CRM is a business philosophy that touches upon many independent parts of an organization. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support. Cross selling is a strategy of providing existing customers the opportunity to purchase additional items offered by the seller. Up selling involves promoting upgrades or add-ons to customers that are extra purchases.
CRM is a business philosophy that touches upon many independent parts of an organization. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support. Cross selling is a strategy of providing existing customers the opportunity to purchase additional items offered by the seller. Up selling involves promoting upgrades or add-ons to customers that are extra purchases.
CRM is a business philosophy that touches upon many independent parts of an organization. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support. Cross selling is a strategy of providing existing customers the opportunity to purchase additional items offered by the seller. Up selling involves promoting upgrades or add-ons to customers that are extra purchases.
To someone who hasnt heard about the term CRM would
sound like a random arrangement of alphabets, but CRM (Customer Relationship Management), as the name suggests is much more than that. It is not a product. It is not even a suite of product. CRM is a business philosophy that touches upon many independent parts of an organization. CRM addresses the Sales, Marketing and Service activities of the organization. CRM is a system for managing a companys interactions with Current and Future Customers. It involves using technology to organize, automate and synchronize sales, marketing ,customer service, and technical support. Need for CRM Loyal customers are the source of most profits. A relatively small percentage of customers may generate most of the profits. Marketing cost and efforts are less for existing customers. Some companies can boost profits by almost 100% by retaining just 5% more of their customers Dissatisfied customers tell others about their experiences, So do satisfied customers.
0 50 100 150 Cost of winning back lost customer Cost of acquiring new customer Cost of retaining current customer Winning back a lost customer can cost up to 50-100 times as much as keeping a current one satisfied. - Rob Yanker, Partner, McKinsey & Company Economics of Customer Retention Goals of CRM Provide better customer services. Cross sell product, Cross-selling is a strategy of providing existing customers the opportunity to purchase additional items offered by the seller. The telecommunications industry is a prime example of this type of sales activity. When establishing local telephone service, the new subscriber is often invited to enjoy other telecommunications options offered by the service provider. These may include long distance packages, cell phone services, or high-speed Internet services. Up selling involves promoting upgrades or add-ons to customers that are extra purchases and increase sales. When you up sell, you offer the customer another product for purchase. In restaurants and other similar settings, up selling is common place and an accepted form of business. Incentives are crucial features of up selling. Incentives such as a discount and/or free shipping give the customer good reasons to purchase something extra right away. Up selling and Cross Selling could either enhance or disrupt the relationship with the customer so it should be done quite carefully.
Benefits of CRM Increase Sales Effectiveness Make sales teams more effective by automating tedious repetitive tasks. With CRM, sales people can automate a big chunk of their daily tasks such as sending out emails, generating reports, organizing leads and so on.
Reduce Customer Support Time CRM enables your service agents to answer all customer inquiries quickly, accurately and consistently by phone, e-mail, chat or in person. With FAQs and the knowledge base you can help your customers help themselves.
With CRM, all of your customer information is in one centralized location and is constantly updated every time an activity happens with a prospect or customer. So now you have up to the minute tracking of all your prospects and customers.
With CRM's Mobile access, sales people have instant access to customer information when they need it, without being tethered to a computer. Benefits of CRM INFORMATION TECHNOLOGY AND CRM:EXAMPLES Cookies A cookie is a parcel of text sent by a server to a web browser and then sent back unchanged by the browser each time it accesses that server. HTTP cookies are used for authenticating, tracking, and maintaining specific information about users, such as site preferences and the contents of their electronic shopping carts.
Example The online store, Amazon uses cookies to provide a personalised service for its customers. Amazon requires customers to register with the service when they purchase items. When registered customers log in to Amazon at a later time, they are greeted with a welcome message which uses their name (for e.g. Hello Abhishek). In addition, their previous purchases are highlighted and a list of similar items that the customer may wish to purchase are also highlighted. INFORMATION TECHNOLOGY AND CRM:EXAMPLES Phone calls, emails, mobile phone text messages or WAP services Having access to customer contact details and their service or purchase preferences through database etc. can enable organisations to alert customers to new, similar or alternative services or products Example : When tickets are purchased online, the website retains the customer details and their purchase history. The website then regularly sends email to inform them about the latest offers and upcoming events. This helps them to ensure that the customer buys the tickets from their site the next time INFORMATION TECHNOLOGY AND CRM:EXAMPLES Loyalty Cards The primary role of a retailer loyalty card is to gather data about customers which in turns leads to customer comprehension and cost insight (e.g. customer retention rate at different spending level, response rates to offers, new customer conversion rates) followed by appropriate marketing action and follow up analysis.
Example: The supermarket chain Reliance Fresh, Tescos offers loyalty cards to its customers when customers use their loyalty card during pay transaction for goods, details of purchases are stored in database which enables the company to keep track of all the purchases that their customer make. At regular intervals, these retail houses sends its customer money saving coupons by post for the products that their customer have bought in the part. The aim of this is to encourage customers to continually return to them for their shopping. Face to face CRM CRM can also be carried out face to face without the use of technology Staff members often remember the name and favourite products/services of regular customers and use this information to create a personalized service for them Face to Face CRM is only relevant for small organizations. CRM VENDORS CUSTOMERS FIRECLAY TILE NIKON INSTRUMENTS "With Salesforce we can move a lot faster and keep adapting to our customers needs" Kemal Cetin, Vice President of IT, Coca-Cola Enterprises
"Automation has improved our efficiency and accuracy, and information we need is easier to get." Catherine Ong Head of Customer Relations Operations Sony Electronics Asia Pacific
"Giving cars a personality, just like people, is something incredibly worthwhile." Akio Toyoda President and CEO
VIDEO Salesforce helps us make the world more open and connected." Tim Campos, CIO, Facebook How CRM has affected/helped TAJ Group of Hotels Guest Preference Sheet Handling Complaint Fidelio Wow Card GRE Courtesy Call GSTS (Guest Satisfaction Tracking System)
How CRM has affected/helped TOYOTA Motors Since 1996, Toyota has firmly believed that cars are more than just products; they should connect with Toyota customers. This was visionary but it was more than just a dream. Toyota is already building connections with customers into the 8 million cars it manufactures each year. It prompts you to recharge whenever your EV or PHEV battery is running low, & enables your car to tweet service information to you. Very much like a good friend, in fact. It can be used as a private social network for Toyota owners since it works similar to tweets on Twitter.
TOYOTA FRIEND People have only 24 hours a day, but through social we can connect with many people at once. - Akio Toyoda, President & CEO
A single platform, which is based on Salesforce Chatter. A private social networking service for Toyota owners, it enables people to interact with their cars, dealerships, and Toyota itself.
Toyota also uses Chatter to enable hundreds of thousands of staff across the world to interact with each other at any hour of the dayrevolutionizing the way they work. Employees can post questions and get advice and answers from coworkers based in 170 countries around the world. Rather than each individual office working on their own to solve problems and develop documentation, Chatter allows everything to be shared.
SalesForce Chatter APPLICATION OF CUSTOMER RELATIONSHIP MANAGEMENT STRATEGY (CRM) IN DIFFERENT BUSINESS AREAS By: Boris Milovic Faculty of Economics Subotica, University of Novi Sad, Serbia Abstract Customer Relationship Management is a business strategy that is based on the philosophy of "customer is king", i.e. customer is put in the central place. This philosophy, with the development of information technologies in past twenty years, has experienced a change. Today it can be said that customer is a modern dictator, according to whom the company always adjusts its business due to the greater availability of information, stronger market competition, and growing negotiating skills of customers in sales process. The most important task of organization is satisfying a client's needs, which ultimately means their long-term value to the organization. This paper describes the application of CRM strategies in several industries. Large and small organizations today evaluate the quality of customer services, customer loyalty, identify customers that are less sensitive to price changes and recognize that attracting new customers is more expensive than retaining the existing ones. Introduction Each sector of the economy and industry, non-profit organizations and government institutions use CRM benefits in work with its customers or clients. Different CRM strategies, depending on one or the other economic sector, are often different, and they are in connection with products and services offered to customers . CRM STRATEGY IN HIGHER EDUCATION CRM helps the Institute to manage student records such as attendance, curriculum, discipline, and extracurricular activities in order to provide a complete overview of each student. Therefore review of the student data and review of the teachers' performance can be used to respond to potential issues before they become problems. On the other hand , CRM also helps the Institute to maintain various records during admission process Prospect a student who could be a potential candidate for the school; Candidate a potential student who is in the process of gathering information and forming an opinion about the school; Applicant a student who decided to enroll in the institution; Accepted student a student whom the school has decided to accept; Enrolled student the stage where the student becomes a part of the institution; Alumni at this stage, students are satisfied with their academic experience creating long-term loyalty to their school. CRM STRATEGY IN BANKING AND INSURANCE SECTORS Due to the highly competitive market in the banking sector, it is very difficult for banks to differentiate themselves from the competition because the services that they offer are very similar, which leaves the customer interaction as a way to distinguish the bank from the competition and the same goes for insurance companies. Customers usually choose a bank based on its location or how close it is to the customer's home or work place. Competitive pressure and dynamic market have contributed to the development of CRM in the financial sector. Successfully implemented CRM system brings many benefits to the bank such as - Quick and easy customer information collection and storage. Analyzing profitability. assisting in marketing efforts. Acquisition of new customers. relationship management. client retention rate increase. cross selling. CRM STRATEGY IN HEALTHCARE Corporate image, patient satisfaction and loyalty can help health care organizations to compete in a highly competitive environment . CRM system plays an important role in hospitals. It enables the following Optimization of revenue and improvement of patient health, relationships and loyalty; Essentially a cost-effective approach in order to maintain a long term relationships with patients; Increasing transparency of costs and resource allocation within the hospital; Mapping documents in the treatment of patients is a major area of cost reduction that allows CRM systems to effectively manage hospital. Preventing medical errors and facilitating the integration of CRM data with medical history and clinical data. USE OF CRM STRATEGY IN HOTEL INDUSTRY The use of CRM strategy means different things for organizations in the hotel sector. In positioning on the market, hotels need to compete and develop their brand in order to attract and retain guests, and this requires flexibility of software capacities with the goal to respond to the requests in competitive market and changing conditions in industry. CRM for hotels puts the customer in the centre of business processes, the customer who is a part of living processes through which the company gains big competitive advantage. the most common benefits of CRM implementation in the hotel industry are marketing and process integration in hotel business, planning and organizing of target campaigns, attracting new and retaining current loyal guests historical records of interactions with each guest, recording of all contacts with guests in any segment, competition analysis and entering new markets.
CRM STRATEGY IN AGRICULTURE Today, due to the impact of the crisis, agricultural organizations are faced with the question of how to increase sales. A lot of the attention is focused on CRM strategy as a management process to increase the performance of agricultural organizations . There are five activities that should include CRM program for agricultural businesses Types of available customer information Use of customer data for management decision-making Market approach Tactics that are used in order to develop and maintain the customer relationship Assessment of the technological infrastructure that is currently used Agricultural organizations have to create a knowledge base about customers so that their products and services could better meet current needs and wishes of the customers Conclusion CRM systems are required for the organizations to take the best out of the relationships with customers. They are not just technical solutions for customer relationship management, but their function has tangible business goals. CRM has become available and necessary with the development of electronic commerce, and it is supported by web applications and the enormous growth of the Internet. Future Trends of CRM With the advent of social media, more and more organisations are trying to connect with their consumers via social media platforms like Facebook,Twitter which has given rise to something call SOCIAL CRM. For instance a client tweets a problem with your service. How good would it be for your system to pick this up from your social feed and add to their record to let you know.
Call centres are being replaced by interactive live chats with the concerned organisations technician which helps in solving the customers problem in a better way. e.g. Vodafone Live Chat
Future Trends of CRM Todays CRMs are empty; they require data to be added to make them useful. CRMs of the future should be purchased and upon first use recommend and identify customers for your business. The solution should completely eliminate the need to buy leads separately or hire a lead management team to find good leads. For example, if Im selling janitorial services to office buildings, my CRM should every morning recommend new office building management companies to me based off of my existing customer base, quality controls, and marketing response. Thank You!