ct u r e #8

Le

Customer Relationship
Management
What it’s all about?
 Learning Outcome

Students will understand the value of customer knowledge and how to

transform data into customer knowledge. They will be able to combine
data from various sources to develop the customer image
Recapitulate

Which of the following is not required to make product oriented organisation to Relationship
oriented organisation?
A. Leadership
B. Culture
C. Structure
D. Human Capital
E. Profit
Recapitulate

___________focus on the automation of customer facing process such as marketing, selling

and customer support
A. Strategic
B. Analytical
C. Operational
D. All of the above
 Tell

__________ instruments are effective to manage the relationship oriented

organization.
A. The service profit chain
B. The balanced scorecard
C. Both A and B
D. People
Few Question to Ask….

 What is the value of customer knowledge?

 How to utilise data: taking action based on customer data
 What demands are placed on the use of customer data that represent an important asset
 for the organisation?
 How to organise for data management (various stages of professionalisation).
 How to transform data into customer knowledge (developing the desired customer
 profile).
 How to combine data from various sources to develop the customer image.
 How to respect privacy
 Let’s Discuss

Can you share any experience of any company which is not relationship oriented company and describe how this the case
as your experience?
 Case Let: Working with Salespeople

Salespeople are part of an overall team. When a salesperson tries to work independently, the results are not always very
effective. This activity highlights an ineffective situation for a mobile home loan salesman for a bank. Review the situation –
what can you recommend to improve the firm’s current sales appointment practices?

ACTIVITY/TASK
When customers phone the bank’s call center and inquire about a home loan they are always offered an appointment the mobile
home loan salesperson (who will come out and visit them). If they are interested, the appointment is then immediately booked in
the mobile lender’s electronic diary. Each day the mobile lender checks his electronic diary and goes to the scheduled
appointment/s. However, the mobile lender has become very unhappy that the call centre is making appointments with people
who are not ready to buy yet (many just want information). He is complaining that the call centre “is wasting his time” and
wants something done about it!
 Let’s Discuss…….

 Why is the salesperson unhappy in this situation?

 Would the call center staff be happy in always passing the sales inquiry to the
salesperson? Why?
 How did this disorganized situation occur? (Who’s at fault?)
 What would you recommend to improve this situation/practice?
‘High costs are associated with owning data, and Gartner believes that having bad data can
increase these costs by a factor of 10 when one considers costs arising from bad business
decisions and poor CRM based on such data.’

Gartner Research, Customer Data Quality and Integration: The Foundation of Succesful CRM, 26 November
2001
Growth stages in database management
The use of different sources of information to create a complete customer profile
Privacy

The right of objection and the various channels of communication

 Addressed e-mail: opt-out
 Telephone (voice): opt-out
 Fax: opt-in
 Automatic telephone calls without human intervention opt-in
 Unaddressed e-mail opt-out
 E-mail: customers ‘soft-opt-in’
prospects opt-in

opt-out: right to block by data subject him/herself

opt-in: prior permission needed from data subject to send messages