Group members

CRM
■Customer Relationship Management
v Term applied to processes implemented by
a company to handle its contact with its
customers
v
vIt is process or methodology used to learn
more about customers' needs and behaviors
in order to develop stronger relationships
with them.
v
vset of methodologies, software, and usually
Internet capabilities that help an
enterprise manage customer relationships in
an organized way.

vCRM is a software-based approach to handling

customer relationships
v

■
3
Components of CRM
 Contact and Account
Management
 Relevant data for customer profile is captured with the help
of software.


 Necessary information is captured from prospective

customers.


 CRM system stores data in common customer database.



 The database integrates customer account information and

present it in desirable format to the company.


 This database can be accessed on Internet, intranet and on

other network links.


 The data is used for sales, marketing, services and other

applications.


 The contact management software contains various

modules of databases, displays, charts, workflow
programs.
Sales
 Sales process management follows a
customized sales methodology with specific
sales policies and procedures.
 Sales activities include - Product information,
product configuration, sales prospectus,
sales quote generation.
 CRM also provide the history of customer
account so that the sales call can be
scheduled accordingly.
 Marketing and
Fulfillment
 CRM helps the professionals in product
marketing, target marketing, relationship
marketing and campaign management.
 By analyzing customer and business value of
direct marketing can be estimated.
 CRM also helps in customer retention,
behavior prediction, channel optimization,
personalization.
 Customer response and requests can be
quickly scheduled and hence sales contacts.
 Customer Service and
Support
 CRM system provides service representatives with
adequate software tools and access to customer
database. It also helps to create, assign and manage
the service requests by customers.
 Call center software is designed to route customer calls
to respective attendants as per the skills and authority
to handle special cases.
 Help desk software is developed to help customer service
representative to help customers who face problems
with product or service to resolve it.
 Web-based Self Service means help customer to access
personalized information at company website.
 Retention and Loyalty
programs
 Theprimary objective of CRM is to enhance
and optimize customer retention and loyalty.
 CRM systems are also useful in determining
most loyal and profitable customers and
reward.
 CRM analytical software includes determining
tools and analytical marketing software
whereas CRM databases consists of
customer data ware house and CRM data
marts.
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.

 The customer retention has two distinct goals.
 1. To retain customers of the
organizations (repeat customers).
 2. To keep customers using online
channel (repeat visits).
Implementation of CRM
Customer relationship management (CRM)
solution is best treated as a six-stage process

Stage six: Enhancing the customer experience

Stage five: Marketing more effectively

Stage four: Analysing Customer behaviour

Stage three: Accessing information

Stage two: Storing information

Stage one: Collecting information

Example: DELL
 TYPES OF CRM
There are following types of CRM
1.OPERATIONAL CRM
2. SFA
3.Analytical CRM
4.COLLABORATIVE CRM
5.GEOGRAPHIC CRM
 OPERATIONAL CRM
Operational CRM processes customer
data for a variety of purposes:
'Managing Campaigns'
 Enterprise Marketing Automation
Sales Force Automation
Sales Management System

SALES FORCE AUTOMATION
Sales Force Automation automates
sales force-related activities such
as:
Activity Management: Scheduling
sales calls or mailings
Tracking responses
Generating reports
Opportunity Management and
Assessment
Account Management and Target
Account Selling
 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, product development)
 Management information system (e.g. financial
forecasting and customer profitability analysis)
 Analytical CRM generally makes heavy use of data
mining.

 COLLABORATIVE CRM
 Collaborative CRM covers aspects of a company's
dealings with customers that are handled by
various departments within a company, such as
sales, technical support and marketing. Staff
members from different departments can share
information collected when interacting with
customers. For example, feedback received by
customer support agents can provide other
staff members with information on the services
and features requested by customers.
Collaborative CRM's ultimate goal is to use
information collected by all departments to
improve the quality of services provided by the
 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.

 Related aspects
■Many inter-related aspects
v
vFront office operation
vBack office operations
vBusiness relationships

vAnalysis

23
 Aspect 1 – Front office
■Direct interaction with customers
v
vFace to face meetings
vPhone calls
vE-mail

vOnline services etc

24
 Aspect 2 – Back office
■Operations that ultimately affect the activities of the front
office
v
vBilling
vMaintenance
vPlanning
vMarketing
vAdvertising
vFinance

vManufacturing

25
 Aspect 3 - Business
relationships

■Interaction with other companies and partners

v

vS u p p lie rs/ ve n d o rs

vR e ta ilo u tle ts/ d istrib u to rs

vIn d u stry n e tw o rks

26
 Aspect 4 - Analysis
■Key CRM data can be analyzed in order to plan
v
vTarget-marketing campaigns
vConceive business strategies

vJudge the success of CRM activities (e.g., market share,

number and types of customers, revenue, profitability)
■

27
Elements of CRM
 Three key elements
■1. Validation
■

■2. Discovery
■

■3. Action
■

29
 1. Validation
■Correct data
v
vEnsuring that the data of the customers is correct
vExample:-Mobile number

30
 2. Discovery

■Use of data mining techniques

v
vTo find relationships that you did not know
existed
vData mining is an important enabler for CRM
vHelps in the process of understanding a
customer by providing the necessary information
vFacilitates decision-making.

31
 3. Action

■Right communication
v
vRight messages communication
vThis is done with a Campaign Management
tool that can automatically select the
right targets and the right messages via
the right channels
vThe responses are then fed back into the
Validation process for evaluation and
refinement

32
What is the status of CRM adoption in
India?

 Indian companies were slow in adopting

CRM. One of the major reasons for this has
been a lack of proper understanding of CRM
as a concept and how it could benefit an
organization. In the past, CRM was
identified with call centers. However, this
has changed in recent times with a better
understanding of the various components
of CRM and increased awareness levels of
how it can drive efficiencies across the
board.

DIFFERENT SECTOR CRM IN
INDIA
IT& TELECOM SECTOR
HOSPITALITY SECTOR
FINANCE SECTOR
RAILWAYS
TRAVELS AGENCIES
INSURANCE SECTOR
BANKING SECTOR
OTHERS
 What are the reasons for
service sectors being early
adopters of CRM?
Increased competition in the sector meant that
organisations had to think of more innovative
ways to acquire and retain customers. This
sector has seen more investments in IT
infrastructure which is an enabler for
applications.
Though back-end systems are always important
for smooth functioning of systems, for the
service sector it is also important to have a
user-friendly interface. Many companies in this
sector have adopted CRM before investing in
ERP. Verticals in the services sector include
retail and commercial banks, brokerages,
insurance, mutual funds, IT services, BPO,
hospitality, travel, media and logistics.

CUSTOMER RELATIONSHIP
MANAGEMENT

 CRM is the strategic use of information, process,

technology, and people to manage customer’s
relationship with your company (marketing,
sales, services and support ) across the whole
customer life cycle.
 Although our definition of CRM is broad and
complex but its goal is simple
To maximize the value of your company’s customer ass



including
•Customer loyalty



•Company ’ s revenue
•Company ’ s profit
 ion Eva
i gat Ch luat
o
est ose e/
THE CUSTOMER LIFE

inv
Pu
er rch
id Ord
re

ase
ns
Awa

er
Co
e/
Upg tire

Se

Ins
d

e tup
a

Us
r

t
re

all
in
ta Lea
in rn
Ma
CYCLE
 CUSTOMER LIFE CYCLE
The customer life cycle is total time that a customer is
engaged with your company from the customer’s
experience and viewpoint.
There is high level of cycle that is
consistent for customers, no matter the product or
services and no matter how much how much the
customer spend on each stage;
1. Consider: Customer becomes aware of need and
investigates alternative solution.
2.Purchase: Customer evaluates and chooses the best
alternatives and place an order.
3. Set up: Customer install the product and learn how to
use it.
4. Use: Customer operates and maintain the product and
Building Customer
Relationships1:1
A major shift in marketing thought:
from mass marketing to individualized
marketing
From focus on acquiring lots of new customers
to retaining and building more business with
fewer loyal high-value customers
Goal: build long-term relationship,
1:1

A firms ability to build and maintain
relationships with customers, suppliers,
and partners may be more important
than the firms land, property, and
Relationship
Marketing
 “Establishing, maintaining, enhancing,
commercializing customer relationships through
promise fulfillment”

 Building long-term profitable relationships with
mutual benefit


 Tool: promise fulfillment => customer

satisfaction
 Domino’s Pizza ads claim 30 minute
delivery of pizza’s.
 Pizza example
 Subconscious Expectations
 Pizza with specified toppings
Take 10 minutes
Come in a packed box
Remain warm till you reach home
Charges – standard and acceptable price
Pizza will taste reasonably good


 You will come back is all the above are
met
 Pizza example
 If you go regularly
Rapport with employees
You forgive if they mess up with one
or two expectations
•
Degree of confidence determines
tolerance
If using first time, and even one
expectation is not met
You will never go again

•
 Pizza example
 Exceeded expectations
Deliver on all expectations
Give you a garlic bread FREE !

You will tell everyone about it

•
CRM Processes and
Systems
Processes & Systems

46
 Processes & Systems
■Important
v
vBusiness starts with the acquisition of
customers
v

vHowever, any successful CRM initiative is

highly dependent on a solid understanding
of customers

47
 1. Understand &
differentiate
■Understand
vDemographics, purchase patterns & channels
vSegmentation to identify logical unique
groups
vPrimary research to capture needs and
attitudes
vCustomer valuation to understand
profitability
■

■Differentiate
vBased on the value customers
are expected to deliver

48
 2. Develop & Customize
■Develop
vProducts, services, channels and media can
be customized based on the needs of
quantitative customer segments
■

■Customize
vBased on the potential value
delivered by customer segment

49
 3. Interact & Deliver
■Interact
vNot just through marketing, sales and media
vDistribution, shipping, customer service &
online
■

■Deliver
vDelivering value is a cornerstone
vFactors including quality,
convenience, speed,
ease of use,
responsiveness
and service excellence

50
 4. Acquire & Retain
■Acquire
vLearning about customers makes it easy to
identify those producing the greatest value
v

■Retain
vMaintain interaction;
vDeliver on value
vCustomers change as they
move through differing life stages
vModify the service

51
 eCRM
veCRM provides to companies a means to conduct
interactive, personalised and relevant
communication with customers across both
electronic and traditional channels.
vIt utilises a complete view of the customer to
make decisions about messaging, offers, and
channel
delivery.

eCRM v/s CRM: The Differences

Being able to take care of your customer via the
Internet, or, customers being able to take care of
themselves online: That’s the difference between
CRM and eCRM.
 eCRM
Companies need to take firm initiatives
on the eCRM frontier to Optimize the
value of interactive relationship.
Enable the business to extend its
personalized messaging to the Web
and e-mail.
Co-ordinate marketing activities across
all customer channels.
Leverage customer information for
more effective eMarketing and
eBusiness.
Focus business on improving customer
Benefits of CRM
 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.

 Advantages Of CRM

Using CRM, a business can :



Provide better customer service

Increase customer revenues
Discover new customers
Help sales staff close deals faster
Make call centers more efficient
Simplify marketing and sales
processes

Challenges of CRM
 Problems of collecting and coordinating
substantial data can lead to privacy problems.
 Firms still need to be sensitive to customer wishes
about unsolicited contacts. Customer privacy
request needs to be a part of CRM.
 Privacy and data security
 One of the primary functions of CRM software is
to collect information about customers. When
gathering data as part of a CRM solution, a
company must consider the desire for customer
privacy and data security, as well as the
legislative and cultural norms. Some customers
prefer assurances that their data will not be
shared with third parties without their prior
consent and that safeguards are in place to
prevent illegal access by third parties.


 CONCLUSION