Evolution of CRM

PGDM-SEM 4 SESSION 11-13 Prof(dr.)s p Singh

 As competition hots up among companies,consumer is becoming more aware and educated.& developed over a time period. Lets see the effects of changes effecting marketing orientation over a period of time.

Evolution over timeframe

TIME FRAME MARKETING OBJECTIVE Persuading predetermined group of customers Care for individual customers needs MANAGERIAL MINDSET Customer is a statitics to be achieved Shift from selling to helping consumer design products based on feedback Identifying problems,& services based on deep understanding of customers Customers are not only a source of survival but part of a wide social,economic & cultural fabric in which we all live. 1970-80s COMPANYS COMMUNICATION OBJECTIVE Target the buyer. One way communication Data base targetting. Two way process. 1980-90s 1990s Customer being a person,cultivate trust & relationship Relationship marketing . Multi approach but Two way communication Active dialogue with customers, joint roles in education, shaping expectations & co creating acceptance for products & services .multilevel access and communication

2000 onwards

Customers are part of whole network.they are collaborators & codevelopers & extract business value from competition.

--Managers are realizing that customers would be increasingly playing active role in marketing and beating the competition. Customers wishes to know more and more and wants to increase his experience about the product. -- he is no longer just interested in the product purchase, he enhances his experiences with the product thru his own knowledge, thru fellow customers or experts.

 Hence concept of personalization and customization comes into play. Customization means make or design according to customers needs. Personalization is customer becoming a cocreator of the content & experiences from the product.

 As the customers evolve,the product has to evolve itself to enable future modifications & extensions. CRM only may or may not enable a company to succeed,but ,it makes the co.establish a relationship with customers by keeping customers at heart of the business philosophy.

 That is why the concept of Holistic marketing comes in which involves CRM,Marketing & Relationship marketing. Holistic marketing involves identifying new value oppurtinities for renewing its marketing(marketing dimension), Create more promising new value offering(customer relationship), & ,ensuring that the companys capabilities and infrastructure is used to deliver better & efficiently (CRM dimension).

Difference between Marketing & CRM 1.CRM views products as process,while marketing focuses on sale,i.e. transfer of ownership,exchange of value.CRM views that customer realises value from each exchange between customer & manufacturer. 2.CRM is all about customer valuecreation according to this approach ,competitive advantage is not based exclusively on price or quality ,but it is based on ability of the provider to help customers create value for themselves

3.It is providers responsibility to build relationship with the customers under CRM INITIAVE,& not like marketing where initiative is awaited from customer in form of complaint or comment. Difference between CRM & relationship marketing In relationship marketing ,a two party relation of marketing is created,CRM is the values and strategies of making and establishing relationship .CRM does not deal with networks but focuses on valued interactions among the network.

 Therefore,we see that CRM is basically understanding ,anticipating,managing and personalizing needs and taking care of issues of customers in a proactive way,and it is not a technology-which basically enables CRM,and niether it is Relationship building nor it is marketing. CRM emphasises that it is customer which runs like a thread thru all the activities of the company,

--whether it is current/potential or selected ,CRM is all about acquiring,retaining,partenering & personalizing relationship with them. It is based on the belief that all the transactions are for mutual benefit creating value for all the parties involved. CRM helps businesses use technology and human resources to gain insight into the behaviour of customers and provide value to these customers for mutual benefits.

 CRM is first and foremost a business strategy that helps a company tighten its business practices across the organization while making strong connection with customers. In B2C SPACE,CRM means keeping pace with a savvy & increasingly impatient customer while in B2C space,it requires optimizing supplier & partener communications being very critical in working together.

 Objectives of CRMwhy it is required for companies. 1.competition---with globalization and advent of internet,differentiating products & services is becoming more and more difficult.In such a scenario ,CRM shows the way to increase company loyalty ,earn higher margins and make the brand strong. 2.Consumer expectationsco. that use CRM truly understand their customers and are ready to meet & respond to their needs.

3.Technology--Mobile,internet,web marketing etc has increased touchpointswhere customers can interact with the company ,therefore every where CRM has to play an important role. 4.Diminishing impact of advertising --every form of advertising is getting ineffective today . CRM helps target messages to a particular groupwhich is selected for the purposes,hold attention better & retain customers longer at a lesser cost. -------------