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A PROJECT REPORT

ON
CUSTOMER RELATIONSHIP
MANAGEMENT
AT
ADDMARC
( AN ADVERTISING &MARKETING CO.)
A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF
REQUIREMENT FOR THE DEGREE O F
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
MADURAI KAMARA1 UNIVERSITY, MADURAI
By
VINISHA VASHISTHA
Reg No.: A7754274
Under the guidance of
Mrs.Gunjan Rana
RAI BUSINESS SCHOOL
Mathura road, New DelhI
DEC 2008
Rai Business School

Certification
This is to certify that the project report at
ADDMARC
(ADVERTISING &MARKETING CO.)
Submi!" i# P$%i$& 'u&'i&&m!# (' )! %!*ui%!m!# '(%
)! D!+%!! ('
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
To
MADURAI KAMARA1 UNIVERSITY, MADURAI
VINISHA VASHISTHA
Under my supervision and guidance and that no part has been submitted for the
award of any other Degree/Diploma/fellowship or similar title or prizes
Faculty Guide
Signature :
Name :Mrs.Gunjan Rana
Signature & Sea !"
t#e earning $enter
RAI BUSINESS SCHOOL 2
STUDENT S DECLARATION
I hereby declare that the Project Report conducted at
ADDMARC
(A",!%i-i#+ & M$%.!i#+ /(.)
U#"!% )! +ui"$#/! ('
M%-.Gu#0$# R$#$
Submi!" i# P$%i$& 'u&'i&&m!# (' )! %!*ui%!m!# '(% )!
D!+%!! ('
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
TO
MADURAI KAMARA1 UNIVERSITY, MADURAI
Is my original work and the same has not been submitted for the award of any other
Degree /Diploma/fellowship or other similar titles or prize
Place: VINISHA VASHISTHA
Date: Reg. No. : A7754274
RAI BUSINESS SCHOOL 3
Project Report
At
ADDMARC
(A",!%i-i#+ & M$%.!i#+ /(.)

Submitted by:
VINISHA VASHISTHA
MBA-III(MKU)
Reg. No.-A7754274
Under the guidance of :-
Mr. Mahender Gera
R!+i(#$& M$#$+!%1
ADDMARC
(A",!%i-i#+ & M$%.!i#+ C(.)
S$# N$+$%1 N!)%u P&$/!


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ACKNOWLEDGEMENT

I wish to express my gratit!e to ADDMA"C #A!$ertisi%g & Mar'eti%g Co()
ma%ageme%t *or gi$i%g me a% opport%ity to +e a part o* their esteem
orga%i,atio% a%! e%ha%-e my '%ow.e!ge +y gra%ti%g permissio% to !o
smmer trai%i%g pro/e-t %!er their gi!a%-e(
I am grate*. to Mr(MA0ENDE" GE"A my Compa%y gi!e1 *or his i%$a.a+.e
gi!a%-e a%! -ooperatio% !ri%g the -orse o* the pro/e-t( 0e pro$i!e! me
with his assista%-e a%! spport whe%e$er %ee!e! that has +ee%
i%strme%ta. i% -omp.etio% o* this pro/e-t(
I wo.! a.so .i'e to tha%' my -areer ma%ageme%t -e.. he.pe! i% the
a--omp.ishme%t o* this wor' a%! o+.ige! *or her -o%siste%t spport(
The .ear%i%g !ri%g the pro/e-t was imme%se & i%$a.a+.e( Or wor'
+asi-a..y i%-.!e! the st!y o* -stomer re.atio%ship ma%ageme%t( The
prese%t report is a% ama.gamatio% o* or thoghts a%! or e**orts to st!y
the -stomer so that managers may develop better approaches in dealing with their
customers, and form mutually rewarding relationship in the future.
2i%a..y throgh this a-'%ow.e!gme%t I wo.! .i'e to express my si%-ere
gratit!e towar!s a.. those peop.e who ha$e +ee% i%spiratio%a. a%!
i%strme%ta. i% !ra*ti%g this assig%me%t(
RAI BUSINESS SCHOOL 3
TA%LE O& CONTENT
A-'%ow.e!geme%t
A+stra-t
4( I%tro!-tio%

ADDMA"C1
2( -.ie%t
3( O+/e-ti$e
4( Metho!o.ogy
5rimary Data
6e-o%!ary Data
3(
7%it Li%'e! I%sra%-e 5o.i-y
8 (Mta. 2%!
9( Types o* Mta. 2%!
:( 7LI5 ;s Mta. 2%!
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<( Mta. 2%! A%a.ysis
4=( 6r$ey
44( "e-omme%!atio%s
42( >i+.iography
43(A%%exre
ABSTRACT:
Customer Relationship management (CRM) is a software package that can be used to
collect information and collaborate internally across a corporate organization in order to
improve interaction with customers.
There are two elements which make up CRM! one is interaction with the customer
which can be through "nternet or through traditional methods such as the telephone.
The second is for a company to utilize the information gathered from such interaction to
market their products better.
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The second element involves using the "nternet or more accurately corporate
intranets so that the information is widely available within the organization. The
software packages which make up CRM thus help a company identity that its
customers are and their spending patterns. CRM along with supply chain
management have become the leading tools of the so#called new economy which is
supposed to have greatly enhanced productivity.


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INTRODUCTION:
Addmarc, an advertisement and marketing company in the field of promotional
services of restaurant and food chain outlets through our services we partner you in the
hospitality of your organization and your employees(
With reference to our conversation here we are offering you the best &
most economical package.
ABOUT ADDMARC:
RAI BUSINESS SCHOOL <
A''mar$.
A Canadian concept based advertising & marketing co.
WHO WE ARE ?
We are an nine year old innovative marketing services team of professionals and
primary objective is to assist ventures essentially with in the services industry
comprising hotels, restaurants, resorts, multiplees and leisure park.
WHY WE ARE?
!he hospitality services industry is possibly the fastest growing business
vertical
in "ndia today to #uote and apt marketing clich$ demand far out strips supply in any
of the services comprising this business vertical. "t is projected that this demand
shall continue to grow eponentially over the net ten years. !his is eventually
epected to result in various specialist with in the field being sought fore various
subheads that make the services. %ervices industries as a whole.
&rofitability and continuous revenue planning being the key behind any venture, We
are at Addmarc seek to address the key component in the meeting on of the
marketing services re#uirements the key differentiated between a good venture and
profitable one.
At Addmarc we are completely alert to fact that each Clint is special and
each Clint present us we can opportunity to continue find tune and bone our
marketing skills to realize customer delight and satisfaction in every way
possible.
RAI BUSINESS SCHOOL 4=
At Addmarc, we understand the value behind creation of relationship and
associations which etent far beyond the professional ambit. We firmly believed a
satisfied customer is veritable mouthpiece for other prospective clients.
A! Addmarc, they put our actions to match your recommendations this is
our biggest strength and is the very basis of our many successful marketing tie
up.
We take etreme care in choosing our associates.
Our clienteles
We are having more than fifty national and international clients, our major clients are


RAI BUSINESS SCHOOL 44

Out Other Clients.
Pin' (au$#i Pi$ar'i Taste !" $#ina S#an)a* Asia )it$#en
Ri$e (!+ M,ster, gui'e & Man, m!re---------.
Details :
Detail of card
Feature of meal card:-
"n just 's ((()* you will get meal of worth 's around +,,,,)*.
"t is a freely transferable card means either you or on behalf of you anybody can
use this card.
!he validity of this card is complete one year from date of purchase.
RAI BUSINESS SCHOOL 42
-our mega bumper card of 's ./,)* each 0 's +,,,)* 1 absolutely free.
All restaurants are on prime location of 2elhi and 3C'.
RAI BUSINESS SCHOOL 43
RAI BUSINESS SCHOOL 44

MONTH OFFER -
&ree t+ent, eig#t $!u*!ns "!r 'iner an' un$# meas +it# (u,
!ne get !ne !""er.
RAI BUSINESS SCHOOL 43
Free four bumper offer coupons of worth Rs 250 each.
O+/e-ti$e
!o know the satisfaction level of partners and eternal customers of A224A'C
0Advertising & 4arketing Co.1and to Capture the essence of genuine relationship as
perceived by them so that managers may develop better approaches in dealing with
their customers, and form mutually rewarding relationship in the future.
RAI BUSINESS SCHOOL 48
Met!"!l!#$
!he methodology for this project includes four phases5
%tudy of the concepts through various literature available on the
subject.
"nteraction with the corporate unit to get relevant information and
eposure on the subject.
Primary survey through tele*calling and understanding their
concerns.
Analyses of data to derive Partnes and External customers
Satisfaction.
%ri&'r$ D't' C!llecti!n
A structured #uestionnaire was used to collect data from the interviews method was
used in order to get the #uestionnaire answer. As respondent played an important role
owing to their interaction
Sec!n"'r$ D't' C!llecti!n
!he secondary data was collection from various magazines, journals, newspaper and
books written by eperts. !he magazine referred to be 6usiness "ndia,
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6usiness World, 3ewspapers like !he 7conomic !imes, !he !imes of "ndia.
!he secondary data
collected then was used in formulation of the #uestionnaire, which was then used to
collect primary information.
TYPE OF RESEARCH
!he research was descriptive in nature. An idea was to gain an insight into the
problems that the C'4 to which working in the competitive environment. !he project
would have remained incomplete without the suggestions of the working in their
companies regarding the effort re#uired to serve the sector.
!"!TAT!O#S
!he sample size was limited by the time constraints. !he project was re#uired to be
completed within duration of 08C! .,,9:27C.,,91.


SCO%E (OR (UTURE STUD)
+. !he project study has been done taking a very small sample size. A detailed
project can be undertaken for the same.
RAI BUSINESS SCHOOL 4:
2. !he growth of the C'4 sector has been accompanied by efforts aimed at
evovling an appropriate regulatory framework.
*+) AND +O* CRM,
Why Do Companies Need CRM ?
Companies need to establish strong customer relationships by ac#uiring in*depth
knowledge of the customer;s re#uirements and epectations. !he idea is to use the
information to meet customer needs better, build loyalty, and increase efficiency
through call centers and other marketing activities. !he advent of the "nternet as a
medium has enabled a reduction in interaction costs among customers and companies.
!he need for personalized information, faster service, and value addition is forcing
both product and service companies to meet or eceed epectations levels. As a result,
companies consider C'4 as an integrated effort that automates business, shrinks time
and distance across the supply chain to serve customers.
How Do Companies Choose the Right CRM tool?
7very company has different legacy systems : computer*related infrastructure
installed at different points in time : and various levels of data integration, that make
C'4 tools difficult to define or apply. "deally, a C'4 package should cut costs and
encourage communication. As every business activity is different, it would need
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different approaches to C'4. 6efore applying C'4 to their business, organisations
need to check the compatibility of the software with their eisting application.
Te (!ur R-s !. M'r/etin#
!here are four other concepts that must be taken just as seriously in order to achieve
long*term success. !hese represent a more current view of what is involved in
achieving marketing success. The four Rs of marketing retention
relations!ips referrals and recovery are of critical importance in the
establishment of a successful marketing program. 'ather than focusing management;s
attention on the tools of marketing, this view re#uires that management understand
what will lead to long*term success and increased shareholder value.
6uilding Customer
The Four Rs of Customer Relationship Management
RAI BUSINESS SCHOOL 2=
"e.atio%ship
s
"ete%tio%
"e*erra.s
"e-o$ery
'etention involves keeping those customers we want by meeting and eceeding
their needs. Customer retention is far less costly than customer ac#uisition. !he
focus must be on the voluntary retention of customers. 'etention of customers
because they have no alternative or by locking them into a reward program does
little to foster long*term relationships. "n fact, it does the opposite. <uite often, as
soon as they can break free from a situation in which they feel trapped, these
customer ill take their business elsewhere.
'elationships are likely to eist when customers voluntarily or even
enthusiastically do business with a firm for etended periods of time.
'elationship building means getting close to customers in an attempt to
understand and serve them better. 'elationships, by their very nature, re#uire
trust, commitment, communication, and understanding. "n the everyday
mayhem of business life, it is easy to put off calling a long*time client or making
relationship building a priority. =owever, it is necessary to place as much
importance on relationships with customers as we do on any other aspect of the
business.
'eferrals address the word*of*mouth effect that results from customer
satisfaction : the powerful message that satisfied customers will convey to
others. When customers are completely satisfied with a service or product, they
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are more likely to spread the word. &eople are more likely to try something new if
it is highly recommended by a trusted colleague, friend, or family member. 3ot
only will they come back to buy from us again, but they will bring their friends
and family members.
'ecovery from poor customer service customer service must also be an important
component of managing customer relationships. 4istakes happen. !hat is a fact of
life and business.!he unpredictable will undo the best*laid plans and leave
customers and employees feeling frustrated. =owever, mistakes can be turned into
opportunities to impress customers and win their loyalty. 'ecovering from a
mistake can reaffirm a loyal customer;s commitment as well as demonstrate to a
new customer your pledge to customer service and satisfaction. "n order to do this,
employees must be empowered to deal with gaps in service and product #uality when
they occur. Customers become frustrated when they have to go through several layers
of management and wait for replies to trickle back through the system before problems
are corrected.
#ot A$$ Customers Are %a$uab$e
3ot all customers represent the same value to a firm. "n fact, companies serve a wide
range of customers, from those who produce very little revenue to those who produce a
great deal. 6ut many companies have no idea who their customers are or how valuable
RAI BUSINESS SCHOOL 22
they are to the business. !he prevailing wisdom today in business is that greater
attention should be paid to satisfying the most valuable customers. "f we are going to
protect customer relationship, then we should start with protecting those that have the
greatest potential value. 6ut many firms do not know where to begin in assessing
customer value.
!hat is why some companies are spending time and money to determine which
customers are costing more than they are worth. !echnology today allows many
companies to track sales and gain an improved understanding of their customers.
4aking the effort to assess the value of individual customers will pay off if the company
uses the information to determine how much to invest in building a relationship with a
customer or customer segment. !he logical outcome making such an assessment is that
there will be some customers on whom the company will lavish attention and whose
relationship will be protected almost at all cost, and other customers whose connection
to the firm is deemed much less valuable and who may even be encouraged to end their
relationship.
At first glance, the idea of helping or encouraging customers to defect seems a rather
harsh step to take, one that may even prove detrimental to a company> however, it can
be a means to improved profitability for the company and higher #uality service for the
best customer. %hedding those customers who are genuinely not paying their way
makes considerable business sense. 8ne critical problem, however, is that most
RAI BUSINESS SCHOOL 23
businesses are ill*e#uipped to identify such customers. And even if they could identify
these customers, the concern remains that these customers may spread negative word
of mouth after they have been ?dropped@ by the company.
4ost companies have customers who spend little but cost as much to serve as those
who bring in greater revenues. -or eample, in our research with financial institution,
the customers who represent the lowest value to a bank in terms of their deposits and
fee*generating products are generally also the most costly to serve. !hey may also be
the type of customers who will continue to use the bank;s branch network, rather than
A!4s and other technology, and be most demanding of the time of employees.
Credit card holders also vary greatly in the etend to which they use their cards and
how they choose to pay their balances. %ome customers use their cards minimally each
month and pay their balance as soon as they receive the monthly statement. !hese
customers represent a small source of revenue for the credit card company since they
are light users and pay no interest. !he administrative costs associated with these
clients are the same as the costs to serve clients who are heavy users and carry over
balances, thereby earning interest for the bank. !he profits realized from each of these
two groups are different because of their usage rates and payment patters. What can
the credit card company doA !here are several alternatives, including increasing usage
rates light users and minimizing spending on these customers. As well, it may be
possible to increase usage further among heavier users, which will offset the costs
RAI BUSINESS SCHOOL 24
associated with light users. Cards issued with a fied annual fee dater light users, who
will not benefit by having the card because of their low spending levels.
Consciously encouraging the defection of the unprofitable customers unprofitable is a
decision that re#uire information about customers and their spending patterns over
time. "t also re#uires a better understanding of the customer;s spending potential.
4any businesses will serve young clients for many years without realizing substantial
revenues. =owever, these companies often attempt to retain those clients because of
their potential as long*term, profitable customers as they mature and their earnings
increase. An eample is the bank that carriers a student;s small balances for years in
anticipation of the individual;s greater needs when he graduates and is employed.
6ecause of this potential, businesses cannot make broad*based decisions to ?lose@ the
bottom B of their customers. 'ather, they must make that decision based on
knowledge about the customer;s past and present spending potential.
Attempting to deliver an appropriate level of customer service to a customer;s
estimated value to the company is a risky strategy. "n the first place, unless the
company has very good information on the true value of the customer, the risk is very
real that it could be wrong in labeling a customer ?low value@. "n such a situation, the
strategy adopted to ?serve@ the low*value customer may involve reducing service levels
to the point where the customer may decide to take this or her business elsewhere, or
charging fees or higher prices to such customers so that they either become profitable
RAI BUSINESS SCHOOL 23
or are encouraged to leave. !he danger, of course is that the firm may offend customers
who are in fact more valuable than available data may indicate, or create a public
relations problem because customers voice publicly their views on how they are being
treated.
!ailoring levels of customer service to some estimate of customer value is a
challenge for a business and a dangerous strategy to implement. Clearly, a company
really does not want to maintain close relationships with all of its customers, but
deciding which ones to maintain and encourage and which ones to cut loose or ignore
is not an easy task. %uch a decision may be made for the wrong reasons and in the
absence of full information. !he concept of value for a customer is very important as
companies consider how to implement a customer relationship strategy.
"ustomer Relations!ip as Asset
What is the value of a solid customer relationshipA =ow can employee satisfaction
provide insight into future financial performanceA 4ore and more firms are asking
these #uestions as they attempt to measure non financial or soft assets and attribute
economic value to them. !his is happening at a time when intellectual capital, human
resources and training are more important to some companies than the value of their
tangible assets. -or eample, a small "! firm made up of capable, hardworking, creative
people will want to evaluate the company based on its potential to deliver #uality
RAI BUSINESS SCHOOL 28
services and solutions to their clients rather than on the value of the hardware and
software used to create the solutions. !he services provided by the company will be
valued by its clients as well as the relationships forged through the interaction and
#uality work done. -or the most part, these solutions are the result of the people who
work on the problems rather than to the e#uipment and facilities used to produce
them. "n other words, it is the abilities and #uality of the people to produce results as
well as their willingness to provide high*#uality service and form relationships that will
differentiate thee companies. !o be fair to these types of businesses, more attention
should be paid to the measurement of intangible assets when valuing the firm.
When a company is sold or when it issues an "&8, the marketplace and investors
apparently have little difficulty placing a value on the firm;s intellectual capital and its
potential for future profits. What is re#uired to provide a better understanding of the
true value of the future potential of a company is more than financial measures. "n this
contet, a traditional accounting approach is inade#uate because it fails to take into
account the kinds of measures that are of critical importance to those who are involved
in marketing and who are focused on the long*term value of the customer relationships
that the company has built. "t is the customer who is responsible for the future earnings
of the company. "t is essential, therefore, that the company place a value on the long*
term stream of earnings produced as a result of customer relationships.
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7vert Cummesson, &rofessor of 4arketing at %tockholm Dniversity, speaks of
intellectual capital #ein$ divided into t%o components !uman capital &t!e
value of t!e employees %!o %or' for t!e firm and %!at t!ey #rin$ to t!e
company includin$ t!eir 'no%led$e motivation and networ& of
re$at'onsh'ps( an) structura$ cap'ta$ *the embe))e) &now$e)+e of the f'rm, the
re$at'onsh'ps the compan- has w'th 'ts customers an) others. 'ts corporate
cu$ture. s-stems. contracts. an) bran)s(. $uman capital leaves the firm when an
employee resigns or retires structural capital goes on insofar as the company%s
relationships and brands have enduring value& a value unfortunately that has rarely
been calculated.
The techni'ue is used to weight the factors between 'uality and price resulting in
e'uilibrium line between 'uality and price showing what the customer deems a fair
value.
5E"CEI;ED 2AI" ;AL7E
&'"C7

?7ALIT@
RAI BUSINESS SCHOOL 2:
Customer Value Map
Within each competitive set, the company with the best value wins. !he slope of the
line is critical to C'4 strategy. "f the organization happens to be in a category that has
destroyed the importance of #uality and brand Ecreating a steeply sloped perceived fair
value marketF, it is a commodity, a price game, and unless it changes the way its
targeted customers weigh the factors, nothing but the lowest price will win.
W!at(s )mportant?
A number of lessons learned from this chapter merit emphasis at this point. Calculating
or determining the long*term value of a customer is important for a firm. -irst, it
demonstrates to employees that the firm is focused on cultivating customer
relationships so as to maimize the long*term payback that flows from such
relationships. "t sends a very important message that, by engaging in behavior that in
any way puts customer relationships at risk, the employee is jeopardizing a very
important flow of revenue not only form the customer directly but from any business
that he or she might influence.
%econdly, determining the value of a customer may influence a decision regarding
those customers with whom the company wishes to establish and maintain
relationships. "t has the potential, once a concerted effort is made to place a value on a
customer relationship, to identify those customers where long*term potential is very
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good and those where the most concerted efforts will relationships in the customers;
eyes. 8ther authors suggests that where customers do not really want to get very close
to a company, the company should eamine what value or benefits the customers
perceive they are getting now or could potentially get from such a closer association.
!he conclusion is often that the company has not done a very good job of
demonstrating that additional value can be created for the customer by ?getting closer.@
!he challenge is to create more Grelational benefits,@ as customers are generally already
aware of the functional and process benefits that the company can offer. "n fact, the
fact that these customers are not interested in deepening the relationship suggests that
they are aware of and satisfied with the benefits created at this more functional level.
!he challenge to the company is to raise the bar and to make the softer, relational
benefits more relevant for the customer.
Het;s reconsider for a moment the implications of implementing technology in an effort
to add value for consumers. Customers generally appreciate the convenience value that
is created by the introduction of many new technologies. 6ut there is an important
shortcoming5 by allowing the customer to deal with us entirely through technology, we
are removing human contact, the opportunity for conversation and the opportunity to
?read@ a situation.
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Pyramid Model:
!he top*down pyramid is a model for planning and eecuting a C'4 initiative.!he
underlying support for the pyramid is ?Customers,@ a constant reminder that
profitable customers are the core of a company;s eistence. "t ensures that companies
achieve corporate revenue and profit goals by aligning the entire organization around
customers to deliver real business value.
!hose that count their C'4 investments a success have learned that it;s essential to
view C'4 as an enterprise*wide initiative that re#uires eecutive*level involvement
and strategic alignment from the beginning. %econdly, this model puts technology in
its proper place as an ?enabling@ platform. !he C'4 technology implementation
becomes a natural etension of the company;s vision and strategic direction and
supports the organizational structure and business processes.
"ustomer *alue +ana$ement &"*+,- .!e /rivin$ 0orce 1e!ind "R+
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Success
!he aim of all businesses should be to create a value proposition for customers that are
superior to and more profitable than the competition. !he value proposition can be
specifically described in terms of5
!he target customers>
!he benefits offered to them and>
!he price charged relative to the competition.
!he value creation process is a critical component of C'4 as it translates business and
customer strategies into specific statements of what value is to be delivered to
customers and, conse#uently, what value is to be delivered to the supplier
organization. "t consists of three key elements5
2etermining what value the company can provide to its customers>
2etermining the value the organization receives from its customers
6y successfully managing the value echange, maimizing the lifetime value of
desirable customer segments.
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CRM: ADDMARC (An Advertising & Marketing Co.)
A224A'C has transformed itself into a technology intensive services group in the last
decade. !o achieve its long*term goal of being in a position, A224A'C has taken a
series of initiatives. As part of the plans, it is implementing various projects to
establish world*class C'4 practices, which would provide an integrated view of its
customers to everyone in the organization.
C'4 at A224A'C involves increased communication between its customers and
prospects, as well as within the group itself. !he underlying idea is to enhance very
instance of contact with the customer. A224A'C believes that a true customer*centric
relationship can only be accomplished by considering the uni#ue perspectives of every
single customer of the organization.
THE CR" ROA/"AP
"t should allow A224A'C to engage in customer service by tracking complete
customer life*cycle history. !o begin with, it will automate process*flow tracking in the
product sales process, and be able to generate customized reports and promote cross
selling. -rom an architecture perspective, the enterprise*wide C'4 solution should
seamlessly, integrate non*transactional related customer information housed in the
-ront*8ffice with the transactional information housed in the 6ack 8ffice. Creating the
RAI BUSINESS SCHOOL 33
enterprise C'4 strategies re#uired the combination of nine distinct steps as shown
below5
(TR)T*+, "-T*.."+*-C*
/R0C*(( )1T0M)T"0-
0R+)-"2)T"0- 3)T)
T*C$-0.0+,
Source : "Creating the Enterprise CRM strategy" by Aslam Handy, Chief Technology fficer,
!ialogos"

RAI BUSINESS SCHOOL 34
6y combing these nine steps can one really start listening to the customers, and
understand what they are saying, may be even in real time. 8nce that is achieved,
profits begin to follow as optimization techni#ues are applied. 8nly then will the two
crucial goals for a successful business*case driven project be achieved, viz.
0. Effect'1e chan+e mana+ement
2. Techno$o+-2enab$e) e1o$ut'on.
A224A'C recognizes that customers make buying decisions based on more than
just price.... more than just product. "ustomers ma'e #uyin$ decisions #ased on
t!eir overarc!in$ experience t!at includes product and price2 and price2
and sales service reco$nition and support. "f A224A'C can get all of those
factors right*consistently*we will be rewarded with ongoing customer loyalty and value.
IMPLEMENTING CRM
A very detailed and comprehensive C'4 Action &lan was developed based on the
understanding that C'4 will re#uire an enterprise %ide transformation.
!he C'4 6usiness !ransformation 4ap below shows the various aspects of that
change. !here are five inter*related areas. !hese include5
+. 6usiness -ocus
.. 8rganizational %tructure
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I. 6usiness 4etrics
J. 4arketing -ocus !echnology.
!he key to building the C'4 action plan was in understanding where the
organization stood relative to each of the five aspects of change. "nterviews with key
individuals throughout the organization helped identify different initiatives that have
been launched, all focused on C'4. While all of the these initiatives may have merit,
failure, to address the total business transformation re#uirements can lead to very
short*lived success.
.HE "R+ 13S)4ESS "Y"5E
a, 3nderstand and /ifferentiate
A224A'C CroupKs customer need to see that the company is differentiating service
and communications based both on what theyKve leaned independently and on what
the
customer has told them. At the same time, differentiation should be based on the value
customers are epected to deliver.
#, /evelop 6 "ustomi7e
"n the product*oriented world of yesterday, companies developed products and
services and epected customers to buy them. "n a customer*focused world, product
and channel development has to follow the customerKs lead. 8rganizations are
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increasingly developing products and services, and even new channels based on
customer needs and service.
A224A'C believes that the etent of customization should be based on the potential
value delivered by the customer segment.
c, )nteract 6 /eliver
A224A'C is strongly of the opinion that value is not just based on the price of
the product or the discounts offered. "n fact, customer perceptions of value are based
on a number of factors including the #uality of products and services, convenience,
speed, ease of use, responsiveness and service ecellence.
d, Ac8uire 6 Retain
%uccessful customer retention basically involves getting it LrightL on an ongoing
basis. And that is eactly what A224A'C aims to achieve out of its C'4 initiatives.
%uccessful customer retention is based very simply on the organizationKs ability to
constantly deliver on three principles 5
4aintain interaction> never stop listening.
Continue to deliver on the customerKs definition of value.
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'emember that customers change as they move through differing life stages> be
alert for the changes and be prepared to modify the service and value proposition
as they change.
And so the cycle continues.... As a cycle, the stages are interdependent and
continuous. As one moves from one stage to the net A224A'C hopes to gains
insight and understanding that enhance the subse#uent efforts.
"3S.O+ER 1ASE -
"t is not possible to have a relationship with someone you cannot identify, so it
is absolutely critical to KknowK your customers.
!his database is a repository for the information needed to have a mutually rewarding
relationship with customers. -or purposes of building such a relationship, it includes
these I categories of information.
6asic information such as customer name and address
'elevant information about that individual such as age and income level, family
status and buying intention. !his is dynamic and subject to change.
2ata captured whenever the customer makes a transaction.
7very customer purchase presents you with an invaluable opportunity to enhance
your understanding of how your customers like to do business.
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"ustomer +edia
!he strongest customer 4edia : these I elements are the heart and soul of deep &
lasting customer bond.
!o create a relationship means one has to 5
Mnow the customers likes and dislikes : his psyche 0database1
Meep up a continuous learning process about the customer 0dialogue1
=ave some way of communicating directly with them 0direct media1
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WHA. )S .HE RES35.?
A successful Lloyalty &rogrammeLN %uccess of any customer relationship
programme depends on the support of a database, use of direct media, such as
customized direct mail, newsletters, monthly statements and a solid reward system
that builds continuously. We could define this as : making each purchase a customer
makes, increase the value of the net purchase to that customer. "n return the
company profits by increased sales to such customers who also act as brand
ambassadors.
A//"ARC E3per'ence
i. C'4 is not a technology initiative. !echnology is needed in order to implement
C'4 : particularly the customization part : but technology is not the driver of
C'4, or the solution to successful C'4 implementation.
ii. C'4 is not eclusively a marketing initiative. "t results in more effective, data
driven marketing efforts.
iii( C'4 is not eclusively a sales initiative. "t is just one functional area that can
benefit from C'4.
i$( C'4 is not eclusively a service initiative. "t is again a functional area only.
!hus it is essentially an enterprise 9 %ide initiative.
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The road !ie" (Readiness o# the Co$%an&)
6efore embarking on a C'4 program, it is imperative to search your 0here, refers
to the company1 souls. An eercise needs to be administered to a number of people at
different levels and in different areas of your company. Also a representative group of
customers may be involved as there is enormous value in hearing what your customers
say about your readiness.
%ubjective answers should be sought for the following #uestions5
<.+ =ow well can your company identify its end user customersA
<.. Can your company differentiate its customers based on their value to you and
their needs from youA
<.I =ow well do you interact with your customersA
<.J =ow well does your company customize its products and services based on what
it knows about its customersA
Answers to the #uestions will provide your locus stand vis*O*vis your intention and
preparedness of a C'4 program.
"t is also etremely essential to understand the various gaps that need to be
plugged. %o the net logical step is5
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The 'ne(to('ne Ga% Too):
!his eercise to be administered to employees at various levels and functions, is
designed to capture a robust analysis of your company. "t should also be given to a
representative group of customers, with the language tailored opportunity, in order to
epose the gap between internal and eternal perceptions5
A) Process
2oes the company have established #uality assurance processesA
Are the companyKs business process customer centricA
B) Technology
2oes the company take customersK needs into consideration when selecting and
implementing technologyA
2oes the company provide its employees with technology that enables them to
help customersA
C) Knowledge Strategy:
2oes the company maintain a strategy for collecting and using information about
customersA
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=ow effectively does the company combine information on customers with its
eperiences to generate knowledge about its customersA
D) Partnerships
=ow does the company select its partnersA
2oes the company understand the relationships among its customers and
partnersA
E) Customer Relationships
=ow effectively does the company differentiate its customersA
What steps has the company taken to improve the total eperience of its
customersA
=ow effectively does the company measure and react to customersK epectationsA
=ow effectively does the company understand and anticipate customerKs
behaviourA
) Employee !anagement
!o what degree are employees empowered to make decisions in favour of the
customerA
=as the company formally linked employeesK rewards with customer : centric
behaviourA
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) Competiti"e Strategy
!o what etent does the company understand how customers effect the
organisationA
=ow much Kinfluence do customersK needs have on the companyKs products and
servicesA
=ow effectively does the company build individualized marketing programsA
=ow aware is the company of other organizations approaches to building
relationshipsA
After a thorough analysis and understanding the organizationKs internal dynamics,
we can come to the stage when the implementation of a C'4 solution has to be carried
out.
Integrated Customer Relationship Management:
!he framework of the "C'4 practice defines Competitive Customer 'elationship
based on customers; needs under market competitions.
!he chart also demonstrates its integrated process of marketing strategy analysis5 it
starts from marketplace to understand the Competitive Customer 'elationship
structure and maps such relationship structure into a company;s database 0the Poom
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"n process1. "t then develops marketing strategies to enhance a company;s Competitive
Customer 'elationship based on the data analysis from the database 0the Poom 8ut
process1.

-ig5 "ntegrated Customer 'elationship 4anagement
"C'4 is about integration5 the integration of data, the integration of marketing
functions and the integration of database and marketplace. !hrough the integrated
process, "C'4 overcomes the serious limitations in the current C'4 practice.
+1 "dentify Competitive Customer 'elationship
what is competitive customer relationship
What drives competitive customer relationship
.1 4easure Competitive Customer 'elationship
how to measure Competitive Customer 'elationship
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I1 "mprove Competitive Customer 'elationship
*with which customers to build 'elationship
*how to "mprove Competitive Customer 'elationship
how to develop effective customer relationship management strategies
"C'4 is the first theoretical framework for effective customer relationship
management. "t provides practical answers to the si critical #uestions about customer
relationship management. "t also provides a standard marketing process for
companies to manage their customer relationship effectively. "C'4 is designed to
manage Competitive Customer 'elationship.
6elow is a table comparison about how "C'4 handles the si critical #uestions about
customer relationship management differently from the current C'4 practice.
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Comparisons between ICRM and CRM
PROPOSE/ "O/E FOR CR"
!he 4odel has J steps which may be followed by the company to introduce C'4.
!hese steps are to be implemented in strict order.
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Step 0 4 !)ent'f-'n+ Your Customers
!he activities involved are 5
Collect and enter more customer names into the eisting database.
Collect additional information about your customers.
Qerify and update customer data and delete outdated
Step 2 - /ifferentiatin$ your "ustomers
Activity involved are 5
"dentify your organisationKs top customers.
2etermine which customers cost your organisation money.
-ind higher value customers who have complained about your product or service
more than once in the last year.
Hook for last yearKs large customers who have ordered half as much or less this
year.
-ind customers who buy only one or two products from your company but a lot
from other business.
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'ank customers into A, 6 and C categories, roughly based on their value to the
company.
Step : - )nteractin$ %it! Your "ustomer
Activities involved are 5
Call your own company and ask #uestions> see how hard it is to get through and
get answers.
Call your competitions to compare their customer service with yours.
"nitiate more dialogue with valuable customers
"mprove complaint handling
Dse technology to make doing business with the company easier.
Step ; - "ustomi7in$ Your Enterprise<s 1e!aviour
Activities involved are 5
Customized paperwork to save your customers time and your company money.
&ersonalize your direct mail
-ill out forms for your customers
Ask customers how, and how often, they want to hear from you.
-ind out what your customers want
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Ask your top ten customers what you can do differently to improve your product
or service
"nvolve top management in customer relations.
"f all these activities are carried out with perfection, it may be assumed that the
company shall have an effective and robust C'4 program.
"O4"53S)O4S-
!he domain of C'4 etends into many areas of marketing and strategic
decisions. "ts recent prominence is facilitated by the convergence of several other
paradigms of marketing and by corporate initiatives that are developed around the
theme of cooperation and collaboration of organization units and its stockholders,
including customers. C'4 refers to a conceptually broad phenomenon of business
activity> if the phenomenon of cooperation and collaboration with customers become
the dominant paradigm of marketing practice and research, C'4 has the potential to
emerge as the predominant perspective of marketing. -rom a corporate
implementation point of view, C'4 should not be misunderstood to simply mean a
software solutions implementation project. 6uilding customer relationship is a
fundamental business of every enterprise and it re#uires a holistic strategy and process
to make it successful.
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RECO""E#/AT!O#S4
6ased on the thorough analysis of the findings in the conclusion section, we are in a
position to propose the recommendations. !he recommendations are in a form of a
list of activities and a series of exercise designed for eecutives, managers, and
employees at all levels in the company, as well as for the customers and channel
partners. 'eviewing the list and working through the eercises will help the company
to determine what type of program it can implement immediately, what it needs to do
to position it for a large*scale initiative, and how it should prioritise the plans and
activities.
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