Customer Relationship Management

Using Salesforce

Week 1 – Introduction to Information

Dr Taiwo Oseni Systems

CRICOSCRICOS Provider
Provider No.No. 00103D
00103D
Learning Points

• The role of IT in organisations

• Value of information Systems
• Key integration points between CRM and other Enterprise Systems
• Supply Chain Management
• Customer Relationship Management
• Definitions
• Types
• Processes
• Components
• Organisational roles and CRM
• Challenges
Organisational Structures
No longer a simple matter to know where an organization’s boundary lies.
The role of IT in a stable corporate environment is to allow senior management to control
information and decision-making
As environments become more turbulent, and as companies attempt to understand and forge
network relationships, the role of IT has changed
Role of IT in more turbulent environments
IT’s role is to provide information that enables a company and its network members to:
• Sense and respond rapidly to changes in the business
environment
• Collaborate to develop and deliver better customer value
propositions
• Enhance and share their learning about customers
• Improve their individual and joint cost profiles
IT is a substitute for a more formalized and centralized organization structure linking networked
or virtual organizations.
IT’s influence on organizational design
IT allows information to be shared right across an organization…..
• vertically, horizontally and laterally
…. and outside an organization with network members.
Structure is therefore no longer tied to traditional vertical reporting relationships
IT therefore enables organizations to adopt decentralized and networked structures
What can an IT-enabled organization do?
An IT-enabled organization is able to take any sales or service query from any customer in any
channel and resolve it immediately.
Among the preferred characteristics of such a design are:
• A customer interface that is consistent across channels and easy to use whatever
the technology or device
• A first point of contact that takes responsibility for resolving the query
• A back-end architecture that enables the contact point to obtain relevant customer
and product information immediately
Information Systems
Systems impact on all facets of organisational life
• Organisations are more than ever reliant on systems to support their day to day operations
• Systems enable:
 People to communicate
 Processes to direct business functions
 Data to be transformed into information
• But what do we really mean by an Information System?
Information System?
• An information system (IS) refers to a collection of multiple pieces of equipment involved in
the dissemination of information.
• Hardware, software, computer system connections and information, information system
users, and the system’s housing are all part of an IS.
Enterprise Wide Systems?

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Enterprise Wide Systems?
• Brings together/integrates previously isolated information systems with the goal of providing
a more whole or complete information resource.
• This integration includes bringing together:
 People
 Processes
 Information
 Systems
• To achieve a common strategic business goal

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What might an Enterprise System look like?

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Enterprise System Characteristics
• Links all business processes automatically
• transactions occur one time at the source
• Maintains an audit trail of all transactions
• Utilises a common database for

 Master data
 Transactional data
 Enabling Business Intelligence
• Utilise a common architecture
• Performs internal conversions automatically (tax, foreign currency, legal rules for payroll)
• Real time data extraction
• Utilises best practice business processes
• Most system functionality has a common interface and terminology
Enterprise Systems may include
• Enterprise resource planning systems
• Manufacturing systems
• Supply chain and inventory management systems
• Customer relationship management systems
• Financial information systems
• eMarketing and eCommerce applications
• Business intelligence (BW)
Now Enterprise Resource Planning
Systems?
• Enterprise resource planning (ERP) systems are packaged
application software, capable of fully integrating and
automating business processes across functional areas thus
centralising operational information so that it can be shared
by an organisation’s key functional systems, and facilitating
rapid decision making, cost reductions, and greater
managerial control (Davenport et al. 2004; Galy and
Sauceda 2014; Klans et al. 2000).

• Packaged software solutions that seek to integrate the

complete range of a business's processes and functions in
order to present a holistic view of the business from a single
information and IT architecture.(Klaus, Rosemann, & Gable,
2000)
Enterprise Resource Planning Systems

• ERP systems integrate various functional aspects of the

organization as well as systems within the organization of its
partners and suppliers.

• The objective of an ERP system is to make the information

flow dynamic and immediate, therefore, increasing its
usefulness and value.

• https://www.youtube.com/watch?v=fH2CEkShyBs
Why ERP system ?

Enterprise Resource Planning Systems

Ross & Vitale (2000, p 234)

 Drivers for ERP

• Streamline and improve business processes

• Integrate business processes eliminate unproductive processes
• Use best practice business processes
• Better manage information systems expenditure,
• Competitive pressures to become a low cost producer
• Increased responsiveness to customers and their needs
• Provide a common platform and better data visibility
• A strategic tool for the move towards electronic business
• Integration as a response to mergers and acquisitions and takeovers
• Better decision making
Supply Chain Management

Supply chain is the network of services, material, and

information flow that link a firm’s customer relations, order
fulfillment, and supplier relations processes to those of its
suppliers and customers.
Michael Potter
• A business value chain consists of a series of processes or activities
conducted by the company to add value to the existing product or service
and to provide a competitive advantage in the market.

Companies need to understand their supply chain and build

the strategy such that its competitive strategy and supply
chain strategy are aligned.

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Supply Chain Management (Cont’d)

Corporations are striving to focus on core competencies and

become more flexible and reduced their ownership of raw
materials sources and distribution channels.
All the functions of a company’s supply chain contribute to its
success or failure and they all need to work together to
ensure success.
To achieve strategic fit, a company must ensure that its
supply chain capabilities support its ability to satisfy the
targeted customer segments.

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Collaboration in Supply Chain Information

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SCM Drivers

Facilities
Facilities are the places in the supply chain network where
product is manufactured, stored, or shipped.
The two major types of facilities are production sites (plants)
and storage sites (warehouses).
A company needs to decide how many suppliers,
manufacturing facilities, distribution centers, and
warehouses to have.
Information
Information consists of data and analysis concerning
facilities, inventory, transportation, and customers throughout
the supply chain.

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SCM Drivers (Cont’d)
Inventory
Inventory is the raw materials, work in process, and finished
goods that belong to the company.
A successful inventory management policy is to achieve that
right balance of responsiveness and efficiency.
Transportation
Transportation moves the product between different stages
in a supply chain.
The type of transportation a company uses also affects the
inventory and facility locations in the supply chain.

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SCM Flows

Three Categories:
Product Flow - The product flow includes the movement of
goods from a supplier to a customer, as well as any
customer returns or service needs.
Information Flow - The information flow involves
transmitting orders and updating the status of delivery.
The finance Flow - The financial flow consists of credit
terms, payment schedules, and consignment and title
ownership arrangements.

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Flows in a Typical Supply Chain

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Software and Technology

Increasing numbers of companies are using the Internet and

Web-based applications as part of their SCM solution.
There are two main types of SCM software.
• Planning Applications: Use advanced algorithms to determine the best
way to fill an order.
• Execution Applications: Track the physical status of goods, the
management of materials, and financial information involving all parties.

Extended Enterprise
• Some SCM applications are based on open data models that support the
sharing of data both inside and outside the enterprise.

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SCM Processes
Procurement
• Procurement is the business-to-business purchase and sale of supplies
and services.
Outsourcing and Partnerships
• An arrangement in which a company provides services for another
company that could also be done or have usually been provided in-house.
Manufacturing Flow Management
• The manufacturing process is to produce and supply products to the
distribution channels based on past forecasts or point of sales (POS) data.

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SCM Processes (Cont’d)
Order Fulfillment

• Process that responds to customer demand by merging

several important functions: order management, storage, and
delivery of finished goods.
Customer Service Management Process

• Source of customer information and also provides the

customer with real-time information on promising dates and
product availability through interfaces with the company’s
production and distribution operations.
Forecasting

• Seeks to predict levels of weekly or monthly product activity

over a time horizon.

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What Is CRM?

A true CRM integrates corporate strategy, business

methodology, and technology to accomplish a myriad of
goals for companies that want to operate in a customer-
driven environment.
No business can survive without understanding its
customers and having a positive relationship with them.
CRM provides support for the front-end customer facing
functionality (e.g., marketing, sales, and customer service),
which are usually not available in traditional ERP systems.

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Selected definitions of CRM
(i) CRM is an information industry term for methodologies, software, and usually Internet
capabilities that help an enterprise manage customer relationships in an organized way.
CRM is the process of managing all aspects of interaction a company has with its customers,
including prospecting, sales, and service. CRM applications attempt to provide insight into and
improve the company/customer relationship by combining all these views of customer interaction
into one picture.

(ii) CRM is an integrated approach to identifying, acquiring, and retaining customers. By enabling
organizations to manage and coordinate customer interactions across multiple channels,
departments, lines of business, and geographies, CRM helps organizations maximize the value
of every customer interaction and drive superior corporate performance.
Core definition of CRM
CRM is the core business strategy that integrates internal processes and functions, and external
networks, to create and deliver value to targeted customers at a profit. It is grounded on high
quality customer-related data and enabled by information technology.
Customer centricity and other business logics
1. Product-oriented businesses believe that customers choose products with the best quality,
performance, design or features.
2. Production-oriented businesses believe that customers choose low-price products.
3. Sales-oriented businesses make the assumption that if they invest enough in advertising,
selling, public relations (PR) and sales promotion, customers will be persuaded to buy.
4. A customer or market-oriented company shares a set of beliefs about putting the
customer first. It collects, disseminates and uses customer and competitive information to
develop better value propositions for customers. A customer-centric firm is a learning firm
that constantly adapts to customer requirements and competitive conditions.
CRM Evolution

In the 1980s through the mid-1990s companies started using

IT to automate customer processes with discrete customer-
centric applications.
Late 1990s, companies started integrating these discrete
systems into what is now known as CRM.
CRM began in response to a changing market environment
as mass marketing gave way to focused segment marketing,
and finally to target marketing an individual.
Enabled by new technologies that collected consumer data,
companies progressed to focused segment marketing.

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Evolution of CRM Programs

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CRM Today
Globalization and ubiquitous connectivity are forcing
companies to re-evaluate how to deliver value to customers.
Large and small companies now deliver similar products at
low cost with an abundance of options for customers mainly
due to globalization.
To be successful in this competitive environment, companies
have to deliver both quality products and unique and
dynamic experiences for the customer depending on his/her
needs.

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Types of CRM
Operational CRM
• Provide front- and back-end support for sales and marketing,
administrative personnel, or customer-service processes.

Analytical CRM
• Provide tools for collection and analysis of data gathered during the
operational process to help create a better relationship and experience
with clients or end-users.

Collaborative CRM
• Deal with the interaction points between the organization and the
customer.

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Operational CRM: some applications
Sources of customer-related data for analytical CRM
Internal sources
• Sales data (purchase history), financial data (payment history,
credit score), marketing data (campaign response, loyalty
scheme data) and service data.
External sources
• Geo-demographic and life-style data from business
intelligence organisations, for example.
• ‘Big data’ including posts to social media sites and sensor
data. Includes both structured and unstructured data.
Beneficiaries of analytical CRM
Customer
• Analytical CRM can deliver timely, customized, solutions to
the customer’s problems, thereby enhancing customer
satisfaction.
Company
• Analytical CRM offers the prospect of more powerful cross-
selling and up-selling programs, and more effective customer
retention and customer acquisition programs.
What about social CRM?
Social CRM is a term widely used by technology firms with
solutions to sell.
In time Social CRM will become part of a larger discussion of “big
data”.

Social CRM technologies essentially enable users to exploit social

network data for customer management purposes.

Social media data can be used to enhance analytical CRM

Where consumers use social media (e.g. Facebook) to make
purchases, social media become part of operational CRM.
Business Strategy Perspective of CRM
Business Promotes customer-centric approach
Customer segmenting
One-on-one marketing
Increase customer retention

Technology Foster close customer relationship

Analyze customer information
Coherent view of customer

Customer Increased interaction opportunity

Increase customer loyalty
Better “word-of-mouth” advertising

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Customer Relationship Processes
A good CRM should provide support for the following
functions.
• Capture and maintain customer needs, motivations, and behaviors over
the lifetime of the relationship.

• Facilitate the use of customer experiences for continuous improvement of

this relationship.

• Integrate marketing, sales, and customer support activities measuring and

evaluating the process of knowledge acquisition and sharing.

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CRM Delivery Processes

Campaign Management
• To generate “leads” or potential clients for the organization.

Sales Management
• To convert the lead generated by campaign management into a potential
customer.

Service Management
• Provide ongoing support for the client and to assist in the operation of the
product or service purchase.

Complaint Management
• To improve customer satisfaction by directly addressing the complaint of
the customer and supporting a continuous improvement process.
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CRM Support Process
Market Research
• Focuses on systematic design, collection, analysis, and reporting of data,
and on findings relevant to specific sales activity in an organization.
• Involves integration of external and internal data from a wide variety of
sources.

Loyalty Management
• Provides the processes to optimize the duration and intensity of
relationships with customers.

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CRM Analysis Processes
Lead Management
• Focus is on organizing and prioritizing contacts with the prospective
customers.

Customer Profiling
• Focus is to develop a marketing profile of every customer by observing
his or her buying patterns, demographics, buying and communication
preferences, and other information that allows categorization of the
customer.

Feedback Management
• Consolidates, analyzes, and shares the customer information collected by
CRM delivery and support processes with the analysis process and vice
versa.

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CRM Technology

CRM technology implements a companywide business

strategy in an effort to reduce costs and enhance service by
solidifying customer loyalty.
With the rise of the Internet, data mining and analytics
techniques have advanced to where they can be considered
an integral component of CRM.
True CRM brings together information from all data sources
within an organization to give one, holistic view of each
customer in real time.

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CRM Components
Market Research
• The two key functionalities here are campaign management and market
analysis.
• Campaign management provides support for preparing such things as
marketing budgets, ad placement, sales targeting, and response management.
• Marketing analysis tools provide statistical and demographic analysis.

Sales Force Automation (SFA)

• Provide basic functionality for sales personnel to automate sales lead
distribution and tracking etc.

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CRM Components (Cont’d)
Customer Service Support
• Typically includes help desk ticket management software, e-mail, and
other interaction tools connected to a fully integrated customer database,
which is connected to the SCM and ERP application.

Data Mining and Analytics

• Data must be collected, sorted, organized, and analyzed for trends,
demographics, cross-selling opportunities, and identification of other
sales patterns.

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CRM Components

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CRM Architecture
Typical CRM systems follow client – server architecture. The
system environment consists of the following components:
• Application server: Runs either front-end processing or querying data
and possibly a Web interface for the CRM system.
• Database server: Houses the back-end database and possibly retrieves
information from other database systems in the company to present
through the application server.
• Web server: Used if the CRM provides an extranet access point for such
external users as vendors or customers and an intranet access point for
employees.

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CRM Architecture

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Typical CRM architecture

Figure 7.5
On-Demand CRM

High-speed secure Internet connectivity has recently spurred

a lot of interest and demand in hosted CRM systems.
Using thin-client architecture, such vendors as NetSuite, Inc.
and Salesforce.com have provided firms with the option of a
scalable CRM application suite via a browser and pay a per-
month, per-user set fee
Other on-demand CRM vendors include Siebel, RightNow,
Microsoft, and Oracle
Small businesses are slowly shifting to on-demand software
due to high costs of installation, maintenance, and security

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CRM Life Cycle

A CRM system life cycle involves focus on people,

procedures, company philosophy, and culture, rather than
just information technology.
Adequately outline the corporate CRM goals and the
practical process changes that have to occur before focusing
on possible technology solutions.
Functional requirements must be considered before making
a decision on the architecture.
There are many CRM products from which to choose,
depending upon the complexity of the information needed
and the resources to manage the program.

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CRM Life Cycle

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Implications for Management

CRM is a strategic business solution and not a technical

solution.
CRM should not be implemented as a single system or at
one time.
CRM systems come in a variety of shapes and sizes, but
there is no real off-the-shelf solution.
Even though CRM provides a great solution for one-on-one
individualized marketing, it also provides good mechanisms
for privacy and ethical violations.

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Organizational roles and CRM
A number of organizational roles are influenced by CRM. These include
• sales representative
• account manager
• marketing manager
• market analyst
• campaign manager
• market manager
• customer relationship manager
• customer service agent.
The sales rep and CRM
Some reps focus on winning new accounts (hunters) and other focus on nurturing existing
accounts (farmers).
Whatever the sales role, reps are typically exposed to Operational CRM, and use sales force
automation solutions that helps them maintain contacts, keep track of opportunities, and manage
their territories and accounts.
The account manager and CRM
Account managers occupy boundary-spanning roles.
Account managers are usually responsible for developing, maintaining and monetizing
relationships with clients.
Account managers make use of sales force automation, particularly account management,
contact management, pipeline management, and sales forecasting.
The marketing manager and CRM
Marketers managers are exposed to Operational CRM when they use marketing automation
modules for customer and market segmentation, lead management, marketing resource
management, and product life-cycle management
They are exposed to Analytical CRM as they perform analysis on market, customer and
environmental data in order to identify opportunities and threats.
They use PRM applications as they engage in Collaborative CRM with their channel partners.
The market analyst and CRM
Market analysts generally occupy entry level or junior positions, yet this belies the importance of
the role. Although analysts have no line management responsibility for sales or profit, the ability
to make sense of, or interpret, market and customer data provides a foundation for line
management decisions such as target market selection, product design, and communication and
channel choice.
Fluency with marketing or web analytics is essential for market analysts, who need to able to
choose the right analytical approach for different types of data - nominal, ordinal, interval and
ratio.
The campaign manager and CRM
Campaign managers are responsible for planning, implementing, evaluating and reporting on
marketing campaigns targeted at prospects and customers.
Campaign managers use Operational CRM modules for campaign management, email and
direct mail campaign management and marketing optimization.
In the absence of in-house or external specialist analytics expertise, they might also be expected
to use marketing and web analytics to target and evaluate their campaigns.
The market manager and CRM
Market managers are generally responsible for business operations for particular geographic
areas, market segments or product class.
Given the focus on geography, customer or product, almost any Operational CRM application
might be used by a market manager. The geographic market manager might use territory
management, a customer market manager might use account management and a product
market manager might use a product encyclopaedia application.
The customer relationship manager and CRM
Customer relationship managers are responsible for maintaining and growing the value of
specified customer relationships. They have to be skilled at identifying new opportunities to grow
share-of-customer by cross-selling and up-selling.
They make use of Operational CRM applications such as account management, contact
management, opportunity management, order management, proposal generation, quotation
management and sales forecasting.
The customer service agent and CRM
Customer service agents generally operate out of call- and contact-centres, working with a
range of communications technologies. CSA’s can perform inbound, outbound or blended
communications roles. Inbound CSA’s handle service matters such as account queries,
complaints and service requests. Outbound CSA’s work collaboratively with campaign managers
and marketing teams. Depending on their role, CSA’s use Operational CRM systems that range
across sales, marketing and service applications.
Misunderstandings about CRM
1. CRM is database marketing
2. CRM is a marketing process
3. CRM is an IT issue
4. CRM is about loyalty schemes
5. CRM can be implemented by any company
CRM constituencies
1. Companies implementing CRM
2. Customers and partners of those companies
3. Vendors of CRM systems
4. CRM cloud solutions providers
5. Social media players
6. Vendors of CRM hardware and infrastructure
7. Management consultants
CRM challenges vary across context
1. Banks
2. Auto manufacturers
3. Technology solution vendors
4. Consumer goods manufacturers
5. Not-for-profits
Summary

Customer relationship management (CRM) systems are an

integral part of enterprise systems for today’s global market
where many organizations are competing for the same
customers.
No business can survive in a competitive environment
without keeping a customer happy.
CRM systems can be categorized by functionality, business
strategy, and implementation perspectives.
The customer relationship process is complex and integrates
several functional areas of the organization.

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Summary (Cont’d)

A CRM system combines a wide variety of computer and

communication technology.
The major components of the CRM system are market
research tools, sales force automation software, customer
service and support tools, and data mining and analytics.
CRM solutions exist in hosted and installed environments.
CRM implementation must never focus on a technology
solution.

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