Elena Dzeranova «Audit, planning and CRM projects management»

What is project management? Project management is related to some innovations launch. To do this process more effective scope of actions should be classified on stages: create/ initiate an idea, research the possibility of launch and explore feasibility of resources, planning, launch, control. 

The same scheme should be valid for CRM projects. On planning “stage” the path to the idea should be described detailed. 

Also there is an opinion that CRM strategy should be put into action by implementing CRM project focusing on the success factors within each component of CRM. Consequently, implementing each success factors should be measured to ensure successful implementation of CRM project. Audit may also be related to lessons learnt process.

Actually the results of project launch can be measured by audit. It can be like a post launch tool. But anyway audit can be used on planning stage the same if needed. Project audit allows uncover the issues, concerns and challenges during the project lifecycle.

There are also two key factors for successful CRM projects: Employs and customers. One of the main purposes of CRM is managing beneficial relationship on different aspects of consumers. 

Complexity of CRM projects is connected with necessity to satisfy the interests of company and moreover building strong relations with the consumer. That means that planning process and audit are ones of key elements for its realization. 


Sources:

  1. Gentle M. CRM Project Management: Building Realistic Expectations and Managing Risk. – Kogan Page Publishers, 2005.
  2. Almotairi M. A framework for successful CRM implementation //European and Mediterranean conference on information systems. – 2009.

Rasyukevich Anastasiya «Features of CRM in B2B markets»

It is a fact that services dominate the global economy, with business-to-business markets accounting for the lion’s share. For example, in the Russian telecommunication’s market the B2B segment showed 5 times more revenue than the entire market[1]

B2B companies, generally seek to create and maintain a long-term business relationship with the organization from which they acquired the product or services (Leighton and Schaper, 2003). What is more, a growing number of B2B firms are becoming service-dominant because services enable them to build lasting relationships with their direct customers and their customers’ customers.

What is customer relationship management in B2B? It is managing customer lifecycle throw different tools, which help to analyze customers and offer them best solution, with the goal of improving the company business results. The most obvious feature of B2B companies is that they help other companies to achieve their business goals. Respectively the approach to selling their products is completely different.

In view of the growth in the number of small and medium-sized enterprises, it is necessary to understand the features of interaction with them[2].  These differences are noticeable if we compare the B2B and B2C segment[3]:

AreaB2BB2С
FocusBuilding personalized relationships with those responsible for decision-making in the consumer company.Building dialogue with different customer groups depending on the nature of the transaction.
Sale CycleComplex and multi-step procedure of deal accomplishment that depends on the number of decision makers.Consumers may decide within minutes whether to make a purchase or not.
PurchasesNeeds a rational analysis, longer time consideration.Usually less rational and more based on impulse.
Deal sizeLarge volume and high price with small repeat rate.Small price with high repeat rate.
Number of contactsSeveral individuals from the same company who make a decision to purchase.Many single contacts with many customers.

Based on the differences considered, it becomes clear that B2B companies need to have a deeper understanding of their customers’ problems, wants and needs. Via using various CRM tools based on customer’s life cycle analyzes (level of customer retention and loss) and their behavioral characteristics, companies need to take into account all factors in order properly distribute resources.


Sources:

[1]B2B — the locomotive of the mobile market, 2019 [Electronic resource] // http://www.comnews.ru/content/118487/2019-03-15/b2b-lokomotiv-rynka-mobilnoy-svyazi

[2]What is B2C CRM? How is it different from B2B CRM?, 2019 [Electronic resource] // https://www.leadsquared.com/what-is-b2c-crm/

[3]Key Differences Between B2B and B2C CRM Systems,2018 [Electronic resource] // https://www.ergonized.com/blog/blogkey-differences-b2b-vs-b2c-crm-systemsstems

Anastasia Nedobezhkina «CRM and corporate culture»

Many of us saw several viral videos[1]in YouTube in which stewards that work for Southwest Airlines company in the USA perform the service, and ‘perform’ is a correct word here. But really few of us understand why this is happening.

Southwest Airlines (SA) is famous for its unique corporate culture, there even exists a book written by the company’s Head of Marketing, that reveals all the secrets of company’s corporate culture, HR policies and Marketing based on CRM[2]. The main principle of SA CRM is the following: if company’s employees are really happy working in the company, they will broadcast it to clients naturally and sincerely, without any external stimulus. At first sight, the ‘secret’ does not seem unobvious: companies should provide their employees with exceptional working conditions and they will succeed as SA does. So, if we’ll read the whole mentioned book (not only the foreword), we’ll understand that the answer is not on the surface.

Many Americans dream about working for SA but the company has large and long recruitment system. Newcomers have to pass several steps that check not only their intellectual skills but also personal traits and life approaches and values. Thus, very small percentage of applicants manage to get SA job offers. Definitely many big companies have complicated recruitment system too, but when we talk about SA, we should make it clear that an applicant may be accepted if he or she suits an exact profile.

There described many examples of various situations that illustrate people of such profile. The one that comes to my mind is about spontaneous celebrations or breakfasts when there is a newcomer in the department. This really sounds like a good idea but the will to make this celebrations is very deep and natural – they want to make this party and do not feel any doubts or laziness or anything else. 

The case of SA does not show us that great CRM is possible to be built only if an employer recruits people ‘sorting’ them by define employee portrait. Many other companies and other business spheres have their own peculiarities that may not be covered by strict employee profile. But definitely the quality of CRM depends on companies’ employers satisfaction with work and this factor can be influenced by an employer.


Sources:

[1]https://youtu.be/pvdCFYLf_JI

[2]Grubbs-West, L. (2005). Lessons in Loyalty: How Southwest Airlines Does it: an Insider’s View. CornerStone Leadership Inst.

Zarina Khasanova «Features of CRM in retail»

When majority of customers are moving towards digital platforms much more frequently than ever before, the retailers, to keep that pace, struggle with finding groundbreaking alternatives to new technologies to cut the gap between in-store and online shopping to create for their customers an omni-channel experience and make them truly loyal to their brand. The best way out to achieve this combination is to integrate a CRM. Most of us agree that CRM in retail is much more effective when you know the right features1:

1) The potential to capture customer trends and needs – filtering that data and analyzing it accurately gives you a clear detailed view of who is exactly your customer.That means that you can predict in advance your customers’ desires and make for themthose offers, which they exactly want – for example, beauty brand Sephora doesn’t justsell make up, this brand has also an online forum (once you finish creating your profile), where you can discuss beauty products and share advice.2

2) Customer capture – which can be possible by gathering information from existing customer profiles. Retailers will be capable of accessing a comprehensive real-time customer profile, regarding interactions with their brand, from contact information to order history and past purchases. Therefore, brand can use this information to differentiate their clients and create much more personalized offer for them.

3) Data-driven dashboards – this feature can reassess product and sales performance, connected to the product, and to make a plan of action to adjust to consumer trends.

For instance, this feature of customer capture and being aware of sales helps a data- driven supply-chain system of a well-known fast-fashion brand, called Zara, which first orders only small amount of orders for merchandise and only then, after gathering salesdata and analyzing performance each of SKU’s sales, it starts to proceed with further orders to meet customers’ demand.3

4) Loyalty rewards programs – today “omni-channel” experience makes even morecrucial to capture all the information and engage customers in the way to make a lifetime value of customers as long as possible. CRM can keep track of customers to indicate those, who bring the highest value and trigger true loyalty, by sustaining it and engage customers in the best possible way. More than that, this feature again represents another form of personalization and allows to have insights of purchasing behavior of loyalty card holders.

For example, Sephora has a three level loyalty program, which empowers a brand to provide personalized gifts, based on this information. Creating a lot of buzz anexclusivity around the highest level, called “Rouge”, they make customers much more excited to retain them via loyalty program.


Sources:

  1. Ipsos Retail Perfomance. The importance of CRM (customer relationship management) in retail. 2018. https://www.ipsos-retailperformance.com/resources/blog/importance-customer-relationship-management-retail/
  2. SendinBlue. 3 CRM Examples to Inspire Your CRM Strategy. 2019. https://blog.sendinblue.com/crm-examples- to-inspire-crm-strategy/
  3. Data Initiative. Zara Leverages Data Analytics to Understand Consumer Tastes. 2015. https://digital.hbs.edu/platform-digit/submission/zara-leverages-data-analytics-to-understand-consumer-tastes/

Alexander Murysev «Personalisation of products and services. The role of cross-sell and upsell in growing your business»

Personalisation block is responsible for grow in whole CRM system. The idea of grow direction in CRM is simple: make your customer to spend more money in each purchase. You may see it well at pic. 1. Let’s see these important ways of grow improvement.

Picture 1

So, personalization has 3 ways of grow improvement:

  1. Cross-sell and upsell analysis
  2. Product & recommendations analysis
  3. Next-best action analysis

Which of these components generates more profit for the company? I believe, it’s cross-sell and upsell analysis. The reasons are simple: 

  • this type of analysis doesn’t require a lot of extra-additional data: it’s just require only that data which you have already;
  • this tool is simple in use and relevant for each type of business;
  • It based on internal data sales, so you don’t need to collect and adopt external data;
  • Almost each modern CRM system provides this type of analysis;
  • This method is cheap;
  • It can be used by small business organizations with low experience and budgets.

Let’s get more familiar with cross-sell and upsell analysis in order to understand it’s main profits. 

Cross-sell and upsell

The difference between cross-sell and upsell analysis is in the following:

  • A cross-sell is designed to get customers to buy complementary products. For instance, if you’re buying a camera, then you can buy a case for it, maybe another lens, a memory card, or a book about how to use it.
  • An upsell, on the other hand, is designed to get a customer to spend more money on the same thing. For example, if you’re purchasing a PC, you might want to buy extra storage space on the hard drive or a more advanced graphics card. You’re still purchasing the main item in question, just with augmented features.

Thoughtful execution of cross-selling and upselling not only leads to an increase in revenue for your ecommerce store, but it enhances the relationshipyou havewith customers when you suggest items or upgrades they enjoy and receive a lot of value from.

But this tactics have to be relevant for customer. Otherwise, he or she wouldn’t buy your products and services. So you have to keep in touch this tactics with three rules:  

  1. Does the product or service complement the offer that your customer is buying?
    Upsells and cross-sells are work only if they’re relevant to the original purchase. When you’re upselling or cross-selling an item, see to it that it’s 
    1. a product that goes perfectly with their purchase.
    1. a better option of what they’re buying 
  2. Will this product really benefit or valuable to them?
    Sometimes, an add-on item may complement another product, but it won’t benefit the customer. For example, while a certain type of lens may go with that camera your customer just bought, it wouldn’t be a good cross-sell if they don’t have a need for it. 
  3. Are they open to spending more?
    If the client has shown it clear that he is bounded with budget, then respect their wishes and don’t try to sell them anything else. You might send them packing if you insist on upselling or cross-selling.

Summary

I believe that cross-sell and upsell analysis is one of the most important and powerful tools in achieving revenue’s grow. Like Pareto’s rule says: 20% of work gives 80% of results, this tool allows the company to increase sales just by small and effective step. Do you agree with it or not?