Customer Relationship Management

Entails all aspects of interaction that a company has with its customer Thought of as a business strategy
Understand the customer Retain customers through better customer experience Attract new customer Win new clients and contracts Increase profitably Decrease customer management costs

How CRM is Used Today

Provides Customer business data Help provide services or products that customers want Therefore:
Better customer service Cross-sell and up sell more effectively Close deals Retain current customers Understand who the customer is.

How CRM is Used Today

Technology and the Web has changed the way companies approach CRM strategies Technology have also changed consumer buying behavior Offers new ways for companies to communicate with customers and collect data. Many aspects of CRM relies heavily on technology

CRM software Areas

Marketing:
Tracks and measure campaigns over multiple channels, such as email, search, social media, telephone and direct mail. Tracks clicks, responses, leads and deals.

Customer service and support:

Used to create, assign and manage requests made by customers. Can also be used to identify and reward loyal customers over a period of time.

CRM software Areas

Appointments:
Suggest suitable appointment times to customers via e-mail or the web

Small business: Social media:

Market leaders

Challenges with Customer Interactions

CRM in nut shell

CRM is an information industry term for methodologies, software and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. CRM is the process of managing all aspects of interaction a company has with its customers, including prospecting, sales and service.

CRM applications attempt to provide insight into and improve the company/customer relationship by combining all these views of customer interaction into one picture.

Type of CRM
Strategic CRM:
Core customer-centric business strategy that aims at winning and keeping profitable customers

Operational CRM
Focuses on the automation of customer-facing processes such as selling, marketing and customer service.

Analytical CRM
Focuses on the intelligent mining of customer-related data for strategic or tactical purposes

Collaborative CRM
Applies technology across organizational boundaries with a view to optimizing company, partner and customer value

Strategic CRM
Focused upon the development of a customercentric business culture. Culture is dedicated to winning and keeping customers by creating and delivering value better than competitors In a customer-centric culture :
Resources to be allocated to best enhance customer value Reward systems to promote employee behaviours Enhance customer satisfaction and retention Customer information to be collected, shared and applied across the business

Strategic CRM
Customer-centricity competes with other business logics:
Product-oriented :
Believe that customers choose products with the best quality, performance, design or features

Production-oriented:
Believe that customers choose low-price products.

Sales-oriented :
Believe that if they invest enough in advertising, selling, public relations (PR) and sales promotion, customers will be persuaded to buy

Strategic CRM
A customer or market-oriented company :
Shares a set of beliefs about putting the customer first. It collects, disseminates and uses customer information Competitive information to develop better value propositions for customers. A customer-centric firm is a learning firm that constantly adapts to customer requirements and competitive conditions.

Operational CRM
Operational CRM automates and improves customer-facing and customer supporting business processes. Software applications enable the marketing, selling and service functions to be automated and integrated. major applications within operational CRM:

Operational CRM
Marketing automation
Market segmentation Campaign management Event-based (trigger) marketing

Sales force automation

Account management Lead management Opportunity management Pipeline management Contact management Quotation and proposal generation Product configuration

Operational CRM
Service automation
Case (incident or issue) management Inbound communications management Queuing and routing Service level management

 Marketing automation (MA) applies technology to marketing processes SFA applies technology to the management of a companys selling activities. The selling process can be decomposed into a number of stages Service automation allows companies to manage their service operations, whether delivered through call centre, contact centre, web or face-to-face

Analytical CRM
Concerned with capturing, storing, extracting, integrating, processing, interpreting, distributing, using and reporting customer-related data to enhance both customer and company value. Builds on the foundation of customer-related information. Customer-related data may be found:

Analytical CRM
Sales data (purchase history) Financial data (payment history, credit score) Marketing data (campaign response, loyalty scheme data) Service data Added data from external sources:
Geodemographic and lifestyle data

Analytical CRM has become an essential part of many CRM implementations.

Analytical CRM
Operational CRM struggles to reach full effectiveness without analytical information about customers.: Operational CRM decisions, such as:
Which customers shall we target with this offer? What is the relative priority of customers waiting on the line. What level of service should be offered? Where should I focus my sales effort?

Analytical CRM
Analytical CRM can lead companies to decide that selling approaches should differ between customer groups. Higher potential value customers may be offered face-to-face selling; lower value customers may be contacted by telesales. Customer communications can be tailored for a particular segment using using customer analytics

Collaborative CRM
Used to describe the strategic and tactical alignment of normally separate enterprises in the supply chain for the more profitable identification, attraction, retention and development of customers. For example, manufacturers of consumer goods and retailers can align their people, processes and technologies to serveshoppers more efficiently and effectively

Misunderstanding about CRM

CRM is database marketing
Marketing purposes such as market segmentation, targeting, offer development and customer communication.

CRM is a marketing process

CRM software to support a companys mission to become more customer-centric

CRM is an IT issue
IT is an enabler, a facilitator

Misunderstanding about CRM

CRM is about loyalty schemes
Customers accumulate credits, such as air-miles, from purchases. These are then redeemed at some future point. some CRM implementations are linked to loyalty schemes not all are

CRM can be implemented by any company

Strategic CRM YES CRM technology may play a role in that transformation. Banking Industry implemented CRM nut results are not same.

CRM Defined
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-related data and enabled by information technology.

CRM Constituencies
Companies
companies in financial services, telecommunications and manufacturing

Customers and partners Vendors of CRM software CRM application service providers (ASPs)

Improving Customer Facing Interaction

Thank you