Definition: -

CRM is concerned with creating improved shareholder valuet h r o u g h

t h e u s e o f c u s t o me r c e n t r i c b u s i n e s s p r o c e s s e s a n d
t h e development of appropriate relationships with consumers.
Implementing CRM:
CRM r e u i r e s a n i n t e g r a t i o n o f a f i r m! s r e s o u r c e s "
p e o p l e # operations and mar$eting capabilities to deliver added value
to thecustomers. CRM should provide businesses and organi%ations with
a& s i n g l e v i e w' o f t h e i r c u s t o me r s a n d a c r o s s
i r r e s p e c t i v e o f t h e interactive channel or medium through which the
customer accessesthe service or product. (or e)ample# a business *e.g. hotel+
customer'sprofile and personal references should be accessible to the
business* or hot el + i r r espect i ve of channel i . e. whet her t he
cust omer boo$s o n l i n e # c a l l s i n o r w a l $ s i n t o a n ,
l o c a t i o n s h o u l d n o t m a $ e a difference to the service provided
based on the personal profile of the business client.
It is enabled through:
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Information
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.rocesses
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/echnolog,
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0pplications
0 firm that wants to implement CRM must align it! s
businessp r o c e s s e s c r o s s - f u n c t i o n a l l , i n t h e b e s t
p o s s i b l e wa , t o a l l o w increased customer focus with an aim to
deliver added value to thecustomer./o implement CRM# the following steps
must be followed:
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Develop a CRM framewor$
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0lign current business processes
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De s i g n n e w c r o s s - f u n c t i o n a l b u s i n e s s p r o c e s s e s
* wh e r e reuired+
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Develop (unctional 1pecifications *client-side services+
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Develop /echnical 1pecifications
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Ma t c h / e c h n i c a l 1 p e c i f i c a t i o n s t o a v a i l a b l e
t e c h n o l o g , *1,stems# software# etc+
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.roduct Configuration
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Data Migration and Integration
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1taff /raining
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Customer 1egmentation:
( o r C R M t o b e e f f e c t i v e # t h e organi%ation's
customer base must be stratified into segments based on
commonal i t i es amongst gr oups' of i ndi vi dual s and customers. /his
also reuires the organi%ation to have strategiesto target consolidated customer
segments.
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Re d u c e d Co s t o f 1e r v i c e :
a cust omer r el at i onshi p st r at eg, should reduce the cost of service
for both the organi%ation andit's customers and increase satisfaction levels.
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1ervice as a differentiator:
/he mor e compet i t i ve a mar $et becomes the more a business will
need to rel, on its superiorproduct ualit, and ualit, of service to
differentiate itself fromother businesses and providers.
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/ie-in's over time:
/he greater the effort a customer spends ona r el at i onshi p over t i me# t he
gr eat er t he cust omer ' s st a$e i nhel pi ng t o ensur e t hat t he
r el at i onshi p wor $s and t he mor e convenient and lo,al the customer
becomes.
Re d u c e d Co s t o f 1e r v i c e :
a cust omer r el at i onshi p st r at eg, should reduce the cost of
service for both the organi%ation andit's customers and increase
satisfaction levels.
1ervice as a differentiator:
/he mor e compet i t i ve a mar $et becomes the more a business
will need to rel, on its superiorproduct ualit, and ualit, of service
to differentiate itself fromother businesses and providers.
/ie-in's over time:/he greater the effort a customer spends ona
r el at i onshi p over t i me# t he gr eat er t he cust omer ' s st a$e
i nhel pi ng t o ensur e t hat t he r el at i onshi p wor $s and t he
mor econvenient and lo,al the customer becomes.
.itfalls to avoid:
Man, CRM programs fail for two reasons:
2 a c $ o f s u p p o r t i v e b u s i n e s s p r o c e s s e s : 3 e c a u s e
b u s i n e s s pr ocesses and or gani %at i onal goal s ar e not par t
of a st r at egi c CRM plan tied to organi%ational goals and ob4ectives.
2ac$ of an enterprise perspective: (or Relationship Mar$etingt o
b e e f f e c t i v e # i t r e u i r e s t h a t t h e o r g a n i % a t i o n c r e a t e s
a seamless enterprise view. 0 lot of CRM programs fail
becauset h e , a r e a s s e mb l e d wi t h d i s p a r a t e c o mp o n e n t s
t h a t a r e n ! t designed to wor$ together as part of a complete
CRM s,stemdesigned to meet organi%ational ob4ectives
Customer Relationship ManagementModel
CR50/5 0 D0/0 3015
060271I1
C81/9M5R 1525C/I96
C81/9M5R /0R:5/I6:
R520/I961;I. M0R<5/I6:
.RI=0C7 I11851
M5/RIC1
9b4ective of the stud, of CRM
CRM# i n i t s br oadest sense# means managi ng al l i nt er act i onsand
busi ness wi t h cust omer s. /hi s i ncl udes# but i s not l i mi t ed
t o# i mp r o v i n g c u s t o me r s e r v i c e . 0 g o o d CRM p r o g r a m wi l l
a l l o w a busi ness t o acui r e cust omer s# ser vi ce t he cust omer #
i ncr ease t he value of the customer to the compan,# retain good
customers# anddetermine which customers can be retained or given a higher
level of s e r v i c e . 0 g o o d CRM p r o g r a m c a n i mp r o v e
c u s t o me r s e r v i c e b , facilitating communication in several wa,s:
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.r ovi de pr oduct i nf or mat i on# pr oduct use i nf or mat i on#
andtechnical assistance on web sites that are accessible >? hours ada,#
@ da,s a wee$
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Identif, how each individual customer defines ualit,# and thend e s i g n a
s e r v i c e s t r a t e g , f o r e a c h c u s t o me r b a s e d o n t h e s e individual
reuirements and e)pectations.
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.rovide a fast mechanism for managing and scheduling follow-up sal es cal l s
t o assess post - pur chase cogni t i ve di ssonance# r epur chase
pr obabi l i t i es# r epur chase t i mes# and r epur chase freuencies.
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.rovide a mechanism to trac$ all points of contact between acustomer
and the compan,# and do it in an integrated wa, sothat all sources and
t,pes of contact are included# and all userso f t h e s , s t e m s e e t h e s a me
v i e w o f t h e c u s t o me r * r e d u c e s confusion+.
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;elp to identif, potential problems uic$l,# before customer occur

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.r ovi de a user - f r i endl , mechani sm f or r egi st er i ng cust omer
c o mp l a i n t s * c o mp l a i n t s t h a t a r e n o t r e g i s t e r e d wi t h
t h e c o m p a n , c a n n o t b e r e s o l v e d # a n d a r e a m a 4 o r
s o u r c e o f customer dissatisfaction+.
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. r o v i d e a f a s t m e c h a n i s m f o r h a n d l i n g
p r o b l e m s a s n d complaints *complaints that are resolved
uic$l, can increasecustomer satisfaction+.
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.r ovi de a f ast mechani sm f or cor r ect i ng ser vi ce
def i ci enci es* cor r ect t he pr obl em bef or e ot her cust omer s
e)per i ence t hesame dissatisfaction+.
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8se internet coo$ies to trac$ customer interests and personali%eproduct
offerings accordingl,
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8se t he I nt er net t o engage i n col l abor at i ve cust omi %at i on or real-
time customi%ation
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. r o v i d e a f a s t me c h a n i s m f o r ma n a g i n g a n d
s c h e d u l i n g maintenance# repair# and ongoing support *improve
efficienc, and effectiveness+
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Mechanism to evaluate .otential <9Ms.
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/o develop integrated Database.
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0ssessing the need of .otential <9Ms.
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Aa,s to meet those needs.
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Identif, the softer elements.
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Devising a wa, to Retain and grow with those <9Ms.
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Moving further ahead 1atisfaction Delightment 29702I/7
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/o develop 1trateg, and action plan on uarter B annual basis.
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/o gain $nowledge about consumer behaviour
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/o $now# how to maintain relationship with customerC
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/o $now# the needs anal,sis of customer
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/ o u n d e r s t a n d # wi t h t h e h e l p o f f e e d b a c $ f o r m t h a t
wh , customers are not trading with 0ngel
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/o $now# the customer perception about compan,'s products Bservices
DE

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/o $now# the grievances among the customers about products Bservices/he
CRM program can be integrated into other cross-functionals,stems and thereb,
provide accounting and production informationto customers when the, want it.
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<eeping 5)isting Customers
:rading customers from ver, satisfied to ver, disappointed shouldhelp the
organi%ation in improving its customer satisfaction levelsand scores.
0s the satisfaction level for each customer improves# soshall the
customer retention with the organi%ation.
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Ma)imi%ing 2ife time value
5)ploit up-selling and cross-selling potential. 3, identif,ing lifes t a g e a n d
l i f e e v e n t t r i g g e r p o i n t s b , c u s t o me r # ma r $ e t e r s
c a n ma)imi%e share of purchase potential
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/hus the single adults shallreuire a new car stereo and as he grows
into a married couple hisneeds grow into appliances.
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Increase 2o,alt,
2o,al customers are more profitable. 0n, compan, will li$e itsmi n d s h a r e
s t a t u s t o i mp r o v e f r o m b e i n g a s u s p e c t t o b e i n g
a n advocate. Compan, has to invest in terms of its product and
serviceofferings to its customers. It has to innovate and meet the ver, needsof
its customers so that the, remain as advocates on the lo,alt, curve.Referral
sales invariabl, are low cost high margin sales