Customer Relationship Management (CRM)

Pertemuan keduabelas, 28 November 2011
Bapak Ray Montha, Director Operation

Customer Trends
In 1970’s Price as the key driver in purchase decisions
In 1980's Value equation by emphasizing brand name (more conspicuous, the better)
In 1990's Tightening of time constraints
And in 2000's Net Shopping, Internet Sales (only for limited price such as clothes, electronics, stationary, foods, etc.)

Business Trends: Hyper-Competitive Market (example Cocacola Company and PT. Sosro Indonesia)

Markets are

- Hyper-competitive and saturated
- Facing compressed marketing cycle times
- Increasingly segmented

Product and Prices

Are increasingly comparable. Customer are demanding more and more differentiated and individualized product

Customer Centricity

Customer are demanding excellent Service and convenient buying and repairing

What is causing we must think about Customer?
-Competition                                      
-Poor customer retention
-Inaccurate Forecast
-Unresponsive service
-Bad flow of information
-Lack of coordination
-Late deliveries

Added values for customers:
-TECHNOLOGY
-GLOBAL COMPETITION
-CUSTOMER DEMAND
-RELATIONSHIP WITH CUSTOMERS
What the different between traditional market and carrefour? The added values are credit card technologi, air conditioning, clean, promotion, member card, bonus, etc.

Irrational customer doesn't care too much about the prices. They just love the good service, happiness that they get and in the excellent emotion, they will be a loyal customer ever.

Reach your customers
Three Main Channels of Customer interaction from enterprise:
-Face to Face
-Internet
-Call Center

Synchronized Interaction

One face to the customer

“Customer should get the same answer anytime, anywhere”

“Employees should have a complete view of the customer / partner”

“One part of your enterprise should not damage the relationship that another part just developed”

Intelligent Collaboration from enterprise to customer = personalization
Continuously learning about customers and using the knowledge to create value within relationships with customer

Intelligent Collaboration from enterprise to partner (such as ASTRA Internasional, Astrido, Tunas for TOYOTA) = collaboration
Building trusted business relationships for long term relationships with partner

Intelligent Collaboration changes customer demands into value creation.

YOU HAVE TWO APPROCHES:

KEEP EXISTING CUSTOMERS

OR

GET NEW CUSTOMERS

CRM (Customer Relationship Management)  is a business strategy designed to optimize profitability,revenue and customer satisfaction by organizing the enterprise around customer segments, fostering customer-satisfying behaviors and linking processes from customers through suppliers. Using technology, creating customer relation, customer handling, call center.

Customer relationship management provides a strategy (a roadmap intended to accomplish the goal of improving your company’s customer focus) and process enabling platform (delivers technology using
a business scenario approach) to respond to both customer and market needs (addresses existing and future industry challenges; from regulatory agencies to the end-consumer) thereby enabling your organization to successfully drive growth (meet company objectives to help improve the bottom line).
Yamaha knows what market needs, it is the first company that creates automatic motorcycle for women segment. Knowing your market-customer using communication skills, competitive products, and amazing advertising!!!!

Industry lifecycle
1. Analytics: Customer Insight, Market Insight, Consumer Insight
2. Brand and product management: Increase market share, Increase Brand awareness, Efficiency of market spending.
3. Marketing and Trade Promotion Management: Effectiveness of market spending, Efficiency of marketing spending, plan, execute and evaluate marketing activities.
4. Key account management: Improve customer service, Increasing revenue, Reducing operating costs.
5. Logistics execution: accurate involcing, Capture in-store observations, integration from bottom-up for analysis.

Benefit of Integrated Solutions

Visibility on all company resources

-Capital – short term to long term
-Material – from raw material up to finish goods
-Capacity – Human Resources and company assets

Improve Productivity and Control

-Employee Productivity
-Better communication with business eco-system
-Improve effectiveness in operations
-Better cost control
-Streamline business process

Timely and Accurate Information

-Fast and easy access of all information
-Quick and better business decision

The Core CRM Process

Understand Customer Behaviour by:
-Developing customer segmentation models
-Modelling customer behaviour which impacts customer profitability (product acquisition, usage,
retention, default)
-Identifying events which trigger behavioural change
-Soliciting significant data from customers
Communicate with Customers to change behaviour by:
-Multi-channel, event-driven communications and conventional campaigns
-Business Rules-base selects customers for campaigns
Test new Campaign approaches & measure effectiveness
-Roll-out successes
-Learn from failures

Customer insight is the heart of effective CRM program. It will enables organizations to understand their customer needs & expectations & retain the most valuable customers

Source:
Mr. Ray Montha's pdf "CRM for Untar"