1COURSE TITLE INFORMATION TECHNOLOGY FOR MANAGEMENT ASSIGNMENT TOPIC: BUILDING A CRM PROTOTYPE FOR VASCARA BRAND Student: Mai Kim Tuyen ID: CGS00017288 Course: MBAOUM0314 – K13A Proferssor: Dr. Victor Nguyen 2 TABLE OF CONTENT INTRODUCTION ................................................................................................................. 3 Chapter 1: Customer Relationship Management - CRM .................................................. 4 1.1. Overview about CRM: .............................................................................................. 4 1.2. Cloud computing/cloud technology: ......................................................................... 5 Chapter 2: Describes the design and implementation of CRM system ............................ 8 2.1. Top 3 Customer Service Trends for 2014: .................................................................... 8 2.2. Build a CRM system for Vascara brand – Binh Pham Company: .............................. 10 2.2.1. These steps for CRM projects of Binh Pham Company: ..................................... 10 2.2.2. Functions of the system: ....................................................................................... 13 2.2.3. The implementation of Vascara‘s CRM system in today‘s trend: ....................... 14 a. Social media for customer care: .............................................................................. 14 b. Deploying customer services in the cloud technology: .......................................... 17 c. Using mobile technology to enhance customer service: ......................................... 19 2.2.4. Extending to support other areas: ......................................................................... 20 CONCLUSION .................................................................................................................... 21 REFERENCE ....................................................................................................................... 22 3 INTRODUCTION In the business operations, each company has relationships with customers and business partners which they must work, serve or collaborate. The relationship always takes place between two teams - one side is employees work in the company and another is customers, business partners. So companies need to have a management system that facilitates both enforcement personnel better relationships with customers, has helped to manage customers more effectively. And CRM has created at the same time serve both on request. Customer relationship management is a new system of business including methods, techniques and the ability to help businesses manage relationships customers more effectively. The purpose of CRM is generalized to allow organizations business manage its customers better through the introduction of the system, methods, and procedures for reliable business. 4 Chapter 1: Customer Relationship Management – CRM 1.1. Overview about CRM: CRM is the abbreviation for customer relationship management. It entails all aspects of interaction that a company has with its customer, whether it is sales or service- related. While the phrase customer relationship management is most commonly used to describe a business-customer relationship, CRM systems are also used to manage your business contacts, clients, contract wins and sales leads. CRM refers to the methodologies and software tools to leverage customer information in order to achieve the following: Build greater customer loyalty and therefore greater profitability per customer Deter customer attrition (loss of a customer) Acquire new customers who are most likely to become profitable Up-sell (sell more profitable products/services) or cross-sell (sell additional products/services) to unprofitable customers to move them to a profit position Reduce inefficiencies that waste advertising dollars The CRM Business Strategy: Customer relationship management is often thought of as a business strategy that enables businesses to: Understand the customer Retain customers through better customer experience Attract new customers Win new clients and contracts 5 Increase profitably Decrease customer management costs Figure 1.1: CRM system 1.2. Cloud computing/cloud technology: Cloud computing is a term used to refer to a model of network computing where a program or application runs on a connected server or servers rather than on a local computing device such as a PC, tablet or smart-phone. Like the traditional client-server model or older mainframe computing, a user connects with a server to perform a task. The difference with cloud computing is that the computing process may run on one or many connected computers at the same time, utilizing the concept of virtualization. Business applications are moving to the cloud. It‘s not just a fad—the shift from traditional software models to the Internet has steadily gained momentum over the last 10 years. The shared infrastructure means it works like a utility: You only pay for what you 6 need, upgrades are automatic, and scaling up or down is easy. Cloud-based apps can be up and running in days or weeks, and they cost less. With a cloud app, you just open a browser, log in, customize the app, and start using it. Businesses are running all kinds of apps in the cloud, like customer relationship management (CRM), HR, accounting, and much more. Some of the world‘s largest companies moved their applications to the cloud with salesforce.com after rigorously testing the security and reliability of our infrastructure. As cloud computing grows in popularity, thousands of companies are simply rebranding their non-cloud products and services as ―cloud computing.‖ Always dig deeper when evaluating cloud offerings and keep in mind that if you have to buy and manage hardware and software, what you‘re looking at isn‘t really cloud computing but a false cloud. Figure 1.2: Cloud Computing 7 Cloud computing offers the following major advantages to the users: 1. The 3 rd party provider owns and manages all the computing resources (servers, software, storage, and networking) and electricity needed for the services. The users only need to "plug into" the cloud. The users do not need to make a large upfront investment on computing resources; the space needed to house them; electricity needed to run the computing resources; and the cost of maintaining staff for administering the system, network, and database. 2. The users can increase or decrease the level of use of the computing resources and services flexibly and easily. 3. The users pay most likely much less for the services, because they pay only for the computing resources and services they use, and the subscription-based or pay-per- use charges are likely much lower than the cost of maintaining on-premises computing resources. If the users are to maintain on-premises computing resources, they also need to make the worst-case plan to account for the occasional or seasonal peak needs. 4. The users can in practice access the cloud for services anytime from anywhere. The above advantages make cloud computing a compelling paradigm for servicing computing needs for both enterprises and end customers. As such, many players, both large and small, are now entering or planning to enter the emerging cloud computing market. 8 Chapter 2: Describes the design and implementation of CRM system The biggest benefit most businesses realize when moving to a CRM system comes directly from having all your business data stored and accessed from a single location. Before CRM systems, customer data was spread out over office productivity suite documents, email systems, mobile phone data and even paper note cards. Storing all the data from all departments (e.g., sales, marketing, customer service and HR) in a central location gives management and employees immediate access to the most recent data when they need it. Departments can collaborate with ease, and CRM systems help organization to develop efficient automated processes to improve business processes. Other benefits include a 360- degree view of all customer information, knowledge of what customers and the general market want, and integration with your existing applications to consolidate all business information. 2.1. Top 3 Customer Service Trends for 2014: Each year, we put together the CRM Service Awards issue to reveal the most impressive efforts by customer service industry heavyweights, emerging companies, and practitioners. In doing so, we also highlight some of the most significant trends in the customer service market. While there are a variety of interesting developments this year, the top three are listed below: Customer service is becoming more social. It's not new that customers expect their companies of choice to meet them on their preferred interaction channel. What is new, though, is how companies are meeting them. In the early stages of social media, companies generally used the channel to send outbound marketing messages to 9 prospects and customers. However, as more customers turn to social media to solve their customer service issues, it makes sense to bring in customer service representatives to handle these issues, as they are the ones best suited to respond. As more companies leverage social media for support, they will have to integrate the emerging support channel with traditional ones to get a more complete picture of customer behavior. Moving forward, it makes sense that more case management applications will include a consolidated view of multiples interaction channels, including social media. More customer service departments are relying on cloud technology. Until recently, customer service trends have been slow moving, because the technology has historically been expensive and cumbersome to upgrade. However, hosted solutions mitigate both of these concerns. Therefore, expect to see more contact centers rely on cloud-based technology. One research and consulting company in the Contact Center Infrastructure category estimates that only 10 percent of U.S. call center agent seats are currently supported by hosted service providers. However, because of the benefits of cloud-based customer service technology, the company expects this number to jump to 23 percent in only four years. Additionally, we could see small and medium-sized companies become more sophisticated with their customer service efforts as cloud-based customer service technologies trickle down to these companies. The same analyst adds that "the fastest-growing companies are broadening their market reach by using the cloud to move down market, by reducing initial costs and speeding implementation, and by developing function-specific modules that can be sold as turnkey installations." 10 Mobile devices will add a new dimension to customer service. Nowadays, our profile states, the technology "provides a seamless transition to the voice channel. Once the call is connected to the agent, all of the steps already taken by the customer, as well as any data entered, are visible to the agent." Now, that's a good example of integrated customer service, and it should appeal to those interested in broadening their omni-channel customer service initiatives. 2.2. Build a CRM system for Vascara brand – Binh Pham Company: To implement a successful CRM project, the first problem is the need to have a good CRM implementation plan. In this assignment, I will describe the design and implementation for Vascara brand of Binh Pham Company. Vascara‘s system currently has over 73,600 customers. Of those, about 25,400 patrons and 1,345 people are VIP customers. Figure 2.1: Vascara logo 2.2.1. These steps for CRM projects of Binh Pham Company: - Develop standard project team: CRM team proposed will include the general operating, project manager, CRM administrators and some primary users (representing the main user groups later). 11 - Set clear goals initially: It should clearly define the objectives of your CRM deployment, such as: need better reports, a shorter sales cycle or conversion rate between potential customers and clients really improved… - Identify priority objectives: Focus on the target may Blitzkrieg. The determination of short-term‘s goals are important because it is the premise and inspiration for the successful implementation of CRM projects. 12 - Review the processes: Review the processes to assess whether it will be managed by how a CRM application. If you need to change, willing to change existing processes to fit on CRM processes. - Defining CRM data management needs: Confirm the data you need to manage CRM include contact person, business opportunities, cases, campaigns, coordinating and any relationships or processes that need to be managed. - Decentralization use: How CRM data will be shared among the group? Consider the decentralization according to the role of user. Are all users allowed to export the data to Excel or access to all records? 13 - Create a plan CRM user adoption: The little end-user adoption is the number one cause of failure of CRM projects. Consult the user in the first phase will stimulate their interest. Ensure commitment and support from leading CRM. Nominated one employee uses CRM in each department and facilitated the use of the user by using the training sessions. 2.2.2. Functions of the system: - Manage client list: patrons, potential customers, new customers. - Manage customer information: personal information, contacts, addresses, and information about customer tastes with business products. The system also manages the feedback of customers to assess and meet the needs customers at the right time. - Management detailed information of each product: name, code, detailed information. 14 - Manage appointments with customers: client name, assigned personnel perform, service, time and location, cost. Email to staff management, marketing activities such as scheduling, deployment a marketing campaign. - Manage all purchase transactions: contract, invoices, according to customers, according to staff, daily... - Manage all customer care activities after sales: warranty work, customer support… - Decision support systems for managers: to report on client chart and the buying and selling of businesses. 2.2.3. The implementation of Vascara’s CRM system in today’s trend: a. Social media for customer care: Through social media, virtually anyone, anywhere in the world, can be heard. Unfortunately for many businesses, an individual's comments might not always be complimentary. This is prompting more companies to turn to social media than ever before. Social media enables you to engage with your customers as never before. Hearing what they say about you can be an invaluable tool, but how can you make the most of customer feedback. In Binh Pham Company, I would like suggest ten ways to improve their customer service: - Connect with your customers: You may already have a Facebook or Twitter profile for your personal use, but create a social networking profile for your business to connect directly with your customers. 15 - Get blogging: Use a blog platform such as Word press to update clients and suppliers with the news from your business. You could also add a forum to your website to get customers sharing their experiences. Comment on other people‘s blogs or start a discussion thread in an online networking forum. - Encourage feedback: Encouraging and acting on feedback allows you to tailor your product or service to your customers‘ needs. Use www.twtpoll.com to create a poll for your Twitter followers, or even ask your Facebook friends to become a ‗fan‘ of your page and comment critically on your product. - Respond to the feedback: Note down feedback from all social media accounts. Log suggestions separately from complaints. Complaints are your priority, so set up a policy to deal with them swiftly and efficiently. Use suggestions to generate ideas to improve your product or service. - Monitor feedback online: You must remain aware of what people are saying about your business elsewhere on the internet. Use search engines or tools such as Google Analytics to find reviews of your business. - Keep an eye on the competition: Many sectors have consumer review sites where customers are encouraged to share their experiences. Scan these regularly to see what customers are saying about you — and your competitors. If all your rivals seem to have special offers, it might be worth considering launching one, or you could miss out on custom. 16 - Deal with negative feedback promptly. The more engaged you are, the less likely you are to have an online PR disaster. Investigate any complaints thoroughly and contact the customer directly to apologize or offer a solution if it is your fault. - Note what your customers want: If similar queries come up regularly, look at how they can be avoided by changing your processes. If this is not possible, add a ‗FAQ‘ section to your website to answer regular queries. - Change your customer service: Ensure that the person responsible for your customer service has access to your social media profiles. Pass good feedback on to the relevant team members. - Communicate changes to your employees: Some employees may not be comfortable with social networking, but explain to them the advantages of having an active online business presence. Train them to use social media, and set out a clear policy for anyone using ‗official‘ Facebook or Twitter accounts. 17 Figure 2.2: Vascara’s facebook page b. Deploying customer services in the cloud technology: Implementing customer service in the cloud requires you to have an open mind. Start with a clean slate and think ‗outside the box‘ when it comes to extending the capabilities of cloud customer service to business practices regardless of if you are starting a significant infrastructure overhaul or in the beginning phases of just implementing a new channel or agent desktop in the cloud. This phase enables you to plant the seeds for future growth in your cloud customer service strategy. Outcome: Cost savings and customer satisfaction improvement are the primary business outcomes. 18 Objective: In order to achieve cost savings and customer satisfaction improvement you should focus on improving efficiency. With cloud customer service you have access to a wider range of technologies and continuous technology upgrades underpinned by pre- defined service level agreements. This is something that premise-based solutions do not typically offer. It decreases bottlenecks and reduces pressure on internal staff because cloud providers manage administration and technical issues. Engagement: There are various elements that are part of a cloud customer service offering. As with any cloud deployment you should start slow by implementing one to two channels first to transition existing channels to the cloud or introduce new channels to support changing customer communication preferences. Technology: In the implementation phase an enterprise will typically have a hybrid architecture composed of various customer interaction technologies residing in the cloud and on premise. However, the majority of contact center infrastructure will be located on premise as enterprises in this phase will typically have sunken investment in premise-based legacy infrastructure that they will potentially migrate to the cloud over time. Process: There will likely not be any significant business processes changes in this phase other than the necessary changes needed from introducing one or two new channels or replacing an existing premise solution with one in the cloud. Structure: From an organizational standpoint the customer care and IT departments in the implementation phase will have some level of collaboration but both teams will typically work in silo environments. The use of cloud, however, provides more opportunities 19 for the care and IT teams to corroborate and joint initiatives will become more common as an organization progresses along the Ovum cloud customer service maturity model. c. Using mobile technology to enhance customer service: The rise of smart-phones, apps and mobile internet access has made the mobile phone a key battleground in the fight for new business and customers' attention. And although the pace of technological change has given businesses the chance to try innovative techniques and ideas, there are still opportunities for more traditional kinds of mobile marketing, like text marketing campaigns. One of the main attractions of mobile marketing is that mobile phones are almost always switched on and people usually have them to hand. That means SMS (short messaging service) messages are usually read. The mobile phone has become the first place many people turn in all kinds of situations: to check for directions or to look up the price of a product, for example — indeed, to find any information online. And because people are using their phones in these ways, your business can benefit hugely from intelligent mobile marketing. In fact, with mobile internet access exploding, potential customers are going to try and reach your business via their mobile phones whether you like it or not. That means you really must consider the experience they have. At Binh Pham Company - Vascara Agent use smart-phones and other mobile devices to enhance customer service interaction. The company's also supports data entry and can proactively mine knowledge bases for information and retrieve or update customer information in real time. The company is currently using the services of SMS messaging company Mobimax sending messages to congratulate the birthday of customers and marketing some great promotions per month. It introduced the company‘s reputation and the 20 products to a large customer. Up to now, Vascara Agent has more than 20,000 customers‘ mobile information include potential customer and customers. Many types of small business can benefit from mobile phone communication – Binh Pham Company usually text and email marketing to advertise special events, details od sales or vouchers timed to catch shoppers in the right place. 2.2.4. Extending to support other areas: In the future, the CRM system will be used to expand the scope of each employee of the Binh Pham Company. Looking to build a database for market expansion in the field of online sales where potential customers can make purchases anywhere as home shopping, internet shopping program... 21 CONCLUSION Customer Relationship Management is a strategy that has been recognized and wide application popularity. It is used to manage and nurture the company's interaction with customers and potential sales in the future. It involves using technology to organize, automate, synchronize business processes, and activities related to the sale. The overall goals are to find, attract, win new clients, nurture and retain existing customers, entice former clients back, and reduce the costs of marketing and client services goods. Today, with trade liberalization and globalization of the economy, the company needs to manage more customers. 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