CUSTOMER
RELATIONSHIP
MANAGEMENT
Presented to ;-
DR.AJAY PRESENTED BY:-
PRASHAR 2034-2048
WHAT IS
CRM?
It is process or methodology used to learn more
about customers' needs and behaviors in order
to develop stronger relationships with them.
Definition:
-
“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” .
EVOLUTION OF CRM
CRM developed for a number of reasons:
The 1980’s 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
CONT….
CRM COMPONENTS
CRM’s can be broken down into three key components.
Front
Interaction Office
With Operation
Customers s (sales,
(email, marketing,
letters, service
phone, etc)
meetings, fax
etc)
Enhance
Company
Relationship
with
Customer
THE PURPOSE OF
CRM
“The focus [of CRM] is on creating value for
the customer and the company over the
longer term” .
When customers value the customer service
that they receive from suppliers, they are less
likely to look to alternative suppliers for their
needs .
CRM enables organisations to gain
‘competitive advantage’ over competitors that
supply similar products or services .
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).
Determinants of
CRM
Trust
The willingness to rely on the ability, integrity, and
motivation of
one company to serve the needs of the other company as
agreed
upon implicitly and explicitly.
Value
The ability of a selling organisation to satisfy the needs of
the
customer at a comparatively lower cost or higher benefit
than
that offered by competitors and measured in monetary,
temporal, functional and psychological terms
Goal of CRM
Provide better customer service
Increase business revenues
Discover new customers
Simplify marketing and sales processes
Helps sales staff close deals faster
Make call centers more efficient
Company can get continuous feedback
Cross selling products more effectively
DIFFERENCE BETWEEN MARKETING &
CRM
Marketing CRM
Product marketing Process marketing
Value is price related ( low Value is created in many
price) ways apart from the low
price
Company does not take more Company takes more
responsibility responsibility
Phases of CRM
Acquisition :
techniques used to form relationships with
new customers to achieve an online sale.
For achieving this special CRM software tools
and databases are used.
The main purpose of this CRM function is to
make aware the customer about the superior
product by a distinguished company.
Enhance:
-
to keep customer satisfied and happy to
offering superior service from specialists.
The profitability of the business is increased
by CRM sales for a automation and direct
marketing.
The customer experience the convenience of
one stop shopping at reasonable prices.
Retention:-
Customer retention refers to the actions
an organization takes to retain existing
customers i.e. the techniques to maintain
relationships with existing customer.
Thecustomer retention has two distinct
goals.
1. To retain customers of the
organizations (repeat customers).
2. To keep customers using online
channel (repeat visits).
Stages in the
development of a
Customer Relationship
A Relationship Life Cycle Model
High cooperation
Low competition Pre- Development Maturity Decline
relationship stage stage stage
stage
Low cooperation
High competition
Time
Functions of Customer
Relationship
Management
Direct functions (are the basic requirements of a company
that are necessary to survive in the competitive marketplace)
•Profit;
•Volume; and
•Safeguard
Indirect functions (are the actions necessary to convince the
customer to participate in various marketing activities).
•Innovation:
•Market;
•Scout: and
•Access.
Functions of Customer Relationship Management
Value Creation Process
Technology delivery process
•R&D
•Technology integration
Management •Efficiency, effectiveness
Decision learning
Process
Value-based
Customer sensitivity Product delivery process Strategies
•Concept to launch •Pricing
•Diversity •Manufacturing process •Communication
•Information
•Differentiated
offering Customer delivery process
•Supply chain
•Distribution
•Infomediation (distribution
of information)
Managing Customer Relationships
Qualifying prospects for relationship building
High
Use a non Build a strong
customized and lasting
approach relationship
pportunities
or adding value
Seek better Focus on
opportunities loyalty-building
elsewhere program
Low
LowPotential profitability of customer High
ADVANTAGES OF CRM
Using CRM, a business can :
Cost reduction
Better customer services
Increased customer satisfaction
Better customer retention
Loyal customers
More new business
More profit
WHY CRM IS IMPORTANT?
CRM gives a 360 degree view of the
customer
CRM is a mindset and a philosophy
Implementing CRM requires patience
CRM= Customer Analysis
CRM for future customers
CRM :
Benefits
Excellent customer service is about being aware of customer
needs and reacting to them effectively.
CRM helps you to understand, anticipate and respond to your
customers' needs in a consistent way, right across
organization.
CRM will help your business if you view it as a set of tools
that let you do more for, and get more from, your customer.
Keeps all your customer information in one place.
Know and understand your customers.
Know your best revenue opportunities.
Spot the best sales campaigns.
SECRET FOR SUCCESSFUL CUSTOMER
MANAGEMENT RELATION
FIVE KEY STRATEGIES WITH
CRM
1. Focus on existing customers
RELATIONSHIP MANAGEMENT
2. Maximize revenue opportunities
3. Do more with less
4. Reduce operational costs
5. Optimize existing IT assets
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ELECTRONIC CUSTOMER
RELATIONSHIP
MANAGEMENT
NEED OF E-CRM
Due to the introduction of new technology
Dueto globalization
(to satisfy the customers at global level)
Sometimes customer itself prefer to do online
purchasing.
Basicallye-CRM is concerned with attracting &
keeping economically valuable customers &
eliminating less profitable ones.
DIFFERENCE BETWEEN CRM AND
E-CRM
CRITERION CRM e-CRM
Customer Contacts Traditional Means-Retail Through Internet, E-
Store, Telephone Or Fax Mail, Wireless, Mobile
And PDA Technologies
System Interface Works With Backend Designed For Frontend
Application Through ERP As Well As backend
System Applications Through
ERP, Data Mart And Data
Warehouse
System IT Requires PC Clients To Here, Browser Is The
Download Various Customers Portal To e-
Applets And CRM
Applications.
BENEFITS OF E-CRM
Convenience
Improvement in overall quality of customer experience
Increased profitability
Increased customer loyalty
More effective marketing.
Improved customer service and support.
Greater efficiency and cost reduction.
The Success Mantra For Effective Customer
Relationships Management
Myths of CRM
• CRM is Primarily about Technology
• Successful CRM projects are managed by IT
• “CRM systems are intuitive…. Users will only
need some initial hand holding.”
RELATIONSHIP MANAGEMENT
33
CHALLENGES OF CRM
CONCLUSION
