Crm Project

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HISTORY
Customer relationship management is a concept that became very popular during the 1990s. It offered long term changes and benefits to businesses that chose to use it. The reason for this is because it allowed companies to interact with their customers on a whole new level. While CRM is excellent in the long term, those who are looking for short term results may not see much progress. Today, CRM is being used to achieve the best of both worlds. Companies want to maintain strong relationships with their clients while simultaneously increasing their profits. The CRM systems of today could be called "true" CRM systems. They have become the systems that were originally envisioned by the pioneers of this paradigm. Software companies have continued to release advanced software programs that can be customized to suit the needs of companies that compete in a variety of different industries. Instead of being static, the information processed within modern CRM systems is dynamic. This is important, because we live in a world that is constantly changing, and an organization that wants to succeed must constantly be ready to adapt to these changes.

Introduction to CRM

CRM is an application that enables companies to make the move towards, being a customer centered organization by putting the customer at the centre of, all the information that relates to them and allowing authorized people within. The organization to access the information. In a customer centered organization, salespeople would have access to all the information that affects their relationship with their customer. The Conversations, the emails, the complaints, the complaint resolutions, all the Information that had been sent to the customer, who else in the company the Customer had spoken to everything that affects their ability to service the Customer and sell more product or services to them. Customers of a customer centered organization feel more valued. Their Requests are dealt with more rapidly and accurately because all the information required to service the request is in one place. Customer centered organizations may have a higher customer retention rates than competitors organized along traditional lines because of this.

What is CRM?
CRM is short for Customer Relationship Management. There are hundreds Of books, thousands of learned academic papers and scores of Websites Dedicated to the subject of CRM, Essentially, CRM aims to put your customers at the centre of the information Flow of your company, in a typical company it is not unusual to have to following scenario:In short, the company or organization is very rich in information about Customers. It knows lots about them. But the information is not shared. It’s only available to specific job functions. If a sales person wants to know about what issues are outstanding with Customer service for a particular customer, and then they have to make contact with the holders of that information and wait for a response. If the Salesperson is chasing the information in response to a question from the Customer, then the customer also has to wait. So, although many companies are information rich, the information is

Compartmentalized. It is not corporate knowledge and the ability to access, Information and to deliver it rapidly to customers is low - High quality Customer service is compromised.

DEFINITION
Customer relationship management tools include software and browserbased applications that collect and organize information about customers. For instance, as part of their CRM strategy, a business might use a database of customer information to help construct a customer satisfaction survey, or decide which new product their customers might be interested in.

MEANING
Companies need a system that manages the entire customer life cycle: acquisition, service and maintenance. Commerce enabled CRM applications allow organizations to interact with customers through all media or channels: telephone, Web, e-mail, face-to-face. CRM products and services manage every point of contact with the customer to ensure that each customer gets the appropriate level of service and that no sales opportunities are lost. Customer Relationship Management is a customer-focused business strategy designed to optimize revenue, profitability, and customer loyalty. By implementing a CRM strategy, an organization can improve the business processes and technology solutions around selling, marketing and servicing functions across all customer touch-points (for example: Web, e-mail, phone, fax, and in-person). CRM, or Customer relationship management, is a number of strategies and technologies that are used to build stronger relationships between companies and their customers. A company will store information that is related to their customers, and they will spend time analyzing it so that it can be used for this purpose.

TECHNOLOGICAL TOOLS FOR CRM

DATA MINING

E-CRM

FINANCE

NETWORK

MARKETING

SERVICE

Data Mining What is Data Mining?
Overview
Generally, data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases.

A data base is like filing cabinet.

Easy to find information
If you store information in a structured and orderly way, then retrieving information will be relatively easy

hard to find information
If you don’t put the information where it belongs, it will become Increasingly hard to find.

Continuous Innovation
Although data mining is a relatively new term, the technology is not. Companies have used powerful computers to sift through volumes of supermarket scanner data and analyze market research reports for years. However, continuous innovations in computer processing power, disk storage, and statistical software are dramatically increasing the accuracy of analysis while driving down the cost.

Example
For example, one Midwest grocery chain used the data mining capacity of Oracle software to analyze local buying patterns. They discovered that when men bought diapers on Thursdays and Saturdays, they also tended to buy beer. Further analysis showed that these shoppers typically did their weekly grocery shopping on Saturdays. On Thursdays, however, they only bought a few items. The retailer concluded that they purchased the beer to have it available for the upcoming weekend. The grocery chain could use this newly discovered information in various ways to increase revenue. For example, they could move the beer display closer to the diaper display. And, they could make sure beer and diapers were sold at full price on Thursdays.

What can data mining do?
Data mining is primarily used today by companies with a strong consumer focus - retail, financial, communication, and marketing organizations. It enables these companies to determine relationships among "internal" factors such as price, product positioning, or staff skills, and "external" factors such as economic indicators, competition, and customer demographics. And, it enables them to determine the impact on sales, customer satisfaction, and corporate profits. Finally, it enables them to "drill down" into summary information to view detail transactional data. With data mining, a retailer could use point-of-sale records of customer purchases to send targeted promotions based on an individual's purchase history. By mining demographic data from comment or warranty cards, the retailer could develop products and promotions to appeal to specific customer segments.

MODELS-

Customer Relationship Management (CRM) is a process and approach to customer relations that centers on learning about customers' business needs and behaviors in order to develop stronger and closer relationships with them. Though CRM relies heavily on technology, do not think about CRM in primarily technological terms. It uses technology along with human resources to provide guides for better business solutions. Rather than the traditional "the customer is always right" approach, CRM holds that the customer always needs guidance, which CRM professionals can affect through the use of technological tools.

Businesses in today's financial services sector face increasing pressure to win new customers as well as retain existing ones. Your financial crm needs to not only focus on ways to enhance customer acquisition and retention, but to maximize customer value. Every interaction should become both opportunity to increase customer loyalty and rapport, as well as an opportunity to drive additional sales revenue.

How does data mining work?
While large-scale information technology has been evolving separate transaction and analytical systems, data mining provides the link between the two. Data mining software analyzes relationships and patterns in stored transaction data based on open-ended user queries. Several types of analytical software are available: statistical, machine learning, and neural networks. Generally, any of four types of relationships are sought:


Classes: Stored data is used to locate data in predetermined
groups. For example, a restaurant chain could mine customer purchase data to determine when customers visit and what they typically order. This information could be used to increase traffic by having daily specials.



Clusters: Data items are grouped according to logical
relationships or consumer preferences. For example, data can be mined to identify market segments or consumer affinities.



Associations: Data can be mined to identify associations.
The beer-diaper example is an example of associative mining.



Sequential patterns: Data is mined to anticipate
behavior patterns and trends. For example, an outdoor equipment retailer could predict the likelihood of a backpack being purchased based on a consumer's purchase of sleeping bags and hiking shoes.

The data mining process
Data mining is an iterative process that typically involves the following phases:

Problem definition
A data mining project starts with the understanding of the business problem. Data mining experts, business experts, and domain experts work closely together to define the project objectives and the requirements from a business perspective. The project objective is then translated into a data mining problem definition. In the problem definition phase, data mining tools are not yet required.

Data exploration
Domain experts understand the meaning of the metadata. They collect, describe, and explore the data. They also identify quality problems of the data. A frequent exchange with the data mining experts and the business experts from the problem definition phase is vital. In the data exploration phase, traditional data analysis tools, for example, statistics, are used to explore the data.

Data preparation
Domain experts build the data model for the modeling process. They collect, cleanse, and format the data because some of the mining functions accept data only in a certain format. They also create new derived attributes, for example, an average value.

In the data preparation phase, data is tweaked multiple times in no prescribed order. Preparing the data for the modeling tool by selecting tables, records, and attributes, are typical tasks in this phase. The meaning of the data is not changed.

Modeling
Data mining experts select and apply various mining functions because you can use different mining functions for the same type of data mining problem. Some of the mining functions require specific data types. The data mining experts must assess each model. In the modeling phase, a frequent exchange with the domain experts from the data preparation phase is required. The modeling phase and the evaluation phase are coupled. They can be repeated several times to change parameters until optimal values are achieved. When the final modeling phase is completed, a model of high quality has been built.

Evaluation
Data mining experts evaluate the model. If the model does not satisfy their expectations, they go back to the modeling phase and rebuild the model by changing its parameters until optimal values are achieved. When they are finally satisfied with the model, they can extract business explanations and evaluate the following questions:  Does the model achieve the business objective?  Have all business issues been considered? At the end of the evaluation phase, the data mining experts decide how to use the data mining results.



Deployment
Data mining experts use the mining results by exporting the results into database tables or into other applications, for example, spreadsheets. The Intelligent Miner™ products assist you to follow this process. You can apply the functions of the Intelligent Miner products independently, iteratively, or in combination. The following figure shows the phases of the Cross Industry Standard Process for data mining (CRISP DM) process model.

IM Modeling helps you to select the input data, explore the data, transform the data, and mine the data. With IMV visualization you can display the data mining results to analyze and interpret them. With IM Scoring, you can apply the model that you have created with IM Models.

E-CRM
Introduction
In today’s world a company can survive only if they can manage to keep its customers happy.  Promising latest and top class success to customers.  Building a customer environment and using other means to maintain customer attention have now become the top priorities for any company that wants to make it big in the market.  As technology charges more people all once the world have started buying and selling activities over the Internet.  As a consequence companies also have to give customer a good in easy online enjoinment.  The result is nothing but E-CRM.

Definition
E-CRM provides companies with means to conduct interactive, personalized and relevant communication with customer across both electronic and traditional channels. It utilized a complete view of the customer to make decision about messaging, offers, and channel delivery. It synchronizes communication across otherwise disjointed customer –facing systems.

Plan communication strategy Prints of sale SAF Call centre Direct mail Web E-Mail Tow-way dialogue and channel synchronization Present Communication Optimize Strategy

Call centre Customer cc warehouse

Deliver recommendation in batch

FRAMEWORK OF E-CRM
The complete framework for E-CRM. The left-hand cycle represents the set of e marketing and offline marketing functions. These functions utilize a single view of the customer, contained in the central data warehouse. The right side shows a sampling of customer channels, containing both electronic applications such as the web and personalized email as well as traditional direct mail. The one-way arrow in the middle of the schematic illustrates one-way batch outputs to the channels. The two-way arrow depicts bi-directional customer communications in real time and the synchronization of communications across channels.

What exactly can e-CRM do?
Today your customers want access to your company 24 hours a day. They want to know when their orders were shipped, and what their account balances are. They want salespeople and call-centre representatives who can answer their questions right now. Today, more than ever before, it is essential for a company to excel at every single customer contact point, be it at the retail-point, in the call-centre, via the Internet, or through sales and service agents. E-CRM makes all this possible, and viable.

Key Features of E-CRM
1. Driven a data warehouse:
Data warehouse is a bigger size database that can store huge about of data. The whole concept of e-CRM is based on managing this data and utilizing it properly.

2. Focused on consistent metrics to assess customer actions across channels:
It uses complex mathematical models to find more about customer across the different channels that he uses-web, call centre etc.

3. Built accommodate the new market dynamics that place the customer in control:
E-CRM is capable of utilizing information about changing market condition and customer expectation to deliver better customer expectation. 4.

Most profitable customer:
Structured to identify a customer’s profitability and to determine effective investment allocation decisions accordingly, so that more profitable customer could be identified and retained.

Six E’S in E-CRM
The business types must address the six E’s in E-CRM to optimise the value of relationship between companies and their customer. They are:

 Electronic:
New electronic channels such as the web and personalized emessaging have become the medium for fast, interactive and economic customer communication, challenging companies to keep pace with this increased velocity.

 Enterprise:
Through E-CRM, a company gains the means to touch and shape a customer’s expectation across the entire organization, reaching beyond just the bound of marketing to sale, services and corner offices whose occupants need to understand and assess customer behavior. It relies heavily on the construction and maintenance of data warehouse that provides consolidated, details views of individual customers, cross channel customer behavior and communication history.

 Empowerment:
E-CRM strategies must be structured to accommodate customers, who have power to decide when and how to communication with the company and through which channel. With the ability to opt in opt out; consumer decides which firms earn the privilege. In light of this new consumer empowerment, an E-CRM solution must be structured to deliver timely,

pertinent, valuable information that a consumer accepts in exchange for his or her attention.

 Economics:
Too many company execute customer communication strategies with little effort or ability to understand the economics of customer relationships and channel delivery choices. Yet, customer economics drives smart asset allocation decisions, directing dollars and efforts at individuals likely to provide the greatest return on customer communication initiative.

 Evaluation:
Understanding customer economics relies on a company’s ability to attribute customer behavior to marketing programs, evaluate customer interactions along various customer touch point channel, and compare anticipated ROI (Rate of Investment) against actual returns through customer analytic reporting. Evaluation of result allows companies to continuously refine and improve efforts to optimize relationships between companies and their customer.

 Eternal Information:
The use of consumer sanctioned external information can be employed to future understand customer needs. This information can be gained from such sources as third party information networks and web page profiler application under the condition that companies adhere consumer opt in rules and privacy concerns.

Similarities between CRM and E-CRM: Characteristics
Objective Levels of Interaction

CRM & E-CRM
They make the companies closer to the customer. They provide the best interaction between marketing, sale, services and support. The communication medias are phone , web ,emails , fax , mail etc They eliminate and reduce the disconnections between customer and company relationships. They both improve upon reality and perception of personalization.

Media Usage

Focus

Models -

One technology company, Sales Force, has produced a series of CRM tools based on sales protocols that strive to make the sales approach more beneficial to both the business and client. The tools can help customers manage information themselves but also allow for step-by step-communication through the sales order and purchase process. The 10 CRM options included in Sales Cloud, as Sales Force calls its tool kit, include chatter (such as Twitter), marketing and leads, and jigsaw data services.

Focusing on customers who they are, what they produce, which market they are a part of Gist provides a comprehensive view of the contacts in your business network. It creates a business profile for each one, providing news, status updates and work details. Gist also makes use of social network technologies that such as Twitter, and Face book and LinkedIn. With these technologies, a CRM model emerges that helps companies understand the range of contacts that can work with your business.

HOW DOES E-CRM WORK?
I n t o da y ’ s w o r l d, c u st o m e r s i nt e r a c t w i t h a n o r g a n i z a t i o n v i a m ul t i pl e communication channels – the World Wide Web, call centers, field salespe o pl e , de a l e r s a n d pa r t n e r ne t w o r k s. M a ny o r g a n i z a t i o ns a l so ha v e multiple lines of business that interact with the same customers’-CRM system enables customers to do business with the organization the way the customer wants – anytime, via any channels, in any language or currency – and to make customers feel that they are dealing with a single, unified organization that recognizes them every step of the way. The E-CRM system does this by creating a central repository for customer r e c o r d s a n d pr o v i di ng a po r t a l o n e a c h e m p l o y e e ’ s c o m p ut e r s y st e m allowing access to customer information by any member of the organization at any time. Through this system, E-CRM gives you the ability to know more about customers, products and performance results using real time information across your business.

E-CRM BENEFITS TO CUSTOMERS
 Customer interaction and satisfaction.  Convenience.  Speed of processing the transaction through eresponse.  Service quality and trust.

GUIDELINES FOR A SUCCESSFUL E-CRM SOLUTION
Customer data needs to be collected, clean, stored in a format that makes it easily accessible for analysis and then analyzed by statisticians so that meaningful information regarding customer behavior, friends and attitudes can be extracted. It is this ability to transform raw data into actionable customer understanding that defines analytical e-CRM, making the process indispensable to marketers in developing targeted initiatives and to management needing near term projected-CRM initiatives are often implemented with too many business objectives in mind and managed by departments with different priorities and conflicting politics. In many instances, millions and solutions overrun budget become impossible to deploy. W h e n i t c o m e s t o e n t e r p r i s e e - C R M s o l u t i o n s , f e w o f t h e m u l t i million dollars initiatives ever see the light of the day, let alone provide the desired results.

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