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Customer Relationship Management

Customer Relationship Management

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Customer Relationship Management

  1. 1. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
  2. 2. CRM EVOLUTION  1960 - Mass marketing  1970 - Segmentation  1980 - Rapid shifts in business that changed customer power  Supply exceeded demands  Sellers had little pricing power  Only protection available to suppliers of goods and services was in their relationships with customers
  3. 3. DEFINE CRM ‘Integrated system of web enabled software tools and databases accomplishing a variety of customer-focused business processes that support the three phases of the relationship between a business and its customer’
  4. 4. CRM  CRM is a Business strategy  To understand, anticipate and manage current and potential customers  Retention of customers in addition to the acquisition of new customers (maximizing total customer life-time value)  Customer focused and relationship marketing or Customer delight  Market research - To assess customer needs and satisfaction  Software-based approach to handling customer relationships
  5. 5. OBJECTIVES OF CRM  Creating value for the customer  Creating value company over the longer term  Organisations to gain competitive advantage  Increase in customer service  Increase efficiency  Lowering marketing cost  Aiding the department
  6. 6. TRADITIONAL VS CRM
  7. 7. STRATEGIC CRM  Building relationships with customers that will provide little value could result in a loss of time, staff and financial  3 conditions - High life-time values - Serve as benchmarks for other customers - Inspire change in the supplier
  8. 8. THE DIFFERENCE : CRM AND ECRM  Take care of your customer via Internet  Customers being able to take care of themselves online  Systematic process functional are minimal  Engineering and architecture for their execution
  9. 9. INFORMATION TECHNOLOGY AND CRM  Involving the use of databases, data mining and one-to- one marketing can assist organisations to increase customer value and their own profitability  Used to keep a record of customers names and contact details in addition to their history of buying products or using services  Used to target customers in a personalised way  Personalised communication provides value for the customer and increases customers loyalty
  10. 10. INFORMATION TECHNOLOGY AND CRM: EXAMPLES  Phone calls, emails, mobile phone text messages etc…  Enable organisations to alert customers to new, similar or alternative services or products  EXAMPLE : Purchasing of online tickets , Cookies (Online store), Loyalty cards, CRM software - “Front office” solutions
  11. 11. INTERNET, INTRANET & EXTRANET INTERNET Customers, Competitors, General public EXTRANET Vendors, Distributers, Banks, Consultants INTRANET Management, Employees, Production centres
  12. 12. PHASES OF CRM CRM Acquire & Retain Understand & Differentiate Develop & Customize Interact & Deliver
  13. 13. CRM PYRAMID Customer Product/Program offerings Marketing, Sales, Support Technology
  14. 14. IMPLEMENTING CRM A strategic review of the organisation’s current position should be undertaken 1. What is our core business and how will it evolve in the future? 2. What form of CRM is appropriate for our business now and in the future? 3. What IT infrastructure do we have and what do we need to support the future organisation needs? 4. What vendors and partners do we need to choose?
  15. 15. MEASUREMENT BASED FRAMEWORK COLLECT CUSTOMER DATA ANALYZE CUSTOMER DATA FORMULATE INFORMATION BASED HYPOTHESIS COLLECT DATA ON PERFORMANCE OF HYPOTHESIS
  16. 16. 8 BUILDING BLOCKS OF CRM
  17. 17. CRM SOFTWARE
  18. 18. PRESENCE OF CRM  Promotion Campaign  Feedback Services  Upgrade Services  Brand  Events
  19. 19. BENEFITS OF CRM  Effective and efficient operation  Reduced costs  Increased customer satisfaction  External growth in numbers of customers  Increased access to a source of market and competitor information  Long term profitability and sustainability  Increased Revenue  Expect immediate, high quality, personalized 24-7 service
  20. 20. IMPORTANCE OF CRM  Foresee Customer Needs  Details Of A Customer  Grouping Customers  Acquiring New Customers  Cost Effective  Handy Details  Customer Satisfaction  Customer Loyalty
  21. 21. FUTURE OF CRM  Retention Rate  Increased Sales  Reduced Costs  Significant Role  Technology  Customer Information  Interactive  Customer Individuality  Globalization
  22. 22. CAUSES OF FAILURE Lack of understanding and preparation Lack of business process changes and change management programs Lack of participation by stakeholders and thus lack of preparedness for new process
  23. 23. TYPES OF CRM  Analytical CRM  Collaborative CRM  Operational CRM  Geographic CRM  Sales Intelligence CRM
  24. 24. ANALYTICAL CRM Analytical CRM is designed to analyse deeply the customer’s information and data and unwrap or disclose the essential convention and intension of behaviour of customers on which capitalization can be done by the organization COLLABORATIVE CRM Collaborative CRM deals with synchronization and integration of customer interaction and channels of communications like phone, email, fax, web etc. with the intent of referencing the customers a consistent and systematic way. OPERATIONAL CRM Operational CRM is mainly focused on automation, improvement and enhancement of business processes which are based on customer-facing or customer supporting.
  25. 25. GEOGRAPHICAL CR Combines geographic information system and traditional CRM. Geographic data can be analysed to provide a snapshot of potential customers in a region or to plan routes for customer visits. SALES INTELLIGENCE CRM Top-performing sales organizations are meeting the challenges of identifying the most likely buyers of their products and services through the deployment of sales intelligence solutions that introduce a wide variety of data streams to their front-line staff.
  26. 26. INDIAN COMPANIES ADOPTING CRM & Many More….
  27. 27. CHALLENGES IN CRM  Richness of customer data  Integrated view of customer information  Feedback mechanism from customer  Intelligence at operational touch points  Consistence of communication  Convenience of interacting with insurer
  28. 28. APPLICATIONS
  29. 29. CRM IN BANKS AND FINANCIAL SERVICES  Evolving Customer Profiles – Web landing pages and site visitors  Connecting the Dots – Marketing initiatives and pricing strategies, social media listening tools  Responding Appropriately - Troubleshooting customer problems  Security Considerations  Integration with other banking system
  30. 30. CRM IN ICICI BANK
  31. 31. CRM IN JETHUB JETHUB - Charter service which saves information in online quoting system CHALLENGES  Quoting system was “wide open” to anybody  Finding a way to support the distributed workforce ADVANTAGES AFTER ADOPTING CRM  Complete visibility of clients and client interactions  Easy way to follow up on the leads  Customizing CRM to mimic the same industry-specific form layout presented by the quoting system  Can set up automated processes, like alerts and tasks
  32. 32. REFERENCES  Manchester Business School. 2003. Customer Relationship Management: Where do you start?  BusinessBalls. Customer Relationship Management. [Online] [Accessed November 2008]  http://www.managementstudyguide.com/origin-of-crm.htm  Liz Shahnam. What’s really CRM? CRM Today. [Online] [Accessed November 2008]  http://henysunshine.blogspot.com/2010/12/customer-relationship- management-crm-at.html
  33. 33. THANK YOU

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