Newsletter, October 2009 - IDRBT

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Fast Forward October 2009 Assess affinity to a product, service or message Learn how frequently to contact each customer Market basket analysis (cross-sell/up-sell) Multiple campaign response models Customer growth and profitability growth models Churn models Customer lifetime value Credit risk scoring Analytical CRM The data collected in operational management is analyzed to segment customers using various old and sophisticated data mining analytics. Analytical CRM is composed of the following components (i) Pattern discovery (ii) Product and customer analysis (iii) Multitude (iv) Sorting and customer fractionation and (v) Customer value evaluation. Thus, in a broad sense, data warehousing, online analytical processing, data mining and marketing constitute a CRM solution loyalty. It allows a company to synchronize and manage efficient, productive interaction with customers, prospects, partners and internal associates across all communication channels. The customers' viewpoint is taken care of at every transaction level thus enabling better service to the customer. Collaborative CRM also reduces web service costs by enabling web collaboration. Implementation of CRM To implement CRM, following factors need to be accorded due consideration: Interaction between customers and company should be made easy, which in turn enhances quick response to customers' request and suggestions Information about company like content of customisation, advantages of the company, benefits doled out to the customers should be given easy access. This establishes profitable relationships with the customers based on mutual trust and respect. A b u n d a n t s u p p l y o f c u s t o m e r information, which is integrated from different channels Analytical solutions provided for most companies are an integrated view of customer across all channels and applications such as campaign performance analysis, customer profitability analysis, cross selling and up-selling Customers' data should be updated along with passage of time. Having cordial relationship with other companies targeting the same customer Collaborative CRM segment. Thus, giving relevant solution to customers' need and increasing Collaborative CRM proposes the collaboration of acknowledgement to customers results obtained from various departments of enterprise like sales, technical support and Customers' data must be segmented for marketing and shares the information collected customization thereby tailoring the about customers. The objective is to improve the quality of customer service and increase customer company's product and services accordingly 14
Fast Forward October 2009 Even though virtually any services company must adopt CRM, it becomes mandatory for some companies. Companies dealing with banking, finance, retail, insurance, airlines and hotels, telecommunications and healthcare benefit a lot from installing CRM software (Grigonis, 2000). The need for CRM installation increases with the number of channels to access customers and the number of touch points with customers. On High failure rate of CRM Projects A Butler Group study reported that 70 percent of CRM implementations fail. A Gartner study reported that approximately 55 percent of all CRM projects failed to meet customers' expectations. Many people believe that these "failures" are the result of the tools themselves, which is usually not true. Another problem is that many of the reports define success based on the management's impressions and not on the evidence of return on investment (RoI). A new study, jointly conducted by Crmguru.com, Mangen Research Associates and Caribou Lake Customer-1, differs significantly by taking a closer look at CRM implementations as well as the factors that influence RoI. They reported that only 35 percent of CRM implementations, when considered over their entire life, can be considered failures. That's less than half the failure rate noted in some analyst reports. In contrast, 45 percent of CRM implementations are producing a payback. Most CRM failures are the result of poor implementations rather than a problem with the technology or the underlying concepts of CRM. There are four key implementation related factors that determine the success of CRM projects: Adopting a customer-centric strategy : This is the most important factor. Customers of today behave differently from those of just a few years ago. They realise the fact that they have a choice and they can demand more from sellers for the money they spend. SETTING THE TONE : Shri. B. Sambamurthy, Director, IDRBT, inaugurating the Programme on Beyond Core Banking held from April 15 - 17, 2009 at IDRBT 15
Page 1 and 2: ISSN 0973-2527 Volume 12 No. 1 Fast
Page 3 and 4: Fast Forward October 2009 A CASE FO
Page 5 and 6: Fast Forward October 2009 IT Perfor
Page 7 and 8: WINNERS ALL : Dr. D. Subbarao, Gove
Page 9 and 10: Fast Forward October 2009 Best Use
Page 11 and 12: BANKING FOR MASSES : Smt. Usha Thor
Page 13 and 14: Fast Forward October 2009 Other SFM
Page 15: Fast Forward October 2009 Reduced c
Page 19 and 20: FORTHCOMING PROGRAMMES DURATION PRO

Newsletter, October 2009 - IDRBT

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