Advice for social networks
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1 Theme: Future of Quality The National Agenda Outlines CRM PRACTICES IN ASIAN COUNTRIES PREM NARAYAN Group General Manager (P&Q) IRCTC Corporate Office Definition of CRM Era wise CRM Growth Global Scenario of CRM CRM in Asian Countries Asian CRM Market and Challenges Areas of CRM activities CCRM and CEM CRM in India Social Media Networks Predictions for 2011 & beyond Definition of CRM Customer Relationship Management (CRM) is a holistic process of identifying, understanding, differentiating, retaining and better providing for your customers while building a relationship with each customer to improve customer satisfaction and maximise profits. Integrating the firm s value chain to create enhanced customer value at every step The use of information-enabled systems for enhancing individual customer relationships will ensure long-term customer loyalty, retention and profitability for the company Uses of CRM Most commonly used to describe software and related technologies that manage customer-facing businesses CRM software helps in Sales Force Automation by contact management. It stores, tracks and manages contacts and forecasts sales. Web based CRM, a form of self service software enables web based customer interaction, automation of , call logs, campaign management. On-demand CRM solution helps businesses strengthen their sales, service and marketing personnel to effectively serve customers, to close deal fast and to ensure their loyalty. Using CRM, Sales personnel can keep track of and manage all sales activities, generate accurate quotes and track sales performance. Era wise CRM Growth Global Scenario of CRM SNS Cloud based CCRM Inter enterprise/on demand services CEM/CRM process Revolution ERP/SCM Chennel With web service Wireless based Integrated CRM:Vision ;Web mktg Individual customer B2C Mktg Pre-permissiom mktg Segment- 1 to 1 mktg Database-SFA Mass marketing Segment marketing 1
2 Global Scenario of CRM CRM in Asian Countries Currently 50,600 Call Centers in the United States containing 2.86 million agent positions. About 4,500 Call Centers in Canada with 212,000 agent positions. Additionally there are over 1 million agent positions overseas devoted exclusively to servicing the U.S. market. One of the driving forces in the expansion of Call and Contact Centers worldwide is the rapidly growing CRM industry and its use in today s technology-enabled corporate environments. CRM Vendors from Europe and US will face stiff competition from Indian and Chinese local CRM providers. Analysts also suggest that local vendors will often prevail on the large western software companies from US and Europe due to both localization requirements and government interference. 4.5% 6.5% >30% ( Incoming Calls Management Institute) CRM in Asian Countries Sectors of CRM in Asian Countries Asian CRM market often cited as highest growth market in the world. The Software-as-a-Service (SaaS) CRM market in Asia will grow to $570 million by Most mature CRM market include Japan, Australia, New Zealand and Hong Kong - would grow at 4-9% annually. Indonesia, Philippines and Thailand are small market, but growing to be viable markets for CRM implementation. Asia pacific market is characterized by its high fragmentation. Separate national market displaying different potential, cultural, economic environments. Huge scale frequent transactions Huge scale speed, Short cycles Super Markets Telecom CRM in Asia Countries Hotel Insurance Huge scale 1 to 1 approach, long intervals Small scale B2B trade volume Asian CRM Market and Challenges CRM Market is known for its volatility and Singapore will show unusually high CRM adoption. In CRM Market pricing in local business knowledge are more important requisite than functionality. Within Asia, CRM market growth rate vary dramatically by country. China represents the largest Asian Market growth >30% annually. China is expected to experience 4 major developing stages of CRM in the near future. Information collection Process management Refined sales Strategy decision support Asian CRM Market and Challenges India s CRM market characterized by Call centre technologies. Malaysia offers a small but stable CRM market due to good infrastructure, increased liberalization, high level of advancement and increased investment planning. The intensity of competition in some industries had led to the need for CRM as a means of obtaining a competition edge. 2
3 Current areas of CRM application CRM Productivity Improvement Benefits Sales & marketing department (by Segmentation) Government & relevant institutions Embassy Local and international NGOs Local and Oversea corporate companies Local and Oversea corporate Agencies Front Office Department Guest relationship officer Reservation Officer Duty Manager Awareness of customer identification, customer differentiation, customer interaction and personalization Awareness of Customer s need To gain customer s awareness of our brand of product or service Good relationship can gain customer s loyality To improve service without increasing cost of service To improve customer s satisfaction To gain a competitive advantage Customer Centric Relationship Management Put customer as a lead stakeholder at your corporation View customer from 3 points of views; strategic Views, Operational Views and organizational views Strategically seek long term trust relationship with your customers Organisationally assign Chief Customer officer at the Board meeting Educate all department of customer contacts to feel customers pain points Listen to customers and innovate creative solution for the pains Increase customer Satisfaction indexes and get reference call from the best customers Customer Experience Management To Create an integrated profile of customer behaviour and preferences that is used at all "touch points" to personalize interactions Use a common infrastructure to realign the whole extended enterprise around the customer instead of around individual business functions and business units Provide self-service, intelligent tools to make selling, fulfilment, and customer service more productive throughout the channel Optimize the delivery of service by matching individual interactions to the most appropriate channels (web, phone, ) Implement and deliver key strategic initiatives to improve customer experience, in short, integrated phases CRM Trends Firms into - telemarketing, direct marketing, data collection, market research, and even ad agencies have started adding the CRM tag to their services. Call center businesses are turning increasingly to the domestic market for revenue supplement as international market goes tough. Measures in Call center The marketing department takes positive interest in expanding social media, but participation of call center is not enough Expansion of social media influences call center work and required to be resolved To examine the counter measures in call center with best practices of CRM closed-loop To handle social media, communication manager, who has different skills from present resources in call center, is to be arranged separately. The communication manager keeps up with developing social media paying attention to important points 3
4 CRM status Firms aware of CRM, but yet to take concrete steps towards implementation. CRM expected to catch on, but the catching on may be a slow. Overall sentiment is one of wait-and-watch. CRM practices in a very early stage of evolution. Drivers Need for improved customer service Increased global adoption Inhibitors Lack of customer orientation The high cost of implementation Low awareness of benefits Categories of Social Media Key sectors Banking Insurance & Financial Services Telecom Retail Knowledge based Video-sharing Q&A Community Social Networking Services (SNS) Word-of-mouth Social Media Micro-blog Blog CRM packages and vendors Siebel, followed by Oracle and Talisma Bulletin Board Services Social Media - No. of users in Japan S.No CATEGORY SITE MONTHLY TOTAL VISITORS 1. Word-of-mouth Kakaku.com 30,880,000 72,550,000 Tabelog 21,670,000 Gourmet Navi 20,000, Knowledge base You Tube 25,020,000 86,040,000 Video-sharing Q&A Wiki 26,930,000 Community Yahoo Knowledge 26,080,000 Niko Niko Video 8,010, SNS mixi 9,340,000 11,210,000 Facebook 1,870, Blog Ameba Blog 22,030,000 22,030, Micro-blog twinavi 9,880,000 9,880, Bulletin Board Service 2 Channel 11,530,000 11,530,000 Social Media Status Chennel of users Word of mouth on commodity and services is mainly exchanged Face-to-face, while the internet is used by a part of posters Face-to-face : 78.4 % Using % Using phone : 25.3% Posting Blog : 12.3% Posting SNS : 8.1% Posting to Evaluation site : 7.2% Posting & comments to official product site : 4.4% Users of social media are expanding rapidly, >20 million per month Use of Blog, SNS and Micro-Blog has been expanding among young generation, the blog s use is over 70% The poster to social media exceeds 30% of user. Female s ration has risen. Female age have higher poster rate 4
5 Advice for social networks Be careful Think twice before using your real name in a profile Respect the privacy of others Be informed Use privacy friendly settings Use different identification data Pay attention to the activity of your children in the interest CRM Prediction for 2011 & beyond By end of 2011, fortune 1000 marketing companies will include online marketing, up from 50% in CRM application market during has great potential in China in spite of the economic crisis facing the world. China offers large and active market to CRM Vendors Asian markets with greatest growth potential are India, China and Malaysia SaaS market to reach 40.5 billion by 2014 representing compound annual growth rate of 25.3%. About 34% of all new business software purchases will be procured by SaaS. SaaS delivering will contribute about 14.5% world wide by 2014 Facebook will be no. 1 Social Network Service in Brazil, Russia, China & Japan. (Gartner & research & analyst from IDC) Thank you! 5
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