CRM

The Strategic Imperatives

Early Adopters B2C

Financial Services Retailing Telecommunication Travel & Hospitality

CRM vendors
Oracle Siebel SAP Salesforce Microsoft Dynamics Talisma

Enablers for growth of CRM

Emergence of service economy

Emergence of market economy Global orientation of business

Aging population developed economies

Emergence of service economy

US Service sector (79.7% GDP and 80% workforce) -2012 60-70% of GDP of economically advanced nations (UK 78.3% in 2012) 2010 service Sector 55.2% GDP in India Agricultural - industrial Mfg services Services: Close to the customer

GDP sector wise in %

Agriculture 90-91 05-06 07-08 32 20 17 Industry 27 26 29 Service 41 54 54

09-10

18.5

26.3

55.2

Indian GDP: $1.842 trillion (2012) World Bank

Emergence of Market Economy

Controlled Market Deregulation
Lifting FDI restrictions to lure foreign investment
Banking, Broadcasting, Telecommunications opened

Global Orientation of Business

Borderless world GATT WTO
Indian being a member of WTO several countries are now trading with India, thus giving a boost to production, employment, standard of living and an opportunity to maximize the use of the world resources.

Aging population Developed Countries

12.6% above 65 years USA (2000) 17% above 65 years Japan & Sweden
India's older population is projected to quadruple by 2050, while that of the world is expected to triple (1.53 billion) - US Census Bureau

Needs are different Wellness, Financial well being, security Ever changing needs of customer

Non Traditional Competition (New Challenges)

Porter Model
New Entrants Substitute Supplier becoming a competitor Customer becoming a competitor

Non Traditional Competition (New Challenges)

Market Maturity
Developed Countries -- Capacity utilisation Agriculture, Automotives, aircrafts New Market search

Non Traditional Competition (New Challenges)

Misalignment between revenue and profit
Customer Subsidisation for market share

Why CRM?
Rising Customer Expectations

Increasing affluence amongst economies

Greater awareness due to media Customer diversity

Technological Advances Production Techniques CAD CAM Distribution CALS Internet

CRM Definition 1
a process that addresses all aspects of identifying customers, creating customer knowledge, building customer relationships, and shaping their perceptions of the organisation and its products

Source: Gartner.

CRM Definition 2
Building and sustaining customer and infrastructure relationships. It is the integration of customers in the companys design, development, manufacturing and sales processes. All employees need to be in the business of building CRM

Source: McKenna.