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太世科網路行銷公司 TASKCO Corporation

Info@taskco.com 886-2-8772-2583

CONFIDENTIAL

Extending Customer Relationships Through the Web

64157 電子商務模式設計與應用國立中山大學企管所

2002 Spring, Week 7-1

黃光彩 博士太世科公司2002/05/11

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What is CRM?

“ The art & science of how companies deal with customers”• Distinguish your business from your peers• Steer your industries’ most profitable customers to you• Cement their loyalty with outrageous service

Underlying Premise: C-CAM • Customer Capital Asset Mgmt (Lifetime Customer Value)• Defined as Customer lifetime revenue – lifetime costs =

customer cash flow. Express as net present value.

New Idea? Not really…• “The true business of every company is to make and keep

“The true business of every company is to make and keep customers” – Peter Drucker, 1954

• “Some customers deserve to be fired” - unknown

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What is CRM?

CRM ties together all of a company’s front office customer touchpoints:•sales (contact management, product configuration),•marketing (campaign management, telemarketing),•and customer service (call center, field service)

Via multiple, interconnected delivery channels (telephony, email, Web, and direct interaction)

YOU ARE TRYING TO TRACK ENTIRE HISTORY OF RELATIONSHIP WITH YOUR CUSTOMER OR CLIENT

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CRM is a Strategy, the Web is a Channel

Technology

Base

Internet

CTIACDIVR

DNISANS

KnowledgeTools

RemoteSynch

RemoteSynch

Part-ner Mgt.

Field Service

Call CenterElectronic Commerce

SFA - Config.

Mktg Auto

HR Procurement Accounting Manufacturing

Your Website is a company representative

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Issue:

Extending Customer Relationships Through the Web

The Web pushes CRM technology to the next

generation

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Issue: The Web Pushes CRM Technology to the Next Generation

Discussion Overview:• Setting strategy: Comparisons of user and end customer

goals• Market dynamics: Discuss vendor approaches• Leading edge practices: Functionality to look for

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Opportunity to sell more to each customer • Cross sell and upsell

Create customer convenience• 7X24• fast response• flexibility cost savings

Save internal costs :• faster problem resolution• reduced processing time

Seen as a competitive requirement

Companies want Web self-sales and service to improve customer relationships

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Web visitors expect Web relationships to reflect in-person experiences• Recognition• Complete the business I came to do efficiently• Give me help when I need it, fast

Web visitors use self-service as a convenient way to complete tasks

Company goals and Web visitor expectations

don’t match!

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Vendors approach self-service from two directions

Customer Self-Sales and Service

Company Goals

System Centric

•Open up functionalityfor visitors to

complete tasks

Web visitor Expectations

WebExperience

centric

•Recognition•Complete tasks

•Get help

CR

M/ER

P vendorsWeb

ven

dors

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Web vendors focused on the customer experience - Recognition

Customer insightArt

Technology,Andromedia, BroadVision,Blue Martini,Data Sage Epicenter, E.phipany, Hot Socket,

Manna, Net Perceptions,

Neuromedia,OneSoft

Personify, Rightpoint,

Vignette

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Web vendors focused on completing business transactions

Sales Service

IET eDispatch.comPointServe

netDialog

Silknet

VentixAsk Jeeves

Advantage KbsNeuromedia

Inference

ServiSoft

CalicoFirePond

2order.comOn Link

SelecticaTrilogy

Research Create Search Prepare Check Dispatch products order solutions order status engineers

iPlanet FourthShiftInterWorldIronside

Open MarketSpaceWorks

Saqqara

Allegis, BackWeb, Channel Web, Click Interactive, Entigo, Hot SambaHaht, pcOrder, Partnerware, viaLink

WebBridge, WebEnable

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Customer interaction is a Web vendor priority

E-mail Chat Collaboration Call center

Aptex Banter Brightware KanaGen. Interactive

Mustang

eShare Business Evolution

Sessio.comValisoft

Effusion Active touch

Acuity FaceTime Inference Ventix

Spider ServiSofteShare Primus

SilkneteGainCisco

Atio netDialog netDialogHP HP

Net Effects

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Open up functionality• Search engines• Configurators• Order entry screens• Order status screens

ERP and CRM vendors let Web visitors touch the Company’s systems

• Organize screens to show the internal data customers use most

Sales orders

Open Service Orders

DeliveryStatus

Quotes

PersonalProfile

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CRM and ERP Vendors extend functionality to a Company’s Website visitors

Mktg Sales Serv. Fin. Purch. Engr. Mfg. HR

ERP

Vendo

rsCRM SuiteVendors

AsteaMetrix

ServicePlusRTS

Oracle

SAPBaan

PeopleSoft JDE

Epicor Great Plains PowerCerv

SCT

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Few CRM or ERP vendors offer Web interaction applications

Chat Collaboration Call center

Siebel

Epicor

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RecognitionComplete the business I came to do

Get help when I need it

No one vendor meets the Web visitor’s expectations:

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There is no definitive model,you’ll have to create one

Recognition Complete business I came to do Provide help when needed

IET eDispatch.com

PointServe

netDialog

Silknet

VentixAsk Jeeves

Advantage KbsNeuromedia

Inference

ServiSoft

CalicoFirePond

2order.comOn Link

SelecticaTrilogy

iPlanet FourthShiftInterWorldIronside

Open MarketSpaceWorks

Saqqara

Allegis, BackWeb, Channel Web, Click Interactive, Entigo, Hot SambaHaht, pcOrder, Partnerware, viaLink

WebBridge, WebEnable

Art Technology

Andromedia, BroadVision,Blue Martini,Data Sage Epicenter, E.phipany, Hot Socket,

Manna Net Perceptions,

Neuromedia,OneSoft

Personify, Rightpoint, t

Vignette

Aptex Banter Brightware KanaGen. Interactive

Mustang

Business Evolution

eShare ValisoftEffusion

Active touch

Acuity FaceTime Inference Ventix

Spider ServiSoft

eShare Primus

Silknet

eGain

Cisco

Atio netDialog netDialog

HP HP

Net Effects

Sessio.com

ERPVen

dors

Epicor Great Plains PowerCerv

SCT

CRM SuiteVendors

AsteaMetrix

ServicePlusRTS

Oracle

SAPBaan

PeopleSoft JDE

Siebel

Epicor

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The Next Generation - Web-based customer relationship

•CRM systems - Internally focused systems used to make the most of a customer base

•Next Gen CRM technologies - Include real-time customer interaction through the web

•Make sure your strategy considers the following:

•New Features emerge rapidly

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Your Website is your representativeLeading edge features•Visitors do not “interface” with a company’s internal systems

•An intelligent persona represents the company

Your Website has a personality

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Leading edge features•Broad range of business functions•Span front office operations and other systems needed to complete the business at hand

Let visitors complete all the business they came to do

Technology

Base

Internet

CTIACDIVR

DNISANS

KnowledgeTools

RemoteSynch

RemoteSynch

Part-ner Mgt.

Field Service

Call CenterElectronic Commerce

SFA - Config.

Mktg Auto

HR Procurement Accounting Manufacturing

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Self-service searchesLeading edge collaboration features

Answer visitors’ questions

Chat

Call Me

Browser Sharing

White board

Shop with me

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Design CRM features from the customers point of viewBe sure you clean up before opening upCompare your vision of Web relationships with the vendors’Expect to patch applications together Don’t wait to start, there’s too much at stake

Recommendations for users

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Design products that will enhance the end customers’ Web experienceBe creative - This is the time for one-upsmanshipAcquire, merge, partner and build self- service functionalityBe clear about your visionDeliver against an aggressive timeline, customers can’t wait

Recommendations for Vendors

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Just for a moment,

Imagine...

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What is Customer Relationship Management? Acquisition

Development Retention

Customer

Customer Information/Knowledge -e.g. …Customer Knowledge Database

...Customer Value Management Analyses

Objective

Process

Focus

Infrastructure

Contact Points

Web E-Mail VoIP Fax MobileTouch

Marketing Sales Services

Customer Segmentation -e.g., customer size, buying patterns, profitability, needs and wantsLead Management

Inbound/OutboundCustomer Service -Call Center Mgmt. -e-Mail Mgmt -Customer Self-Svce.

Internet & Telemarketing with Intelligence

Channel Mgmt. -by Cust. Segmt-By Product

Campaign Mgmt. -Internet -Telemarketing

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Customer Life Cycle Focus

Acquisition

Development

Retention

Who are your profitable customers?

What are their needs? How do you attract

them?

How do you deliver: What the customer

wants? How they want it? When they want it?

How do you build and sustain customer loyalty?

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Customer Retention Drives Earnings

1. Software2. Office

Management3. Industrial

Distribution4. Insurance

Brokerage5. Credit

Insurance6. Credit Card7. Banking8. Auto Service

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Segment Functional Requirements Business Value

Retail

Manuftg& Dist.

ServiceProviders

Relationship Marketing Content Management Order Management

Order management Business Integration Auction management

Support for various business modelsQuick time to market Scaleable

Grow revenue through new customer reach Increase customer loyalty Improve operational efficiency

Grow revenue through new customer reach

Strengthen business relationships by extending processes

Reduce cost through automation

Low cost of operations Grow business at net speed Reduce cost through

automation

Support Different Business Models

Models

e-CRMe-Channele-Procurement

e-CRMe-Channele-Supplier

e-CRMe-Marketplace

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CRM Solution

Sales Service

Target MarketingReward MgmtCustomer ResearchLead MgmtMarketing material fulfillment

Catalog MgmtOrder MgmtOrder TrackingLogistics MgmtAuction Mgmt

Relationship MgmtReport MgmtAccount MgmtReturn MgmtAsset Mgmt

Marketing

Benefits:•Enhance customer loyalty•Reduce cost of sell•Reduce cost to serve•Increase sales and market share•Improve channel loyalty

Solutions:•Customer relationships•Entitlement catalog & price•Respond to changing markets•B2B2C model•Product bundling•Campaign management•Customer retention•Customer knowledge Base

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CRM Architecture

InformationWarehouse

Customer Information Processing

KnowledgeMining &

Visualization

CustomerRelationship

Strategy

The Knowledge Management Process

OperationManagement

Order/Contract

Billing

Customer Service

MarketIntelligence

ExternalDatabases

CustomerRelationship

CustomerCare

Data/Information Quality

Data/InformationExtraction

Data/InformationMining

Data/InformationMarts

CustomerPortfolio

Management

Customer ValueManagement

CustomerCare

Management

Customer Marketing Program

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Campaign Manager

CRM Database

CampaignManagerApplication

High quality ondemand color printing

WebServer

Direct MailMail List

TeleWeb CenterCall Center

Contact Manager

ATM

Call Center

Printing Systems

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CRM System Components

ServiceParts

RMA / OrderStatus

InventoryStatus

LogisticsStatus

RepairStatus

ServiceActivity

AssignmentManagement

ActivityManagement

WorkflowManagement

KnowledgeDataBase

Service Fulfillment

ServiceRequestManagement

ServiceDeliveryManagement

AssetManagement

Contract /AgreementManagement

CustomerInteraction

Call (VoIP)Management

WebServiceManagement

Field Relationships Management

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CRM Applications

Marketing and Sales• Campaign Management• Mail Management• Sales Force Automation• Relationship Manager (Householding)• Data Mining

– Behavioral Scoring– Segmentation– Fraud

Risk And Profitability• Business Intelligence

Customer Service• e-Service Suite• TeleWeb Center

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Target Financial Services Segments

InvestmentManagement

InvestmentBanking

RetailBanking

• Prospect Data Importing

• Investment Profiling

• Web Literature Fulfillment

• Collaborative Presentation Development

• Broker Relationship Management

• Sales Reporting

• Compliance Tracking

• Referral Tracking

• Pitch Book Creation

• Automated Research Mailings

• Daily Call Tracking

• Institutional Sales Process

• Investment Profiling

• IPO opportunity management

• Syndication Tracking

• Client Profiling

• Targeted Marketing

• Cross-Selling

• Account Management

• Trust & Private Banking

• Client Service

• Interface with Online Trading

e-CRM for Financial Services

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How to Make Your CRM Initiative Succeed

1. Identify and set clear business requirements

2. Institute a common planning process

3. Obtain Senior- Management Buy- In and Understanding

4. Pinpoint functional differences in culture and success measures and bridge the gaps

5. CRM is a Business Philosophy

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Tap the Potential of eCRM—Web- based all the Way

1. Create Interactions— decide if it is advantageous to be the creator of a new community or better to join forces; integrate all sales and marketing channels with back office financials

2. Operate at Internet Speed— real time data gathering, analysis and response is approaching as the standard

3. Analyze Data— Turn massive amounts of data into insight to retain customers

4. Integrate Customer Information Access Across Systems

-- Montgomery Research, Inc. 2000

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Total Cost of Ownership

Server Hardware & Software•Server w/ disks, RAID Fault Tolerance, Memory•Backup software•Basic Server Installation & Integration•Configuration of Server in Hours•Service Agreement on Hardware•Service Agreement on Network System

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Total Cost of Ownership

Server Installation & Maintenance•Upgrades in a three- year period•Man hours for upgrades•Migration of platform issues•Upgrades to Network Operating System•Server Troubleshooting•Emergency Service— Actual Hours•Consultant Assistance (one day every fourth week)•Assistance w/ maintenance

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CRM Mainstream Migration

•Sales Automation•Marketing Automation•Web-based•Conferencing/Telephony•Analytics

•Relationship Mgmt. In ASP format•Synchronous Customer Management (multi-channel managed via web or wireless device)

•Personalization— using web•Customer Relationship Mgmt. - expensive, non- integrated software•Database Tracking of Entries•Call Centers (most not Internet- friendly)

•Contact Mgmt. – most offline

80s

90s

2000

2002

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Total Cost of Ownership

End User Install & Maintenance•Upgrading old PCs

User Administration•Hidden downtime & Support Costs•Courses and Internal Training

Software Licensing

Security & Telecommunications

Employee Infrastructure

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Basic CRM Components

Campaign Management

Sales Automation

Customer Services

Web Tools

Campaign Mgmt. Tools

Response Analysis

Predictive Modeling

Segment, execute, improve

Lead Mgmt.Proposal

GenerationForecastingProduct

Config. Tools

Real time interaction

Web demosApp sharingVoice over

IPAutomated

email response

PersonalizationPurchase

recommendations

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CRM Issues

Critical Success Factors•Must have customer centered culture first•Executive(s) championing the effort•Remember: It’s the people, stupid

Reasons for failures•Reengineering is hard! Must manage change effectively

•System chosen before solution defined•Don’t “pave over cow paths”•SFA apps can’t build human relationships

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CRM Trends

Right customer, message & channel Industry ConsolidationFocus on mid-size businessesMicrosofts’ bCentral portion of .Net??Minimize data islands! Converge! Building customer loyalty will be prioritized, and Marketing’s status will increase

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Customer Lifetime Value Development

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CRM Marketers Break with Tradition

•Major Players Reinventing Product Line to Serve Lowend

•Web- based Solutions for all Industries

•New Technology Platforms Breed New CRM methods— I. e. Release of Windows 2000 platform

•Free Is the “Winner to Take All” Plays

•Geography is Meaningful in Seizing Market Share and VC Dollars— Look in Your Backyard for Answers

•ERPs Migrating to ASPs That Can Go Live Within Days

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High-End Marriages Outside the Product ClassExample: Siebel Mid- Edition (first shipped July 19, 2000) andGreat Plains Partner Status

Features Include: •Customer Applications including ecommerce functions, 24/ 7 self- service, and online marketing info;

•Employee Applications including features for front- office employees;

•and Partner Applications for partner organizations (i. e. sales channels)

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New Low-Cost Web Entries

Product:Agillion.com

Low- cost Web- based CRM with messaging functions.

Product The company is aimed at small businesses

Product Offerings Personal Pages— password- protected websites

Shared Contacts— Customer Interaction Database that allows users one secure, central place to store and access customer information and activity

$29.95 per month/per user

Activities and Notes— Permanent searchability on customer activity

Group Calendar— Review and update daily, weekly or

monthly on the web schedules

E- business Dashboard— Free personal homepage. Keeps tabs on customers, includes personal organizer and headlines Tasks and Email— Tracks Tasks and Personalized Email Acct.

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Moderate-Cost Entries

Example: Worldtrak. com•Works with Microsoft Outlook•Account Opportunity Mgmt.•Enterprise Forecasting•Activity Tracking•Enterprise Lead Mgmt.•Enterprise Data Synchronization & Remote Access:

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Verticals: SoftWatch.com

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eCRM Free with Ads

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Consider Scalability for Community

Onyx. com Products for Enterprise Users•30,000 concurrent users

— sub- second response•High- Ticket Item

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Websites for Research on CRM

Crmguru. com

Searchcrm. com

Crmassist. com

CRMcommunity. com

ASPNews. com

ASPIsland. com

www. microsoft. com/ europe/ industry/ crm