CRMine-businesseraEmmyLiu柳鳳儀emmyliu@tw.ibm.comMarketingManager,SWBusinessUnitIBMTaiwanSuppliers/PartnersCustomerServiceProcurementManufacturing/salesAccounting/PersonelCustomersKnowledgeManagement/BusinessIntelligencee.commerceSCMCRMERPWebSellingRealTimeOrderManagementDemandPlanSupplyPlanProductionSchedulingCustomerServiceProcurementDistributionLogisticse-businesssolutionsenablecustomerstransformingcorebusinessprocessesCRMProcessIntegrationSalesMarketingProductSupportServiceDeliveryCRMsolutionblueprintTheCustomerCRMProcessIntegrationSalesMarketingProductSupportServiceDeliveryTouchpointsContactCenterCRMsolutionblueprintTheCustomerCRMProcessIntegrationBusinessIntelligenceIntegratedCustomerInformationSalesMarketingProductSupportServiceDeliveryTouchpointsContactCenterCRMsolutionblueprintTheCustomerBusinessIntegratione-businessITInfrastructureCRMProcessIntegrationBusinessIntelligenceIntegratedCustomerInformationSalesMarketingProductSupportServiceDeliverySupplyChainIntegrationTouchpointsContactCenterCoreEnterpriseOperations(ERP)CRMsolutionblueprintCustomerFocusWhoareyourprofitablecustomers?Whataretheirneeds?Howdoyouattractthem?Howdoyoudeliver:Whatthecustomerwants?Howtheywantit?Whentheywantit?Howdoyoubuildandsustaincustomerloyalty?CustomerAcquisitionCustomerDevelopmentCustomerRetentionCRMlifetimevaluecycleSurprisingly,companiesdon'trankrevenuegrowthorincreasedprofitsveryhighamongtheirgoalsforlaunchinge-businessventures...atthetopofthelistareimprovingcustomersatisfaction...andimprovedcustomerservice.InformationWeek,Dec.1999Youhavetotreateverycustomerasiftheycantellthousandsofpeopleaboutyourservice.Becausetheycan---andtheyare.JeffBezos,CEO,Amazon.comFocusoncustomersDescriptionIndustryInsuranceTelecommunications&MediaBanking&FinanceManufacturingUtilitiesCustomerswithonepolicyare60%morelikelytoleavethanthosewithtwoormoreCustomerchurncostsUSwirelessoperators$2-4billionannually28%ofexistingborrowersrefinanceelsewhereOnly50%ofsatisfiedcarownersbuythesamebrandagainBytheyear2000,deregulationwillopenup68%ofallU.S.householdstoutilitiescompetitionTheMcKennaGroupIndustryChallenges11122234466677788835%40%45%50%25%75%85%30%A5%increaseincustomerretentionleadstohigherprofitability51.Software3.IndustrialDistribution2.OfficeManagement4.InsuranceBrokerage5.CreditInsurance6.CreditCard7.Banking8.AutoServiceSource:Ovum,1999CustomerretentiondrivesearningsDegreeofConsensus010203040506070%Establish/MaintainCustomerRelationshipsTransformInformationintoknowledgeQuality/continuousImprovementFlexibilitySpeedofexecutionAbilitytoinnovateCostpositionInvestmentinHRSupplierrelationshipBrandimageandequity66%IBMsponsoredsurvey.MercerAssociatesSourceofCompetitiveAdvantageinYear2000Source:ZeroDefections:QualityComestoServices,byFrederickR.ReichheldandW.EarlSasser,Jr.,September-October1990.CustomerAcquisitionCostPricePremiumReferralsReducedCostsMorePurchasesHigherBalancesYearCompanyProfit*1234567Thelongercustomersremaincustomers,themoreprofitabletheybecome.BaseProfitCustomerloyaltyisamajordriverofprofitablegrowthSegmentFunctionalRequirementsBusinessValueCustomersRetailManuftg&Dist.ServiceProvidersRelationshipMarketingContentManagementOrderManagementOrderManagementBusinessIntegrationAuctionManagementSupportforVariousBusinessModelsQuicktimetoMarketScaleableGrowrevenuethroughnewcustomerreachIncreasecustomerloyaltyImproveoperationalefficiencyGrowrevenuethroughnewcustomerreachStrengthenbusinessrelationshipsbyextendingprocessesReducecostthroughautomationLowcostofoperationsGrowbusinessatSPspeedReducecostthroughautomationSupportDifferentBusinessModelsB2BB2CeMPReadyToMeetOurCustomers'Needs?ConsumersBusinessApplicationsSelfServiceModesAgentAssistedModesMailModesAcrossAccessChannelsAcrossAccessModesAcrossInteractionsCommonCustomerViewCommonEnterpriseApplicationsAccessConsistencyConsumersBusinessApplicationsAgentAssistedModesSelfServiceModesPersonalizedExperiencesHighQualityMediaHighServiceLevelsMailModesQualityExperiencesEstablishLong-lastingRelationshipWithCustomersToImproveProfitabilityDeliveryofValueCustomizedforYouCustomerSegmentationEffective&EfficientCustomerContactXXPreciseandQuickResponseToWhomWhatHowCRMAsIfISeeCustomer'sFaceProfitbyCustomerConsumerBehavior/PreferencePatternFocusedSegmentValuesThatCompetitorsCanNotDeliverOne-to-oneMulti-ChannelCustomerContactforIndividualCustomerNeeds3DimensionsCRMValueValuesThatCustomersCanNotDiscontinueValueForOnlyYou:NewServicesValuesBasedonDeepKnowledgeofCustomerCompetitorsCanNotDeliverGoodsandServicesCustomersCanNotDiscontinueSafe,Convenient,Quick,ReasonableGoodsandServicesThatCanBeDeliveredBecauseWeUnderstandYouExcellentQuality,Performance,Speed,PriceThatCompetitorsCanNotDeliverPersonalizationOrderAsUsualConsultationTimingPremiumServiceFrequentShopperProgram24x365PromiseWhat?One-to-oneApproachDataGatheringSegmentationSegmentAnalysis2030405060MarketSize20%CustomersBuyOnlyatBargainPriceforExample30%ofProfitableCustomersComeFromReferralByOtherProfitableCustomersDefectionRateofC