V Customer Relationship Management

(CRM) is a strategy of perennially

interacting with existing customers to
assess the changes in their likes and
dislikes. In today's era of intense
competition in the business realm, CRM
forms an effective strategy to deliver some
additional value to the customer. This
ensures customer loyalty and retention.
 CUSTOMER IS . . . . .

Anyone who is in the market looking at

a product / service for attention,
acquisition, use or consumption that
M
MM a want or a need

3
CUSTOMER has needs, wants, demands and
desires
Understanding these needs is starting point of the
entire marketing
These needs, wants «« arise within a framework
or an ecosystem
Understanding both the needs and the ecosystem
is the starting point of a long term relationship

=
˜alue  the value or benefits the customers gain from using
the product versus the cost of obtaining the product.
Satisfaction  ased on a comparison of performance and
expectations.
‡ Performance > Expectations => Satisfaction
‡ Performance < Expectations => Dissatisfaction
!s a priority , we must bring to our
customers ³v
 ´
We must be in a position to 


their problems
Or in a new situation to give them a chance
to
  the problems
˜alue = enefit / Cost
enefit = '

 enefit + 

enefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost
V Customers progress through
the steps of this life cycle
(inner blue) as they engage
with a company through the
various interaction channels
they choose (gray). Successful
companies support each life
cycle step with reciprocating
front office functions (green) to
optimize the customer
experience
V Customer acquisition is a
process of identifying,
approaching and
developing p

relationships. It is
important that new
relationships formed are
acquired from the right
type of customer, in
order to ensure a
sustainable future
V volume of customers acquired
V profitability
V value that the customer will bring.
V ësing the World-Wide Web to drive Traffic to your Web-
Presence

Clients find you through Social News, Social Networking,

Search Engine Optimization, and your Published
Content. Focus your marketing resources on campaigns
and initiatives that deliver ROI; analyze trends, do
market research, look at the conversion rates, evalutate
the geographic locations of leads, and manage "ad
word" buying for best results
V The World Wide Web offers tremendous
opportunities in providing access to
information. It is important to provide content
that is timely, accurate and understandable,
delivered by systems that are friendly and
relatively easy to use; and in the final analysis,
capable of empowering our users to make
informed decisions.
V TightIntegration of Web-CRM to
capture client information allows
for easy follow-up and sales
promotions
V Clients
who are not ready to embrace
your product or service can receive
communication on a timely basis to
maintain interest until they are ready to
make decision
! repeatable sales process should
be developed for your business
to procure clients who have
immediate requirements for their
products or services.
!dopting a strategic approach is advised
when it comes to acquiring customers.
Determining what type of customer best
suits the business needs, enables you to
target customers which will be profitable
and add value to the organisation.
V! successful customer acquisition
strategy is that of which adopts a fully
integrated multi channel approach.
Giving customers the choice to utilise
their preferred channel, instantly creates
a positive impact on potential customers.
!lso, this fully integrated method means
businesses increase availability to their
potential customer base.
V Companies with successful acquisition
strategies recognise that consumers;
communication channels evolve
throughout the customer lifecycle. This
enables the company to prepare to adapt
to such changes in a responsive manor
V Customer retention is the maintenance of
continuous trading relationships with
customers over the long term. Customer
retention is the mirror image of customer
defection or churn. High retention is
equivalent to low defection.
V - Raw customer retention rate: this is the number of customers
doing business with a firm at the end of a trading period,
expressed as percentage of those who were active customers at
the beginning of the period.
V r Sales-adjusted retention rate: this is the value of sales achieved
from the retained customers, expressed as a percentage of the
sales achieved from all customers who were active at the
beginning of the period.
V
Profit-adjusted retention rate: this is the profit earned from the
retained customers, expressed as a percentage of the profit
earned from all customers who were active at the beginning of the
period. ! high raw customer retention rate does not always signal
excellent customer retention performance. This is because
customer defection rates vary across cohorts of customers.
Defection rates tend to be much higher for newer customers than
V Customer Interaction Management helps
organisations execute effective and
efficient interactions with their customers
and prospects. These interactions must
be consistent and tailored to the
customer needs, based on the segment of
the customer, the service required and
the used channel.
V Today·scompetitive environment
requires companies to ensure that the
customer has a consistent experience
across interactions and channels, giving
him a clear sense of brand value and
differentiation
V Making CRM successful is both an art
and a science. In many cases, it also
involves risk taking and gambling. Quite
often, companies are unaware as to why
their CRM has either worked or failed.
While implementing CRM , Organization
should focus more on the "CR" (Customer
Relationship)aspect and not the
"M"(Management)