Contents

Preface (v)

1. Introduction 1

Introduction 1

Principles of CRM 3

History of CRM 4

CRM Architecture 5

Components of CRM 6

Technical Aspects of CRM 8

CRM Market Development 9

Reasons for Adopting CRM: The Business Drivers 12

CRM Industry 14

Technology and Service 16

Implementation of CRM 22

Return on Investment of Implementation 24

CRM Issues 27

Conclusions 29

2. CRM System in Public Sector 33

Introduction 33

Essential Features of CRM Contact Centers 36

Citizen and CRM 42

CRM and the Business Issues 46

CRM and People 52

Resistance 56

CRM and Process Improvement 57

CRM-Enabling Technologies 61

CRM Cost 67

Important Industry Trends 74

Conclusion 75

3. CRM Measurement and Data Analysis 77

Introduction 77

Purpose for CRM Measurement 82

CRM Measurement Frameworks 87

Customer-Facing Operations 96

Research Directions and Data Analysis 111

Targeting Customers and Programs Relationship 119

Conclusion 125

4. Implementing CRM in Emerging Market 127

Introduction 127

Evolution of Marketing Strategy 129

Implementing a CRM Strategy 131

Research Design 133

Results of the Study 134

Conclusion 135

5. CRM Planning and Customer Retention 137

Introduction 137

CRM Planning 138

Customer Retention 147

6. CRM Architecture, Enterprise Relationship
Marketing and Social Media Technology 155

Introduction 155

CRM Architecture 155

Customer and Product Marketing Approaches 157

Enterprise Customer Relationship Management 159

Principles for Building Customer Relationships 161

CRM Architecture for an Effective Customer Experience 165

CRM Reference Model for the Telecom Industry 166

Social Media Technology and Enterprise
Relationships Marketing 169

Conclusion 173

7. The CRM and Customer Equity 175

Introduction 175

Research Propositions 180

Measuring CRM: Benefits Approach 188

Conclusion 189

8. CRM in Competitive Market 191

Introduction 191

CRM Business Cycle 191

Six Markets Framework 193

Six E’s of eCRM 195

Conclusion 195

9. CRM Practices in Indian Retail Banking Sector 197

Introduction 197

Indian Banking Industry 197

Literature Review 199

CRM Best Practices Survey 200

Case Study Research 205

Conclusions 214

10. Knowledge Based Customer Relationship Management 215

Introduction 215

Knowledge in Customer-oriented Processes 216

Knowledge Management Models 218

CRM Process Model 222

Process-oriented Knowledge Management Goals 223

Enhancing Knowledge Dissemination in a Customer Service Center 228

Application of the CKM Model 228

Conclusion 229

Case Studies 231

I A Smart Mobile CRM Boosts Productivity at Dr. Reddy’s 231

II Amazon.com 232

III Aviva uses CRM to Insure Success 233

IV Baan's ERP Boost for Elgi 234

V Backup System is Lifeline of NSE 235

VI City of Albuquerque, New Mexico 237

VII City of Palm Coast, Florida 237

VIII CRM Implementation Failure at Cigna Corporation 238

IX CRM Responsible for Magic at Bharti 240

X DCB Implements Finacle in 89 Days 242

XI DeKalb County and City of Savannah, Georgia 243

XII Dell 244

XIII Dell's Customer Contact Center Operations in India 245

XIV Easter Seals 247

XV Hispanics in Philanthropy 249

XVI IBM's ECRM Initiatives 251

XVII IDBI Bank Reinvents Itself 253

XVIII IDS helps HCL Comnet Exceed Customer Expectations 254

XIX Johnson & Johnson's 'Camp Baby': Great Customer Relationship
Management or Public Relations Fiasco? 256

XX Lessons in Customer Service from Wal-Mart 259

XXI Linux Stars in Mission Critical 261

XXII MetaFrame brings Ujala to Jyothy Labs 263

XXIII NY-NJ Trail Conference 264

XXIV PCS Technology 266

XXV Sage 200 and Inside2Outside CRM 270

XXVI Syndicate Bank Saves its way to Success 272

XXVII Tata Teleservices, the Customer is King 274

XXVIII TESCO - The Customer Relationship Management Champion 276

XXIX Volkswagen 278

XXX Walt Disney World Resorts and CRM Strategy 278

XXXI Washington Toxics Coalition 283

XXXII Wrapping UP 285

XXXIII GoldMine Premium Edition and County Drains 286

XXXIv Wells Fargo 288

XXXV Zappos.Com: Focus on Customer Service 289

Appendices 291

Appendix A: Basic Assumptions of CRM 291

Appendix B: Common Myths of CRM 292

Appendix C: Lifetime Value of a Customer 293

Appendix D: Vendor’s Web Site Addresses 299

Bibliography 301

Index 321

Customer relationship management (CRM) is a number of strategies and technologies that are used to build stronger relationships between companies and their customers. The whole concept of this book is designed in ten chapters. The very first chapter introduces the concept of Customer Relationship Management (CRM) explaining role of CRM market development and the reasons for adopting CRM. Second chapter discusses the use of CRM system in public sector and explains how CRM technologies increase efficiency and effectiveness of government. Third chapter reviews the key issues in CRM measurement and data analysis while fourth chapter focuses on a CRM strategy and steps in implementation of CRM programmes in the emerging market. Fifth chapter examines CRM project planning and explains how effective customer retention programs are enabled by CRM analytical solution while sixth chapter examines the role of the three components of CRM architecture and impact of social media technology and enterprise relationships marketing in building good customer relationships. Seventh chapter identifies a core group of expected CRM benefits and examines their ability to increase a firm’s value equity, brand equity and relationship equity however eighth chapter describes in a nutshell, how CRM-focused enterprises mobilize the entire company to better serve customers, locking in long-term relationships that benefit both buyer and seller. Ninth chapter explores the association between deployment of CRM best practices and loyalty of profitable customers in scheduled commercial banks of India with respect to retail banking segment while last chapter describes the research concentrating on the CRM, KM and, subsequently, CKM process level.