UNIT I

Customer relationship management

 CRM is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high-quality customer data and enabled by information technology. Francis Buttle (2004)

 CRM is a philosophy and a business strategy,

supported by a system and a technology,

designed to improve human interactions in a business environment. Greenberg (2004)

 TRUST

COMMITMENT

GOALS OF CRM (or) MOST USER SEGMENT OF CRM (or) WIDE USERS OF CRM (or) CRM BEST USERS

Marketing: A clearer view of customers and

more informed marketing investments

Sales: Get more leads and close more business

Customer service: Provide more value to customers

 SALES
SALES ORDER MANAGEMENT ACTIVITY MANAGEMENT

sales call, meeting, etc

 OPPORTUNITY MANAGEMENT
Prospective customer company details etc, Type of sales opportunity and product interest Expected sales revenue,

Expected sales closing date,

Key people in the sales opportunity and their roles within the deal/company, Key sales-related dates and milestones

CUSTOMER SERVICE
Solution Management - answers to Frequently Asked Questions (FAQs) Call Center Management Collaborative customer support resource management

MARKETING Marketing planning Campaign management Lead management(raw details

of company, person or business opportunity. These are unqualified sales opportunities gathered at various situations, viz. trade shows, seminars, advertisements, purchases from external sources and other marketing campaigns for the purpose of sales)

BASIC STEPS OF CRM

Attracting present and new customers

Acquiring new customers

Serving the customers

Finally, retaining the customers

OBJECTIVES OF CRM
To simplify marketing and

sales process
To make call centers more efficient

To provide better customer

service To discover new customers

and increase customer revenue

To cross sell products more effectively

ADVANTAGES (or) BENEFITS OF CRM

Develop better communication channels

Collect customer related data

Create detailed profiles of individual customers Increased customer satisfaction Access to customer account history, order information, and customer information at all touch points

Identify new selling opportunities Increased market share and profit margin Increased revenues More effective reach and marketing

MISUNDERSTANDINGS/PROBLEMS/CHALLENGES (CRM)

Identifying CRM with a software system CRM is a complicated system, difficult to understand CRM

is

expensive

and

unaffordable

by

small

enterprises
Who is responsible for CRM implementation - The Marketing, Sales, Customer Service, or IT officials? Wrong assessment for the Return On Investment in CRM

NEED OF CRM
Better Customer perceptiveness

Lead to Customer Satisfaction

Lead to Customer Loyalty Lead to Customer Retention Chances of getting referrals Growth in revenue Cost to serve is low

CRM ORIENTED MARKETING

TYPES OF CRM
1. OPERATIONAL CRM
operational CRM combines data such as customers' names, addresses, orders and other pertinent data into one database, the correct analysis of the database is what matters

Marketing Sales force automation Service

ANALYTICAL CRM
Customer Analytics Marketing Analytics

Sales Analytics
Channel Analytics Service Analytics

COLLABORATIVE CRM
Collaborative CRM deals with synchronization and integration of customer interaction and channels of communications like phone, email, fax, web etc. with the intent of referencing the customers a consistent and systematic way

CRM SIGNIFICANCE TO THE STAKEHOLDERS (OR) STAKEHOLDER EXPECTATIONS FROM A CRM APPLICATION

Top Management:
1. Enhanced customer experience 2. Reduced Total Cost of Operations 3. Improved business 4. Company branding through Improved Customer Service and diverse innovative product portfolio.

Marketing Managers:
1. Correct customer segmentation based on various parameters. 2. Effective tracking of marketing budgets. 3. Effective Campaign Management. 4. Event planning. 5. Performance monitoring for dealers.

Retail Store Agents / Call Center Agents / Field Sales Agents:

Ease of navigation. High speed.

Availability of 360 degree view of the

customer.

Validations to prevent duplication of data (e.g. customers, products etc).

Pop-up messages for warnings, disclaimers etc.

Profiling as per area of work (display only need to know information).

Display prioritized list of activities.

CUSTOMERS USING THE SELF CARE CHANNEL:

Ease of navigation. Facility to search products and services easily. Facility to chat with an agent in case of any product/service related queries. Facility to see all the charges (fixed, recurring, usage

related) associated with the product / service.

Display of Hot Offers. Ease in bundling products and services.

Up-sell and cross-sell of products and services.

Minimal screen refreshes. High speed.

TRANSACTIONAL VS RELATIONAL APPROACH

ORIENTATION OF CUSTOMERS
COST ORIENTED

VALUE ORIENTED

TECHNOLOGY ORIENTED

CRM BUSINESS CYCLE

OVERVIEW OF THE CRM PROCESS