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Chapter 01 What is CRM?

1.1 What is CRM?


CRM is the abbreviation for customer relationship management. CRM entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. CRM is often thought of as a business strategy that enables businesses to:

Understand the customer Retain customers through better customer experience Attract new customer Win new clients and contracts Increase profitably Decrease customer management costs

While the phrase customer relationship management is most commonly used to describe a business-customer relationship, however CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads. CRM solutions provide you with the customer business data to help you provide services or products that your customers want, provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and understand who the customer is.

Technology and the Web has changed the way companies approach CRM strategies because advances in technology have also changed consumer buying behavior and offers new ways for companies to communicate with customers and collect data about them. With each new advance in technology -- especially the proliferation of self-service channels like the Web and smartphones -- customer relationships is being managed electronically. Many aspects of CRM relies heavily on technology; however the strategies and processes of a good CRM system will collect, manage and link information about the customer with the goal of letting you market and sell services effectively.

1.2 Facets and Importance of CRM

A good CRM system will classify your prospects and help identify your best customers. With detailed information on your customers you can accurately project and respond to their buying needs throughout the sales cycle. A good CRM system can help you automate routine sales tasks allowing you to spend more time focusing on strategic sales issues. The right CRM system allows your team to take a pro-active approach to customer service. With up-to-date and complete customer information at their fingertips, your employees can resolve customer issues more quickly and successfully create cross or up-sell opportunities. CRM makes it easy for you to track each phase of a marketing campaign and provides all the tools you need for meaningful analysis and powerful campaign measurement. You can profile customers and prospects based on specific criteria and this, along with direct integration to mass email and CTI functionality,

makes CRM an invaluable tool for successful marketing. CRM applications provide a single view of the customer across all touch points and channels, as well as delivering comprehensive reports of customer behaviors, marketing campaign results and sales activity. Each of these elements is necessary for smart decision making and long term strategic planning. With an integrated CRM system, you can gain immediate access to your organizations critical customer information. Good CRM software also increases internal efficiencies by automating workflow processes, reducing human error, decreasing process time and providing consistency throughout the entire organization.

1.3 CRM and marketing

CRM leverages and amplifies customer base of an organization through efficacious and efficient marketing. In fact CRM has brought up new dimensions in the field of marketing by significantly improving marketing functioning and execution. Intuitive CRM associated marketing strategies like direct marketing; web marketing, e-mail marketing etc. have been matured during the recent past. These marketing strategies are more promising as compared to the traditional ways on marketing as they help delivering higher-up performance and walloping business. They also help meliorating response rates in marketing campaigns, cut cost on promotions due to low asset values and provide higher scrutiny on organizational investments. With the growing popularity of web, customers are tending towards web marketing or web shopping. This helps both customers and suppliers to transact in a real time environment irrespective of their locations. Some of the major advantages of Web Marketing are listed below:

It is relatively very inexpensive as it reduces the cost for physically reaching to the target customers for interaction. Suppliers can reach to more number of customers in lesser amount of time. The online marketing campaigns can be easily tracked, traced, calculated and tested. The selection process of any product or brand is simplified due to proven online research and analysis techniques. Online marketing campaigns are more promotional as compared to manual campaign.

Down the line marketing strategies keeps on changing according to the emotional behavioral change of customers. CRM market forecasting techniques help to understand this change through regression and statistical analysis of customer behavior online. These are some complex but more accurate analysis techniques provided by CRM system which are proved to be one of best marketing strategies. This innovative approach is carried out with greater risks but is believed to outturn astonishing rewards. It is important for an organization to have check on marketing performance regularly so that the techniques never deteriorate and always match to yield greater results. These CRM oriented models help in delivering accurate measurement of marketing performance throughout the organization and to do better every time.

These synergistic marketing strategies make a part of CRM system to develop high-end marketing business. Hence it is very important for an organization to incorporate them by carefully anticipating change, testing their performance and assembling the best possible combination of these strategies to meet the needs of the customers and maximize its marketing growth.

1.4 Role of human resources in CRM


We often hear the term Human Resource Management, Employee Relations and Personnel Management used in the popular press as well as by Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices. In this article, we look at the question what is HRM? by giving a broad overview of the topic and introducing the readers to the practice of HRM in contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is much more to the field of HRM and despite popular depictions of the same, the art and science of HRM is indeed complex. We have chosen the term art and science as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required.

Chapter 02 Rediscovering the customer

2.1 Why customer understanding 2.2 Customer sector 2.3 Core sector 2.4 Sensors for customer understanding 2.5 How customer understanding helps in CRM?

Chapter 03 How to measure customer relationship 3.1Why customer relationship measurement? 3.2 Role of market research and market survey in customer satisfaction 3.3Market research and customer relationship management 3.4 Market research process 3.5 Desk research (secondary source/data) 3.6 Field survey (primary sources /data) 3.7 Questionnaires

3.8 Interview 3.9 Completion and analysis of data 3.10 Report preparation 3.11 Conclusions and action plan

Chapter 04 Customer response 4.1 Customer response and its importance 4.2 What response must provide 4.3 Response medium 4.4 Response in customer segment 4.5 Response in core segment 4.6 HRM and response

Chapter 05 Customer satisfaction 5.1 What is customer satisfaction? 5.2 Factors affecting customer satisfaction 5.3 Measurements of customer satisfaction

5.4 CSM method 5.5 How to promote customer satisfaction

Chapter 06 Loyalty and customer satisfaction

6.1 What is customer loyalty? 6.2 Customer loyalty and satisfaction 6.3 Drivers of customer loyalty 6.4 Loyalty breaker 6.5 CLM CHAPTER 07 Complaint management 7.1 Whycustomer complains 7.2 Advantage of complain 7.3 Complain classification 7.4 Complain management system

Chapter 08 Service

8.1 Service as a business segment 8.2 Types of service business 8.3 Characteristics of service business 8.4 E-services