Why CRM Training On Why Customer Relationship Management

CRM Training Why Customer Relationship Management

Why CRM

Good morning everybody. Watch the video below. Welcome to the “Best Of The Best CRM and Infusion CRM Training Course”, (CRM – Customer Relationship Management system.) I hope you are going to get a lot out of today. I’m George Slater and I’m going to be taking you through the whole course.

What I want to do is quickly go through the objectives. The objectives are for everybody here and everybody watching on the DVD’s as we are recording the complete event. What I want to do on the first day is to get you to a stage where you can:

implement a CRM system and in this case we are implementing Infusion,
get a system set up to capture names and addresses,
put in what’s called an auto responder,
get a list and
send an offer to that list so we can actually sell something.

What most people want to do when they get a CRM system is to get it up and running. They’ve bought it because they are probably integrating all their information they’ve held in excel, outlook, maybe a little system like ‘act’ and want to get some money back on their return on investment. So that’s what we are going to do on the first part of the day. Is that OK with everybody? Yes. Is there anything else that you want to do or specifically cover today? We will be going through all the step up points and set up points as we go through it. I will be explaining a bit about what CRM is. So you will have an understanding of it, so you will understand why people using a CRM system do things in the way they do them as well.

Q. Will we be doing anything on sorting and pulling lists? A. Yes. We will be doing a lot on searching and pulling lists. Lists are the most important thing in a CRM system. The base of a CRM system is the list. That’s what the crux of it is. So if that’s OK with everybody we will get on.

The agenda:
– 9.00 am start
10.45 am break
11.00 am restart
12.30 pm lunch
2.45 pm tea
4.15 pm finish
We will try and stick to this as closely as we can.
What is CRM?

I’m not going to try and kill you with power-point slides today. A lot of what we are going to do, is to go through the actual application itself. There will be camtasia videos as well being recorded of the screen as I do them, so you can sit and watch over my shoulder as well.

A CRM system at its foundation is really what is up here as a roller-dex. It’s a list of names that we will be going on to search later on. You can see on the power point there is also a Rubik cube, because what you can do with that list of information is not just serial just going through the front of it. What you can do is turn it around, change it, move it and look at it in all different ways, shapes and patterns of information based on information you have set up within CRM. These were called groups within Infusion but are now called “tags”.

What we are going to look at doing is: how to get people into the application. But just prior to loading them in, we are going to do a little work on setting the application up so that we’ve got the right groups/tags to put people in. So we can delineate them; do some searches on different people in different groups; put people in one group and another group; or put people in one group but not in another group. So you can have all different searches when you go into the CRM system.

Why CRM?

CRM has really come about obviously because of the computer age. Everybody, for example a really good shop owner 60 years ago used to be good at customer relationship management. He or she would know the six or seven hundred people that came into their shop. They would know their family; what they bought; how regularly they bought it; they would know what offers to give them, etc. They would know all that type of information. That’s what a good CRM system should allow you to do.

What we’ve had through the 70’s and 80’s is mass marketing. People have put products together and sold those products on mass and basically the product you got was the product you got. It’s very much like the model T Ford. You got a black one and that was it. You could only have the black ones because they were the only ones they produced.

As the markets changed information has become more freely available, there’s more competition in the market place. A great example of this is the mobile telephone companies – it’s probably the most perfect example. What’s happened there is all the products the companies sell, actually become exactly the same. So people will churn. They will go to the cheapest, or they go to the next one, because it’s really simple for them to do that. There are no barriers for entry. You can have the same telephone number, you can move about.

One to One Marketing

So what a CRM system is trying to do, based on some of the work by Don Peppers and Martha Rogers, is actually turn that around – we need to change back to what we had before. We need to put up walls to stop our customers leaving us. What they looked at doing was building pyramids of information so you have what’s called “One to One Marketing”. That is to say you can make one person one offer. We’ll get as close to that as we possibly can. For example, in copywriting it’s very important to know and understand the people, so you can talk to the lexica of information. If you talk their language in your sales material, you will get more sales. And that’s exactly what you are doing.

It also stops the churn rate. Once you connect with a client and no other company can replicate that offer to them because the offer is a one to one offer that you are making, it stops them moving and churning. It’s seven times more expensive to get a new client than sell to an existing one. There’s really high profit in doing that.
What you will see is an organization using the pyramid chart. They use the CRM system to go: this is our customer base; the top customers buy the more expensive products and there’s only a few of those but often they represent in terms of money (turn pyramid upside down onto it’s tip so the base is at the top) the greatest profit. So what organizations look at doing is slicing up their data bases (and this is where we start to use groups), so they can make different offers to each group.

Banking is a very good example of this where they have a lot of people down here (in the lowest tier) with small amounts in their account. They don’t go to the bank. The bank forces them down the ATM route; they do everything with them on an electronic means; they don’t really want to talk to them; they don’t really want the people coming into their banks; they don’t want to do anything with them. The bank will cut them off and give them a certain service; the only way those people can get to the bank is by looking online or going electronically.

Developing products within CRM

Then you move all the way up to the scale to the top customers, or your big business customers. The banks do want a one to one relationship; they will have a relationship manager that personally comes to see them. They’re a completely different client to the ones at the bottom of the pyramid.

What they want to do here is build value into each of the layers, because the lower layers are still very important. So they make offers to the people in the different categories. They do not make the same offer to everybody because they are completely different clients. That’s what the customer relationship management system is doing – it’s giving you the ability to chop and change those clients; find out what the clients are doing; and sell to them.

What happens within a CRM system is that people start doing a certain thing; start buying a certain product from you; start asking about something. What this allows you to do is question – if this person buys/does this and has a certain profile, let me search for everybody else who has got that profile and I’ll make an offer to them as well. That’s how you can develop product with CRM. The first products will be what you think you can actually sell them. After a while you will notice trends happening. Then you can go back and search the CRM for that.

That’s the work (by Don Peppers and Martha Rogers). It’s a very good book, well worth reading if you want to read through it called “Managing Customer Relationships”. It’s a book I highly recommend. I will go through a few other books later on.