CRM

Prof. Vijay Tandon - Director, PGDM & International Programs.

Module Leader - Vijay Tandon
Subject - CRM
Target Audience – PGDM5/SSM1/UEMBA2/CMBA2Y2
CRM Intro….

A long term relationship with customers to nurture its stability in today‘s blooming
market.
- Customer‘s expectations are now not only limited to get best products and services, they also need
a face-to-face business in which they want to receive exactly what they demand and in a quick time.

- CRM is a business strategy directed to understand, anticipate and respond to the needs of an
enterprise's current and potential customers in order to grow the relationship value.

- The Customer Relationship Management is the procedure that is crucial for every business.
CRM Relations - Two categories

Relationship Management

External Internal
relationship relationship
CRM

How your Interacts with

business your Customer

CRM involves using technology - Gather intelligence to provide improved support & services to customers.
CRM is also about what you do with that information to better meet the needs of existing customers &
identify new customers, resulting in higher profits.

A CRM system is not only used to deal with the existing customers but is also useful in acquiring new
customers.
CLTV

Customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value (LTV)
is the net present value of the cash flows attributed to the relationship with a customer.

• The use of customer lifetime value as a marketing metric tends to place greater emphasis
on customer service and long-term customer satisfaction, rather than on maximizing
short-term sales.

• Building Profitable Customer-Centric Strategies: Maximizing Profit Potential

• Our high-impact processes for becoming more customer-centric and creating innovative
strategies will be valuable only if we can effectively deliver on these profitably.
External Relationship

CUSTOMER SUPPLIER
RELATIONS RELATIONS

Customer satisfaction & Loyalty

Sense of commitment
STRATEGIES FOR CUSTOMER RETENTIONS
Customer buying profile
Customer buying preferences
Customer service profile
• How often do they buy?
• When do they buy?
• Is there a pattern to their buying habits (e.g., seasonal)?
• How much do they buy at one time? Over time?
• What do they buy?
• Do they always buy the same thing?
• Why do they buy it?
• What kinds of problems/issues do they encounter?
• What is the current status of their issues?
• How many open tickets are there?
• How many cases have been resolved?
STRATEGIES FOR CUSTOMER RETENTIONS
1 KNOWLEDGE ON PURCHASE BEHAVIOUR PATTERN

2 FOCUS ON REDUCING DISSATISFACTION

3 ATTENTION ON CHANGING REQUIREMENT OF CUSTOMERS

4 RELATIONSHIP BASED PRICING SCHEMES

5 SETTING SATISFACTORY SERVICE STANDARDS

6 CONCENTRATION ON THE PAYING ABILITY OF CUSTOMERS

 CRM

TRANSACTIONAL
RELATIONSHIP
Transactional vs. Relationship
Transactional marketing approach is on individual transaction and does not concern
1
continuous relationship with customers.anies

2 Transactional marketing does not contain a strategic long term perspective.

The relationship marketing focuses on continuous multiple transactions rather than

3
isolated individual transactions.

Transactional marketing approach is on individual transaction and does not concern

4
continuous relationship with customers.

5 Relationship marketing gives a company new opportunities to gain a competitive edge

6 Transactional marketing does not contain a strategic long term perspective.

 `Transactional vs Relationship
Criterion RELATIONSIP MARKETING TRANSACTIONAL MARKETING
Primary object Relationship Single transaction
General approach Interaction related Action related
Basic Implementation – Decision oriented
orientation oriented
Long-term Long term Short-term perspective
versus short term perspective
Fundamental Maintenance of Acquisition of new customers
strategy existing
relationships
Intensity of High Low
contact
Measurement of Managing the Monitoring market share
customer customer base
satisfaction
THREE STEPS OF CRM PROCESS
THREE STEPS OF CRM PROCESS

Acquisition
Customer Interaction
Management
Customer Retention

The formation process of CRM refers to the decisions regarding initiation of relational
activities for a firm with respect to a specific group of customers or to an individual
customer with whom the company wishes to engage in a cooperative or collaborative
relationship.
 Analytical CRM
“Decision support system”

Understand & Captalize customer needs

Enable Business to analyse relevant data
Key features of Analytical CRM
CRM Implementation Roadmap
Strategic plan - Meet & exceed customer expectations

Gain insight
from customers Product valuable
offerings
CRM Implementation roadmap

Business
CRM capabilities
strategies

Leveraging customer information

Effectively managing product mix
ANALYTICAL CRM
1 Analytical CRM may be defined as a decision support systemRN

Analytical CRM consist of applications that enable business to analyze relevant data in
2
order to achieve a more meaningful and profitable interaction with the customer.

It uses customer data for analysis, modelling and evaluation to create a mutual
3
relationship between company and its customers

4 It helps to better understanding of customer behavior.

5 The analytical CRM solution enable the effective management of a customer relationship.

Analysis of customer data can a company begin to understand bahaviours,identify buying

6
patterns and trends and discover casual relationship.d
CRM Scenario analysis

Implementation Purpose & objectives

roadmap
Business planning

Direct - Distribution

Process design
CRM stakeholders External
Internal
customers
customers