What is CRM
Customer relationship management (CRM) is a model for
managing a company’s interactions with current and
future customers. It involves using technology to organize,
automate, and synchronize sales, marketing, customer
service, and technical support.
CRM “is a business strategy that aims to understand,
predict and manage the needs of an organisation’s current
and potential customers”
Definition of CRM
“CRM is concerned with the creation, development and
enhancement of individualised customer relationships with
carefully targeted customers and customer groups resulting
in maximizing their total customer life-time value”.
The purpose of CRM
Help a business to keep customers.
It helps the business to understand what it needs to do to
get more customers.
Reduce costs by managing costly complaints and finding
out what services are useless for customers.
Help a company figure out if its product is working and,
ultimately, increases profit.
Prime reason is to log and manage customer relationships.
Stages of Customer Relationship
Visitor - The online CRM is the entry portal to your
company, however the visitor finds you. Whether they visit
with your representatives at a trade show, or fill out a web
form, they enter the front door of your virtual company and
into the online CRM to be greeted with a welcome and offered
something valuable to them. WARNING: Do not skip this
important stage or your emails may be rejected later.
Engaged Visitor - online CRM is able to engage the sales
lead and rescue your sales. The first place you engage the
visitor is in the welcome email. Be gracious and welcoming.
In some companies, just clicking on the link to the first offer will
convert the sales lead into a prospect. It may be time to have your
salespeople call to offer help and guide the sale.
Whatever the sales process for your product or service, an
email campaign delivered in your online CRM is the most engaging
and personal way to get them to pay attention to your message.
Way too many companies stop courting the business after they have
become a customer. Some feel that customers are not loyal anyway,
so what’s the point? Others believe that if they concentrate their
effort on delivering good products and excellent service – it will be
enough to earn whatever loyalty is possible.
In an online world where customers can post their
experience with your company to be seen by anyone who
may be interested – customers have the enviable power to
make or break your business. As demonstrated by such
companies as Apple, Amazon and more, devout loyalty is
possible when customers feel important. They feel deeply
attached to the companies who make them feel valued and
Relationship marketing was first defined as a form of
marketing developed from direct response marketing
campaign which emphasizes customer retention and
satisfaction, rather than a dominant focus on sales
Marketing activities that are aimed at developing and
managing trusting and long-term relationships with larger
In relationship marketing, customer profile, buying patterns,
and history of contacts are maintained in a sales database,
and an account executive is assigned to one or more major
customers to fulfill their needs and maintain the relationship.
Purpose of relationship marketing
Today’s customers face a growing range of choices in the products and services
they can buy . They are making their choice on the basis of their perceptions of
quality, service, and value. Companies need to understand the determinants of
customer value and satisfaction.
To create customer satisfaction, companies must manage their value chain as well
as the whole value delivery system in a customer-centered way. The company’s
goal is not only to get customers, but even more importantly to retain customers.
Customer relationship marketing provides the key to retaining customers and
involves providing financial and social benefits as well as structural ties to the
customers. Companies must decide how much relationship marketing to invest in
different market segments and individual customers, from such levels as basic,
reactive, accountable, proactive, and full partnership
There are four phases to the customer life cycle. The four phases include;
marketing, customer acquisition, relationship management, and loss.
The marketing part of the customer life cycle is when messages are sent to the
target market to attract prospect customers.
The next phases is customer acquisition which means prospects become
customers when they place an order.
The third stage is relationship management. Relationship management is when
resell processes increase the value of existing customers.
The end stage of a customer life cycle is loss/churn when inevitably in time a
company may lose a customer. The company then needs to establish a win-back
process. The company then needs to decide which lost customers are of most
value and try to win back their business.
A CRM system integrates all four phases of the customer life cycle into three major
processes. These processes are solicitation, lead-tracking, and relationship
management. The diagram above depicts the four phases and the three major
processes. It shows the flow of phases and what each phase means.
Types of CRM
Nowadays, three major types of customer relationship management
systems, namely operational CRM, analytical CRM and collaborative CRM
are being used in many organizations.
It provides support to front-office business processes that involve direct
interaction with customers through any communication channel, such as
phone, fax, e-mail, etc. The details of every interaction with customers,
including their requirements, preferences, topics of discussion etc., are
stored in the customers’ contact history and can be retrieved by the
organization’s staff whenever required.
Thus, it presents a unified view of customers across the organization and
across all communication channels. Examples of operational CRM
applications are sales force automation (SFA), customer service and
support (CSS), enterprise marketing automation (EMA),etc.
It enables to analyze customer data generated by
operational CRM applications, understand the customers’
behavior, and derive their true value to the organization.
This helps to approach the customers with related
information and proposals that satisfy their needs. The
analytical customer relationship management applications
use analytical marketing tools like data mining to extract
meaningful information like the buying patterns of the
customers, target market, profitable and unprofitable
customers, etc., that help to improve performance of the
It allows easier collaboration with customers, suppliers,
and business partners and, thus, enhances sales and
customer services across all the marketing channels. The
major goal of collaborative customer relationship
management applications is to improve the quality of
services provided to the customers, thereby increasing the
customers loyalty. Examples of collaborative CRM
applications are partner relationship management (PRM),
customer self-service and feedback, etc.
Success Factors In CRM
Evaluate current customers’ impact on business. CRM
must start with determining what kind of customer
information the company is looking for and what it intends
to do with the information.
Evaluate business environment to understand how current
customer relationships impact business retention and
Develop a strategy that is well expressed to give clear
direction and value to all employees
Evaluate and update the strategy
The goal is to lock customers into a mutually beneficial long-
term relationship. The CRM strategy aligns an entire
organization toward customers in a way that benefits
partners, suppliers and improves the financial bottom line
Facts of CRM
CRM is methodology to achieve global excellence through
customer satisfaction. it tracks customer history, need and
co-ordinates company’s multi-pronged interaction with its
customer for business excellence.CRM tentacles every area
of business. These are.—
Reclaiming Lost Customer
Importance of CRM
CRM helps the organization to identify customer needs and re-focus its
strategy to serve his better. It helps the company to archive business
growth through development edge and excellence. Some of the major
issue it address are:
Identify customer needs.
Helps in rediscovering the customer and understanding him.
Identify untapped business potential.
Identify strong and weak points of supplier.
Provide feedback to the supplier on his total operation.
Provide feedback and new information on competitors.
Action plan to make organization customer – centric.
Stakeholders in CRM
Firms also use relationship marketing techniques to build mutually
supportive bonds with stakeholders other than consumers.
The 4 stakeholder groups most affected by CRM are:
Difficult to convince buyers when employees are not happy.
Employee relationship building is handled by human resources departments.
Employees are instrumental in building relationships with customers = they have
to be trained + to have access to data & systems used for relationship
Business customers in the supply chain.
Business customers (the B2B market): uses Internet technologies to work with
numerous wholesale and retail intermediaries.
Firm’s suppliers: uses the Internet to receive bids from its suppliers (lowers
transaction costs + enhances competition + speeds order fulfillment).
3. Lateral partners.
Other businesses that join with the firm for some common goal but not
for transactions with each other (not-for-profit organizations, or
The individuals who are end users of products and services.
Marketers must differentiate between business customers and final
consumers because different tactics are often employed in the B2C and
•Customer Segmentation Based on Customer Life time value
•Matching Service Cost and Revenue
•Employee Participation in CRM Design
•Motivating Employees for Effective Implementation
•Making CRM an Enterprize wide Activity
•Adequate technology Support for CRM Implementation
•Consistency testing of CRM Programs
•CRM Practice Evaluation Form
1. The fulfillment or gratification of a desire and need.
2. Pleasure or contentment derived from such gratification.
3. A source or means of gratification.
4. Satisfaction is feeling that emanates from fulfillment of
needs and wants.
5. Satisfaction is evaluated based on what is received against
what was expected.
Customer satisfaction is a measurement of how pleased
customers are with a particular product or service. Satisfied
customers are likely to make repeat purchases and often refer
How to Increase Customer Satisfaction in 3 Steps
1. Justify the Sale with Social Proof
When most sales are made, chances are that the buyer will have
to justify the purchase to another person – a boss, spouse, or
anyone that may pass judgment. To make this go smoothly, you
should arm each one of your customers with testimonials from
other people and companies.
2. Surprise Customers with a Bonus
When people spend money on a product, the last thing you want them
to think is “was this worth it?” To combat this, you should surprise each
one of your customers with a little bonus.
3. Offer Free Product Training and Support
This is a clear, business-winning decision. Nothing decreases customer
satisfaction more than being confused with how to make a product
work. And free product training and support will be how you alleviate
this customer frustration.
Components of Customer Satisfaction
•For better understanding of customer satisfaction
components need to be discussed as ultimately
satisfaction is dependent on large number of factors.
Customers are satisfied whenever they consistently receive:
1. A perfect product
2. Delivered by a caring, friendly person in a timely fashion
3. The support of an effective problem resolution process.
•Brodeur Berry defined some Quality Values and Quality
QUALITY VALUE QUALITY CHARACTERISTICS
Quality Best Services and high quality
reputation of suppliers.
Front line Service Behaviors Courtesy, friendliness, attentiveness
Timeliness Error free processing.
Efficiency On time delivery.
Inter-departmental Teamwork Professional appearance..
Customer satisfaction Model: (Teboul Model)
Company offer Customer needs (product or
service) Customer satisfaction Needs not
fulfilled Total satisfaction is achieved when
offer matches the need i.e. circle is
superimposed on the square
Rationale of Customer Satisfaction
Application of the concept of customer satisfaction
provides numerous benefits to the organizations.
These benefits are as follows:
–Customer Satisfaction building loyalty.
–Customer Satisfaction helping in customer retention.
–Customer Satisfaction strengthening customer’s
–Customer Satisfaction leading to superior business
Measuring Customer Satisfaction
Customer satisfaction measurement provides an
indication of how successful organization is at
providing goods and or/services to the market place.
Customer satisfaction is key factor in determining
the success of organization in customer satisfaction .
Need of Measuring Customer Satisfaction
As satisfied customer is base of optimal performance and
Customers are viewed as a group whose satisfaction with
the enterprise must be incorporated in strategic planning
Forward looking companies are finding values in directly
measuring and tracking customer satisfaction as an
important strategic success indicator.
Measurement of Customer Satisfaction
There are number of scales and models are used in
evaluating customer satisfaction . Few are listed
THE COMMON MEASUREMENT TOOLS [CMT]
AMERICAN CUSTOMER SATISFACTION INDEX
CUSTOMER SATISFACTION INDEX [CSI]
Customer Satisfaction and Marketing Program
Why would a marketing publication, namely Marketing News, devote a
special section entirely to customer satisfaction?
A better question might be, why spend thousands or millions of dollars
in creating a product or concept and then spend thousands or millions
of dollars in advertising to drive people to the product or service, if you
don’t know what you are doing to the customer when they finally do
come into your business?
People spend money when and where they feel good.
Companies use to monitor all aspects of in-store marketing, from long-
term programs to new product rollouts.
You can create the most brilliant campaign, but if it is not
executed properly or at all, it won’t get the desired results.
Sometimes marketing departments get disappointing first-
month results and realize more communication and
training is in order to make the campaign work.
Measuring and monitoring performance and delivery of
product and service is not a new concept; people have a
tendency to do more of what you inspect rather than what
In today’s competitive business environment, front-line
understanding of the steps and details of delivery of a
product or promotion is more critical than ever
An assessment of how well a delivered service conforms to the
client's expectations. Service business operators often assess
the service quality provided to their customers in order to
improve their service, to quickly identify problems, and to
better assess client satisfaction.
Issues in Service Quality
Evaluation of service quality is more difficult as
compared to goods quality.
Service quality is comparison between expectations
Service quality evaluation involve outcomes and
• Parasuraman describes Service quality as “the ability of an
organization to meet or exceed customer’s expectations.”
• Lloyd-Walker and Chueng said that “service quality is
considered not only to meet but to exceed customer
expectations, and should include a continuous
Types of Service Quality
• Concrete measurable conformity of a working
result with the previous defined benefits.
Objective Service Quality
• Customers’ perceived conformity of the working
result with the customer ‘s original imagination of
Subjective Service Quality
Dimensions f Service Quality
As per Parasuraman (1985) 10 determinants were identified which are as follows:
Service Quality Gap
There are seven major gaps in the service quality concept , which are shown in
Gap1:Customers’ expectations versus management perceptions: as a
result of the lack of a marketing research orientation , inadequate upward
communication and too many layers of management.
Gap2:Management perceptions versus service specifications: as a
result of inadequate commitment to service quality , a perception of
unfeasibility , inadequate task standardisation and an absence of goal setting.
Gap3:Service specifications versus service delivery: as a result of role
ambiguity and conflict, poor employee-job fit and poor technology-job fit ,
inappropriate supervisory control systems , lack of perceived control and lack
Gap4: Service delivery versus external communication: as a
result of inadequate horizontal communications and propensity to over -
Gap5: The discrepancy between customer expectations and their
perceptions of the service delivered: as a result of the influences
exerted from the customer side and the shortfalls (gaps) on the part of the
service provider . In this case ,customer expectations are influenced by the
extent of personal needs , word of mouth recommendation and past service
Gap6:The discrepancy between customer expectations and
employees’ perceptions: as a result of the difference s in the
understanding of customer expectations by front-line service providers.
Gap7: The discrepancy between employee’s perceptions and
management perceptions : as a result of the differences in the
understanding of customer expectations between manager sand service
Measure For Bridging Service Quality Gap
Gap1: Customers’ expectations versus management
•Have better understanding of customers’ need and expectations.
•By facilitating and increasing direct interaction managers and
•By improving upward communication .
•By using and turning insights into action.
Gap2: Management perceptions versus service specifications :
•By insuring that top management displays ongoing commitments.
•By getting the middle management to set, communicate and reinforce customer
oriented service standard.
•By training managers.
•By standardizing repetitive work task to ensure consistency and reliability.
•By establishing clear service quality goal.
•By clarifying to employees to which tasks have biggest impact on quality.
•Rewarding managers and employees for attaining quality goals.
Gap3: Service specifications versus service delivery:
•By clarifying employees goal.
•By ensuring that all employee understand how their job contribute to customer
•By matching employees to job.
•By providing employees with the technical training.
•By developing innovative recruitment and retaining method.
•By teaching employees about customers’ expectations.
•By eliminating role conflicts among employees.
•By training employees in priority setting and time management.
•By building teamwork
•By treating customer as partial employee and clarifying their role in service
Gap4: Service delivery versus external
• By seeking input from operations persons when new advertisement
program are being created.
• By developing advertisements that feature real employee performing their
• By allowing service provider to preview the advertisement.
• By getting sales staff to involve operation staff in face-to-face meeting with
• By getting internal educational, motivational and advertising campaigns.
• By ensuring that consistent standards of service are delivered across
Gap5: The discrepancy between customer expectations and
their perceptions of the service delivered:
•By Keeping customer informed.
•By briefing the customer at the end of service
•By offering tangibles evidence to the customers to
•By taking customer into confidence about the
service being offered.
Gap6: The discrepancy between customer
expectations and employees’ perceptions:
Gap7: The discrepancy between employee’s
perceptions and management perceptions:
Service Quality Measurement Scale
•Proposed by Parasuraman:
•Identified 22 variables:
•22 Variables of Service Quality Measurement Scale
Modern Looking Equipments
Physical Facility is visually appealing
Employees are dressed and neat appearing
Material and tolls are visually appealing
Promise is always kept
Show great concern for solving problem
Perform better service right from the first time
•Provide service at the time agreed on
•Tell the exact time of service delivery
•Error free records
•Provide prompt service to the customers.
•Employees always willing to help the customers
•Employee never be busy to help the customer
•Impressive behaviour of the employees
•Customers feeling about safety
•Employees friendly and courteous nature
•Knowledge to answer question of the customer
•Individual attention on customer
•Opening and closing hours
•Employees personal attention on each other
•Customers best interest at heart
•Understanding needs of their customers
What is E-CRM?
E-CRM This concept is derived from E-commerce. It also
uses net environment i.e. internet. Electronic CRM
concerns all forms of managing relationships with
customers making use of Information Technology (IT). E-
CRM is enterprises using IT to integrate internal
organization resources and external marketing strategies to
understand and fulfill their customers needs. Comparing
with traditional CRM, the integrated information for E-
CRM intra organizational collaboration can be more
efficient to communicate with customers
Through ECRM application Contact with customer is made through the phone and fax.
Besides, all the other traditional methods are used in addition to Internet, email, and
Geared more toward front end, which interacts with the back-end through use of ERP
systems, data warehouses, and data marts.
Personalized individual views based on purchase history and preferences. Individual has
ability to customize view.
System can be designed based on customer needs. Web application designed for
Reduction in time and cost. Implementation and maintenance can take place at one
location and on one server.
Users can be defined with access to only certain options using a role based model.
Options applicable to certain roles can be graphically configured and users defined as
fulfilling a given role.
Pages can be encrypted using SSL and ECRM can be configured to only display pages
using SSL to ensure that all information passing over the internet is encrypted.
Users can be defined to see only certain modules on the main menu - so menu options
that they will not have access to be not even displayed on screen.
HTTP security can be configured over the top of the inbuilt security to provide two levels
of security the first to access the web-server at all and the second to actually get into web-
An audit trail of which users did what is retained and is automatically maintained based
on how long the information is required to be kept.
Advantage of E-CRM
Increased customer loyalty
An effective ECRM system lets a company communicate
with its customers using a single and consistent voice,
regardless of the communication channel. This is
because, with ECRM software, everyone in an
organization has access to the same transaction history
and information about the customer. Information
captured by an ECRM system helps a company to
identify the actual costs of winning and retaining
individual customers. Having this data allows the firm to
focus its time and resources on its most profitable
More effective marketing
Having detailed customer information from an ECRM system allows a
company to predict the kind of products that a customer is likely to buy
as well as the timing of purchases. In the short to medium term, this
information helps an organization create more effective and focused
marketing/sales campaigns designed to attract the desired customer
audience. ECRM allows for more targeted campaigns and tracking of
campaign effectiveness. Customer data can be analyzed from multiple
perspective to discover which elements of a marketing campaign had
the greatest impact on sales and profitability
Improved customer service and support
An ECRM system provides a single repository of customer information.
This enables a company to serve customer needs quickly and efficiently at
all potential contact points, eliminating the customer’s frustrating and
time-consuming “hunt” for help. ECRM-enabling technologies include
search engines, live help,e-mail management, news feeds/content
management and multi-language support. Withan ECRM system in place, a
•more accurately receive, update and close orders remotely
•log materials, expenses and time associated with service orders
•view customer service agreements
•search for proven solutions and best practices
•subscribe to product-related information and software patches
•access knowledge tools useful in completing service orders
Greater efficiency and cost reduction
Data mining, which is the analysis of data for
exploring possible relationships between sets of data,
can save valuable human resources. Integrating
customer data into a single database allows
marketing teams, sales forces, and other
departments within a company to share information
and work toward common corporate objectives using
the same underlying statistics
A voice portal (sometimes called a vortal) is a Web portal that
can be accessed entirely by voice. Ideally, any type of
information, service, or transaction found on the Internet
could be accessed through a voice portal.
A mobile user with a cellular telephone might dial in to a voice
portal Web site and request information using voice or
Touchtone keys and receive the requested information from a
special voice-producing program at the Web site.
Voice portal interaction may involve audible speech, speech
recognition or a telephone keypad interface.
There are two major categories: A consumer voice portal
provides general access to information; an enterprise voice
portal provides customized access to customer support.
Virtual Customer Representative
In customer relationship management (CRM), a virtual agent
(sometimes called an intelligent virtual agent, virtual rep or v-rep)
is a chatterbot program that serves as an online customer service
representative for an organization. Because virtual agents have a
human appearance and respond appropriately to customer
questions, they lend automated interactions a semblance of
personal service. Combining artificial intelligence with a graphical
representation, virtual agents are increasingly used in CRM to help
people perform tasks such as locating information or placing orders
and making reservations.
Customer response to the use of virtual agents has been largely
positive. Typically, people talk to a virtual agent longer than they do
to an actual person, perhaps because talking to a responsive,
personalized computer program is a novelty. Virtual agents are
usually scripted to respond to a wide variety of questions and
Functional Component Of CRM
CRM applications are a convergence of functional components, advanced technologies
and channels. Functional components and channels are described below:
Common applications include calendar and scheduling, contact and account
management; compensation; opportunity and pipeline management; sales forecasting;
proposal generation and management; pricing; territory assignment and management;
and expense reporting.
These include web based and traditional marketing campaign planning, execution, and
analysis; list generation and management; budgeting and forecasting and marketing
Customer service and support applications.
These include customer care; incident, defect and order tracking; field service; problem
and solution database; repair scheduling and dispatching; service agreements and
contracts; and service request management.
Database Management System (DBMS)
A database management system (DBMS) is a collection of program
that enables you to store, modify, and extract information from a
database. There are many different types of DBMSs, ranging from
small system that run on personal computer to huge systems that
run on mainframes. The following are examples of database
computerized library systems
automated teller machines
flight reservation systems
Some DBMS examples include MySQL, Microsoft Access, SQL
Server, Oracle, RDBMS, and FoxPro etc.
A good database is designed for a specific use and is
constructed with the possibility of growth.
Like web sites, "one size fits all" only ensures that
our database may not have the flexibility we need.
Our database may fail to collect the information that
we want and need for our business; or it may fail to
provide our customers all the information they need
to made a purchasing decision.
Definition of Data Warehouse
The electronic storage of a large amount of
information by a business. Warehoused data must be
stored in a manner that is secure, reliable, easy to
retrieve and easy to manage. The concept of data
warehousing originated in 1988 with the work of
IBM researchers Barry Devlin and Paul Murphy. The
need to warehouse data evolved as computer systems
became more complex and handled increasing
amounts of data.
The Data Warehouse Architecture
The architecture consists of various interconnected
Operational and external database layer – the source
data for the DW
Information access layer – the tools the end user access
to extract and analyze the data
Data access layer – the interface between the
operational and information access layers
Metadata layer – the data directory or repository of
The Data Warehouse Architecture
Additional layers are:
Process management layer – the scheduler or job
Application messaging layer – the “middleware” that
transports information around the firm
Physical data warehouse layer – where the actual data
used in the DSS are located
Data staging layer – all of the processes necessary to
select, edit, summarize and load warehouse data from the
operational and external data bases
Process of semi-automatically analyzing large
databases to find patterns that are:
valid: hold on new data with some certainty
novel: non-obvious to the system
useful: should be possible to act on the item
understandable: humans should be able to interpret the
Also known as Knowledge Discovery in Databases (KDD)
Characteristics Of A Data Mining System
Large quantities of data
The volume of data so great it has to be analyzed by automated
techniques e.g. satellite information, credit card transactions
Noisy, incomplete data
Inexact data is the characteristic of all data collection.
Complex data structure
conventional statistical analysis not possible
Heterogeneous data stored in legacy systems
DATA MINING TOOLS
Most data mining tools can be classified into one of
1. Traditional data mining
Traditional Data Mining Tools.
Traditional data mining programs help companies establish data patterns and
trends by using a number of complex algorithms and techniques.
Installed in computers to monitor information in a database, dashboards reflect
data changes and updates onscreen — often in the form of a chart or table —
enabling the user to see how the business is performing.
The third type of data mining tool sometimes is called a text-mining tool because of
its ability to mine data from different kinds of text — from Microsoft Word and
Acrobat PDF documents to simple text files, for example. These tools scan content
and convert the selected data into a format that is compatible with the tool's
database, thus providing users with an easy and convenient way of accessing data
without the need to open different applications.
DATA MINING TECHNIQUES
In addition to using a particular data mining tool,
internal auditors can choose from a variety of data
Artificial neural networks
Artificial neural networks
Neural networks have been used to solve a wide variety of tasks that
are hard to solve using ordinary rule-based programming, including
computer vision and speech recognition.
It is tree-shaped structures that represent decision sets. These
decisions generate rules, which then are used to classify data.
Auditors can use them to assess, for example, whether the
organization is using an appropriate cost-effective marketing
strategy that is based on the assigned value of the customer, such as
The Nearest- neighbour Method
This Method classifies dataset records based on
similar data in a historical dataset. Auditors can use
this approach to define a document that is
interesting to them and ask the system to search for
Significance of Data Mining
1. Significance of Data Mining In today’s competitive world,
every business has to fight huge competition to achieve
success. So it is necessary for every business organization to
collect large amount of information like employee’s data,
Sales data, customer’s information, market analysis reports,
2. Sales and transactions, detection of beneficial patterns,
minimizing risk and increasing ROI [Return on Invesment]
and understanding clear business problems and goals
Telephone service facility set up to handle a large
number of (usually) both inbound and outbound
calls. Some firms, however, specialize only in calls
that are inbound (for assistance, help, or ordering) or
outbound (for sales promotion or other messages).
Most telephone orders are handled by call centres
and not by the manufacturers or suppliers of goods
Allowing customers to choose the contact method
most convenient for them - phone, e-mail, fax, SMS,
chat or web – provides an overall improved customer
Important CRM Software's
FOR SEE CUSTOMER NEEDS
DETAILS OF A CUSTOMER
ACQUIRING NEW CUSTOMERS
It is also known as Internet Protocol telephony. Web
phone technology supports voice communication
over the internet, obviating the need for the
telephone network. this allow a fuller integration of
voice and textual data. several companies including
3Com,Cisco and Mitel are experimenting with IP
telephony system that can be applied to CRM
CRM: Emerging Perspectives
Developing customer relationships was there even in
the pre-industrial era but in recent times de-
intermediation process in many industries has
accelerated the evolution of CRM.
Airlines, banks, insurance, computer program
software, and household appliances are using
computer and telecommunication technology to
directly interact end-customers
Databases and direct marketing tools give industries
the means to individualize their marketing efforts.
Direct selling of books
Automobiles and insurance
Growth of service economy and total quality
management have driven adoption of CRM
Partner relationship with suppliers and customers
for TQM, JIT and MRP seen at Toyota, GM , IBM,
Ford and Motorola
Employee- Organisation Relationship
The employee play a very vital role in the growth of the
organization also as they are the one who actually buy the
service organization's business concept and concretize it
by providing their knowledge, skill, effort and time. they
interact with all other stakeholders and satisfy the
interest of each of the stakeholders. the Organization ,in
turn, fulfils the employees physiological, security, and
social needs. they also inherits several attribute of
customer and hence, are called customer.
“If the customer is the purpose of business ,employee are
the means to achieve the purpose“.
Employee- Customer Linkage
Radclyffe group conducted a study of call center and found that “satisfied”
contact center employees make for satisfied and loyal customers. Customer
decide whether or not to make future purchasing decisions with company,
or to recommend its service to other, as a direct result of their experiences
with a contact center representative. Organization must do short-term
investment in employee satisfaction efforts through employee training,
good working condition, standard pay and perquisites, participation in
management, employee empowerment etc.
companies essentially need to adopt following practices to leverage their
resources of employee.
Better working condition for employee
Essentials of building employee relationship
Since the employee are the pillars for the companies
building of relationship with the customer. a
deliberate and well – thought –out initiative is
required by the companies to build foundation for a
strong relationship of employee with the
Essentials of building employee relationship
Recruitment And Selection
Recruitment strategy from customer perspective
Finding persons of customer first orientation
Building employee customer parity
Sharing Customer profile
Directing to remain focused
Training and Development
Training with customer – first approach
Training to listen to the customer
Training to build empathy with customer
Employee Customer Orientation
7 8 9
Service Failure - Causes
inactions) of staff
Actions of the
Actions of other
The facilities and
Service Failure - Causes
inactions) of staff
Actions of the
Actions of other
The facilities and
The Service Provider
Becomes Responsible for
7 8 9
Zone of Tolerance
Put up with it
Complaining is Good?
1. The Perception of the Customer Determines
2. Perception is intangible and may be invisible
3. Complaining makes it visible
4. Unless it is visible the Service Provider cannot
PROVIDER CAN ONLY
RESPOND IF THEY
KNOW ABVOUT THE
Put up with it
• Little opportunity to
influence by service
• Customers spread bad
word of mouth
• Customers left are
gone for good
How do Customers Decide
• Bond (e.g. contracts,
• Strength of
• Switching costs
• Willingness to complain
• Significance of service
• Past relationship
• Opportunity to
influence by service
• Opportunity to learn
and adjust service
7 8 9
Above expectation (great
7 8 9
is the process for
that maintains the
perception of quality
Service Recovery Paradox: Can Service Recovery
increase satisfaction with service to levels above
The Concept of Justice
A Service Failure represents an expectation not met,
for a customer this is like a BROKEN PROMISE
wants to see
Size of recompense
matches degree of
degree of failure
The Implications of Justice
Size of recompense
matches degree of
degree of failure
Basis of Organisational response
Potential customer issues
Successfully fixing a problem with a defective
product may lead to higher consumer
satisfaction than in the case where no problem
occurred at all.
Majority of the customers don’t complain.
Expensive to fix mistakes.
Encourages service failure.
Don’t necessity to think of the firm.
No guarantee the customer will end up more
Service recovery paradox in a chart-
• to disappointed customer
• They can recover well
Gain • Greater loyalty from them.