CUSTOMER RELATIONSHIP

MANAGEMENT

CUSTOMER
Customer is always right
The customer comes first
Customer=Valued assets
It costs 6X more to sell to a new
customer
then to sell to an existing
One dissatisfied customer will tell 810
others
Increasing 5% customer retention,
profit will
increase by 85%
50 % chance to sell to existing
customer,
while one 15% chance to sell new
customer
If complaints are handled properly,

CUSTOMER LOYALTY

Customer Loyalty a deeply

held commitment to RE-BUY or
to
RE-PATRONIZE a preferred
product or service consistently in
the future, despite situation
influences and marketing efforts
having the potential to cause
switching behavior.

WHAT IS CRM

Customer

Managing Customer relationship

involves 2 objectives
Relationship

Management

1.To Provide org. the complete view of

every customer at every touch point
and across all channel,
2. To Provide customer with the single,
complete view of the company and its
extended channel.

CUSTOMER RELATIONSHIP
MANAGEMENT
1. CRM integrates several functions and also brings together
processes, technology and people.
2. CRM is good understanding of the customers
3. An approach which effectively MANAGES THE CUSTOMER
RELATIONSHIPS.
4. An integrated and automated processes of SALES,MARKETING
and SERVICE STRATEGY.
3. IT DEFINITION
METHODOLOGIES, SOFTWARE AND USUALLY INTERNET
CAPABILITIES that help an organization to manage customer
relation in an organized manner.
CRM provide family of modules or tools that enables the
business and its employee to deliver fast, convenient,
dependable and consisting services to the customer.
Leading vendors of CRM: Siebel system, Oracle, people

EXPLANATION OF CRM
Key Point to Succeed

Create a Database
Analysis

Main concept of CRM:

Customer Selection

MANAGING VALUABLE CUSTOMER IN A

LONG-TERM VIEW

Customer Targeting

Company should focuses on

VALUE OF CUSTOMER,
instead of short-term profit

Relationship Marketing
Privacy Issues
Metrics
CRM Framework

CRM - PHASES
Customer
Life
Cycle

Acquire

Direct
Marketing
CRM Functional
Solution

Enhance

Customer
Support

CRM
Integrated Solution

Partner

Sales Force
Automation
Proactive
service

Cross/Up-Sell

Shared
Customer
data

Retain

Collaborative
service
Company

Customer

MAJOR APPLICATIONS - CRM

Co
nt
ac
t
&
Ac
co
Mg un
nt t
.

Sales:
Cross-Sell
Up-Sell
Email
PR0SPECT
Fax
OF
CUSTOMER
Telephon
e

Retention
& Loyalty
program

Marketing
&
Fulfillmen
ts

We
b

er
m
sto ce &
u
C rvi rt
Se ppo
su

CRM SALES
CROSS-SELLING
Customer of one product or service might also be
interested in purchasing the related product or services.
Ex: Insurance
UP-SELLING
Selling a new or existing customer a better product then
they are currently being using or seeking by proving
product information, configuration.

CRM MARKETING AND FULFILLMENT

Marketing fulfillment :
CRM system helps marketing professionals to
accomplish Direct Marketing Campaign by
automating tasks like; targeted marketing,
CRM S/W helps marketing professionals to capture
the customer database, analyze the database and
dig out information which is beneficial to the
company.

CRM CONTACT AND ACCOUNT MANAGEMNT

CRM S/W helps sales marketing and service professionals to

capture the database and track the reverent data and plan
the contact with prospect customer, company and business.
Information can be captured from all kiosks or touch points
like telephone, mail, web, fax, personal information, retails
store.

CRM CUSTOMER SERVICE SUPPORT

CRM S/W provides Customer Service tools to access
the customer database.
Customer service manager will assign and manage
the request for service by customer.
Ex: Call center: & Help desks to assists, suggests or
resolve the problem of the customer with product or
service by the product

PORTAL BASED - CRM

Provides all users with the tools and information that fits their
individual roles and preferences.
Empowers all employees to respond to customer demand more
quickly and become truly customer-faced.
Provides the capability to instantly access, link and use all internal
and external customer information.

SOCIAL- CRM
Uses social media services, technique and technology to engage
the customer.
Empowers all employees to optimize the power of social
interactions to get closer to the customer.
Use of social networking site, Facebook, Twitter,

FUNCTIONS OF CRM

Listen to your customer to create

mutually beneficial relationship

OPERATIONAL - CRM
Goal of Operational CRM is to provide electronic support for
the "front office" business processes, which include all
customer contact (eg. sales, marketing and service).
Aims to deliver customer-centric business processes and
operations.
Enables a 360-degree view of each customer
Delivers personalised and efficient marketing, sales, and
service

OPERATIONAL - CRM
ERP
Oder mgmt

OPERATIONAL CRM
CSS

BACK OFFICE

SCM
Order
promo
Service
automation

Marketing
automation

Mobile
sales

Sales Force
automation

Field
service

FRONT OFFICE

MOBILE OFFICE

COMPONENTS OF
OPERATIONAL - CRM

Marketing
Automation

Sales force
Automation

Bring right mix of companys product in front

of each customer at the right time.

Collaborative tool that enables critical sales

force and SF management functions like:
contact mgnt, quote mgnt, forecasting,
customer preferences.

OPERATIONAL - CRM
Enterprise
marketing
automation
(EMA)

Customer
service and
support
(CSS)

EMA provides information about the

business including : Competitors :
industry trends

Servicing existing customer base through

problem resolution system, CSS automates :
service
requests
Complaints
product
returns
information
requests

ANALYTICAL - CRM

ANALYTICAL - CRM
To develop insight into customers needs.
To determine what other products and services
you can sell to your customers in order to
increase the Average Revenue Per User
(customer) ARPU.
Profitability analysis
Personalisation
Analysis of customer behavior
Prediction of the probability of customer
defection (churn analysis)

ANALYTICAL - CRM
DATA
WAREHOUSIN
G

CUSTOMER
DATA MGMT

Application

CUSTOMER
DATAMART

PRODUCT
DATA MART

Marketing campaign

ANALYTICAL - CRM
DATA
WAREHOUSIN
G

DATA
MINING

A process of assembling data from all over

the company.
Providing data to the company at the right
time.
Transforming data into consistent state so
that it can be useful for decision making.

The process of extracting and presenting

data for actionable decision and to solve
the business problems.

COLLABORATIVE - CRM
Collaborative CRM's
ultimate goal is to use
information collected from
all departments to improve
the quality of customer
service
This requires a clear
contact management
strategy which enables
everyone in an
organisation to see who is
talking to who.

COLLABORATIVE - CRM
C
U
S
T
I
T
R
E
C
T
I
O
N

VOICE

WEB STORE
FRONT

CONFERENCING
WEBINAR

DIRECT
INTERACTION

E-MAIL

BUSINESS PROCESS
WITH CUSTOMER FOCUS

1. Consistent, dependable, convenient interaction

with
customer.
2. Create new delivery channel
3. Capture and analyze large amount of customer
data.
4. Overall attempt to produce a unique/different
business
experience for the customer.
5. CRM is all about change process and therefore
change management.
6. What is the companys experience in-change?
7. Does it have a successful record.

CRM STRATEGIES

CUSTOMER ACQUISITION :
Build the relationship with
customer profiling, search,
buying pattern, comm.
CUSTOMER RETENTION :
1:1 comm., updating, analysis,
improving customer satisfaction
LOYALTY : Re-buy, Re-patronize.
Increase, search, capture.
EVANGELISM : Holistic approach
to retain the customer. Brand
promoters &
Sales promoters.
COST REDUCTION : lower
inventory, speedier delivery,
marketing cost reduction.
CAN A ORGANIZATION

E-CRM
1. The objective of CRM and E-CRM are same
2. E-CRM, Managing customer relationships
electronically, primarily through the internet, by
organization is popularly known as E-CRM.
3. E-CRM uses electronic medium like internet, wireless
application protocol (WAP).
4. Factors to use E-CRM: high cost of acquiring new customer,
Cut-throat competition
globalization
time saving of the customer
personalized online relationships with
customer
high customer churn rate given birth
to E-CRM
4. Ways to personalize online relation with customer: E-Mail
Help
desk software
5. Opportunities to learn about their customer and offer them
highest level of services.