Technology and business tools to support CRM

It is important to choose the right technology tools to support CRM. Direct and indirect supporting technologies include:

• Data warehousing
• Data mining
• Database systems
• Wireless communication
• Voice-over IP
• E-mail-based Internet communications

These tools have evolved to the point that they have made available many more channels for customer interaction and sources of data, all of which impact the call/contact center. Business tools that support CRM include:

• Customer contact software
• Marketing campaign programs
• Channel integration
• Product literature

Where legacy systems exist, the acquisition of "middleware" may be required in order to interface the legacy systems with the CRM solutions. The key challenge for the CRM project team is to select a series of tools that fit the needs of the business, to evaluate these tools, and to select the best ones. The IT department plays a very prominent role in this selection process and in the development, implementation, and support of a CRM solution and its integration with the call/contact center. The various technology tools involved should be seamlessly integrated into the IT environment. This aspect of a CRM strategy requires a formal plan to manage the selection of the tools—from data warehouse and database software to the business applications and processes.

CRM and the new marketing paradigm

CRM has several definitions within the industry, but one short definition best describes the process and the objectives: "the capability of an organization to evolve from a mass marketing model of millions to a market of one," that is, dealing with customers as if they were the only customer. This is a new way of thinking for many companies in virtually every business sector where customers often number in the thousands or millions. Managing customer relationships successfully in these large customer environments means learning about their habits and needs, anticipating future buying patterns, and finding new marketing opportunities that add value to the relationship. It also means using technologies that enable the data gathered to be useful in making better business decisions that will attract, retain, or motivate customers.

Successful companies make their customer relationships something the customer values more than anything else they could receive from the competition. How do companies do this? By examining their experiences with customers, including transactions and demographics, and every form of interaction—including a Website visit, a phone call to a call center, and a response from a direct mail campaign. Building the data and information technology architecture around customers—a customer-centric approach—ensures that they enjoy a seamless and rewarding experience when doing business with a company. This new marketing paradigm places the customer at the focal point of an organization's marketing programs.

Key elements

The two following key elements will ensure the success of a CRM strategy and meet the objectives of the organization to develop long-term customer relationships:

• Build a system that allows tracking, capturing, and analyzing the millions of customer activities, both interactions and transactions, over a long period of time.
• Create promotions, develop new products and services, and design communication programs that attract, reward, and retain customers. (see Figure 1)
  
  Figure 1: Enhancing customer service.

CRM strategies are designed to manage all of an organization's interactions with its customers and to use information to maintain a single, long-term view of each customer across multiple channels—face-to-face or via phone, kiosk, or Website. These points of interaction, often referred to as customer touch points, may involve many types of transactions. And, of course, CRM includes customer billing, marketing, and other support functions that directly or indirectly interact with the customer. In fact, every department, division, and employee in an organization has a role to play in CRM. (see Figure 2)

 

Figure 2: Getting customer feedback.

Managing customer relations using proven processes and technologies can maximize the revenue opportunity from each customer and create a foundation for satisfaction that will ultimately drive loyalty independent of the channel used. CRM can enable companies to maximize profitability by using "measurements" that quantify and qualify customers, differentiating between high- and low-value customers, with the objective of managing the lifetime value of a customer.