Learning Objectives

By the end of this chapter, you will be able to:

  • Define Operational CRM and its purpose.
  • Describe the key features and benefits of Sales Force Automation (SFA).
  • Explain the role of Marketing Automation in managing campaigns and nurturing leads.
  • Identify the key features of Customer Service and Support Automation, such as ticketing systems and knowledge bases.

Operational CRM: Automating Customer-Facing Processes

Operational CRM is the component of CRM that supports the front-office business processes that involve direct interaction with customers. The goal of operational CRM is to improve the efficiency and effectiveness of these customer-facing activities.

Operational CRM automates sales, marketing, and service Figure 1: Operational CRM Components

Operational CRM systems provide the tools that enable the day-to-day execution of a CRM strategy. They are typically broken down into three main components: Sales Force Automation, Marketing Automation, and Customer Service Automation.

flowchart TB
    OCRM["🛠️ Operational CRM\n(Front-Office)"]

    OCRM --> SFA["📈 Sales Force\nAutomation\n(SFA)"]
    OCRM --> MA["📣 Marketing\nAutomation"]
    OCRM --> CSA["🏥 Customer\nService\nAutomation"]

    SFA --> SFA_F["Lead Management\nPipeline Tracking\nForecasting"]
    MA --> MA_F["Campaigns\nEmail Marketing\nLead Scoring"]
    CSA --> CSA_F["Ticketing\nKnowledge Base\nSelf-Service"]

    style OCRM fill:#1565c0,color:#fff

Figure 2: Three Pillars of Operational CRM

1. Sales Force Automation (SFA)

SFA systems are designed to support and streamline all phases of the sales process, from identifying leads to closing deals. By automating many of the administrative tasks performed by salespeople, SFA allows them to focus more of their time on actually selling.

Key features of SFA include:

  • Contact and Account Management: Provides a central repository for all information about customers and their organizations.
  • Lead and Opportunity Management: Helps salespeople track potential customers (leads) and manage the deals they are working on (opportunities) through the sales pipeline.
  • Sales Forecasting: Uses historical data and pipeline information to help sales managers predict future sales revenue.
  • Task and Activity Management: Allows salespeople to manage their schedules, track calls and emails, and set reminders for follow-ups.

2. Marketing Automation

Marketing automation systems are used to manage and automate marketing campaigns and communications. They help businesses market more effectively on multiple channels and personalize the experience for each lead.

Key features of marketing automation include:

  • Campaign Management: Allows marketers to design, execute, and measure the performance of multi-channel marketing campaigns (e.g., email, social media, web).
  • Email Marketing: Automates the process of sending targeted email campaigns to segments of the customer base.
  • Lead Nurturing and Scoring: Automatically sends a series of relevant communications to new leads over time to “nurture” them until they are ready to be passed to the sales team. The system can also “score” leads based on their behavior (e.g., opening an email, visiting the pricing page) to identify the most promising prospects.

3. Customer Service and Support Automation

These systems are focused on managing all aspects of customer service to ensure that customer issues are resolved quickly and effectively, leading to higher satisfaction and retention.

Key features of customer service automation include:

  • Case Management (Ticketing Systems): When a customer reports an issue, a “case” or “ticket” is created. The system tracks the case from the time it is reported until it is resolved, ensuring that no customer issue is lost or forgotten.
  • Knowledge Bases: A centralized, searchable repository of information and solutions to common problems. Customer service agents can use the knowledge base to find answers quickly, and it can also be made available to customers for self-service.
  • Customer Self-Service Portals: Web portals that allow customers to find answers to their own questions, track the status of their support tickets, and manage their account without having to contact a service agent. This empowers customers and reduces the workload on the support team.

Summary

Operational CRM automates and improves the efficiency of an organization’s customer-facing processes. It is comprised of three main pillars: Sales Force Automation (SFA) to empower the sales team, Marketing Automation to streamline campaigns and nurture leads, and Customer Service Automation to manage support requests effectively. Together, these systems provide the tools necessary to execute a customer-centric strategy on a day-to-day basis.

Key Takeaways

  • Operational CRM supports the front-office processes of sales, marketing, and customer service.
  • Sales Force Automation (SFA) helps salespeople manage their leads, opportunities, and activities.
  • Marketing Automation is used to manage campaigns and nurture leads through targeted communication.
  • Customer Service Automation uses ticketing systems and knowledge bases to improve support efficiency.

Discussion Questions

  1. How does Sales Force Automation (SFA) help a sales manager?
  2. Explain the concept of “lead scoring” in marketing automation. Why is it useful?
  3. What are the benefits of a customer self-service portal for both the customer and the company?