PRESENTED BY –
ROLE OF CRM IN VIVEK KUMAR GUPTA
MARKETING ROLL NO- 106
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Customer Relationship Management
• Customer Relationship Management (CRM) is
a strategy that focuses on building strong
relationships with customers and potential
customers for creating and maintaining a loyal
customer base.
• CRM works across all departments to
harmonize customer-centric thinking.
• It reduces costs, increases efficiency and
improves customer satisfaction.
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Process of creating and maintaining
relationships with business customers or
consumers”
“A holistic process of identifying, attracting,
differentiating, and retaining customers”
CRM is basically for developing long lasting
relationship with a customer.
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This maximizes profits, since it is cheaper to retain
a current customer than it is to find a new one.
It typically costs 5-10 times as much to acquire a
new customer as it does to retain an existing one.
It also consists of the processes a company uses
to track and organize its contacts with its current
and prospective customers…..
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CRM Objectives
To simplify marketing and sales process -
With innovative Lead management portal, you
can ensure that the right lead is distributed to
the right sales person at the right time.. With
the integrated customer service module, even
your customer support people now become
qualified lead generators with up-selling and
cross-selling opportunities.
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Increasing sales effectiveness-
Make your sales teams more effective by automating
tedious repetitive tasks. Leads get entered into the system
only once.. With CRM, your sales people can automate a big
chunk of their daily tasks such as sending out e-mails,
generating reports, organizing leads and so on.
With CRM's Mobile access, your sales people have instant
access to customer information when they need it, without
being tethered to a computer. The Lead portal can route
leads to the best-suited sales person, increasing your
chances of closing the deal
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Access to customer information-
With CRM, all of your customer information is in one
centralized location and is constantly updated every
time an activity happens with a prospect or customer.
So now you have up to the minute tracking of all your
prospects and customers. With all your opportunities
tracked down to the stage that it is in, you can
forecast your sales pipeline with a lot more accuracy.
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Reduce Customer Support Time –
CRM enables your service agents to answer all
customer inquiries quickly, accurately and consistently
by phone, e-mail, chat or in person. With FAQs and
the knowledge base you can help your customers help
themselves. By offloading maximum customer
interactions to these self-service channels, you can
significantly reduce your customer support costs.
.
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Why CRM?
• It typically costs 5-10 times as much to acquire a
new customer as it does to retain an existing one.
• “Some companies can boost profits by almost
100% by retaining just 5% more of their
customers.”
• Most companies lose 50% of their customers in 5
years .
• 70% of repeat purchases are made out of
indifference to the seller, NOT loyalty….
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Implementation of CRM
• To implement CRM, following factors need to
be given due consideration:
1. Easy interaction between customers and
company,
2. Easy access to information about company
like content of customization, advantages of
the company, benefits to the customers.
3. Abundant supply of customer information
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4 .Customers' information should be updated
always
5. Have cordial relationship with other
companies targeting the same customer
segment…..
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Types of CRM
Basically there are three types of CRM which
are as follows:-
• Operational CRM: support to front office
• Analytical CRM: analyze customer data
• Collaborative CRM: inter staff coordination
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Strategies of CRM
1. Customer retention
2. Customer acquisition
3. Customer loyalty
4. Cost reduction
5. Improve productivity
6. Enhancing e-business strategies
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• Companies that invest in CRM systems can learn even
more about their customers and offer more
personalized products and services because they
receive relevant information daily in a way that allows
them to spot trends.
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RFM Data in CRM
• Organizations can find their most valuable
customers through
“RFM” - Recency, Frequency, and Monetary value
– How recently a customer purchased items
(Recency)
– How frequently a customer purchased items
(Frequency)
– How much a customer spends on each purchase
(Monetary Value)
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The purpose of CRM
“The focus of CRM is on creating value for the
customer and the company over the longer
term” .
CRM enables organisations to gain ‘competitive
advantage’ over competitors that supply
similar products or services.
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Goals of CRM
• Retention rate: CRM, relationship building, increases
customer loyalty which increase revenue per
customer and frequency of purchases.
• Referrals: CRM can turn customers into advocates.
Referrals typically have higher retention rates and
spending rates than other newly acquired customers.
• Increased sales: CRM leads to increased cross-selling,
upgrades, or simply more products by existing
customers.
• Reduced costs: CRM can lead to more cost effective
marketing; avoids expenses of mass marketing,
reduces direct mailings.
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Benefits of CRM
Benefits of CRM include:
Provide better customer service
Cross sell products more effectively
Help sales staff close deals faster
Simplify marketing and sales processes
Increase customer revenues
Reduced costs, because the right things are being done
Increased customer satisfaction,
because they are getting exactly what they want
Ensuring that the focus of the organisation is external
Growth in numbers of customers
Maximisation of opportunities
Increased access to a source of market and competitor information18
THANK YOU
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