What should I do if CRM is a business processing software?

Huang Ying is a CIO of fengze Company, and fengze company is applying CRM system. However, when talking about the twists and turns of CRM applications, Huang Ying is deeply touched.
 
Fengze Company is a well-known manufacturer of domestic daily-use fast-moving consumer goods. Its sales channels are mainly achieved through a variety of chain stores, sales terminal stores, franchised retail stores and malls. The implementation of CRM has enabled fengze company to implement a "customer-oriented" business process, significantly improving work efficiency and customer satisfaction.
 
The boss was very happy and praised the IT department. What I never expected was that, over time, the CRM system gradually became a business processing software and a Business System for the sales and service of fengze company.
 
Although CRM reflects the value of optimizing the sales business process, it does not realize the customer-oriented value at the strategic level during it planning. Although customer information input is unified, data structure modeling is not based on the customer's strategic framework and business needs, and effective and valuable customer consumption characteristics and behavior analysis are not formed.
 
Therefore, at a high-level meeting, the boss asked Huang Ying the question: what is the essential application of CRM?
 
What is the essence of CRM?
 
"What is the essence of CRM ?" Huang Ying thought about the question raised by the boss. Fengze has now achieved a process of customer management and service. From the perspective of the CRM implementation process, fengze mainly focuses on the automated management of the sales process, mainly in the market, sales, service and other aspects of standardization, re-plan and adjust the front-end management business processes of fengze.
 
From the IT perspective, fengze company invests most of its investment in basic IT infrastructure and technical architecture, ignoring the improvement of customer satisfaction and loyalty, in the end, the seemingly perfect CRM solution did not give enterprises the expected competitive advantage.
 
Huang Ying realized that fengze had made a mistake: the CRM system being applied manages and provides products and services based on the general needs of the entire customer base, instead of providing personalized products based on the needs of different customer segments, especially the most valuable customers. This ignores the core of CRM: Customer Segmentation and customer value. The implementation of the fengze CRM project is only to optimize the business process, so that only information data can be input after the system is run, rather than modeling and analyzing customer consumption behaviors Based on Customer Segmentation and customer value positioning effectively, modeling and Analysis of marketing return on investment.
 
Huang Ying suddenly recalled hearing a term, process-oriented CRM and Analytical CRM, during the selection of CRM. At this moment, Huang Ying is clear-headed, and what the boss needs is an analytical CRM system. The process model emphasizes recording and reflecting data, but lacks in-depth analysis. Among the numerous customers, which customers are the most valuable? How can we provide different levels of services based on the value of our customers? The best way to solve these problems is to establish Analytical CRM.
 
What is analytic CRM? Analytic CRM emphasizes the analysis of various data and obtains valuable information from it. Before CRM is implemented, the customer-related sales, product requirements, service requirements, and other information are usually distributed in various business subsystems of the enterprise. By quickly collecting and effectively analyzing the information, we can find out the most valuable customers. This is a problem facing most enterprises and should also be the focus of CRM applications.
 
Process-oriented CRM plays an important role in the process of Enterprise CRM from scratch, and can accumulate a large amount of customer data for the enterprise. However, in-depth application of CRM to data analysis should become the focus of enterprises. At this time, we need to introduce the related functions of Analytical CRM. The analytic CRM system can collect a large amount of customer information, analyze customer features in multiple dimensions, and analyze customer behavior. Behavior Analysis is more complex than feature analysis because it involves the combination of industry knowledge and analysis models.
 
Analytic CRM enables enterprises to shift their focus from product operations to customer analysis management. Its concept is simple and direct: Based on the comprehensive information system, the company interacts with customers and analyzes customer characteristics and behaviors. For example, what is the profitability of a customer or customer group? This is different from the profit of a product? Analyzing the profitability of customers requires the cooperation of all departments and sales channels of the company and summarizing the information. For example, the Sales Department provides information on how to win customers, the marketing department provides up-selling and cross-selling data, and the customer service department provides quality assurance and service activity information, the finance department provides revenue and cost information.
How to apply the analytical nature of CRM
 
The core of CRM system analysis is the management of customer data. We can regard the customer database as a data center. With it, enterprises can record various activities that occur to customers throughout the entire market and sales process, and track the status of various activities, statistical models of various types of data are established for later analysis and decision support. To achieve the above purpose, the CRM system should have the functions of market management, sales management, sales support and service, and record and Analysis of competitive objects. It mainly includes the following aspects:
 
1. Drive CRM business process improvement based on customer segmentation and customer value.
 
CRM Project Implementation focuses on business and management, and aims to establish a customer-centric sales service system. Therefore, the implementation of the CRM system should drive business process improvement by Customer Segmentation and customer value. In the implementation process, we take the initiative to think about the problems and strengths of the existing sales, market and service mechanisms, and take into account the connection points that may affect the relationship between the customer and the Enterprise, retain your own strengths and strengths based on customer segments, remove the areas of inefficiency in the business process, and improve the links that do not help the customer relationship. ,
 
This requires enterprises to constantly analyze customer segmentation and customer value in the CRM application process, and carefully compare and analyze existing business processes and future processes, it can be further improved while retaining the original advantages.
 
2. Establishing customer analysis is the ultimate goal of CRM applications.
 
We analyze the nature of CRM and find that the problem lies not only in the lack of suitable data, but also in the blurring of customer analysis objectives in the CRM application process. Therefore, it is imperative to define the customer analysis objectives that are clearly defined in the company. Currently, enterprises implementing CRM management systems integrate marketing, sales, and after-sales services as their project implementation goals. From the perspective of CRM's long-term goal, this step is very necessary, but it is not all about CRM implementation.
 
The high integration of marketing, sales, and services can indeed improve the efficiency of business departments. However, the integrated system itself cannot enhance enterprises' understanding and understanding of the market, it cannot be closely related to customers. An even more important stage of CRM implementation is its effective data processing and analysis. Through analysis, enterprises can understand customer behaviors and their purchase methods, and find various sales forms suitable for different customers. In addition, enterprises can adjust their business processes and internal organizational structures based on the analysis results.
 
The results obtained in this step will be very important. It not only reflects the current business situation, but also provides guidance for future business plan adjustment. Therefore, the application of CRM projects should set clear analysis objectives. Such as customer analysis of specific indicators, budget and prediction, CRM Effectiveness Management.
 
3. Establish an effective customer database.
 
The establishment of databases will force the company to solve key problems. The company must complete the analysis of customer definitions, costs, benefits and profitability, and then verify. In short, when creating a customer database, you need to figure out what data to store. For example, a ready-made system does not contain the required materials, or the format of the materials is incorrect.
 
Processing, processing, and analysis of data in the CRM system will greatly benefit the company's "customer-centric" business objectives. Data analysis can be performed using OLAP (online analysis processing) to generate various reports. You can also use the Business Information Warehouse (Business Information Warehouse) Processing Method to further process and mine data and analyze the associations between data indicators, establish a correlated data model for simulation and prediction.
 
Finally, because analyticcrm is based on the purpose of providing an insight into the data, the analysis function is almost useless if there is no relevant source data. Therefore, we must avoid the phenomenon of "garbage in and out.

From: http://publish.itpub.net/erp/2008-04-03/200804030930292.shtml