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Presentation by

MOHAMMED SHAMEEM A
IInd SEM MBA
ICM, POOJAPPURA
REG NO: 130

CUSTOMER RELATIONSHIP
MANAGEMENT

CRM is the development and maintenance of mutually
beneficial long-term relationships with strategically
significant customers
(Definition by Buttle, 2000)
CRM is concerned with the creation, development and
enhancement of individualised customer relationships with
carefully targeted customers and customer groups resulting in
maximizing their total customer life-time value
Definition Of CRM:
CRM are methods used to interact and review customers

Concept of CRM
A CRM business strategy leverages marketing, operations,
sales, customer service, human resources, R&D and
finance, as well as information technology and the Internet
to maximize profitability of customer interactions.

CRM technology applications link front office and back office
functions with the companys customer touch points. Touch
points are controlled by separate information systems.
Customer relationship management is not a new
concept but is now practical due to recent advances in
enterprise software technology.

CRM EVOLUTION
IN 70s/80s- PRODUCT CENTRIC
IN 90s- CUSTOMER CENTRIC
21
st
CENTUARY- RELATIONSHIP CENTRIC
CRM developed for a number of reasons:

The 1980s onwards saw rapid shifts in business that
changed customer power

Supply exceeded demands for most products

Sellers had little pricing power

The only protection available to suppliers of goods and
services was in their relationships with customers

Why did CRM develop
Determinants of CRM:
The willingness to rely on the ability,
integrity, and motivation
Trust
The ability of a selling organisation to
satisfy the needs
Value
Determinants of CRM:
In addition to Trust, and Value, Salespeoples must:
Understand customer needs and problems;

Meet their commitments;

Provide superior after sales support;

Make sure that the customer is always told the truth;

Have a passionate interest in establishing and retaining a
long-term relationship.

Phases of CRM:
Functions of Customer Relationship:
F
u
n
c
t
i
o
n
s

O
f

C
R
M

Direct
Profit
Volume
Safeguard
Indirect
Innovation
Market
Scout
Access
Developing a CRM strategy is an investment of your time that will be
beneficial over the long-term.
Customer Acquisition

Customer Retention

Customer Loyalty

Cost Reduction

Improve Productivity

CRM) solution is best treated as a six-stage process :
Stage one: Collecting information

Stage two: Storing information

Stage three: Accessing information

Stage four: Analysing Customer behaviour

Stage five: Marketing more effectively

Stage six: Enhancing the customer experience

As a starting point for developing a CRM strategy, your
business should identify its customer profile
Implementing a CRM system is more than installing a
software package.

Business Cycle of CRM
8. Retain
valuable
customers.
7. Acquire
customers
and
prospective
customers.

6. Deliver
increased
value to the
customer.
5. Interact
with
customers
and
prospective
customers.
4. Customize
by customer
segment.
3. Develop
product
services
Channels to
meet
customers
needs.
2. Differentiate
based on
customer needs,
characteristics
and behavior.
1. Understand
customers
needs
CRM
An example of CRM
A car dealership They send out a from of
questionaires to their recent customers to measure
satisfaction levels and to evaluate their own
service level.

Shopping malls They ask their customers what
their zip code is to measure and analyze where
their customers come from. This can be done to
target your marketing campaign geographically.


Information Technology and CRM: Examples

When tickets are purchased online via Makemytrip.com,
the website retains the customers details and their
purchase history. The website regularly send emails to
previous customers to inform them of similar upcoming
events or special discounts. This helps to ensure that
customers will continue to purchase tickets from
Makemytrip.com in the future.
Phone calls, emails, mobile phone text messages, or WAP
services can be used to reach to the customers.
Face-to-face CRM
Staff members often remember the names and favourite
services/products of regular customers and use this
information to create a personalised service for them.
However, face-to-face CRM could prove less useful when
organizations have a large number of customers as it would be
more difficult to remember details about each of them.
In addition to this e-crm and Face to face crm, there is
Social crm and Cloud crm which is being used with
higher frequency
Types of CRM
1.OPERATIONAL CRM

2. SFA

3.ANALYTICAL CRM

4.COLLABORATIVE CRM

5.GEOGRAPHIC CRM

CRM Programs Can Potentially Improve
Operational CRM processes customer data for a
variety of purposes:
Managing Campaigns
Enterprise Marketing Automation
Eg: call centers, BPOs

Sales Force Automation automates sales force-
related activities:
Tracking responses
Generating reports

Analytical CRM analyzes customer data for a variety
of purposes:
Design and target marketing campaigns
Product and service decision making
Management decisions

Types of CRM
Collaborative CRM covers aspects of a company's
dealings with customers that are handled by various
departments within a company
Direct communication
Service improvement

Geographic CRM (GCRM) combines geographic
information system and traditional CRM.
Geographic data can be analyzed to provide a
snapshot of potential customers in a region or
to plan routes for customer visits.

Relationship Networks
Manage customer value;

Act as customer advocate;

Enhance customer loyalty and build a health and
profitable network of relationships.
A relationship network consists of the company and its major
customers with whom the company has established long and
enduring business relationships.

The additional aspects of a salespersons job are to:
Relationship Network
Managing Customer Relationship
The salesperson must be involved in the following activities in order
to initiate, develop and enhance the process that is aimed at building
trust and commitment with the customer.
Identify the potential customers

Gather and study pre-call information;

Identify buying influences;

Plan the initial sales call;

Identify opportunities to build a relationship;

Illustrate the value of a relationship with the customer.
Initiating the Relationship:
Managing Customer Relationship
The role of global salespeople in the process is that of both
relationship builders and relationship promoters
Select an appropriate offering;

Customise the relationship;
Discuss customer concerns;


Link the solutions with the customers needs;

Summarize the solution to confirm benefits;

Secure commitment.
Developing the Relationship:
The ultimate outcome of a successful CRM strategy is the creation
of a unique company asset known as a relationship network.

Assess customer satisfaction;


Take action to ensure satisfaction;


Maintain open, two-way communication; and

Work to add value and enhance mutual opportunities.
Enhancing the Relationship:
Qualifying prospects for relationship building
Possibilities for Using CRM
A central database that is accessible by all employees to
view and update customer data.

Analysis of customer data including customer
segmentation and segmentation of potential customers.

Identifying and tracking potential customers.

Reports generated with up-to-date information, including
revenue forecasting and trend analysis.
An integrated CRM system can include the following features:
Possibilities for Using CRM
Improved customer service, loyalty and retention.

Customized marketing or sales campaigns.

Provide fingertip access to all information.

Wider customer base.

Know your best revenue opportunities.

Analysis of customer data including customer
segmentation and segmentation of potential customers.

The benefits of implementing a CRM business strategy are far
reaching.- ROI
Challenges of CRM
Problems of collecting and coordinating substantial
data can lead to privacy problems.

Difficult to work with

Requires additional work inputting data.

Requires continuous maintenance, information
updating

Difficult to integrate with other MIS


Common myths about CRM
CRM is the solution that will solve all our customer
problems

CRM is the internet.

CRM is just the latest name for Direct Marketing.

CRM means scoring and measuring customer value.

CRM is sales rep productivity tools.

Still, why to spend on Customer-
retention rather than customer
acquisition ???
In the cellular business, it costs five times more to acquire
a customer. It is the same in every business. Retaining
this customer is the critical step for success.

The average new customer spends $24.50 at a given web
site in the first 3 months as a shopper. The average repeat
customer spends $52.50 every 3 months

Most companies lose 50% of their customers in 5years.
THANK YOU

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