Question:

(ANSWER THE QUESTION ACCORDINGY REFERENCE ARE FOUND BELOW)

1. Make VENN diagram that shows the similarities and differences between the three types of customer relationship management (CRM). Explain after

• Make VENN diagram
• Explain after the diagram

Reference for Number 1:

TYPESOFCRM

1. OPERATIONALCRM

2. ANALYTICALCRM

3. COLLABORATIVE CRM

EXPLANATION:

1. OPERATIONALCRM

OperationalCRMismainlyfocused onautomation,improvementandenhancementofbusinessprocesses which are based on customer-facing or customer supporting. The main importance of a CRMsystem lies on how the selling, marketing and service oriented processes are automated, and for whichoperationalCRMsystems areembedded with followingmajorautomationapplications:

1. Marketing automation-As the name implies, marketing automation is basically focused onautomatingmarketingprocesses.Inmarketing,campaign managementinvolvesmarketers tousecustomer specific information to determine, evaluate and develop communications that aretargetedtocustomersinindividualaswellasmultilevelormultichannelenvironment.Campaign developed to communicate customers individually are easy and involves unique and directcommunications. For multichannel environment the implementation of marketing strategies andcampaign management is quite difficult and challenging. For example, some retailers have multichannel transactions like shops or stores, wholesale stores, websites, home shopping andeven television shopping. Here integration and implementation of communication strategy isdifficult and evaluation of performance and quality of campaigns needs to be automated andshouldbetechnologicallysoundacrosseachofthechannels.Forhandlingthis,aCRMmarketingstrategy called event-based marketing is inherited. Using event based marketing communicationand offers are presented to customers as and when they are required. For example, credit cardcustomer calls the call center for inquiring the current interest rates, this indicates that customeris specific about the interest rates and is trying to compare the interest rates and may switch todifferent competitor to find specific deals which suits him. Without wasting time the automatedCRM system pops up an event of offer which is best suited for that customer and helps to retainhimback.
2. Sales-forceAutomation-ACRMsystem isnotonlyusedtodealwiththeexisting customersbutisalsouseful inacquiringnewcustomers.Theprocessfirststartswithidentifyingacustomerandmaintaining all the corresponding details into the CRM system. This process can be distributedintomanystages whichincludesgenerationofleadandthenqualifyingthoseleadsasprospects.TheSalesand Field representativesthentrygettingbusiness outofthese customersbysophisticallyfollowingupwiththemandconvertingthemintoawinningdeal.Automationofsellingprocess is efficiently handled by Sales-force automation which automates all the methodologiesorsalescycle andabove describedprocess sophisticatedly.
3. ServiceAutomation-Serviceautomationdealswithmanagingorganization'sservice.Theactual interactionswithcustomers suchascontact,directsales,directmail,callcenters, dataaggregationsystems, websitesandblogsetc.areexamples ofoperationalCRM.Eachinteractionwith a customer can be collected to the client database generally known as 'customer's history'and the information can later be used wherever necessary. Anyone in the organization can haveaccess to this information about customer which gives a clear view of customers needs andimportantinformationonthecustomersuchasproducts owned,priorsupport callsetc.Itnaturallyeliminates the need to obtain this information individually from the customer. On the basis of theinformation, if required,thecustomercaneasilybecontactedatrighttimeatthe right place.

Operational CRM refers to services that provide support for various 'front office' businessprocesses in helping organization to take care of their customers. Focus on customers' value isimportant for a successful operational CRM strategy. Different customers have to be treated differentlysoinformationonvariableslikecustomers'ranking, actualvalueandpotentialvalueisofstrategicvalue.

2. ANALYTICALCRM

Analytical CRM supports organizational back-office operations and analysis. It deals with all theoperations and processes that do not directly deal with customers. Hence, there is a key differencebetween operational CRM and Analytical CRM. Unlike from operational CRM, where automation ofmarketing, sales-force and services are done by direct interaction with customers and determiningcustomer's needs, analytical CRM is designed to analyze deeply the customer's information anddataandunwrapordisclosetheessentialconventionandintensionofbehaviorofcustomersonwhichcapitalizationcanbe done bythe organization.

PrimarygoalofanalyticalCRMistodevelop,supportandenhancetheworkanddecisionmakingcapability of an organization by determining strong patterns and predictions incustomer data andinformationwhichare gatheredfromdifferentoperationalCRMsystems.

Thefollowingarethe keyfeaturesofanalyticalCRM:

• Seizingalltherelevantandessentialinformationofcustomersfromvariouschannelsandsourcesandcollaborativelyintegratingandinheritingallthisdataintoacentralrepositoryknowledgebasewitha overallorganization view.
• Determining,developingandanalyzinginclusivesetofrulesandanalyticalmethodstoscaleandoptimize relationship with customers by analyzing and resolving all the questions which aresuitableforbusiness.
• Implementing or deploying the results to enhance the efficiency of CRM system and processes,improve relationship and interaction with customers and the actual business planningwithcustomers.
• Combineandintegratethevaluesofcustomerswithstrategicbusinessmanagementoforganizationandvalue ofstakeholders.

Analytical CRM is a solid and consistent platform which provides analytical applications to helppredict,scaleandoptimizecustomerrelations.AdvantagesofimplementingandusingananalyticalCRMaredescribed below.

1. Leadsinmakingmoreprofitablecustomerbasebyprovidinghighvalueservices.
2. Helpsinretainingprofitablecustomersthroughsophisticatedanalysisandmakingnewcustomersthatare clones ofbestofthe customers.
3. Helpsinaddressingindividualcustomer'sneedsandefficientlyimprovingtherelationshipswithnewand existing customers.
4. Improvescustomersatisfactionandloyalty.

The power of CRM provides a lot of managerial opportunities to the organization. It implements thecustomer information in an intelligent way and creates views on customer values, spending, affinity andsegmentation.Analysisisdone ineveryaspectofbusinessas describedbelow:

1. Customer Analytics-This is the base analytic used to analyze customer knowledge base. Itprovides a better view of customer behavior and by modeling, assessing customer values andassessingcustomer'sportfolioorprofilesandcreatesanexactunderstandingofallthecustomers.
2. Marketing Analytics-This helps discovering new market opportunities and seeks their potentialvalues.Italsohelpsinmanagingmarketingstrategiesandscaleandplanmarketingperformanceatdistrict,regionalandnationallevels.Marketinganalyticsalsofocusoncampaignmanagementandplanning,productanalysis and branding.
3. Sales Analytics-Sales analytic provides essential environment to plan, simulate and predictsales volumes and profits by constantly analyzing organizational sales behavior. It helps inpipelining all the selling opportunities in an efficient way by indulging and improving the salescycle.
4. ServiceAnalytics-AnalyticalCRMhasmajorroleinenhancingtheservices whichansweringallthequestionsregardingcustomersatisfaction,qualityandcostofproducts,complaintmanagementetc.Itevenhelpsinimprovingandoptimizingtheservicesbysophisticallyanalyzing theservice revenue and cost.
5. Channel Analytics-This type of analysis helps to determine the customer behavior on channelpreferences, like web channel, personal interaction, telephone channel etc. This information isefficiently integratedincustomers'knowledgebasesothattheycanbecontactedaccordingly.

3. COLLABORATIVE CRM

CollaborativeCRMdealswithsynchronizationandintegrationofcustomerinteractionandchannels of communications like phone, email, fax, web etc. with the intent of referencing thecustomers a consistent and systematic way. The idea is not only enhancing the interactions but alsotoincrease andimprove customerretentionand liberty.

Collaborative CRM entangles various departments of organization like sales, marketing, financeand service and shares the customer information among them to highlight better understanding ofcustomers.Forexample,theinformationofpreferredproductscouldbesharedwithmarketingdepartmentsothatanalysiscanbeperformedinthisaspecttoprovidepreferredproductstocustomers.Theinformationregardingvariedcostorpriceofaparticularproductinmarketdefinedbycustomerscanbe delivered to finance department so that strategies could be created to match the product cost withsimilarproductsinmarketandafteranalysis bringanaffordableand efficientproductin market.

The information regarding a specific service which is not installed in the company's environment andintimated by the customers can be transferred to service department to improve or install that particularservicein-house.Allthisisdoneefficaciouslywithintherangeofchannels sothattheprocessautomates theneedsandminimaltime is required forfulfillingthese needs.

CollaborativeCRMcanbebroadlyidentifiedbytwoaspects:

1. Interaction Management-This management process deals with designing the communicationorinteractionchannelprocesswithinanorganizationwhichisspecifictocustomerinteractionandfinally enhancing the extent of communication between both the parties. The communicationchannel depends on the customers' preference on how they require the interaction to be dealtwith.Somecustomersprefertobecontactedviaphoneandemailbecause ofmorecomfort abilityor non-availability of manual interaction due to no time or unavailability of resources. Some ofthem prefertohaveliveonlinemeeting orwebmeetingtoreduce thetraveltimeandlackoftime or maybe they prefer more clarified real time environment by sitting at desk and transact. Someofthecustomers insistforagentconductedservices whichisoftenface-to-faceinteractionastheybelieve thatthiswayismoreefficientandconclusive.Depending onthesechannels ofinteractionitisveryimportantfororganizationtofulfilltheseneedsofcustomersandgatherinformationfromthem andimplementingitintotheCRMbeforeinteractingtoenhancetheinteractionpower.
2. Channel Management-After analyzing and implementing the interaction medium it's importantto enhance the power of channels through which the customers are interacted. By using latesttechnological aspects for improving channel interaction could help to contact customers in anefficient wayandgatherinformationfromthemtohelporganizationtounderstandthecustomers.Henceitisimportantforanorganizationtoclearlyarrange thechannelresponsibilitiesandduties.

BelowareadvantagesofCollaborative CRM:

• Enablesvalued customerinteractionacrossthechannels.
• Entanglesweboronline collaborationtocutdownservice costofcustomers.
• Integratescustomer interactionwithcallcenterstoenablemulti-channelinteractionwithcustomersand helpsthemmakeunderstand theoverallprocessvales.
• Describes aviewofintegratedcustomer'sdetailsduringinteractiontoservertheminabetterway.