Posts Tagged ‘Customer Relationship Management’

The Enterprise Primary Components

Tuesday, September 22nd, 2009

 

The “Enterprise” is an entity that is formed to serve a purpose of value to society via visions, goals, and strategies. Let us review a few forms of an Enterprise. 

  •  Federal, state and local government agencies
  •  Non-profit organizations
  •  Business companies 

All of the above-mentioned enterprises share something in common; they all have internal components that govern and guide operations. These components [must] be constantly improved to maintain and enhance the life of an “Enterprise.” 

The three “primary” components that govern and guide operations of the Enterprise are: 

  • Enterprise Architecture Plan (EAP)
  • Enterprise\Business Process Management (EPM or BPM)
  • Customer Relationship Management (CRM) 

Enterprise Architecture Plan 

The Enterprise Architecture Plan (EAP) is derived from the vision, goals, and strategies of its creators. The EAP will present the five W’s and the How of Enterprise Architecture. The following are the five W’s and the How

  • The What of the Enterprise (Data)
  • The Where of the Enterprise (Network)
  • The Who of the Enterprise (Organization)
  • The When of the Enterprise (Schedule)
  • The Why  of the Enterprise (Strategy)
  • The How  of the Enterprise (Function) 
 
 
 

 

Enterprise Architectural Principles 

The specifics of enterprise architectural principles will depend on the vertical market the Enterprise is in, the long-term strategy of the Enterprise (to-be), and the short-term imperative goals of the Enterprise (as-is). The following is by no means an exhaustive list of specifics to the architectural principles. This short list is the core elements of the architectural principles. 

The EAP should encompass some, of if not all, of these enterprise architectural principles: 

  1. 1. Organization-enabling
  2. 2. Value-enabling
  3. 3. Brand-name advancing
  4. 4. Market-share expanding
  5. 5. Processes-simplifying
  6. 6. Processes-minimizing
  7. 7. Optimized-continually
  8. 8. Customer-centric
  9. 8. Scalable
  10. 10. Reconfigurable 

These principles along with the five W’s and the How will lay the foundation to the construction of the Enterprise. 

Enterprise\Business Process Management

The flow of tasks, objectives, events, and transactions through the Enterprise is governed, managed, and implemented by processes. Theses processes have to be governed and management in a way that all tasks, objectives, events, and transactions flow efficiently within and outside of the Enterprise to accomplish the set goals and strategies. 

Process management in its simplest form is defined as tasks and or events that receive stimulus inputs that in turn produces a predetermined outputs (even in the case of exceptions). 

This is accomplished by and through human and technology process interactions. 

Let us use the case of an admittance or discharge to the hospital from the emergency room. 

One may feel ill enough to go to the emergency care at the local hospital. Once the person enters the doors of the ER and the receptionist greets the person, two essential processes are initiated into action. 

They are: 

  • Collect information about the illness (human-centric)
  • Collect information about the patient (human-centric) 

The collected information is then pushed to a database (technology-centric) for use by other processes associated to the emergency protocol. Based upon the illness or symptoms of the patient, the next [technology-centric] process will determine which doctor to summon to the assigned examination room (human-centric and or technology-centric). The doctor will then interact with the patient to determine, which course of action to take which will lead to an admittance process or discharge process. Now this is a very short and simple snapshot of actions taken for someone who may visit the emergency room but I trust you have the gist of have these processes interact for this given case. 

Therefore, you can see how Enterprise\Business Process Management is the heart of the Enterprise functionality. Processes MUST be well defined and optimized to provide best performance for an organization. This in turn will grant the enterprise agility and increase successfulness of the desired goals and strategies. 

Customer Relationship Management 

As the BPM provides functionality to the Enterprise, the Customer Relationship Management (CRM) methodology provides life to the Enterprise. Most enterprises operate in a product service-centric manner, which means they created product(s) and or service(s) without the thought of the customer in conducting business. 

A product service-centric enterprise is destined to demise for lack of customer integration. Here is a great quote that all members of Top management should hang on the wall:         

“Businesses are not paid to reform customers. They are paid to satisfy customers.” 

-Peter Drucker 

A CRM solution allows the enterprise to transform into a “customer-centric” entity. CRM in its general definition is; processes and methodologies which an enterprise uses to communicate, track, and organize its interactions with its current and prospective customers. 

A well-implemented CRM solution will provide a ROI of increased customer loyalty and continuous growth of new customers. 

In Summary 

We have learned that the Enterprise is an entity that is formed to serve a purpose via visions, goals, and strategies. An Enterprise Architecture Plan (EAP) is then created from theses visions, goals, and strategies. The EAP will capture and present the What, Where, Who, When, Why, and How of the Enterprise. 

Processes within an Enterprise are controlled through Enterprise\Business Process Management methodologies.  Processes are all tasks, objectives, events, and transactions that flow within and outside of the Enterprise. Process management in its simplest form is defined as tasks and events that receive stimulus inputs that in turn produces a predetermined outputs (even in the case of exceptions). 

The Customer Relationship Management methodology is the bridge that connects the Enterprise to the customer and the customer to the Enterprise. A CRM solution allows the Enterprise to transform into a “customer-centric” entity. CRM in its general definition is; processes and methodologies an Enterprise uses to communicate, track, and organize its interactions with its current and prospective customers.  

Contact dotNet Framework Solutions for an evaluation of your enterprise! 

Forced Customer Relationship

Sunday, January 11th, 2009

 

  

 

Recently I had a discussion with a colleague about an customer service experience dealing with his American Express credit card. The story is he was accidently billed twice for a service at a hotel to which he stayed. He decided to contact American Express to dispute the additional charge – oh by the way the Hotel had provided evidence that he was billed twice.Recently I had a discussion with a colleague about an customer service experience dealing with his American Express credit card. The story is he was accidently billed twice for a service at a hotel to which he stayed. He decided to contact American Express to dispute the additional charge – oh by the way the Hotel had provided evidence that he was billed twice.

So he commenced to call American Express and received a call center located in India. As he initiated the conversation concerning his dilemma about the charged item, he became frustrated with the individual he was speaking with; the southern drawl & Indian English cancel each other in understanding. He informed me that the woman really tried hard to communicate well but it was to no avail. After speaking with other representatives at the call center he gave up and decided to send an email to customer service as an alternative.

This is truly a case of “forced CRM (Customer Relationship Management).” It is clear that other companies besides American Express are using this method of front line CRM.
There by no means anything incorrect with this model if used properly. In this case if the caller lived in the Persian region they – maybe – the call would have been more fluent. Even here in the continental US I have experience something similar. I was raised in California and recall a couple of times calling New York city to conduct business and had some difficulty in communicating my desires.

CRM Benefits

The primary benefit of CRM is customer loyalty and preservation. A secondary benefit is acknowledgement from current customers about great customer relations of the enterprise.The primary benefit of CRM is customer loyalty and preservation. A secondary benefit is acknowledgement from current customers about great customer relations of the enterprise.

Successful CRM implementations typically require changes or enhancements to the behavior or culture of the enterprise. As the stories illustrate above, this is not a change or enhancement to the enterprise. It may be a great cost savings but in the long term is it truly a savings if the enterprise customer retention is hindered.In Summary
Does your enterprise present a “forced” CRM as these stories point out? A call center is your front line to customer satisfaction so it should be the enterprise focal point for CRM.Does your enterprise present a “” CRM as these stories point out? A call center is your front line to customer satisfaction so it should be the enterprise focal point for CRM.

A CRM system should provide the enterprise superior customer loyalty and retention then an enterprise without. The enterprise top-management must change and/or enhance the culture mindset about CRM.  
It is known that Customer CRM is more business philosophy than software, more passion than project. When an enterprise commits to implementing CRM, it commits to realigning its entire business around the customer. It commits to becoming an enterprise that will collect the right information and use it in the right way at the right time.
Contact dotNet Framework Solutions for a CRM evaluation of your enterprise! 

 

 

 

 

 

 

Advocating CRM Within

Sunday, November 18th, 2007

Selling the CRM Vision
For an enterprise to be successful with the implementation of a “Customer Relationship Management” (CRM) methodology it most be “sold” by top management to the entire enterprise. Top management MUST fully engross the philosophy of – customer relations – as the driving element of obtaining customer awareness, quality, and loyalty.

Top management must create an internal strategy that will foster a “buy-in” of each and every employee of the enterprise to the CRM solution. It is essential that this strategy define the responsibilities of each and every employee’s contribution to the CRM methodology. A CRM system IS NOT created equal for each and every enterprise or vertical market.  The CRM is definitely defined by the culture of the enterprise. The enterprise culture depiction is captured during the creation of the Enterprise Architecture Plan (EAP) development. Top management should utilize the EAP to facilitate the creation of the CRM methodology. The Buy-in

As the employee’s make use of the CRM system, measurement of success may be provided in many ways. One key method of measurement should come from the “Business Process Management” (BPM) solution and channeled back into the EAP from operations of the enterprise. Another method of measurement is to check the pulse of the customer in how their experience with the enterprise was handled through the entire transaction.

The CRM should also provide means for the enterprise to examine it internal customer relationship management. LOB’s (Line of Businesses) should view themselves as customers and providers to other LOB’s of the enterprise.

In Summary

Top management must sell the CRM as the means of providing agility, quality and customer loyalty. Top management most ensure that all employee’s fully understand their responsibility for the enhancement of the CRM solution. The employee’s themselves are both customers and providers internally.  A properly architected CRM will facilitate metric systems for enhancements to the CRM itself. Contact dotNet Framework Solutions for your Customer Relationship Management consultation.

 

The Value of Customer Loyalty a Definition

Sunday, September 16th, 2007

What does CRM mean to your company?
The team of dotNet Framework Solutions believes that a Customer Relations Management (CRM) strategy should provoke the thought within an enterprise as a mindset as opposed to the implementation of a technology solution. Executive management should focus on fostering the philosophy of defining the customer as related to the business and increasing customer loyalty which in turn will increase profits.

The enterprise should introduce technology as a support to the customer relations strategy and not the driving force of managing that relationship. Let’s review CRM as a part of the enterprise vision. The vision document should encompass the following three components in relationship to a customer centric strategy: Culture, Business Processes, and Technology.

·  The culture of the enterprise contributes approximately 70% to the success of customer relations. Success of a CRM methodology requires a change or enhancement to the behavior of the culture within the enterprise.  This is specifically associated with employee’s and management’s mindset toward their customers and this includes behaviors in dealing with potential customers.

· The business processes will contribute approximately 20% to a successful CRM strategy. The value chain processes and the creations thereof are paramount in how the culture of the enterprise relates to the customer throughout the entirety of the purchase to delivery transaction. These same processes are also essential to communications to potential customers.

· The remaining 10% is technology, which actually is the bridge between the culture and business processes. Customer Centricity

According to Bob Thompson (founder of CRMGuru.com), businesses can differentiate themselves in one of three ways: 1) the core product/service offering, 2) the price or total cost of ownership or 3) the total relationship and customer experience. Unfortunately, businesses are learning that simply competing based upon product quality or price is problematic at best. Why? Today companies are constantly introducing new products that have similar quality. The reality is that product quality distinctions are being marginalized by the competition from both within the US market and from global competitors.
This increase in product competitiveness is coupled with the issue that very few organizations have the scale and efficiencies to simply compete on a low-price basis while also maintaining profitability. The reasons for both of these forces are varied but they include global trade, easier access to competitive information via the internet as well as the maturation of certain markets.

If you have ever flown Southwest airlines you have witness a company who is very “customer centric. “ Below is the latest American Customer Satisfaction Index (ASCI) score for the airline industry.

Click here for score chart 

Southwest serves it customer meticulously though it processes by a culture build on having fun in the work place. The energy of the Southwest culture is then feed back to the customer.

Southwest provides a true example of a “customer centric” enterprise. A portion of Southwest success is contributed to low fares , but through their CRM initiatives they provide a superior service then their competitors and their uncanny ability to understand who their customers are  generates a loyal customer base.

Conclusion
The value of the customer is defined in the behavior and culture of the enterprise. Proper architecture of business processes will enable technology to enhance a superior relation with your customer thus increasing the likelihood of customer loyalty.

CRM is a key element when creating the vision of an enterprise. Top management must truly enable a “customer centric”   environment within the enterprise. If they fail to instantiate a customer centric vision then they increase the chances of failure for the enterprise.

Contact dotNet Framework Solutions for your Customer Relations Management consultation.

 

Enhancing Business Performance with Customer Relations Management (CRM)

Sunday, August 19th, 2007

The Customer Perception

The customer’s interactions with a company form the perceived values of that company.  The “customer relationship” is how the enterprise should create and manage it processes to provide an exemplary experience from the purchase to delivery. How does the enterprise drive a customer to loyalty? Customer Loyalty Drivers

Let’s look at a true story that took place with a Hilton Hotel guest: a guest arrived at a
Hilton Hotel and was met at the door by the manager, who whisked the person to the restaurant for a get acquainted reception with the new staff and then served dinner on the house. Breakfast the next morning was also compliments of Hilton. It was just to say “thanks” for the customer’s frequent stays.Why would Hilton do that? To make guests feel so welcome and loyal that they wouldn’t consider the competition—and will enthusiastically recommend the hotel to others. If you where treated in this way by an enterprise wouldn’t you tell about your – experience.

Statistics show that customers relate to the following items in the order written when considering loyalty to an enterprise:

·  Quality interaction with people and systems

·  Superior product or service

·  Price or cost of ownership

As charted (courtesy of Right Now Technologies):

CRM Loyalty Drivers

Creating and Managing the Drivers As the enterprise creates it business processes a key element that is a must additive is customer relations interaction. The activity of a process should provide for customer interaction so that the experience is pleasurable throughout the entirety of the transaction. Have you every encounter an experience with customer service or a process of the enterprise where you felt that you where a bother for calling or asking questions concerning your transaction? Have you every conducted a internet transaction where there was not enough information pertaining to a particular function to complete your purchase?  Theses type of processes where not designed to drive customer loyalty.

As the enterprise creates it business processes a key element that is a additive is customer relations interaction. The activity of a process should provide for customer interaction so that the experience is pleasurable throughout the entirety of the transaction. Have you every encounter an experience with customer service or a process of the enterprise where you felt that you where a bother for calling or asking questions concerning transaction? Have you every conducted a internet transaction where there was not enough information pertaining to a particular function to complete your purchase? Theses type of processes where not designed to customer .Business processes and Business Activity Monitoring (BAM) solutions should have CRM elements build into them to accurately capture the pulse of the customer so that management can create and adjust strategies like those of our Hilton story. Management must constantly review their processes for peak customer as well as business centric performance. This is a very delicate balance to maintain. 

In Summary

The enterprise must create in its Enterprise Architecture Plan (EAP) a strategy of designing and implementing customer loyalty drivers to enhance the performance of the enterprise.  With these drivers build into the plan; then to which are implemented in it processes; the enterprise increases its competitive advantage over it competitors.

As the pulse of the customer is captured by the BAM and customer information derived that provides provisions of enhancing the EAP would in terms increase customer loyalty.

Contact dotNet Framework Solutions for your CRM consultation.