Customer Relationship

Management

Presented By : Presented To:

Ashish Gadbail Dr. Ankush Sir
165 Prof. Sachin Sir

INSTITUTE FOR TECHNOLOGY & MANAGEMENT

Bottom-line for CRM
The use of information-enabled systems for
enhancing individual customer relationships
to ensure long-term customer loyalty and
retention
Why CRM?
It costs six times more to sell to new customer than
to sell to an existing one.
A typical dissatisfied customer will tell 8-10 people
By increasing the customer retention rate by 5%,
profits could increase by 85%
Odds of selling to new customers = 15%, as
compared to those for existing customers (50%)
70% of the complaining customers will remain loyal
if problem is solved
90% of companies do not have the sales and
service integration to support e-commerce

 Importance of CRM
Scope Depth
Customer Management Process Threads
Marketing Selling Servicing
Are we making the
Customer Interaction Channels

Customer right level and type

Relationship of marketing , sales ,
Broadcast and service
Strategies investments in each
of our customer
Mail segments?

Field Personnel
Are we taking a
Customer holistic approach to
Agents/Distributors Relationship our customers across
Structure processes and
Call Center channels?

Retail

Internet Customer Have we implemented

Relationship best practices and
Performance technology in
process / channel?

Back Office Process / Systems

 Customer Relationship Management
Process
Capture Customer Data and Measure Results
Capture Customer Data and Measure Results

The Customer
Capture Customer Data and Measure Results

StoreCapture
Data, Mine and Make
DataInformation
and MeasureAccessible
The CRM Customer Results

Dynamic

Take Action to
Enrich the
Capture Customer Data and Measure Results
Customer
Relationship Build and
Capture CustomerManage
Data and Measure Results
Customer Value

Thebuilding blocks of CRM allow an organization to manage this cycle

and use the knowledge on customers to enhance the Life Time value
of the customer portfolio.
No organization has perfect information on its customers. Knowledge
of customers is continuously enhanced through the CRM dynamic.
 The Building Blocks of CRM
Data Data Knowledge Enabling
Capture Warehousing Management Technologies

Customer
Touch
EIS Segmentation Call Centres
Point
Integration
Market Customer Sales Process
OLAP
Research Profitability Automation

External Data Data Mining e-Business

Databases Cleansing

Statistical
MetaData Modeling

Organization

People

Deployment and Support

The
The building
building blocks
blocks of
of CRM
CRM are
are the
the things
things that
that need
need to
to be
be in
in place
place for
for an
an effective
effective Customer
Customer
Relationship
Relationship management
management program
program
The Enabling
Technologies
Call Centre
Sales Force Automation
e-Business

 Call Centres - Definition
Call centres are a key enabling arm of Customer Relationship Management. A well
designed call centre will integrate people, process, and technology to improve
operational efficiency and maximize the value of the customer relationship for both
inbound and outbound contact.
Call Centre
Technologies

People Process
IVR ACD
♦External customer ♦Marketing / up-selling
♦Internal customer ♦Technical support
♦Sales Force ♦Product support
♦Support team ♦Service support
♦Back-office ♦7 x 24 support
♦Technical staff CTI
Information

•Customer data updates, purchase •Customer history, billing, purchases, value,

information profile
•Leads tracking update, customer tracking •Product & service information, packages,
updates prices
•Call statistics, inquiries, etc. Data •Marketing hints, reports, promotions
Warehouse
Sales Process Automation - Benefits
ImproveSales Effectiveness
IncreaseCustomer Satisfaction
IncreaseRevenues

ReduceSell Cycle
ImproveCommunications
ImproveManagementEffectiveness

TeamSelling

DecreaseCosts
ImproveMargins

ReduceAdministration
IncreaseSell Time
ImproveForecasts
CurrentInformation

0% 10% 20% 30% 40% 50% 60% 70%

Improving sales force productivity and effectiveness by implementing field
technology is a key goal for many organizations
 e-Business - Definition
Business Partner
Integrating
more directly
with the
Business business
The Value
Processes processes of
Proposition of customers and
Business Processes
Electronic partners
Business Business to Business
Solutions
Tailoring
Profiles & products and
Preferences services to
customers
needs and
Business Partner values

Extending key business Business to Customer

applications to clients and
business partners

ee--Business
Business is
is all
all about
about integrating
integrating the
the internal
internal and
and
external
external processes
processes between
between business
business partners
partners and
and customers
customers..
e-Business - Benefits
On average, it costs about $5 - $50 per query
to support via phone
On average, it costs about $1 - $3 per query to
support via E-mail
On average, it cost less than $1 per query to
support via WWW

Models of Customer
Relationship Management
The Evans and Luskin (1994) model
for effective
Relationship Marketing
Relationship marketing inputs
•Understanding customer expectations
•Building service partnerships
•Empowering employees
•Total quality management
Relationship marketing outcom
•Customer Satisfaction
•Customer loyalty
•Quality products
•Increased profitability

Assessment state
•Customer feedback
•Integration
(Evans and Luskin, 1994)
Sales Force Automation
• 35-40% of all CRM activity
• Manages lead generation, tracks movement
of leads through the pipeline, allows better
usage of customer data, integrates
activities across sales channels, simplifies
relationship management, forecasts for
opportunities (SWOT)
• Goldmine and SalesLogix are examples of
prepackaged SFA solutions.
• Ex. Staples used SFA to integrate catalog,
online, in-store sales efforts directed at its
best customers
Customer Service and Support
(CSS)
• 20-25% of CRM
• Assign, escalate, and track trouble tickets,
inquiries, solution attempts through
resolution
• Provides information to support customer call
center activity
• Gleans customer data from those interactions
and records it in SFA for later use
• Remedy, Siebel, Vantive, and Clarify are
major vendors
• Ex., 3M Adhesive Products division

Help Desk
• 15-20% of all CRM
• Allows individuals to access network
database to solve their own problems
or find information.
• Can be internal or external
• Offers many bottom-line savings
• Human Click, Tivoli, LivePerson, are
providers
• Ex., Land’s End Live allows customers
browse FAQ’s but also click a link to
talk directly with live representative.

Field Service CRM
q3-5% of all CRM activity
qMobile service technicians can log
information about work orders and service
calls, as well as access information from the
remote site.
qCan feed information from customer
problems into SFA for salesperson leads.
qMarket information can be gathered and
logged into central database.
qEnsures appropriate resource allocation by
matching available resources to job
requirements
Marketing Automation
q 3-5% of CRM, but growing 5X faster than all others
q Interfaces with data warehouses and data mining
activities to tailor page views, products, and
promotions, so that the right offer goes to the right
person at the right time.
q Can interact with SFA to support field sales efforts
q Provides customized customer interactions critical to
segment of one marketing, mass customization,
customerization, etc.
q www.webgroove.com, Epiphany, Oracle, Siebel, and
Personify are leaders

 CRM Vendors
Vendor CRM Market Position

•Acknowledge leader
•Very integrator focused

TRILOGY •Leader in their niches

•Not integrator focused

•Excellent product
•Number 2, but struggling

® •Product continually delayed

•Intimidation capacity lessening

•Bold announcements
•Claim high strategic priority
Trends in CRM
Analytical CRM
CRM Goes Mobile
Integrated Approach for CRM
CRM and the Internet
Vertical CRM
Outsourcing CRM
Midmarket Trends

 •

• THANK YOU