Chapter 9: Customer Relationship Management and Business IntelligenceSupply chain recap: 5 important components: Plan, source, make, deliver, return (servicing)How is it different from value chain?Customer Relationship Management1. Importance of customers2. Current economy, bankruptcy, and CRM3. Definition: Managing all aspects of customer’s relationship to increase loyalty and retention and increase profitability. It allows to gain insights into customers shopping and buying behaviors. 4. Some examples of excellent customer service and what made it excellent (how many of you think that drive thrus are a part of CRM) e.g. proflowers cancelled order.5. CRM is a technology and a strategy. As a strategy it starts with understanding who your customers are. As a technology it’s a software e.g. salesforce, siebel crm6. How to find your most valuable customers? Formulae = RFM (recency, frequency, monetary value)7. Three stages of CRM evolution: 1. Reporting : identify customers2. Analyzing: analyze customers3. Predicting: predict their behavior.8. Two types of CRM strategies1. Operational: Day to Day, point of contactExamplesi. Sales CRM1. Sales management: Automate the sales process2. Contact management: identify prospective customers for future sales (from existing customers). Using phone id, CR reps can identify customers by name making them feel more involved e.g. hey sue how was your vacation to florida (except when you don’t want to be reminded)3. Opportunity management: Find new customers.ii. Marketing CRM1. List generator: Compile list of target audience2. Campaign management: campaign definition, planning, ROI, scheduling etc.3. Cross selling – up sellingiii. Customer Service1. Contact center (call center): knowledge management software, a repository2. Web-based self service3. Call scripting: track similar issues, checklist type etc. 2. Analytical: back office, strategic analysisi. Marketing campaigns, finding new customers, etc9. Trends1. Supplier relationship management2. Partner relationship management3. Employee relationship management10. CRM nightmares1. Paypal sucks2. Donotbuydodge 3. Web2.0 technologies. Business IntelligenceDefinition: Applications and technologies that are used to gather, provide access to, and analyze data and information to support decision making efforts. (significance: How do you win a war?)1. Current environment: Data rich, information poor2. Solution: Business intelligence. Give employees access to all information they want and tools so that they can make better decisions.3. Ideally you want this http://www.youtube.com/watch?v=RNJl9EEcsoE4. Different industries that can use BI and how they can benefit (Retail, Finance, Energy, Insurance)5. 3 types of BI needs: Operational (day to day), Tactical (short term), and Strategic (long term)6. There are delays in getting information, making the information usable, and then acting upon the information. These delays are called as latencies and cost companies money. It is in their interest that they reduce these latencies. 7. Successful BI includes successful Data mining8. Data mining include a. cluster analysisb. association detectionc. statistical analysis9. Benefits of BI10. Disadvantages of