Whitepaper Internet of Things and Customer Rela onship Management - Dinesh Khedkar - LTI

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Whitepaper Internet of Things and Customer Rela onship Management - Dinesh Khedkar - LTI
Whitepaper
Internet of Things and Customer
Relationship Management
Dinesh Khedkar
Contents
                                                      -

1.   Introduction                                              3

2.   What is ‘Internet of Things’?                             3

3.   Future of Internet of Things in Application Development   4

4.   Internet of Things and CRM                                5

5.   Benefits of Inernet of Things With CRM Application        7

6.   Conclusion                                                7
Internet of Things and Customer Relationship Management

Introduction
In earlier days, the focus of Customer Relationship            What is ‘Internet of Things’?
Management (CRM) was to reduce the cost
                                                               The    dictionary   meaning      is,     “A   proposed
around    customer      acquisition,     retention,   and
                                                               development of the Internet in which everyday
servicing them. While the current CRM focus is
                                                               objects have network connectivity, allowing them
also around reducing the cost, it has now become
                                                               to send and receive data.”             To simplify this
more about providing quality of service to
                                                               definition, consider your everyday objects like car,
customers. Companies are looking to retain their
                                                               smart phone, cloths, refrigerator, TV, etc. are
existing customers, and while they now have real-
                                                               embedded with built-in sensors, and these
time integration, also through social media, with
                                                               sensors will collect the data on a certain event. This
CRM applications, customers are looking for next
                                                               collected data will be sent to other devices to
level of services. They are expecting quick
                                                               perform certain preventive actions, or to central
response and resolution to their problems
                                                               system through internet. And, CRM applications
However, what if, we are providing predictive and              will access the required data for further processing.
preventive actions by alerting our customers in
                                                               There are three important attributes you need for IoT:
advance, before they face the problem and
provide a service or solution to the issues they                       Sensors
might face in the near future? What if, we get to
know the buying pattern of customer in real-time,                      Wireless Internet Connectivity

and it will help CRM application to include them in
                                                                       Computational Capability at the Device
the right marketing campaign?
                                                                       i.e. Data Processing Capability

Is it possible?                                                Below image depicts the understanding of IoT
                                                               with CRM application at a very high level.
Yes, it is possible by using 'Internet of Things' and
its tight integration with CRM Applications. This
paper discusses the importance of 'Internet of
Things'   (IoT)   and      its    use   with    Customer
Relationship Management (CRM).

  According to Gartner, there will be more
  than 25 billion connected things by 2020. It
  means Internet of Things is going to be a
  huge      connected            network       between
  people-to-people, people-to-things and
  things-to-things.

L&T Infotech Proprietary                                                                                        03 / 08
Internet of Things and Customer Relationship Management

                Generates Events        Central Server                                      Internet
                 and Send It to
                 Central Server  Internet                                   CRM Server Picks
                                                                           Required Data From
                                                                             Central Server
                                           Sales Representative

                                     Marketing Representative
  IoT-Enabled
     Items                               Service Representative
                                                                                              CRM Server

Future of Internet of Things in Application Development
According to McKinsey & Company (Source: http://www.mckinsey.com/insights/high_tech_telecoms_
internet/the_internet_of_things), Six distinct types of applications are emerging in two broad categories:
a. Information & Analysis b. Automation & Control

               Information and analysis                                Automation and control

       01                  02                03                   01               02                  03
    Tracking           Enhanced         Sensor-driven        Process           Optimized           Complex
    behavior           situational        decision         optimilzation        resource         autonomous
                       awareness          analytics                           consumption          systems
 Monitoring         Achieving          Assisting huamn    Automated          Control of         Automated
 the behaviour      real-time          decision making    control of         consumption        control in open
 of persons,        awareness of       through deep       closed             to optimize        enviornmnets
 things, or data    physical           analysis and       (self-contained)   resource use       with great
 through space      enviornment        data               systems            access network     uncertainity
 and time                              visulaization
 Examples:          Examples:          Examples:          Examples:          Examples:          Examples:
 Presence-base      Sniper             Oil field site     Maximization       Smart meters       Collisions
 d advertising      detection          planning with      of lime ldn        and energy         avoidence
 and payments       using              3d visualization   throughput via     grids that         systems to
 based on           direction of       and simulation     wireless           match loads        sense objects
 locations of       sound to                              sensors            and genration      nad
 consumers          locate             Continous                             capacity in        automatically
                    shooters           monitoring of      Continous ,        order to lower     apply brake
 Inventory and                         chronic            precise            costs
 supply chain                          diseases to        adjustments in                        Clean uo of
 monitoring and                        help doctors       manufacturing      Data-center        hazardous
 management                            determine best     lines              management         materials
                                       treatments                            to otimize         theough the
                                                                             energy storage,    use of swarms
                                                                             and processor      of robots
                                                                             utilization

L&T Infotech Proprietary                                                                                    04 / 08
Internet of Things and Customer Relationship Management

Internet of Things and CRM
In current Customer Relationship Management,                collecting and analyzing product usage data to
there   are      four   important   drivers    (Source:     understand how the product is performing, how
https://www.gartner.com/newsroom/id/2665215)                much is it being utilized, which features are being
                                                            used, and which features are not. Because
        Mobile
                                                            products are now connected we can stay in touch
        Cloud                                               with the customer throughout the entire lifecycle
                                                            of the product. This creates tremendous potential
        Social                                              for cross-selling and up-selling.”

        Big Data                                            Consider a scenario of hearing aid industry.
                                                            Hearing Aid Industry has become more advanced
According to Gartner, ‘Internet of Things’ is going
                                                            and trying to introduce innovative features in their
to be the fifth driver after these four.
                                                            products. Examples could be longer battery life,
According to Gartner, "These drivers are spurring a         Bluetooth     compatibility,   noise   reduction      or
critical need for more traditional operational CRM,         controlling your hearing aid device through smart
as CRM continues to top software investment                 phone, etc.
priorities. This further validates businesses' focus
                                                            Let us take few scenarios from this industry and
on enhancing customer experience and consistent
                                                            understand how it will help in providing services to
investment in CRM software, especially in CSS,
                                                            customer, with the help of IoT and its integration
marketing and sales software".
                                                            with CRM.
IoT is going to provide valuable real-time data to
CRM systems. It will help product companies in              Below are few examples:
many different ways to increase their sale,
                                                            • A customer’s hearing aid instruments battery is
promotions of new products, and provide next
                                                              malfunctioning, and it needs to be replaced
level of services to existing customers.
                                                              within next few days. As a customer service
Jim Heppelmann, CEO of PTC , a US- based                      representative, you are informing the customer
technology company named global leader in IoT                 proactively    and   updating      him   that     your
platform by IDC Marketplace, and a leader in IoT              instrument’s battery is having some issues, and it
software platform by Forrester, says, “The whole              needs replacement very soon. It will help a
relationship with the       customer is       changing        customer to replace the battery, and he/she will
because companies are now able to stay in touch               not face any problem while using the product.
with the product after the initial sale. The product,
in a sense, becomes a sensor for the relationship
with the customer. Companies can gain amazingly
detailed insights into the customer relationship by

L&T Infotech Proprietary                                                                                      05 / 08
Internet of Things and Customer Relationship Management

• A customer’s hearing aid instrument is under                  confidence on our services, products, and increase
  warranty period and not working properly.                     their satisfaction level as well.
  Suddenly, one day you get a call from customer
                                                                Apart from this, IoT with CRM will help sales and
  service representative that we are replacing your
                                                                marketing functions in multiple ways. Real-time
  instrument, since it is not working properly and it
                                                                data generated by IoT will help understand the
  is under warranty period.
                                                                usage of the product, buying pattern of the
                                                                customer, opportunities for cross-selling and up
  Cisco    predicts          that   the     opportunity
                                                                selling, deciding flexible pricing, etc. Marketing
  represented by the Internet of Things will
                                                                people can analyze the IoT generated data to
  be worth USD 14.4 trillion for companies
                                                                decide future campaigns that need to run along
  and      industries         worldwide        in      the
                                                                with right customers. It will help them reduce the
  next decade.
                                                                cost in terms of market research. This data can also
                                                                help the marketing function to identify those

• The   customer        is    not   using    certain    new     customers, which are at the edge of not using our
  incorporated features of an instrument because                products anymore. For such customers, we can run
  of some      reason.       On     such    event,   service    separate campaigns, or invite them for trade
  representative make a call to customer and ask                shows and product launch programs, and try to
  for a session or training, so that he/she will get            retain them.
  awareness of those new features and customer
  can start using it.                                           Normally, it’s said that the life cycle
                                                                of hearing aid product is of two
In all these scenarios, how service representatives             years i.e.
will get to know about all those issues? It is
because a sensor placed in a hearing aid                        • A product is launched

instrument will send a notification to a central                • After one year, its upgrade version is offered

application that there is some issue with battery or            • Then it’s a replacement with the new product

instrument, and it needs replacement, or it will                During this life cycle, IoT will play a major role to
trigger some informative information that certain               provide real-time data to CRM application. This
features of the product are not being used for                  real-time data will help to connect with the
single time. This notification will get integrated              customer throughout product life cycle, which will
with CRM application, and a service case will be                help in multiple ways. It will help to improve prod-
registered automatically against the customer. This             ucts features, measure the product success, or
generated case will be assigned to a service                    increase the product sell, etc.
representative automatically, who will make a call
to customer to update the problem, or asking for
other services. This way a customer will be happy
that the Product Company is taking a preventive
action, and providing service promptly before any
issue is faced. It will help gain the customer’s

L&T Infotech Proprietary                                                                                      06 / 08
Internet of Things and Customer Relationship Management

Benefits of Internet of Things
with CRM Application
•   Connected with customer throughout                     •   Increase in the profit margin because of
    product life cycle                                         decrease in service cost

•   Tremendous potential in cross-selling and up           •   Provides personalized customer experience
    selling of products or services
                                                           •   Right customer for right campaign
•   Real-time data will be available for analysis,
                                                           •   Targeted offers to customer
    which will help to support higher margin
    business operations                                    •   Send Customized marketing material and
                                                               product broachers
•   It will help to provide proactive measures
    resulting in better customer service and their         •   Automatic feedback tracking for the launched

    satisfaction                                               marketing campaign

•   Reduce in response time                                •   Reduce marketing research cost

Conclusion
Expectations of customers have tremendously                products only. It is possible only through IoT and its
increased from product or service companies.               integration with CRM applications.
Customers are looking for prompt and predictive
                                                           IoT with CRM, will help companies grow their sale
services. They will promote your product only
                                                           and business, while reducing the overall cost. In
when they will get a prompt service, and if product
                                                           addition, it will help to retain the customer base
works well. They do not want to get multiple calls
                                                           and their satisfaction as well. CRM with IoT has a
for product campaign or unnecessary calls of
                                                           great future, it will take customer relationship to
services and products, which are not useful for
                                                           the next level in the near future.
them. Companies also want to retain their
customer base and encourage them to buy their

L&T Infotech Proprietary                                                                                  07 / 08
Internet of Things and Customer Relationship Management

About the Author
                      Dinesh Khedkar
                      Project Manager & Solution Architect – MS Dynamics Practice

                      Dinesh is a Microsoft Dynamics-Certified Consultant, with vast experience in
                      Microsoft Technology. He has witnessed a transformation for Microsoft Dynamics
                      CRM from version 4.0 to Dynamics 365, and has worked on versions 4.0 to
                      Dynamics 365. He has vast experience of implementing CRM global templates
                      across multiple industries.

LTI (NSE: LTI, BSE: 540005) is a global technology consulting and digital solutions Company helping more than 250
clients succeed in a converging world. With operations in 27 countries, we go the extra mile for our clients and
accelerate their digital transformation with LTI’s Mosaic platform enabling their mobile, social, analytics, IoT and cloud
journeys. Founded 20 years ago as a subsidiary of Larsen & Toubro Limited, our unique heritage gives us unrivaled
real-world expertise to solve the most complex challenges of enterprises across all industries. Each day, our team of
more than 20,000 LTItes enable our clients to improve the effectiveness of their business and technology operations,
and deliver value to their customers, employees and shareholders. Find more at www.Lntinfotech.com or follow us at
@LTI_Global

info@Lntinfotech.com

L&T Infotech Proprietary                                                                                          08 / 08
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