What is CRM?

Customer Relationship Management is a comprehensive

strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer.
CRM is a management approach a model that puts a customer

at the core of a company processes and practices.

CRM leverages cutting edge technology integrated strategic

planning up-close and personal marketing techniques and Organization development tools to build internal external relationships that increase profit margins and productivity within a company.

CRM Definition
CRM is a cross functional process for achieving:
A continuing dialogue with customers Across all their contact and access points, with Personalized treatment for the most valuable customers To increase customer retention and the effectiveness of

marketing initiatives

AND PHASES ARE

2

Acquisition

Lead Account Contact opportunity 3

Prospectin g - Target to lead conversion

Retention

- Campaigns to educate target

-Customer / contact -Case / issue / tickets

OK .. But the question is still the same

What is target??

when should I consider the details as lead and when it becomes contact???
What is opportunity??? Why contact and account are different??? Why & why

Prospecting
First stage of any sales process : Principle module Campaign You create a list of people based on certain criteria like: age, Sex, Special interests, demography etc. and run a campaign email / tele-calling / outdoor etc. to reach them

Recipients feedback Campaign So::: Campaign recipients = Targets Interested Targets = Leads Leads

Acquisition
: Contact, Account, Opportunity
1
Follow-up calls, meetings

3 -Converting Lead contact -Adding Contact against Account - Creating Opportunity

Leads

Qualified Leads

Sales conversion

So::: Contacts are more qualified leads with the defined interest in your services/products. Accounts are generally company details and contacts belongs to these accounts. Opportunity is the defined contacts (buyers) interest in the specific services with an expected monetary value.

Retention
Principle Module: cases, bugs Once sales is closed; the most important activity is customer retention. It is about creating, recording and assigning cases/bugs against customer complains Handling and resolving the cases with customer

satisfaction.
It gives you an opportunity for cross/up selling.

Evolution Of CRM

Need For CRM

To meet the changing expectations of customer due to: (a) social and demographic factors. (b) economic situations. (c) educational standards. (d) competitors product (e) experience. Loyal customers are the source of most profits A relatively small percentage of customers may generate most of the profits. Marketing cost and efforts are less for existing customers. Dissatisfied customers tell others about their experiences. So do satisfied customers. Slowing the rate of defection grows the customer base. Reducing costs (e.g. through self-service).

Models of CRM
CRMs can be broken down into three key components.
Front Office Operations (sales, marketing, service etc)

Interaction within the firm (email, letters, phone, meetings, fax etc)

Operational

Collaborative

Analytical

Enhance Company Relationship with Customer

 Operational: Because of sharing information, the

processes in business should make customers need as first and seamlessly implement. This avoids multiple times to bother customers and redundant process. Analytical: Analysis helps company maintain a long-term relationship with customers. Collaborative: Due to improved communication technology, different departments in company implement (intraorganizational) or work with business partners (interorganizational) more efficiently by sharing information.

The Customer Relationship

Target

Find
Understand Attract Qualify Close Learn from Develop
Develop Attract Engage

The Key Stages of CRM

Stage Satisfaction Based State Re-active Culture
Meet customer needs Respond to complaints Minimal evaluation of customer service levels

Performance Based

Pro-Active

Evaluate customer perception Identify customer retention factors

Commitment Based

Very ProActive

Evaluate multiple customer needs Continuous inbound/outbound flow and feedback Continuous improvement

Economics Of Customer Retention

Winning back a lost customer can cost up to 50-100 times as much as keeping a current one satisfied. Rob Yanker, Partner, McKinsey & Company

Understanding your customer is key to retention..

Customers Desires
Convenience: One-stop shopping, tools, online services Relevance: all community, content, products and services

around a topic Simplicity: usability, ease-of-use Choice: Selection of products/ services and way they are presented Voice: Interaction with and responsiveness of merchant Reinforcement: community, ratings / reviews Safety: of credit card and other personal data Control: over use of her private data, plus offers, content Recognition: Remember and apply my unique name & preferences. (Ex. Women surveyed insisted they wanted to be known as unique not part of a group.)
(c) 2000 Michele Bartram, mjb@webpractices.com 17

Building Customer Relationships

A major shift in marketing thought:
from mass marketing to individualized marketing From focus on acquiring lots of new customers to

retaining and building more business with fewer loyal high-value customers

Goal: build long-term relationship

A firms ability to build and maintain relationships with

customers, suppliers, and partners may be more important than the firms land, property, and financial assets.

The key: Treat customers like friends

Relationship Marketing
Establishing, maintaining, enhancing, commercializing

customer relationships through promise fulfillment

Building long-term profitable relationships with mutual

benefit
Tool: promise fulfillment => customer satisfaction

Dominos Pizza ads claim 30

minute delivery of pizzas.

Pizza example
Subconscious Expectations

Pizza with specified toppings Take 10 minutes Come in a packed box Remain warm till you reach home Charges standard and acceptable price Pizza will taste reasonably good

You will come back is all the above are met

Pizza example
If you go regularly

Rapport with employees You forgive if they mess up with one or two expectations

Degree of confidence determines tolerance

If using first time, and even one expectation is not met You will never go again

Pizza example
Exceeded expectations

Deliver on all expectations Give you a garlic bread FREE !

You will tell everyone about it

CUSTOMER RETAINED????

Advantages Of CRM
Using CRM, a business can : Provide better customer service Increase customer revenues Discover new customers Help sales staff close deals faster Make call centers more efficient Simplify marketing and sales processes

Electronic Customer Relationship Management

Latest paradigm in the world of CRM

NEED OF e-CRM
Due to the introduction of new technology To satisfy the customers at global level.

(Sometimes customer itself prefer to do online purchasing.)

Basically e-CRM is concerned with attracting & keeping

economically valuable customers & eliminating less profitable ones.

Goals of e-CRM
Reduce : Costs of marketing Improve : Accuracy and relevancy of recommendations Customer satisfaction Increase : Conversion rate, i.e., Turn browsers into buyers Customer retention and frequency Order size

The 3 ways of achieving eCRM

People

Processes

Technology

Internet, Intranet & Extranet

Extranet Intranet
Managemen t Employees Production Centres Other departments Vendors/Suppliers Distributors, Bankers Consultants

Internet
Customers Competitors General Public

A suggested eCRM transition

Mass Marketing

Database Marketing

Profit based Marketing

Customer specific Real time Marketing

Measurement based framework

Collect Customer Data Analyze Customer Data

Formulate Information Based Hypothesis

Collect Data on Performance of Hypothesis

Process of e-CRM

e-CRM Implementation Steps

 Enterprise resource planning (ERP) is business

management softwareusually a suite of integrated applicationsthat a company can use to store and manage data from every stage of business, including: Product planning, cost and development Manufacturing Marketing and sales Inventory management Shipping and payment

Difference Between CRM And e-CRM

CRITERION CRM e-CRM

Customer Contacts

Traditional Means-Retail Store, Telephone Or Fax

Through Internet, E- Mail, Wireless, Mobile And PDA Technologies

Designed For Frontend As Well As backend Applications Through ERP, Data Mart And Data Warehouse Here, Browser Is The Customers Portal To e-CRM

System Interface

Works With Backend Application Through ERP System

System

IT Requires PC Clients To Download Various Applets And Applications.

Contd..
CRITERION Customization and Personalization CRM Different People Require Different Information But Personalized Views For Different Audience Are Not Possible Here System Is Designed Around Product And Job Functions. Here, Applications Are designed Around One Department Or Business Unit. Implementation Is Longer And Costly. eCRM Personalized Views Based On Purchase Are Possible.

System Focus

System Is Designed Around The Customers Need. Enterprise Wide Portals Are Designed And Not Limited To A Single Department. System Implementation Require Less Time And Cost.

Systems Maintenance And Modifications

Categorizing Customers
H i g h
*You have no choice but to handle them very carefully. Will consume energy. #Think of innovate ways of getting them on your side, but the cost of acquisition must be controlled *Cultivate relationship. Spend energy Go out of your way # Think of strategies to move them away from competition Will consume disproportionately high energy * Very cautious decision needed Re-examine business plan & strategy. Evaluate that your loss does not become nightmare for you # Needs in-depth strategic review as acquisition alone and dissatisfaction later could be more harmful

L o w

* Focus on short term profitability Spend minimum energy to meet your objectives # Dont pursue Use opportunity as it comes Short term acquisition should not affect Long term image

Low
Profitability Potential * Existing Customer # Potential Customers

High

Key applications of e-CRM

Information integration application
An incomplete view of customers reduces their loyalty and

trust Consolidating customer data and information from different sources To keep up with every customers interaction Customer analysis application
Measures, predicts, and interprets customer behaviors Predictive models to identify the customers most likely to

perform a particular activity Online analytical processing, data mining and statistics

Continued.
Real-time decision application To coordinate and synchronize communications across disparate customer An effective real-time decision application promotes information exchange between the company and every customer Personalized messaging application Building customer profiles and enables customized product and service offerings based on the information integration application

Benefits :
Retaining existing customers. Selling more to existing customers. Finding and winning new customers. Interactions lead to trusted relationships:
Focus the business on improving customer relationships and

earning a greater share of each customers business.

Increasing efficiency. Improving marketing and sales decision making. Enabling process measurement leading to process improvement.

Benefits Of e-CRM
Convenience Improvement in overall quality of customer experience Increased profitability

More effective marketing. Improved customer service and support.

.
Greater efficiency and cost reduction. Increased customer loyalty. (time frame)

Continued.
Enables 24/7 customers interaction: optimize interactive relationships between customers and companies.
Personalization through technology: enable a business to extend its personalized messaging through the Web and email.

Continued.
customer response competitiveness through differentiation Profitability.

e-CRM : The Closure

Get a 360degree view of your customer