Role of CRM in Service Management

Transcription

1 Role of CRM in Service Management **Miss. K. Meena, MBA, M.Phil., Lecturer, Department of Business Administration, Manonmaniam Sundaranar University Constituent College of Arts and Science, Sathankulam Mrs. N. Stella, MBA, M.Phil., Assistant Professor, Department of Business Administration, Lady Doak College, Madurai. Mrs. S. Amuthavani, MBA, M.Phil., Lecturer, Department of Business Administration, Manonmaniam Sundaranar University Constituent College of Arts and Science, Sathankulam. INTRODUCTION Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. CRM systems are designed to compile information on customers across different channels -- or points of contact between the customer and the company -- which could include the company's website, telephone, live chat, direct mail, marketing materials and social media. CRM systems can also give customer-facing staff detailed information on customers' personal information, purchase history, buying preferences and concerns. But the role of CRM can be more than just a tool for sales force automation, marketing or customer support. In fact, CRM can help you automate your business processes and integrate every client facing department with your service organization, resulting in increased customer satisfaction, long-term relationships and increased sales. A broader view of CRM brings more value To ensure greater benefits and results from your CRM solution, you need to put it to work supporting operations and cross-business processes. Since the heart of any CRM application is your customer data, other systems that store the same customer information would be a good candidate for integrating with your CRM. Doing this, in turn, offers you the opportunity to rethink and retool existing operational mechanisms. Viewing CRM from a more holistic perspective can of course trigger a cultural change in the way your business positions and uses services in the management of customer relationships. As you more tightly integrate the role of CRM and, in particular, its relationship to service management to better meet your customer needs, it becomes more crucial to your business. Characteristics of CRM Well-designed CRM includes the following characteristics: 1. Relationship management is a customer-oriented feature with service response based on customer input, one-to-one solutions to customers requirements, direct online communications with customer and customer service centers that help customers solve their questions. 2. Sales force automation. This function can implement sales promotion analysis, automate tracking of a client s account history for repeated sales or future sales, and also coordinate sales, marketing, call centers and retail outlets in order to realize the sales force automation. 3. Use of technology. This feature is about following the technology trend and skills of value delivering using technology to make up-to-the-second customer data available. It applies data warehouse technology in order to aggregate transaction information, to merge the information with CRM solutions, and to provide KPI (key performance indicators). 752

2 4. Opportunity management. This feature helps the company to manage unpredictable growth and demand and implement a good forecasting model to integrate sales history with sales projections. Challenges and advantages of tighter integration Taking a more integrated approach to how you use your CRM solution brings clear business advantages because you use one platform to provide one common data set. That means different departments can work off the same data set and the content is consistent. This consistency will enable you to better service your customers, especially in a today s multi-channel environment where full visibility of a customer s profile ensures that each conversation doesn t begin from scratch. Customer loyalty and retention increases when you re able to service them more quickly and efficiently. Therefore the value of your CRM solution becomes obvious: a reduction in selling costs. And if the percentage of retained customers rises by ten percent, then the increase in revenue will be easy to measure. Of course there are challenges that must be dealt with along the integration path. All too often different departments don t communicate or discuss ways to optimize data that comes in from one entry point. For example say your organization uses CRM for sales and customer account management. Have you considered using it for the service side too? In most cases, service management is already a part of your greater CRM package. When you buy a license, the service management piece is there; it s just not always used. Step back and take a more holistic view across your different departments and you will likely see how you can make greater use of the service management module by effectively integrating it across disciplines and into other systems and with external tools, such as ERP for invoice management and billing, as well as third party systems that are handling phone and subscription services. This will provide your customer support agent with all the information needed to offer quality service to the person who just contacted you through their preferred channel, including phone, , web, text, live chat, Face book or Twitter. In short, you can more effectively use CRM to deliver a truly integrated service management experience. And different customer communications that are managed by separate parts of the business can come together with the appropriate levels of transparency between them. Integrating CRM and service management also provides you with a new set of marketing, finance, operations and other reports that give you a wider, clearer window into cross-departmental activities. So you can respond more quickly and effectively to issues you might have missed before, and make business and strategic decisions with greater clarity and quicker impact on your overall business success. CRM Solutions CRM Solutions come with many features and tools and it's important for a company to choose a product based on their specific organizational needs. Most vendors will present information on their respective websites which includes: Features: These are what the product actually does and what value it can provide to an organization. Support: Many CRM vendors have a basic level of support which generally only includes and/or access to a support forum. Telephone support is often charged in either an annual or ad hoc pricing strategy. Some companies on site support which is charged as an extra premium. Pricing: This will be shown either per user or a flat price for a number of users. Many solutions require a lump sum annual license; others are a monthly/quarterly service or have variable pricing options depending on organizational needs. Demonstration Periods: Many vendors offer a trial period, online demonstrations and FAQ guides. It is important to try as many as possible to find the CRM solution that best matches the organizations needs. 753

3 Marketing and Customer Service: Customer relationship management systems track and measure marketing campaigns over multiple networks. These systems can track customer analysis by customer clicks and sales. Places where CRM is used include call centers, social media, direct mail, data storage files, banks, and customer data queries. CRM in customer contact centers: CRM systems are customer relationship management platforms. The goal of the system is to track, record, store in databases, and then data mine the information in a way that increases customer relations (predominantly increased ARPU, and decreased churn). The CRM codifies the interactions between you and your customers so that you can maximize sales and profit using analytics and KPIs to give the users as much information on where to focus their marketing and customer service to maximize revenue and decrease idle and unproductive contact with your customers. The contact channels (now aiming to be Omni-channel from multi-channel) use such operational methods as contact centers. The CRM software is installed in the contact centers, and helps direct customers to the right agent or self-empowered knowledge. CRM software can also be used to identify and reward loyal customers over a period of time. CRM in B2B (Business-to-Business) market The modern environment requires one business to interact with another via the web. According to a Sweeney Group definition, CRM is all the tools, technologies and procedures to manage, improve, or facilitate sales, support and related interactions with customers, prospects, and business partners throughout the enterprise. [10] It assumes that CRM is involved in every B2B transaction. [8] Despite the general notion that CRM systems were created for the customer-centric businesses, they can also be applied to B2B environments to streamline and improve customer management conditions. B2C and B2B CRM systems are not created equally and different CRM software applies to B2B and Business-to-Customer (B2C) conditions. B2B relationships usually have longer maturity times than B2C relationships. For the best level of CRM operation in a B2B environment, the software must be personalized and delivered at individual levels. Differences between CRM for B2B (Business 2 Business) and B2C (Business 2 Customers) B2B and B2C marketing operates differently, that is why they cannot use the same software. All the differences are focused on the approach of these two types of businesses: B2B companies have smaller contact databases than B2C The amount of sales in B2B is relatively small In B2B there is less figure propositions, but in some cases they cost a lot more than B2C items Relationships in B2B environment are built over a longer time B2B operations require special CRM solutions that are not the same as for the B2C industry: B2B industries require specialized CRM solutions, which are different from B2C companies requirements. This is the main reason for ineffective adoption of applications, despite both B2B and B2C industries having the same aim: to understand its own customers better There must be different CRM solutions for industries within the B2B market, because of the special needs of each one. Also there is a demand of designing solutions using special color schemes. B2B CRM must be easily integrated with other companies IT-solutions. Such integration enables the creation of forecasts about customer behavior based on their buying history, bills, business success, etc. Small business For small businesses a CRM system may simply consist of a contact manager system which integrates s, documents, jobs, faxes, and scheduling for individual accounts. CRM systems available for specific markets 754

4 (legal, finance) frequently focus on event management and relationship tracking as opposed to financial return on investment (ROI). Social media CRM often makes use of social media to build up customer relationships. Some CRM systems integrate social media sites like Twitter, LinkedIn and Face book to track and communicate with customers sharing their opinions and experiences with a company, products and services. Enterprise Feedback Management software platforms such as Confirmit, Medallia, and Satmetrix combine internal survey data with trends identified through social media to allow businesses to make more accurate decisions on which products to supply. Non-profit and membership-based Systems for non-profit and also membership-based organizations help track constituents, fund-raising, Sponsors demographics, membership levels, membership directories, volunteering and communication with individuals. need Customer-centric relationship management (CCRM) CCRM is a style of customer relationship management that focuses on customer preferences instead of customer leverage. This is a nascent sub-discipline of traditional customer relationship management; to take advantage of changes in communications technology. Customer centric organizations help customers make better decisions and it also helps drive profitability. CCRM adds value by engaging customers in individual, interactive relationships. Customer-centricity differs from client-centricity in that the latter refers almost exclusively to business-tobusiness models rather than customer-facing firms. Features of CCRM Customer-centric relationship management is used in marketing, customer service and sales, including: tailored marketing one-to-one customer service retaining customers building brand loyalty providing information customers actually want Subscription billing Rewards Smart steps on the way to successful integration As you consider the best ways to create a more integrated approach to customer service management, keep these key steps in mind: Define the problem and business processes to help you achieve your end goal. Before you move ahead to integrate CRM and service management, define the business processes around how you want departments to interact. Map it out. As different departments begin looking into the data within your CRM application, you should properly define best use cases so all are using the data in the appropriate and intended way across all departments. Make sure you have executive support. It is always wise to have senior management buy in to our integrated approach. Take the time to secure support for your chosen direction and plan from the top down, and then leverage that sponsorship to roll out your initiative across departments. 755

5 Train your users. If your approach to integrated CRM and service management is not easy to use, or it connects through an interface that is not intuitive, employees probably won t use it at least not to its maximum capability. So be sure to provide adequate time and resources for training. Know when this approach is right and when it isn t When it comes to deciding to what extent integrated service management is the right CRM approach for your business, it s not so much the size of the company as the type of business that matters most. Factor in your customer base and the type of product or service you are selling. Even if you are a company with a smaller customer base, if your business is customer-support intensive you will benefit from an integrated service management approach. You can automate your customer support process and, in turn, reduce the amount of time agents are on the phone with a customer while increasing first call resolution rates. On the other hand, if your customer support interactions stay consistently at a low volume, you need not embark on this integration effort because the ROI just isn t there. To help you decided which approach is right for your company consider partnering with an experienced serviced provider one with a proven track record in integrating CRM and service management. They can make recommendations attuned to your business needs and service environment. Three examples: how integrated CRM improved service management What worked for a technical support provider? The company is a leading provider of remote service and technical support for consumers, home office users and small businesses in the U.S. Its industry-certified agents deliver online support for all technologies, including PCs, Macs, Smartphone devices, net books, MP3 players, network devices, printers and digital cameras. Business partners include major service providers, retailers and hardware and software manufacturers. In order to efficiently manage customer support activities for one of its partners the company needed a CRM system. Its choice was a customized, integrated Net Suite solution. Now customer records and cases are created dynamically in Net Suite using Suite Talk, and both sets of records include customized fields. Also part of the solution: The logic for closing a case by adding filters notes and work time for each support technician, quote and status. The solution helps the company deliver rapid, transparent and quality customer support services to its partner. Personalized support has helped strengthen the business relationship between the two firms. What worked for an online file backup service provider? A start-up company that provides online backup solutions for file storage and protection needed a CRM solution to deliver better service management of subscription plans, integrated payment processes and accurate reporting. The company needed a website that would serve as a marketing interface and portal for customers data, a unique customized application, and a backend CRM solution for service management and reporting. First the process flow was analyzed and customized. Then Net Suite was implemented to handle the business processes; and a unique Face book-dedicated application was developed to enable file access to customers via the social network. The new website and customized application serve as single point of communication, and both are integrated with Net Suite to meet all of the service management and backend reporting requirements, from subscription plans to invoicing and payments. This CRM integration helped the company deliver faster services to its subscribers, improved customer satisfaction, and led to a more efficient internal reporting process. What s more, the innovative Face book integration solution opened access to a large pool of potential clients. 756

6 What worked for a web-coding services company? Business had been increasing exponentially for this small company and they soon found themselves with disconnected workflows and dispersed customer data, which was affecting client satisfaction. The order process had become lengthy because it engaged different tools and people at every stage. What s more, the lack of a centralized customer database meant the company could not accurately track customer interactions, project status, order changes or billing details. The company needed to automate its order processes and improve workflow in order to deliver the best turnaround time and improve customer service. The solution was a customized Microsoft Dynamics CRM to integrate the company s order processes with its project management activities. Automated triggers were created to align specific actions that must be taken throughout the project management process. Online ordering and billing components, such as the company s website order form and payment portals were integrated with the CRM, ensuring client data is captured properly. And an automated payment notification process was integrated with the payment portal to notify clients about project status and remind them about payments. By automating its critical processes via Microsoft Dynamics CRM, the company has reduced project delivery times, improved its ability to track project details and increased customer satisfaction substantially. Implementing CRM to the company The following are general guidelines on implementing a CRM system. 1. Make a strategic decision on what problems you want your CRM system to address, what improvements or changes it should bring in the business processes of the organization. 2. Choose an appropriate project manager. Typically IT will be engaged, however a manager with a customer service/sales and marketing business focus should be involved, as the impact of the project will be mainly on the business side. 3. Ensure executive sponsorship and top management support. 4. Empower team members with the required authority to complete the tasks. 5. Select the correct implementation partner. They must have both vertical and horizontal business knowledge, as well as technical expertise. 6. Define KPI's that will measure the project's success 7. Use a phased approach. Work towards long-term enterprise-scale implementation through a series of smaller, phased implementations. Summary Simply put, if connecting CRM into a more integrated approach to service management enables you to: Improve agent productivity Better service your customers Integrate social channels Increase up sell opportunities Reduce service costs Decrease the amount of time spent with customers and prospects...then it s the right way for your business to go. It s good news for you offering a new way to drive down costs while maximizing your existing CRM investments. And it s and good news for your customers and prospects because you ll be delivering the level of service they expect and deserve. 757