations
• Eliminate Competition Care about customers
• Discover the activities the firm performs the best
Measuring CRM Success
Sales Metrics Customer Service Metrics Marketing Metrics
Number of prospective customers Cases closed same day Number of marketing campaigns
Number of new customers Number of cases handled by New customer retention rates
agent
Number of retained customers Number of service calls Number of responses by
marketing campaign
Number of open leads Average number of service Number of purchases by
requests by type marketing campaign
Number of sales calls Average time to resolution Revenue generated by marketing
campaign
Number of sales calls per lead Average number of service calls Cost per interaction by marketing
per day campaign
Amount of new revenue Percentage compliance with Number of new customers
service-level agreement acquired by marketing campaign
Amount of recruiting revenue Percentage of service renewals Customer retention rate

Number of proposals given Customer satisfaction level Number of new leads by product
THE FUTURE OF
• Retention Rate Increased Sales
• Reduced Costs Significant Role
• Technology Customer Information
• Interactive Customer Individuality
• Globalization
FUTURE OF CRM BEYOND CUSTOMERS
• SUPPLIER RELATIONSHIP MANAGEMENT

• PARTNER RELATIONSHIP MANAGEMENT
• EMPLOYEE RELATIONSHIP MANAGEMENT
Supplier Relationship
Management
• Focuses on keeping suppliers satisfied by evaluating and
categorizing suppliers for different projects.
• SRM Applications help companies analyze suppliers based
on a number of key variables including prices, inventory
availability, and other business focus n strategies
Partnership Relationship
Management
• Discovers optimal sales channels by selecting the right
partners and identifying mutual customers.
• PRM system offers real time sales sales channel
information about such things as inventory availability,
pricing strategies, and shipping information, allowing a
company to expand its market by offering specialized
products and services.
Employee Relationship
Management
• Provide Web-based self-service tools that streamline
and automate the Human Resource Department.
ENTERPRISE RESOURCE
PLANNING
• Integrates all departments and functions throughout
an organization into a single IT system (Integrated
set of IT systems) so employees can make decisions
by viewing enterprisewide information about all
business operations
THE BENEFITS OF ERP
ERP EXTENDED ERP ERP-II
• Materials Planning • Scheduling • Project Management
• Order Entry • Forecasting • Knowledge Management
• Distribution • Capacity Planning • Work Flow Management
• General Ledger • E-commerce • Customer Relationship
• Accounting • Warehousing Management
• Shop Floor Control • Logistics • Human Resource
Management
• Portal Capability
• Integrated Financials
1990 2000 PRESENT

CORE ERP COMPONENTS
• ACCOUNTING AND FINANCE
• PRODUCTION AND MATERIALS MANAGEMENT
• HUMAN RESOURCES
EXTENDED ERP
COMPONENTS
• BUSINESS INTELLIGENCE
• CUSTOMER RELATIONSHIP MANAGEMENT
• SUPPLY CHAIN MANAGEMENT
• EBUSINESS
Accounting and Finance
ERP Components
• Manage accounting data and financial
processes within the enterprise with
functions such as general ledger, accounts
payable, accounts receivable, budgeting,
and asset management.
PRODUCTION AND MATERIALS
MANAGEMENT ERP COMPONENTS
• Handle Production planning and execution tasks such

as demand forecasting, production scheduling, job
cost accounting, and quality control.
HUMAN RESOURCES ERP
COMPONENTS
• Track employee information including
payroll benefits, compensation, and
performance assessment and ensure
compliance with all laws.
BUSINESS INTELLIGENCE
ERP COMPONENTS
• Typically collect information used throughout the

organization, organize it, and apply analytical
tools to assist managers with decisions.
CUSTOMER RELATIONSHIP
MANAGEMENT ERP COMPONENTS
• Include additional functionality that provides services

formerly found only in CRM systems.
• Includes contact centers, sales force automation, and
advanced marketing function.
• The goal is to provide an integrated view of customer
data, enabling a firm to effectively manage customer
relationships by responding to customer needs and
demands while identifying the most (and least) valuable
customers so the firm can better allocate its marketing
resources.
SUPPLY CHAIN MANAGEMENT
ERP COMPONENTS
• Manage the information flows between and

among supply chain stages, maximizing total
supply chain effectiveness and profitability.
E-BUSINESS ERP
COMPONENTS
• Allow companies to establish an Internet presence and fulfill online
orders
• Two of the primary features of ebusiness components:
1. Elogistics - manages the transportation and shortage of
goods
2. Eprocurement - business-to-business (B2B) online purchase
and sale of supplies and services.
MEASURING ERP SUCCESS
Balanced Scorecard

Marvilyn R. Salvosa-Arquero Yvonne Joyce G. Tuliao

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MARVILYN R.

A comprehensive approach which provides seamless integration of

Is concerned with the creation, development and enhancement of

Product Oriented View Customer Oriented View

List Generator Sales Management

Customer Service Operational

Sales Management CRM Systems

• This feature not only helps representatives answer

Amount of recruiting revenue Percentage of service renewals Customer retention rate

• SUPPLIER RELATIONSHIP MANAGEMENT

1990 2000 PRESENT

• Handle Production planning and execution tasks such

• Typically collect information used throughout the

• Include additional functionality that provides services

• Manage the information flows between and

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