Contents

Need for CRM

Definition -Customer Relationship Management Understanding CRM

Determinants of CRM
Components of CRM CRM Cycle Steps for achieving CRM Significance of CRM Conclusion

Need for CRM

Paretos Principle-20% of a companys customer generate

80 % of business For a new customer, it takes 8-10 sales call For an existing customer-2-3 sales call Acquiring a new customer is 5 times expensive than retaining an existing customer Typically dissatisfied customer tell at least 8-10 people about his experience Some companies can boost profits by almost 100% by retaining just 5% more of their customers. Harvard Business Review

Customer Relationship Management

Definitions of Customer Relationship Management

Customer Relationship Management (CRM) is: the integration of sales, marketing, service and support strategy, process, people and technology to maximize customer acquisition, value, relationships, retention and loyalty.
Customer Relationship Management refers to all marketing activities directed towards establishing, developing, and sustaining long lasting, trusting, win-win, beneficial and successful relational

exchanges

Understanding (CRM)
A business philosophy based upon individual customers and customised products and services

supported by open lines of communication and feedback from the participating firms that mutually benefit both buying and selling organisations. The buying and selling firms enter into a learning relationship, with the customer being willing to collaborate with the seller and grow as a loyal customer. In return,, the seller works to maximize the value of the relationship for the customers benefit.

Contd
In short,CRM provides sell in organisations with the platform to obtain a competitive advantage by

embracing customer needs and building valuedriven long-term relationships.

Determinants of CRM
Trust

Willingness to rely on ability ,integrity and motivation of one company to serve the needs of other company as agreed upon implicity and explicitly Value Creating value for customers by satisfying his needs in terms of monetary, temporal, functional and psychological terms

Components Of CRM
Customer
Relationship Management
customer Relationship

Management

Customer
Peter Duck says "Business are not paid to reform

customers but to satisfy customer.

Customers-Only source of present profit and

future growth.
Loyal Customers are the resource upon which the

success of the business depends.

The customer makes it possible to achieve

business aims.

Customer Development Process

Relationship
Relationship between company and its customer involves continuous bidirectional communication and direction .
Relationship could be Long term or short term Continuous or discrete Repeat or discrete Attitudinal or behavioral Even though customer have a +ve attitude towards company and its products ,their buying behavior is highly situational.

Contd
Relationship can be carried forward by being
Reliable- consistent performance is what customer wants from us Credible- if the customer buys the product, he

wants to safe and guaranteed. Attractive- body language, personality, appearance Responsive accessible, available and willing to help customer whenever the customer has a problem. Empathic- to be in customers shoes and grasp his point of view

Management
Involves continuous corporate change in culture and process. Customer information collected is transformed into corporate knowledge that leads to activities that take advantage of information and mrkt opportunities.
CRM require a comprehensive change in

organization and its people.

CRM Cycle
Interact and deliver
Acquire and retain

customer
Understand and

differentiate
Deploy and customize

CRM STRATEGIS
CUSTOMER IDENTIFICATION
CUSTOMER DIFFERENTION CUSTOMER INTERACTION CUSTOMIZATION/PERSONALIZATION

Steps for CRM

The global salesperson must be involved in the activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.
The steps towards achievement of CRM are as follows, Initiating the relationship Developing the relationship Enhancing the relationship

Initiating the Relationships

Engage in strategic prospecting and qualifying; Gather and study pre-call information;

Identify buying influences;

Plan the initial sales call; Demonstrate an understanding of the customers

needs; Identify opportunities to build a relationship; and Illustrate the value of a relationship with the customer

Developing the Relationships

Developing the relationship
Select an appropriate offering;

Customise the relationship;

Link the solutions with the customers needs; Discuss customer concerns; Summarize the solution to confirm benefits; and Secure commitment.

Enhancing the Relationships

Enhancing the relationship

Assess customer satisfaction
Take action to ensure satisfaction Maintain open, two-way communication Work to add value and enhance mutual opportunities.

Significance of CRM
Reduction in customer recruitment cost. Generation of more and more loyal customers. Expansion of customer base. Reduction in advertisement promotion expenses.

and

other

sales

Increase in the number of profitable customers. Easy introduction of new products. Easy business expansion possibilities. Increase in customer partnering.

conclusion
CRM requires a cultural change with the organization
CRM not only requires in change in technology

but also change in management Customer expectation needs to be consistently enhanced Ongoing business process and will create sustainable competitive advantage.

thank you.