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CRM

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by

Sara Capobelli

on 4 March 2015

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Transcript of CRM

Overview of
customer experience

Supermarket

TV ad


Customer service


Call center


Shop portal
Cognitive impressions:
- Beliefs
- Thoughts

Affective impressions:
- Feelings
- Attitudes
The Process
Customer Exposure & Interaction
Impressions
WOM effects
+ Customer experience
+ WOM
- WOM

TV ad


Customer service


Call center


Shop portal
Customer Experience
Understanding
customer experience

Customer experience and the role of CRM
Key insights
Video intro
Customer Exposure and Interaction
TV ad
Customer Service
Call Center
Shop Portal
...
Customer experience

Positive
Negative
Impressions
Cognitive impressions
Affective impressions
1. Touchpoints
A touchpoint is any interaction point between the customer and your business or organization. It’s the moment a customers with a need or a desire interact with your organization, whatever the channel.
(Source: Book)
Touchpoint
Person
Organisation
1. Touchpoints
Source: http://reviewsignal.com/blog/tag/touchpoints/

2. Moments of Truth
A Moment of truth is any occasions the customer interact with, or is exposed to, any organizational output, during customer interactions at touchpoints, which leads to the formation of an impression of the organization.
(Source:book)

Experiential marketing
strategies
and tactics

How to choose?
Differentiate our brand from the thousands of other messages which customers are being exposed to each day.

Create positive brand
perception and experience clues.
Experience clue?
"Anything that can be perceived or sensed
- or recognized by its absence - is an experience clue."
Why do we need them?
Communication
Customer generated content:
Visual identity
Brand names
Logos
Livery
Visual identity
Communication
Product
presence
Co-branding
Spatial
environments
Experience
clues
Websites
& e-media

People
Product presence
Brand characteristics
Point of sale
Packaging
Product design
Display
Co-branding
Event marketing
Sponsorship
Alliances
Partnerships
Licensing
Product placement
Cooperative
campaigns
....................................................
Spatial environments
1950
2010
Retail stores
Office spaces
Lobbies
Car parks
Buildings
Gardens and public spaces
Websites and e-media...

"Provides unlimited opportunities on how to create unique customer experience and emotionally engage customers through."


Happy
employees
Happy
shareholders
People
Happy
customers
...May the 4th

be with you...
Bana's agenda
1. Is customer experience that important after all?


2. Methods used for better insight on customer experience

Stefan's agenda
Bhavana's agenda
1. Customer experience and the role of CRM
Strategic CRM
Operational CRM
Analytical CRM

2. Features of CRM software applications that influence CE
Usability
Flexibility
Performance
Scalability

Acknowledgments
Credits:
Georgi Valev
a.k.a. “Spielberg“
Eshaan Pimpale
a.k.a. “Curry King”
Keeliang Tan


Special thanks to:
Adidas
for providing us with the sunglasses
Siemens
for providing the equipment
C&A
and
Das Verrückte Brillenhaus
for their hospitality
Best dog ever – “
Wall·E

for providing joy




Overview
1. Overview of customer experience

2. Understanding customer experience

3. Experimental marketing strategies and tactics

4. The role of CRM and features of software applications in customer experience

Sara's agenda
1. A step into customer experience

2. Customer experience from a customer point of view

3. Customer experience from a management point of view


Start
Finish
Products and services alone are
not
enough to stay in the hearts and minds of consumers
Great
businesses are based on
great
experiences
Building
meaningful
relationships
Each
customer experience sets
future expectations
Mystery shopping
Recruiting
paid
shoppers to
report
on the
customer experience
back to the company sponsoring the research

Mostly used in the
B2C
world
An industry worth
86 million
a year
Observing
and
measuring
customer service, product quality and the environment of the establishment
Experience mapping
"Process striving to
understand
,
chart
and
improve
what happens at
customer touchpoints.
"
Identify the
gaps
between the
actual
and
desired
experience.
Let us map your customer experience
Advertising
Brochures
Newsletter
Annual reports
User groups
Chat sites
Blogs
Social media websites
Process mapping
Also known as
blueprinting
"Graphical
representation
of business processes".
Example of business process mapping
Is customer experience that important after all?
Experience mapping example
Operational CRM
"It supports the front-office business processes. That is, those processes that directly interact with customers; i.e., sales, marketing, and service."
Two major components of operational CRM

Customer-facing applications
Customer-touching applications


Analytical CRM
"Analytical CRM systems analyze customer behavior and perceptions in order to provide actionable business intelligence."
Customer-Touching Applications
customers interact directly with online technologies and applications rather than interact with a company representative.
The Relationship Between Operational and Analytical CRM
What does customer experience mean?
Benefits of process mapping
Improving
customer- supplier relationships
Setting
service standards
Identifying
fail points
Training
new people
Eliminating
redundancy

The customer activity cycle (CAC)
"The CAC displays the
process
the customer goes through in
making
and
reviewing
buying
decisions
."
PRE
Customer is
deciding
what to do
DURING
Customer is
implementing
the decision and taking a step forward
POST
Customer is
reviewing
and
evaluating
the decision taken
Customer Activity Cycle (CAC)
Ethnographic methods
"Understanding the
socio-cultural
context of customer experience."
there is what also is known as
Participant observation
Intervening
and
participating
at the customer experience at various
touchpoints
Non Participant Observation
Customer-facing applications
Applications where an organization’s sales, field service, and customer interaction center representatives actually interact with customers.
Customer service and support
Sales force automation
Marketing
- Cross selling
- Up selling
- Bundling
Campaign Management
The link between an Operational CRM and maximum ROI.
Sound
Animation
Audio and video clips
Chat rooms
Blogs
RSS feeds
Customizing own pages
The analytical approach feeds customer data through the system over time
Greater predictability into behavior.
Moving beyond a 360-degree view of the customer
It involves
interviewing
people,
observing
them and
analyzing
what they are doing over a
long period
of time. It is done either in an
overt
(known) or
covert
(hidden) manner.
Have you ever been to Cinecitta'?
How did you interact?
Which impressions did you have?
"
Customer experience
is the
cognitive
and
affective
outcome of the customer’s
exposure
to, or
interaction
with, a company’s people, processes, technologies, products, services and other outputs."
Impressions
Feelings
Beliefs
Thoughts
Attitudes
Future buying decisions
and word of mouth
Customer exposure
and interaction
The Process
Was it a positive or a negative
customer experience?
Customer experience & interaction
Customer experience
Positive




Negative
Impressions about quality & value
The Process
Cognitive impressions:
- Beliefs
- Thoughts

Affective impressions:
- Feelings
- Attitudes
Impressions
Feelings
Beliefs
Thoughts
Attitudes
Future buying decisions
& WOM

TV ad


Customer service


Call center


Shop portal

...
Are you planning to watch your next movie in Cinecitta' again?
Customer Experience & Interaction
Impressions
Experience
Consequences
Future purchasing behaviours




Word of mouth (WOM)
Positive




Negative
Cognitive Impressions:
- Beliefs
- Thoughts

Affective Impressions:
- Feelings
- Attitudes

TV ad


Customer Service


Call Center


Shop Portal

...
Touchpoints
"A touchpoint is any
interaction point
between the
customer
and your business or
organization
. It’s the moment a customers with a need or a desire interact with your organization, whatever the channel."
Person
Touchpoint
Organization
Moments of truth
"A moment of truth is any
occasions
the customer interact with, or is exposed to, any organizational output, during customer
interactions
at
touchpoints
, which leads to the formation of an
impression
of the organization."

Engagement
Source: http://reviewsignal.com/blog/tag/touchpoints/

Touchpoints
A.P.P.L.E customer engagement strategy
Approach
customers with a personalized,
warm welcome.
Probe
politely to understand the customer’s needs (ask closed and open-ended questions).
Present
a solution for the customer to take home today.

Listen
for and resolve any issues or concerns.
End
with a fond farewell and an invitation to return.
Impressions
Feelings
Beliefs
Thoughts
Attitudes
Future buying decisions
& WOM
2. Customer experience from the customer point of view
3. Customer experience from a management point of view
Strategic CRM
There will therefore be differentiated customer experiences across the portfolio.
1. Is customer experience that important after all?
1. Is customer experience that important after all?
2. Methods used for better insight on customer experience
Touchpoints

Moments of truth

Engagement
Ethnographic methods
Experience Clues
Communications
Visual Identity
Product Presence
Co-branding
Spatial Enviroments
Websites
Electonic Media
People

Co-branding
Bibliography
Company generated content:
Source: CRM Book, Francis Buttle 2009
In which kind of economy are we nowadays?
Restaurant
Cinema
Source: CRM Book, Francis Buttle 2009
Furniture Store
It's all about experience!
Customers have always experienced services...
...but
planned customer experience
differs because management tries to
engage
the customer in a
positive
and
memorable
way.
How was it before?
Source: http://srdc.msstate.edu/ecommerce/curricula/exp_economy/module1_2.htm
Experience economy
Service economy
Industrial economy
Agricultural economy
Added value
Core product
1. A step into customer experience
In which kind of economy are we nowadays?

How was it before?

What does customer experience exactly mean?


What does customer experience mean?
In which kind of economy are we nowadays?
It is the era of the
experience economy
.
Buttle, Francis (2009), "Customer Relationship Management, Concepts and Technologies", 2nd Edition, Butterworth-Heineman, Amesterdam.

Jaap Paauwe (2009), "HRM and Performance" 2nd Edition, Oxford University Press, Oxford, London.

Ind, Nicholas (2004), " Living the Brand", 2nd Edition, Kogan Page Limited, Sterling, USA.

Rainer, R. and Cegielski, C. (2012). Introduction to Information Systems: Enabling and Transforming Business. 4th ed. United Kingdom: Wiley.

e-Commerce Curricula: Guide to Business Online. “A Progression of Economic Value from Commodities to Experience.” April 28, 2014. Accessed May 11, 2014. http://srdc.msstate.edu/ecommerce/curricula/exp_economy/module1_2.htm.

Review Signal. “Let's Talk About Touch.” Accesed April 28, 2014. http://reviewsignal.com/blog/tag/touchpoints/.

Linkedin. “Optimizing for the Ultimate Moment of Truth: Your New Sales Cycle.” Accessed April 28, 2014. https://www.linkedin.com/today/post/article/20140108182222-2293140-your-new-sales-cycle-optimizing-for-the-ultimate-moment-of-truth.

Levels of CRM
Operational CRM
Analytical CRM
Features of CRM software applications that influence Customer Experience

Key features of CRM solutions that deliver a favorable customer experience:
Usability
"Usability refers to the ease with which an application can be navigated or used."
High usability applications
1. Less effort
updating data
making an offer,
or resolving a complaint.
2. Minimal user training
3. Highly responsive
A highly responsive application is a necessary ingredient in delivering a highly responsive experience for the customer.
Usability
Older-style CRM applications (menu systems & Function keys)
Web technologies(incorporate hyperlinks & drill downs) provide a
‘go where the customer wants’
approach.
a
web-style interface
has become the
norm for CRM applications.
Performance
User interface tier
Database tier
Application server tier
CRM architecture
Flexibility
It determines how many alternatives are available to the user at any given point of time
hyperlinks
screen tabs
function keys
others
A highly flexible application will not require specific processes to be followed.
???
sorry, I can't do B until I do A
Is the ability of a system to handle a growing amount of work and to accommodate that change and growth.
A CRM application must
support
an
increasing number of users
and
transactions
,
without
any
degradation
in
performance
.
Number and types of users (on web, call centre, etc...)
Systems unable to scale will deliver inadequate customer experience as user number grows
Eventually providing diminishing returns for business
Scalability
"Source: CRM Book, Francis Buttle 2009"
Source: Introduction to Information Systems: Supporting and Transforming Business, 4th Edition by Rainer/Cegielski.

An example of an unforgettable customer experience
High performance CRM system should be able to:
Separate high load areas (
Database
and
Application
servers)
Expand Application and
Web server
tier (adding more servers)
Source: CRM Book, Francis Buttle 2009
Source: http://www.designsojourn.com/wp-content/uploads/2013/08/adaptive-path-guide-to-experience-mapping.png
Source: http://pulsosocial.com/wp-content/uploads/2013/06/cjm2.jpg
Source: http://knowledgeassets.com/ORDERS_Process1.gif
Source: CRM Book, Francis Buttle 2009
Pioneers
in that field are
Senior management
observing
customer interactions at different
touchpoints
such as:
Call Centers
A company who takes the lead in non participant observation...
Process Mapping is used in companies to set their
business processes paths
which allow them to
reach
their
goals
Source: CRM Book, Francis Buttle 2009
Source: CRM Book, Francis Buttle 2009
Source: CRM Book, Francis Buttle 2009
"Source: CRM Book, Francis Buttle 2009"
"Source: CRM Book, Francis Buttle 2009"
In the present context, engagement can be thought of as the customer’s
emotional
and
rational

response
to a customer experience.

Such engagement might be expressed in a sense of confidence, integrity, pride, delight or passion.

Companies create engagement by carefully
designing
what happens during
moments of truth at customer touchpoints.
Strategic CRM
"Source: CRM Book, Francis Buttle 2009"
"Source: CRM Book, Francis Buttle 2009"
Strategic CRM is focused on development of a customer-centric business culture to win and keep customers.
Different clusters
Define Groups
Treat each customer/Group differently
Cost reduction and better customer services through:
feedback
emails
SMS
IVR(interactive voice response)
Eg: IVR technologies in Call centers
Eg: Banks, Telecom companies etc.
The Process
Ultimate Customer Experience Movie
Full transcript