Introduction to CRM

Before we begin to examine the conceptual foundations of CRM, it will be useful to define, what is CRM? A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts. Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made. Shani and Chalasani define relationship marketing as an integrated effort to identify, maintain, and build up a network with individuals consumers and to continuously strengthen the network for mutual benefit of both sides, through interactive, individualized and value-added contacts over a period of time. The core theme of all CRM and relationship marketing perspectives is its focus on co-operative and collaborative relationships between the firm and its customers, and/or other marketing actors.

CRM is based on the premise that, by having a better understanding of the customers needs and desires we can keep them longer and sell more to them.

Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 7,000+ customer surveys conducted by Angel Broking Ltd.

CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that
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described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. The essence of the information technology revolution and, in particular, the World Wide Web is the opportunity to build better relationships with customers than has been previously possible in the offline world. By combining the abilities to respond directly to customer requests and to provide the customer with a highly interactive, customized experience, companies have a greater ability today to establish, nurture, and sustain long-term customer relationships than ever before. The ultimate goal is to transform these relationships into greater profitability by increasing repeat purchase rates and reducing customer acquisition costs. Indeed, this revolution in customer relationship management or CRM.1 as it is called, has been referred to as the new mantra of marketing.2 Companies like Siebel, E.piphany, Oracle, Broadvision, Net Perceptions, Kana and others have filled this CRM space with products that do everything from track customer behavior on the Web to predicting their future moves to sending direct e-mail communications. This has created a worldwide market for CRM products and services of $34 billion in 1999 and which is forecasted by IDC to grow to $125 billion by 2004.3 The need to better understand customer behavior and focus on those customers who can deliver long-term profits has changed how marketers view the world.

Traditionally, marketers have been trained to acquire customers, either new ones who have not bought the product category before or those who are currently competitors customers. This has required heavy doses of mass advertising and price-oriented promotions to customers and channel members. Today, the tone of the conversation has changed from customer acquisition to retention. This requires a different mindset and a 3 different and new set of tools. A good thought experiment for an executive audience

is to ask them how much they spend and/or focus on acquisition versus retention activities.

While it is difficult to perfectly distinguish the two activities from each other, the answer is usually that acquisition dominates retention.

According to one industry view, CRM consists of:

Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns with clear goals and objectives, and generate quality leads for the sales team. Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices) Allowing the formation of individualized relationships with customers, with the aimof improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service. Providing employees with the information and processes necessary to know their customers, understand their needs, and effectively build relationships between the company, its customer base, and distribution partners. CRM--Customer Relationship Management--has entered the mainstream. Despite the uncertainty of the economy, CRM is being thrust into corporate budgets and talked about as a critical initiative by hundreds of Fortune 1,000 and tens of thousands of other companies. It has gone
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from being an important edge in the business world to a necessary tool for survival. The notion of the customer as king or queen is once again the rule. How you treat this is a mission-critical business issue. But, what is CRM and how does it change the way companies do business? The changes in the world have been so dynamic and so dramatic that the path is not necessarily all that obvious. How CRM impacts that business path is a continuing source of debate in the world of corporate management.

Managing relationships with customers has become a critical organizational competency. Get winning strategies for acquiring and retaining customers by leveraging the latest advanced technologies. This course will teach you how to select the right tools for your business-- so it can grow today--and on into the future. Lagging means lost customers, which means damage to the bottom line. But how do you not lag when customers are moving lightning fast to demand constant changes in the speed to complete their transactions? How do you keep your customers when the move to another company is nothing more than a mouse click and a minute away? CRM is the answer. Customer Relationship Management, a strategy that leverages very advanced technologies is the way to cut to the 21st Century business chase.

History of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990s with the promise of forever changing the way businesses small and large interacted with their customer bases. In the short term, however, it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons. First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them. In the last several years, however, newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the price of newer, more customizable Internet solutions have hit the marketplace; competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs.

In the beginning

The 1980s saw the emergence of database marketing, which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a companys customers. In the case of larger, key clients it was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs. In the case of smaller clients, however, it tended to provide repetitive, survey-like information that cluttered databases and didnt provide much insight. As companies began tracking database information, they realized that the bare bones were all that was needed in most cases: what they buy regularly, what they spend, what they do.

Advances in the 1990s

In the 1990s companies began to improve on Customer Relationship Management by making it more of a two-way street. Instead of simply gathering data for their own use, they began giving back to their customers not only in terms of the obvious goal of improved customer service, but in incentives, gifts and other perks for customer loyalty. This was the beginning of the now familiar frequent flyer programs, bonus points on credit cards and a host of other resources that are based on CRM tracking 3333 customer activity and spending patterns. CRM was now being used as a way to increase sales passively as well as through active improvement of customer service.

True CRM comes of age

Real Customer Relationship Management as its thought of today really began in earnest in the early years of this century. As software companies began releasing newer, more advanced solutions that were customizable across industries, it became feasible to really use the information in a dynamic way. Instead of feeding information into a static database for future reference, CRM became a way to continuously update understanding of customer needs and behavior. Branching of information, sub-folders, and custom tailored features enabled companies to break down information into smaller subsets so that they could evaluate not only concrete statistics, but information on the motivation and reactions of customers. The Internet provided a huge boon to the development of these huge databases by enabling offsite information storage, where before companies had difficulty supporting the enormous amounts of information. The Internet provided new possibilities and CRM took off as providers began moving toward Internet solutions. With the increased fluidity of
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these programs came a less rigid relationship between sales, customer service and marketing. CRM enabled the development of new strategies for more cooperative work between these different divisions through shared information and understanding, leading to increased customer satisfaction from order to end product.

Today, CRM is still utilized most frequently by companies that rely heavily on two distinct features: customer service or technology. The three sectors of business that rely most heavily on CRM -- and use it to great advantage -- are financial services, a variety of high tech corporations and the telecommunications industry. The financial services industry in particular tracks the level of client satisfaction and what customers are looking for in terms of changes and personalized features. They also track changes in investment habits and spending patterns as the economy shifts. Software specific to the industry can give financial service providers truly impressive feedback in these areas.

In recent years however, several factors have contributed to the rapid development and evolution of CRM. These include: -

1. The growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers to directly interact with end-customers. For example, in many industries such as airlines, banks insurance, software or household appliances and even consumables, the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular. Databases and direct marketing tools give them the means to individualize their marketing efforts.

2. Advances in information technology, networking and manufacturing technology have helped companies to quickly match competition. As a
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result product quality and cost are no longer significant competitive advantages.

3. The growth in service economy. Since services are typically produced and delivered at the same institution, it minimizes the role of the middlemen.

4. Another force driving the adoption of CRM has been the total quality movement. When companies embraced TQM it became necessary to involve customers and suppliers in implementing the program at all levels of the value chain. This needed close working relationships with the customers. Thus several companies such as Motorola, IBM, General Motors, Xerox, Ford, Toyota, etc formed partnering relations with suppliers and customers to practice TQM. Other programs such as JIT and MRP also made use of interdependent relationships between suppliers and customers.

5. Customer expectations are changing almost on a daily basis. Newly empowered customers, who choose, how to communicate with the companies various available channels? Also nowadays consumers expect a high degree of personalization.

6. Emerging real time, interactive channels including e-mail, ATMs and call centre that must be synchronized with customers non-electronic activities. The speed of business change, requiring flexibility and rapid adoption to technologies.

7. In the current era of hyper competition, marketers are forced to be more concerned with customer retention and customer loyalty.
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8. As several researches have found out retaining customers is less expensive and more sustainable competitive advantage than acquiring new ones.

9. On the supply side it pays more to develop closer relationships with a few suppliers than to develop more vendors.

10. The globalization of world marketplace makes it necessary to have global account management for the customers.

Definition: CRM is concerned with creating improved shareholder value through the use of customer centric business processes and the development of appropriate relationships with consumers.

Implementing CRM:

CRM requires an integration of a firm's resources; people, operations and marketing capabilities to deliver added value to the customers. CRM
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should provide businesses and organizations with a single view of their customers and across irrespective of the interactive channel or medium through which the customer accesses the service or product. For example, a business (e.g. hotel) customers profile and personal references should be accessible to the business (or hotel) irrespective of channel i.e. whether the customer books online, calls in or walks into any location should not make a difference to the service provided based on the personal profile of the business client.

It is enabled through:

Information Processes Technology Applications

A firm that wants to implement CRM must align it's business processes cross-functionally in the best possible way to allow increased customer focus with an aim to deliver added value to the customer.

To implement CRM, the following steps must be followed:

Develop a CRM framework Align current business processes Design new cross-functional business processes (where required) Develop Functional Specifications (client-side services) Develop Technical Specifications Match Technical Specifications to available technology (Systems, software, etc) Product Configuration Data Migration and Integration Staff Training
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 Customer Segmentation: For CRM to be effective, the organizations customer base must be stratified into segments based on commonalities amongst groups of individuals and customers. This also requires the organization to have strategies to target consolidated customer segments. Reduced Cost of Service: a customer relationship strategy should reduce the cost of service for both the organization and its customers and increase satisfaction levels. Service as a differentiator: The more competitive a market becomes the more a business will need to rely on its superior product quality and quality of service to differentiate itself from other businesses and providers. Tie-ins over time: The greater the effort a customer spends on a relationship over time, the greater the customers stake in helping to ensure that the relationship works and the more convenient and loyal the customer becomes.

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Pitfalls to avoid:
Many CRM programs fail for two reasons:

1. Lack of supportive business processes: Because business processes and organizational goals are not part of a strategic CRM plan tied to organizational goals and objectives. 2. Lack of an enterprise perspective: For Relationship Marketing to be effective, it requires that the organization creates a seamless enterprise view. A lot of CRM programs fail because they are assembled with disparate components that aren't designed to work together as part of a complete CRM system designed to meet organizational objectives.

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Customer Relationship Management Model

CREATE A DATA BASE

ANALYSIS

CUSTOMER SELECTION

CUSTOMER TARGETING

RELATIONSHIP MARKETING

PRIVACY ISSUES

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METRICS

Customer Retention Programs

FREQUENCY/ LOYALTY PROGRAMS

CUSTOMER SERVICE

CUSTOMIZATION

REWARDS PROGRAMS CUSTOMER RELATIONSHIP MANAGEMENT

COMMUNITY BUILDING

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SATISFACTION

Objective of the study of CRM

CRM, in its broadest sense, means managing all interactions and business with customers. This includes, but is not limited to, improving customer service. A good CRM program will allow a business to acquire customers, service the customer, increase the value of the customer to the company, retain good customers, and determine which customers can be retained or given a higher level of service. A good CRM program can improve customer service by facilitating communication in several ways:

Provide product information, product use information, and technical assistance on web sites that are accessible 24 hours a day, 7 days a week Identify how each individual customer defines quality, and then design a service strategy for each customer based on these individual requirements and expectations. Provide a fast mechanism for managing and scheduling follow-up sales calls to assess post-purchase cognitive dissonance, repurchase probabilities, repurchase times, and repurchase frequencies. Provide a mechanism to track all points of contact between a customer and the company, and do it in an integrated way so that all sources and types of contact are included, and all users of the system see the same view of the customer (reduces confusion).
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 Help to identify potential problems quickly, before customer occur Provide a user-friendly mechanism for registering customer complaints (complaints that are not registered with the company cannot be resolved, and are a major source of customer dissatisfaction). Provide a fast mechanism for handling problems and complaints (complaints that are resolved quickly can increase customer satisfaction). Provide a fast mechanism for correcting service deficiencies (correct the problem before other customers experience the same dissatisfaction). Use internet cookies to track customer interests and personalize product offerings accordingly Use the Internet to engage in collaborative customization or real-time customization Provide a fast mechanism for managing and scheduling maintenance, repair, and ongoing support (improve efficiency and effectiveness) Mechanism to evaluate Potential KOMs. To develop integrated Database. Assessing the need of Potential KOMs. Ways to meet those needs. Identify the softer elements. Devising a way to Retain and grow with those KOMs. Moving further ahead Satisfaction Delightment LOYALITY To develop Strategy and action plan on quarter & annual basis. To gain knowledge about consumer behaviour To know, how to maintain relationship with customer? To know, the needs analysis of customer
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 To understand, with the help of feedback form that why customers are not trading with Angel To know, the customer perception about companys products & services To know, the grievances among the customers about products & services

The CRM program can be integrated into other cross-functional systems and thereby provide accounting and production information to customers when they want it.

Keeping Existing Customers Grading customers from very satisfied to very disappointed should help the organization in improving its customer satisfaction levels and scores. As the satisfaction level for each customer improves, so shall the customer retention with the organization.

Maximizing Life time value Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances.

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 Increase Loyalty Loyal customers are more profitable. Any company will like its mindshare status to improve from being a suspect to being an advocate. Company has to invest in terms of its product and service offerings to its customers. It has to innovate and meet the very needs of its customers so that they remain as advocates on the loyalty curve. Referral sales invariably are low cost high margin sales.

Research Methodology for CRM

Meeting and satisfying each customers need uniquely and individually. In the mass markets individualized information on customers is now possible at low costs due to the rapid development in the information technology and due to availability of scalable data warehouses and data mining products. By using online information and databases on individual customer interactions, marketers aim to fulfill the unique needs of each mass-market customer. Information on individual customers is utilized to develop frequency marketing, interactive marketing, and after marketing programs in order to develop relationship with high-yielding customers. In the context of business-to-business markets, individual marketing has been in place of quite sometime. Known as Key Account Management Program, here marketers appoint customer teams to husband the company resources according to individual customer needs.

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Continuity Marketing Programs

Take the shape of membership and loyalty card programs where customers are often rewarded for their member and loyalty relationships with the marketers. The basic premise of continuity marketing programs is to retain customers and increase loyalty through long-term special services that has a potential to increase mutual value through learning about each other.

Partnering Programs

The third type of CRM programs is partnering relationships between customer and marketers to serve end user needs. In the mass markets, two types of partnering programs are most common: Co-branding and affinity partnering. Missing process of CRM Traditionally customer relationship management (CRM) revolves around the three functions of selling, marketing and support. Various process models have been built around how these functions are integrated and operated in a customer oriented enterprise. There is however a fourth critical function that is lacking in most CRM models. The fourth function that often is the source of a competitive edge is that of innovation. Companies must continually reinvent themselves to deliver an improved and often a totally new value offering to their customer base. CRM must provide the customer intelligence that feeds information back into the enterprises knowledge management processes where it can trigger new innovation processes. When CRM is integrated into the innovation process, significant value can be derived from faster time to market cycle times and with new processes and services. Marketing automation must ensure that the innovation processes are actually market driven. A market driven innovation process must include both strategies that are focused on satisfying customer requirements as well as strategies
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focused at redefining customer requirements. Sales automation should be integrated with the innovation process by ensuring that all sales channels are prepared and ready to take new processes and services to market before competitive forces can react. Customer service automation must be designed to empower the customer with the option of assisting with the design of the value offering. Redefining CRM around innovation, sales, marketing and service can identify new competitive opportunities for an enterprise. The remaining question is whether companies are prepared to take the initiative and expand the definition of customer relationship management to include the process of innovation. The pressure to deliver results within the traditional definition of CRM already overwhelms companies. The dialog must start rather earlier than later because the competitive window of traditional CRM is decreasing and customer demands for a more innovative and responsive enterprise will increase

Architecture of CRM

There are three parts of application architecture of CRM:

1. Operational - automation to the basic business processes (marketing, sales, service) 2. Analytical - support to analyze customer behavior, implements business intelligence aliketechnology 3. Collaborative - ensures the contact with customers (phone, email, fax, web, SMS, post, in person) 1. Operational CRM

Operational CRM means supporting the "front office" business processes, which include customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to resources
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responsible for them, as well as the information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference. Operational CRM provides the following benefits:

Delivers personalized and efficient marketing, sales, and service through multi-channel collaboration Enables a 360-degree view of your customer while you are interacting with them Sales people and service engineers can access complete history of all customer interaction with your company, regardless of the touch point. The operational part of CRM typically involves three general areas of business: Sales force automation (SFA)

SFA automates some of the company's critical sales and sales force management functions, for example, lead/account management, contact management, quote management, forecasting, sales administration, keeping track of customer preferences, buying habits, and demographics, as well as performance management. SFA tools are designed to improve field sales productivity. Key infrastructure requirements of SFA are mobile synchronization and integrated product configuration.

Customer service and support (CSS)

CSS automates some service requests, complaints, product returns, and information requests.
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Traditional internal help desk and traditional inbound call-center support for customer inquiries are now evolved into the "customer interaction center" (CIC), using multiple channels (Web, phone/fax, face-to-face, kiosk, etc). Key infrastructure requirements of CSS include computer telephony integration (CTI) which provides high volume processing capability, and reliability.

Enterprise marketing automation (EMA)

EMA provides information about the business environment, including competitors, industry trends, and macro-environmental variables. It is the execution side of campaign and lead management. The intent of EMA applications is to improve marketing campaign efficiencies. Functions include demographic analysis, variable segmentation, and predictive modeling occurs on the analytical (Business Intelligence) side.

Integrated CRM software is often also known as "front office solutions." This is because they deal directly with the customer. Many call centers use CRM software to store all of their customer's details. When a customer calls, the system can be used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and also keeping all information of a customer in one place, a company aims to make cost savings, and also encourage new customers.

CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For example, you might be able to check your bank balance via your WAP phone without ever having to talk to a person, saving money for the company, and saving your time.

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2. Analytical CRM

In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to segment customers or to identify potential to enhance client relationship. Customer analysis typically can lead to targeted campaigns to increase share of customer's wallet. Examples of Campaigns directed towards customers are:

Acquisition: Cross-sell, up-sell Retention: Retaining customers who leave due to maturity or attrition. Information: Providing timely and regular information to customers. Modification: Altering details of the transactional nature of the customers' relationship. Analysis typically covers but is not limited to: Decision support: Dashboards, reporting, metrics, performance etc. Predictive modeling of customer attributes Strategy and Research Analysis of Customer data may relate to one or more of the following analyses: Contact channel optimization Contact Optimization Customer Acquisition / Reactivation / Retention Customer Segmentation Customer Satisfaction Measurement / Increase Sales Coverage Optimization Fraud Detection and analysis Financial Forecasts Pricing Optimization Product Development Program Evaluation Risk Assessment and Management Data collection and analysis is viewed as a continuing and iterative process. Ideally, business decisions are refined over time, based on
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feedback from earlier analysis and decisions. Therefore, most successful analytical CRM projects take advantage of a data warehouse to provide suitable data. Business Intelligence is a related discipline offering some more functionality as separate application software.

3. Collaborative CRM

Collaborative CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, e-mail) and supports coordination of employee teams and channels. It is a solution that brings people, processes and data together so companies can better serve and retain their customers. The data/activities can be structured, unstructured, conversational and/or transactional in nature.

Collaborative CRM provides the following benefits:

Enable efficient productive customer interactions across all communications channels Enables web collaboration to reduce customer service costs Integrates call centers enabling multi-channel personal customer interaction Integrates view of the customer while interaction at the transaction level

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Literature Review
Company Profile:
Angel Broking Limited is one of the leading and professionally managed stock broking firm involved in quality services and research. Angel Broking Limited is a corporate member of The Stock Exchange, Mumbai. The membership of the company with The Stock Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into a corporate membership in the name of Angel Broking Limited. Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well supported by Mr. Mukesh Gandhi, a fifteen years veteran in the market. The group is well supported by a professional and qualified research team and efficient operations and back office team, which comprises of highly dedicated and qualified individuals. Angel has an in-house, state of art research department. Angel believes in reaching out to the customer at the farthest end rather than by reaching out to them. The company in its Endeavour to give its client the best has opened up several branches all over Mumbai, which are efficiently integrated with the Head Office.

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Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a compounded growth rate of 100% every year. The company has huge network sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as channel partners for the company. The company presently has the total staff strength of around 150 employees who are spread accordingly across the head office and all the branches. Angel has empowered its physical presence throughout India through various strategies which it has been adopting efficiently and effectively over a period of time, like opening up of branches at various places, tie-ups with various agencies and sales agents, buy-outs of smaller regional outfits and appointment of sub-brokers and franchisees. Moreover, Angel Broking Ltd. has been tapping and including high net-worth and self-employed individuals to its vast array of clients. Angel has always strived in the direction of delivering ultimate client satisfaction and developing stronger bonds with its customers and chose partners. Angel has a vision to introduce new and innovative products and services regularly. Moreover Angel has been one among the pioneers to introduce the latest technological innovations and integrate it efficiently within its business.

Angel Broking Ltd tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected StockBroking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL

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Angels Business

Equity Trading Commodities Portfolio Management Services Mutual Funds Life Insurance Personal Loans IPO Depository Services Investment Advisory

Angels Presence

Nation-wide network of 21 Regional Hubs Presence in 124 cities Over 6810 Sub-Brokers & Business Associates More than 5.9 lakh Clients

Angel Group

Angel Broking Ltd. Angel Capital & Debt Market Ltd. Angel Commodities Broking Ltd. Angel Securities Ltd.

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