Effective Communication for

Effective Customer Relationship

Management.
Presented by:-
 Chandan Sinha BBA 4598/08
 Saurabh Sharma BBA 45 /08
 Kim Verma BBA 4510 /08
 Mrigendra Shahi BBA 45106/08
For:-
Birla Institute of Technology
Noida.
Introduction
 Customer relationship management (CRM) consists of the
processes a company uses to track and organize its contacts
with its current and prospective customers.
 Typical CRM goals are to improve services provided to
customers, and to use customer contact information for
targeted marketing.
 CRM is a combination of policies, processes, and strategies
implemented by an organization to unify its customer
interactions and provide a means to track customer
information.
 It involves the use of technology to enable organizations to
continue attracting new and profitable customers, while
forming ever tighter bonds with existing ones.
Introduction contd..

CRM includes many aspects which relate directly to one another:

 Front office operations — Direct interaction with customers, e.g. face to
face meetings, phone calls, e-mail, online services etc.
 Back office operations — Operations that ultimately affect the activities of
the front office (e.g., billing, maintenance, planning, marketing,
advertising, finance, manufacturing, etc.)
 Business relationships — Interaction with other companies and partners,
such as suppliers/vendors and retail outlets/distributors, industry
networks (lobbying groups, trade associations). This external network
supports front and back office activities.
 Analysis — Key CRM data can be analyzed in order to plan target-
marketing campaigns, conceive business strategies, and judge the
success of CRM activities (e.g., market share, number and types of
customers, revenue, profitability).
History.
 Customer Relationship Management (CRM) is one of those magnificent
concepts that swept the business world in the 1990’s with the promise
of forever changing the way businesses small and large interacted with
their customer bases.
 The 1980’s saw the emergence of database marketing, which was
simply a catch phrase to define the practice of setting up customer
service groups to speak individually to all of a company’s customers.
 In the 1990’s companies began to improve on Customer Relationship
Management by making it more of a two-way street. Instead of simply
gathering data for their own use, they began giving back to their
customers not only in terms of the obvious goal of improved customer
service, but in incentives, gifts and other perks for customer loyalty.
 Major players in CRM
 About 50% of the CRM market is
currently divided between five major
players in the industry: PeopleSoft,
Oracle, SAP, Siebel and relative
newcomer Telemation, based on Linux
and developed by an old standard,
Database Solutions. Inc.

 The other half of the market falls to a

variety of other players, although
Microsoft’s new emergence in the CRM
market may cause a shift soon.
Types of CRM
There are several different approaches to CRM, with different
software packages focusing on different aspects. In general,
Customer Service, Campaign Management and Sales Force
Automation form the core of the system (with SFA being the
most popular).
1. Operational CRM.
2. Analytical CRM.
3. Sales Intelligence CRM.
4. Customer Relationship CRM.
5. Geographic CRM.
Operational CRM.
Operational CRM provides support to "front office"
business processes, e.g. to sales, marketing and service
staff. Interactions with customers are generally stored in
customers' contact histories, and staff can retrieve
customer information as necessary.
 Operational CRM processes customer data for a variety

of purposes:
 'Managing Campaigns'

 Enterprise Marketing Automation

 Sales force automation

Analytical CRM

 Analytical CRM analyzes customer data for a variety of

purposes:
 Designing and executing targeted marketing campaigns
 Designing and executing campaigns, e.g. customer
acquisition, cross-selling, up-selling
 Analysing customer behavior in order to make decisions
relating to products and services (e.g. pricing,
productdevelopment)
 Management information system (e.g. financial forecasting
and customer profitability analysis) Analytical CRM
generally makes heavy use of data mining.
Sales intelligence CRM
 Sales Intelligence CRM is similar to Analytical CRM, but is
intended as a more direct sales tool. Features include alerts
sent to sales staff regarding:
 Cross-selling/Up-selling/Switch-selling opportunities
 Customer drift
 Sales performance
 Customer trends
 Customer margins
Customer relationship CRM
 Consumer Relationship System (CRS) covers aspects of a
company's dealing with consumers and customers who are
handled by the Consumer Affairs and Customer Relations
contact centers within a company.
 Trained contact center representatives handle in-bound
contacts from anonymous consumers and customers, replying
to inquiries and fulfilling responses. Representatives capture
consumer contact information, issues, and verbatim feedback
which is stored in the CRM and made available to company
stakeholders such as marketing, product management and
development, legal, public relations, etc., for input to product
and service improvements.
 The CRS workflow processing and reporting enable issuing of
early warning alerts to product problems in the marketplace
(e.g., item recalls) and capture of current consumer sentiment
('voice of the customer').
Geographic CRM
 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.
 Effective CRM
 Customer service organisations must see
the need to develop strategies to provide
effective customer relations. Employees
who are ambassadors of the organisation
must be perceived that they have been
trained to deal with irate customers, resolve
conflict, and have the authority to retain
customers on behalf of the organisation.

 The success of an organisation is also

dependent upon the employee's being able
to effectively demonstrate and
communicate the policies and services in an
effort that customers receive value for
money.
Need for effective CRM
 The success of an organization is also dependent upon the
employee's being able to effectively demonstrate and
communicate the policies and services in an effort that
customers receive value for money. The following are reasons
why customer relations must be improved in the organization:

 To establish customer loyalty

 To develop business relationships
 To product position the internal operations of the organization
 To create a positive environment to conduct business
 To manage time effectively
 To minimize negative exposures
 To increase productivity
 To maximize sales opportunities.
Need for effective CRM contd..

 To manage customer satisfaction levels

 To communicate effectively
 To communicate a positive message

 The task of providing effective customer relations is not

easy. Some organisations maintain a level of customer
relations with customers in an effort to keep the lid from
blowing off. This is called "the get-by syndrome".
 Often customer relations between customers and
employees are often described as, "what you see is
what you get" and often come with no frills
Strategies to effective CRM
The following strategies are used by
organizations to incorporate effective
CRM:-

1. Relationship Strategy.
2. Communication Strategy
Relationship Strategy
 The relationship strategy states that the foundation of
effective customer relations can be developed when the
customer service professional goes beyond the norm of
doing business.
 A two-tier approach should be executed in an effort to
develop a business working relationship with existing
and potential customers. One, it allows the customer
relations professional the opportunity to develop a
profile on the customer.
 Two, it also allows the customer relations professional to
increase productivity because time will not be wasted
on a probing exercise.
 Communication strategy
1. The communication strategy states that the
customer relations professional should be
skillfully trained to communicate the right
message to existing and potential
customers.
2. The communication message methodology
used should include both verbal and non-
verbal messages.
3. During the interaction, the customer
relations professional should make every
attempt in the initial stages to convey that
he or she has the customer's undivided
attention.
4. Non-verbal messages such as a weak
handshake, no eye contact, inappropriate
facial expressions, and a sense of being
distracted, sends a clear signal to the
customer that you are not interested in their
needs.
 Steps for Effective
Communication
1. Be sure to have clear picture of the message
before conveying it to the customer.
2. Ensure active participation.
3. Be patient while communicating with the
customer.
4. Listen to the customer and answer questions fully.
5. Connect successfully with customers lives both
personally and professionally. This way the
relation develops more personably.
6. Collect all the important data necessary from the
customer.
7. Ask the customer for any further query politely,
and do answer them politely.
8. Maintain the tone of voice firm and stable.
CRM Today.
 Today, CRM is still utilized most frequently by companies that
rely heavily on two distinct features: customer service or
technology. The three sectors of business that rely most
heavily on CRM -- and use it to great advantage -- are financial
services, a variety of high tech corporations and the
telecommunications industry.

 The Internet provided a huge boon to the development of

these huge databases by enabling offsite information storage.
Where before companies had difficulty supporting the
enormous amounts of information, the Internet provided new
possibilities and CRM took off as providers began moving
toward Internet solutions.
CRM Today contd..

 Today, CRM is still utilized most frequently by

companies that rely heavily on two distinct features:
customer service or technology. The three sectors of
business that rely most heavily on CRM -- and use it to
great advantage -- are financial services, a variety of
high tech corporations and the
telecommunications industry.
Conclusion
The overall extract of this information leads us to the conclusion
that CRM is a boon to the industries, and has bought immense
innovation in the field of industrialization. In this innovation by
CRM, Business Communication plays a huge role. It is evident
that effective and proper communication leads to a better
customer relation, whereas on the contrary ineffective
communication has a negative effect on the relationship
development. Today organizations have left no stones unturned
regarding communication, to gain customers and are constantly
moving towards it.
It is just the beginning for CRM globally, still there is more
to witness of CRM in the coming future……………..