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Mba Project - A PROJECT REPORT ON CUSTOMER RELATIONSHIP
MANAGEMENT
Mba Project - A PROJECT REPORT ON CUSTOMER RELATIONSHIP
MANAGEMENT
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A PROJECT REPORT ON CUSTOMER RELATIONSHIP MANAGEMENT

AT...
A PROJECT REPORT ON CUSTOMER RELATIONSHIP MANAGEMENT

AT
ADDMARC
( AN ADVERTISING &MARKETING CO.)

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF
REQUIREMENT FOR THE DEGREE O F MASTER OF BUSINESS
ADMINISTRATION (Industry Integrated) MADURAI KAMARAJ
UNIVERSITY, MADURAI By VINISHA VASHISTHA Reg No.: A7754274
Under the guidance of

Mrs.Gunjan Rana RAI BUSINESS SCHOOL
Mathura road, New DelhI DEC 2008
Rai Business School

Certification
This is to certify that the project report at

ADDMARC
(AD
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A PROJECT REPORTONCUSTOMER
RELATIONSHIPMANAGEMENT
AT
ADDMARC
( AN ADVERTISING &MARKETING CO.)
A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT
OFREQUIREMENT FOR THE DEGREE O F
MASTER OF BUSINESS ADMINISTRATION(Industry
Integrated)MADURAI KAMARAJ UNIVERSITY, MADURAIByVINISHA
VASHISTHAReg No.: A7754274
Under the guidance of
Mrs.Gunjan RanaRAI BUSINESS SCHOOL
Mathura road, New DelhIDEC 2008
Rai Business School
Certification
This is to certify that the project report at
ADDMARC
(ADVERTISING &MARKETING CO
.)Submitted in Partial fulfillment of the requirement for the Degree of
MASTER OF BUSINESS ADMINISTRATION(Industry Integrated)To
MADURAI KAMARAJ UNIVERSITY, MADURAIVINISHA VASHISTHA
Under my supervision and guidance and that no part has been submitted for theaward
of any other Degree/Diploma/fellowship or similar title or prizes
Faculty Guide
Signature :Name :Mrs.Gunjan RanaSignature & Seal of the
learning center
RAI BUSINESS SCHOOL
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STUDENT S DECLARATION
I hereby declare that the Project Report conducted at
ADDMARC(Advertising & Marketing co.)Under the guidance of Mrs.Gunjan
RanaSubmitted in Partial fulfillment of the requirement for theDegree of
MASTER OF BUSINESS ADMINISTRATION(Industry
Integrated)TOMADURAI
KAMARAJ UNIVERSITY, MADURAI
Is my original work and the same has not been submitted for the award of any
otherDegree /Diploma/fellowship or other similar titles or prize
Place: VINISHA VASHISTHADate: Reg. No. : A7754274
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Project ReportAt
ADDMARC(Advertising & Marketing co.)
Submitted by:
VINISHA VASHISTHAMBA-III(MKU)
Reg. No.-A7754274Under the guidance of :-Mr. Mahender Gera
Regional Manager,
ADDMARC(Advertising & Marketing Co.)Sant Nagar, Nehru Place
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ACKNOWLEDGEMENT I wish to express my gratitude to
ADDMARC (Advertising & Marketing Co.)management for giving
me an opportunity to be a part of their esteemorganization and
enhance my knowledge by granting permission to dosummer
training project under their guidance.I am grateful to
Mr.MAHENDER GERA my Company guide, for his
invaluableguidance and cooperation during the course of the
project. He provided mew i t h h i s a s s i s t a n c e a n d
s u p p o r t w h e n e v e r n e e d e d t h a t h a s
b e e n instrumental in completion of this project.I w o u l d
a l s o l i k e t o t h a n k my c a r e e r ma n a g e me n t
c e l l h e l p e d i n t h e accomplishment of this work and
obliged for her consistent support. T h e l e a r n i n g d u r i n g
t h e p r o j e c t wa s i mme n s e & i n v a l u a b l e . Ou r
wo r k basi cal l y i ncl uded the study of customer
rel ati onshi p management. Thepresent report is an
amalgamation of our thoughts and our efforts to studythe
customer
so that managers may develop better approaches in dealing with
theircustomers, and form mutually rewarding relationship in the future.
Finally through this acknowledgment I would like to express my
sinceregratitude towards all those people who have been
inspirational andinstrumental in drafting this assignment.
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TABLE OF CONTENT
AcknowledgementAbstract1. Introduction ADDMARC,2. client3.
Objective4. MethodologyPrimary DataSecondary Data5.Unit
Linked Insurance Policy6 .Mutual Fund7. Types of Mutual Fund8.
ULIP Vs Mutual Fund
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9. Mutual Fund Analysis10. Survey11. Recommendations12.
Bibliography13.Annexure
ABSTRACT:
Customer Relationship management (CRM) is a software package that can
be used tocollect information and collaborate internally across a corporate
organization in order toimprove interaction with customers.There are two
elements, which make up CRM: one is interaction with the
customer,which can be through Internet or through traditional
methods such as the telephone. The second is for a company to utilize
the information gathered from such interaction tomarket their products
better.
RAI BUSINESS SCHOOL
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T h e s e c o n d e l e me n t i n v o l v e s u s i n g t h e I n t e r n e t o r ,
mo r e a c c u r a t e l y c o r p o r a t e i nt r anet s, so t hat t he
i nf or mat i on i s wi del y avai l abl e wi t hi n t he or gani zat i on.
Thes of t war e pac k ages , whi c h mak e up CRM, t hus , hel p
a c ompany i dent i t y t hat i t s c u s t o m e r s a r e a n d t h e i r
s p e n d i n g p a t t e r n s . C R M , a l o n g w i t h s u p p l y
c h a i n management, have become the leading tools of the so-
called new economy, which issupposed to have greatly enhanced
productivity
.
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INTRODUCTION:
Addmarc, an advertisement and marketing company in the field of
promotionalservices of restaurant and food chain outlets through our
services we partner you in thehospitality of your organization and your
employees
.
With reference to our conversation here we are offering you the
best & most economical package
.
A B O U T A D D M A R C :
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Addmarc.
A Canadian concept based advertising & marketing co.
WHO WE ARE ?
We are an nine year old innovative marketing services team of
professionals andprimary objective is to assist ventures essentially with in
the services industry comprising hotels, restaurants, resorts, multiplexes
and leisure park.
WHY WE ARE?

The hospitality services industry is possibly the fastest growing
business verticalin India today to quote and apt marketing clich demand
far out strips supply in any of the services comprising this business vertical.
It is projected that this demandshall continue to grow exponentially over
the next ten years. This is eventually expected to result in various specialist
with in the field being sought fore varioussubheads that make the services.
Services industries as a whole.Profitability and continuous revenue
planning being the key behind any venture, Wea r e a t Addma r c s e e k
t o a ddr e s s t he ke y c ompone nt i n t he me e t i ng on of
t he marketing services requirements the key differentiated between a good
venture andprofitable one.

At Addmarc we are completely alert to fact that each Clint is special
andeach Cl i nt present us we can opport uni ty to cont i nue f i nd
t une and bone ourma r ke t i ng s k i l l s t o r e a l i z e c us t ome r
de l i g ht a nd s a t i s f a c t i on i n e v e r y wa y possible.
RAI BUSINESS SCHOOL
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At Addmarc, we understand the value behind creation of
relationship andassociations which extent far beyond the professional
ambit. We firmly believed asatisfied customer is veritable mouthpiece for
other prospective clients.

AT Addmarc, they put our actions to match your recommendations
this isour biggest strength and is the very basis of our many
successful marketing tieup.

We take extreme care in choosing our associates.
O u r c l i e n t e l e s
We are having more than fifty national and international clients, our major
clients are
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Out Other Clients.
P i n d b a l u c h i P i c a r d l i T a s t e
o f c h i n a S h a n k a l p A s i a
k i t c h e n R i c e b o wl My s t e r y g u i d e
& Ma n y mo r e .
Details :Detail of card Feature of meal card:-

In just Rs 999/- you will get meal of worth Rs around 10000/-.

It is a freely transferable card means either you or on behalf of you anybody
canuse this card.

The validity of this card is complete one year from date of purchase.
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Four mega bumper card of Rs 250/- each ( Rs 1000/- ) absolutely free.

All restaurants are on prime location of Delhi and NCR.
RAI BUSINESS SCHOOL
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MONTH OFFER
-

Free twenty eight coupons for diner and lunch meals with
buyone get one offer
.
RAI BUSINESS SCHOOL
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Free four bumper offer coupons of worth Rs 250 each.
Objective
To know the satisfaction level of partners and external customers of
ADDMARC(Advertising & Marketing Co.)and to Capture the essence
of genuine relationship asperceived by them so that managers may
develop better approaches in dealing withtheir customers, and form
mutually rewarding relationship in the future.
RAI BUSINESS SCHOOL
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M e t h o d o l o g y
The methodology for this project includes four phases:

S t u d y o f t h e
concepts
t hrough vari ous l i terat ure avai l abl e on the subject.

Interact i on wi th the corporate uni t to get rel evant
i nf ormati on andexposure on the subject.

Pr i mary s ur vey
t hr oug h t e l e - c a l l i ng a nd unde r s t a ndi ng t he i r concerns.

Analyses
o f d a t a t o d e r i v e
Partnes and External customersSatisfaction
.
P r i m a r y D a t a C o l l e c t i o n
A structured questionnaire was used to collect data from the interviews
method wasused in order to get the questionnaire answer. As respondent
played an important roleowing to their interaction
Secondary Data Collection
The secondary data was collection from various magazines, journals,
newspaper and books written by experts. The magazine referred to be
Business India,
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Business World, Newspapers like The Economic Times, The Times of
India.The secondary datacollected then was used in formulation of the
questionnaire, which was then used tocollect primary information.
TYPE OF RESEARCH
The research was descriptive in nature. An idea was to gain an insight into
theproblems that the CRM to which working in the competitive
environment. The project would have remained incomplete without the
suggestions of the working in theircompanies regarding the effort required
to serve the sector.
LIMITATIONS
The sample size was limited by the time constraints. The project was
required to becompleted within duration of (OCT 2008DEC2008).
S C O P E F O R F U T U R E S T U D Y
1 . The pr oj e c t s t udy ha s be e n done t a ki ng a v e r y s ma l l
s a mpl e s i z e . A de t a i l e d project can be undertaken for the same.
RAI BUSINESS SCHOOL
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2.
The growth of the CRM sect or has been accompani ed by
ef f orts ai med at evovling an appropriate regulatory framework.
WHY AND HOW CRM?

Why Do Companies Need CRM ?
Companies need to establish strong customer relationships by acquiring in-
depthknowledge of the customers requirements and expectations. The idea
is to use theinformation to meet customer needs better, build loyalty, and
increase efficiency through call centers and other marketing activities. The
advent of the Internet as amedium has enabled a reduction in interaction
costs among customers and companies.The need for personalized
information, faster service, and value addition is forcing both product and
service companies to meet or exceed expectations levels. As a
result,companies consider CRM as an integrated effort that automates
business, shrinks timeand distance across the supply chain to serve
customers
.

How Do Companies Choose the Right CRM tool?
Every company has di f f erent l egacy systems computer-
rel ated i nf rastructureinstalled at different points in time and
various levels of data integration, that makeCRM tools difficult to define
or apply. Ideally, a CRM package should cut costs andencourage
communi cati on. As every busi ness act i vi ty i s di f f erent, i t
woul d need
RAI BUSINESS SCHOOL
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different approaches to CRM. Before applying CRM to their
business, organisationsneed to check the compatibility of the software
with their existing application.
T h e F o u r R s o f M a r k e t i n g
There are four other concepts that must be taken just as seriously
in order to achievel ong - t e r m s uc c e s s . The s e r e pr e s e nt a
mor e c ur r e nt v i e w of wha t i s i nv ol v e d i n achi evi ng
marketi ng
success
. T h e f o u r R s o f m a r k e t i n g
r e t e n t i o n
,r el at i onshi ps , r ef er ral s and r ec overy
a r e o f c r i t i c a l i m p o r t a n c e i n t h e establishment of a
successful marketing program. Rather than focusing
managementsattention on the tools of marketing, this view requires
that management understand what will lead to long-term success and
increased shareholder value.Building Customer
The Four Rs of Customer Relationship Management
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RelationshipsRetentionReferrals
Recovery

Retention involves keeping those customers we want by meeting
and exceedingtheir needs. Customer retention is far less costly than
customer acquisition. Thefocus must be on the voluntary retention of
customers. Retention of customers because they have no alternative or
by locking them into a reward program doeslittle to foster long-term
relationships. In fact, it does the opposite. Quite often, assoon as they
can break f ree f rom a si t uati on i n whi ch they f eel t rapped,
t hesecustomer ill take their business elsewhere.

R e l a t i o n s h i p s a r e l i k e l y t o e x i s t w h e n
c u s t o me r s v o l u n t a r i l y o r e v e n e n t h u s i a s t i c a l l y
d o b u s i n e s s w i t h a f i r m f o r e x t e n d e d p e r i o d s o f
t i me . Re l a t i ons hi p bui l di ng me a ns g e t t i ng c l os e t o
c us t ome r s i n a n a t t e mpt t o understand and serve them better.
Relationships, by their very nature, requiret r us t , c ommi t me nt ,
c ommuni c a t i on, a nd unde r s t a ndi ng . I n t he e v e r y da y
mayhem of business life, it is easy to put off calling a long-time client or
makingr e l a t i ons hi p bui l di ng a pr i or i t y . Howe v e r , i t i s
ne c e s s a r y t o pl a c e a s muc h importance on relationships with
customers as we do on any other aspect of the business.

R e f e r r a l s a d d r e s s t h e wo r d - o f - mo u t h e f f e c t t h a t
r e s u l t s f r o m c u s t o me r sati sf act i on t he powerf ul
message that sat i sf i ed cust omers wi l l convey toothers. When
customers are completely satisfied with a service or product, they
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are more likely to spread the word. People are more likely to try something
new if it is highly recommended by a trusted colleague, friend, or
family member. Notonly will they come back to buy from us again,
but they will bring their friendsand family members.

Recovery from poor customer service customer service must also be an
importantcomponent of managing customer relationships. Mistakes
happen. That is a fact of life and business.The unpredictable will undo the
best-laid plans and leavecustomers and employees feeling frustrated.
However, mistakes can be turned intoopportunities to impress customers
and win their loyalty. Recovering from amistake can reaffirm a loyal
customers commitment as well as demonstrate to anew customer your
pledge to customer service and satisfaction. In order to do this,employees
must be empowered to deal with gaps in service and product quality
whenthey occur. Customers become frustrated when they have to go
through several layersof management and wait for replies to trickle back
through the system before problemsare corrected.

Not All Customers Are Valuable
Not all customers represent the same value to a firm. In fact,
companies serve a widerange of customers, from those who produce very
little revenue to those who produce agreat deal. But many companies have
no idea who their customers are or how valuable
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t hey are to t he busi ness. The prevai l i ng wi sdom today i n
busi ness i s that greater attention should be paid to satisfying the
most valuable customers. If we are going toprotect customer
relationship, then we should start with protecting those that have
thegreatest potent i al val ue. But many f i rms do not know
where t o begi n i n assessi ngcustomer value.Tha t i s why s ome
c ompa ni e s a r e s pe ndi ng t i me a nd mone y t o de t e r mi ne
whi c hc us t ome r s a r e c os t i ng mor e t ha n t he y a r e wor t h.
Te c hnol og y t oda y a l l ows ma ny compani es to track sal es
and gai n an i mproved understandi ng of thei r
customers. Making the effort to assess the value of individual customers
will pay off if the company uses the information to determine how much to
invest in building a relationship with acustomer or customer segment. The
logical outcome making such an assessment is thatthere will be some
customers on whom the company will lavish attention and
whoserelationship will be protected almost at all cost, and other customers
whose connectionto the firm is deemed much less valuable and who may
even be encouraged to end theirrelationship. At first glance, the idea of
helping or encouraging customers to defect seems a ratherharsh step
to take, one that may even prove detrimental to a company; however, it can
be a means to improved profitability for the company and higher quality
service for the best cust omer. Sheddi ng t hose cust omers who
are genui nel y not payi ng thei r way ma ke s c ons i de r a bl e
bus i ne s s s e ns e . One c r i t i c a l pr obl e m, howe v e r , i s t ha t
mos t
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businesses are ill-equipped to identify such customers. And even if they
could identify these customers, the concern remains that these customers
may spread negative wordof mouth after they have been dropped by the
company.Most companies have customers who spend little but cost as
much to serve as thosewho bring in greater revenues. For example, in our
research with financial institution,the customers who represent the lowest
value to a bank in terms of their deposits andfee-generating products
are generally also the most costly to serve. They may also bethe type
of customers who will continue to use the banks branch network, rather
than ATMs and other technology, and be most demanding of the time of
employees.Credit card holders also vary greatly in the extend to
which they use their cards andhow they choose to pay their balances.
Some customers use their cards minimally eachmont h and pay t hei r
bal ance as soon as t hey recei ve t he monthl y stat ement.
Thesecustomers represent a small source of revenue for the credit
card company since they are l i ght users and pay no i nterest.
The admi ni st rati ve costs associ ated wi t h theseclients are the
same as the costs to serve clients who are heavy users and carry
over balances, thereby earning interest for the bank. The profits realized
from each of thesetwo groups are different because of their usage
rates and payment patters. What canthe credit card company do? There
are several alternatives, including increasing usagerates l i ght users
and mi ni mi zi ng spendi ng on t hese cust omers. As wel l , i t may
bepossi bl e t o i ncrease usage f urther among heavi er users,
whi ch wi l l of f set t he costs
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associated with light users. Cards issued with a fixed annual fee dater light
users, who will not benefit by having the card because of their low spending
levels.Consciously encouraging the defection of the unprofitable customers
unprofitable is adecision that require information about customers
and their spending patterns overt i me. It al so requi res a bet ter
underst andi ng of t he customer s spendi ng potent i al . Many
businesses will serve young clients for many years without realizing
substantialrevenues. However, these companies often attempt to
retain those clients because of their potential as long-term,
profitable customers as they mature and their earningsincrease. An
example is the bank that carriers a students small balances for
years inanti ci pati on of t he i ndi vi dual s greater needs when he
graduates and i s empl oyed. Because of this potential, businesses
cannot make broad-based decisions to lose the bot t om x % of t he i r
c us t ome r s . Ra t he r , t he y mus t ma ke t ha t de c i s i on ba s e d
onknowledge about the customers past and present spending potential.
At t e mpt i ng t o de l i v e r a n a ppr opr i a t e l e v e l of c us t ome r
s e r v i c e t o a c us t ome r s e s t i ma t e d v a l ue t o t he c ompa ny
i s a r i s k y s t r a t e g y . I n t he f i r s t pl a c e , unl e s s t he company
has very good information on the true value of the customer, the risk is very
real that it could be wrong in labeling a customer low value. In
such a situation, thestrategy adopted to serve the low-value customer
may involve reducing service levelsto the point where the customer
may decide to take this or her business elsewhere, orcharging fees or
higher prices to such customers so that they either become profitable
RAI BUSINESS SCHOOL
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or are encouraged to leave. The danger, of course is that the firm may
offend customers who are in fact more valuable than available data may
indicate, or create a publicrelations problem because customers voice
publicly their views on how they are beingtreated.
Tailoring levels of customer service to some estimate of customer
value is achallenge for a business and a dangerous strategy to
implement. Clearly, a company real l y does not want to mai ntai n
cl ose rel at i onshi ps wi t h al l of i ts cust omers, but deciding which
ones to maintain and encourage and which ones to cut loose or ignorei s
not an easy task. Such a deci si on may be made f or the wrong
reasons and i n theabsence of full information. The concept of
value for a customer is very important ascompanies consider how to
implement a customer relationship strategy.
Customer Relationship as Asset
What i s t he val ue of a sol i d customer rel at i onshi p? How can
empl oyee sat i sf acti onprovide insight into future financial
performance? More and more firms are askingthese questions as
they attempt to measure non financial or soft assets and
attributeeconomic value to them. This is happening at a time when
intellectual capital, humanresources and training are more
important to some companies than the value of theirtangible assets.
For example, a small IT firm made up of capable, hardworking,
creativepeopl e wi l l want to eval uate t he company based on i ts
potent i al to del i ver qual i ty
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services and solutions to their clients rather than on the value of
the hardware andsoftware used to create the solutions. The services
provided by the company will be valued by its clients as well as the
relationships forged through the interaction andquality work done. For the
most part, these solutions are the result of the people who work on the
problems rather than to the equipment and facilities used to producethem.
In other words, it is the abilities and quality of the people to produce results
as well as their willingness to provide high-quality service and form
relationships that willdifferentiate thee companies. To be fair to these types
of businesses, more attentionshould be paid to the measurement of
intangible assets when valuing the firm. When a company is sold or when it
issues an IPO, the marketplace and investorsapparently have little difficulty
placing a value on the firms intellectual capital and itspotential for future
profits. What is required to provide a better understanding of thetrue value
of the future potential of a company is more than financial measures. In
thiscontext, a traditional accounting approach is inadequate because it fails
to take intoaccount the kinds of measures that are of critical importance to
those who are involvedin marketing and who are focused on the long-term
value of the customer relationshipsthat the company has built. It is the
customer who is responsible for the future earningsof the company. It is
essential, therefore, that the company place a value on the long-term
stream of earnings produced as a result of customer relationships.
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Ev e r t Gumme s s on, Pr of e s s or of Ma r k e t i ng a t St oc k hol m
Uni v e r s i t y , s pe a ks of
intellectual capital being divided into two components human
capital (the value of the employees who work for the firm and
what they bring to thecompany, including their knowledge,
motivation, and
network of relationships) and structural capital (the embedded
knowledge of the firm; therelationships the company has with its
customers
and others, its corporateculture, systems, contracts, and brands).
Human capital leaves the firm when anemployee resigns or retires,
structural capital goes on insofar as the companysrelationships and brands
have enduring value; a value, unfortunately, that has rarelybeen
calculated.The t echni que i s used t o wei ght t he f act or s bet ween
qual i t y and pr i ce r esul t i ng i nequi l i br i um l i ne bet ween qual i t y
and pr i ce showi ng what t he cust omer deems a f ai r value.
PERCEIVED FAIR VALUE
PRICE
QUALITY
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Customer Value Map
Within each competitive set, the company with the best value wins
.
The slope of theline is critical to CRM strategy. If the organization
happens to be in a category that hasdestroyed the importance of quality and
brand [creating a steeply sloped perceived fair val ue market], i t i s a
commodi ty, a pri ce game, and unl ess i t changes t he way
i tstargeted customers weigh the factors, nothing but the lowest price will
win.
Whats Important?
A number of lessons learned from this chapter merit emphasis at this point.
Calculatingor determining the long-term value of a customer is important
for a firm. First, itdemonstrates to employees that the firm is focused on
cultivating customerrelationships so as to maximize the long-term payback
that flows from suchrelationships. It sends a very important message that,
by engaging in behavior that inany way puts customer relationships at risk,
the employee is jeopardizing a very important flow of revenue not only
form the customer directly but from any businessthat he or she might
influence.Secondly, determining the value of a customer may influence a
decision regardingthose customers with whom the company wishes to
establish and maintainrelationships. It has the potential, once a concerted
effort is made to place a value on acustomer relationship, to identify those
customers where long-term potential is very
RAI BUSINESS SCHOOL
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good and those where the most concerted efforts will relationships in the
customerseyes. Other authors suggests that where customers do not really
want to get very closeto a company, the company should examine what
value or benefits the customersperceive they are
getting now or could potentially get from such a closer association.The
conclusion is often that the company has not done a very good job of
demonstrating that additional value can be created for the customer by
getting closer.The challenge is to create more relational benefits, as
customers are generally already aware of the functional and process
benefits that the company can offer. In fact, thefact that these customers
are not interested in deepening the relationship suggests thatthey are aware
of and satisfied with the benefits created at this more functional level.The
challenge to the company is to raise the bar and to make the softer,
relational benefits more relevant for the customer.Lets reconsider for a
moment the implications of implementing technology in an effortto add
value for consumers. Customers generally appreciate the convenience value
thatis created by the introduction of many new technologies. But there is an
importantshortcoming: by allowing the customer to deal with us entirely
through technology, weare removing human contact, the opportunity for
conversation and the opportunity toread a situation.
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Pyramid Model:
The top-down pyramid is a model for planning and executing a
CRM initiative.Theunderlying support for the pyramid is Customers, a
constant reminder thatprofitable customers are the core of a companys
existence. It ensures that companiesachieve corporate revenue and profit
goals by aligning the entire organization aroundcustomers to deliver real
business value.Those that count their CRM investments a success have
learned that its essential to view CRM as an enterprise-wide initiative that
requires executive-level involvementand strategic alignment from the
beginning. Secondly, this model puts technology inits proper place as an
enabling platform. The CRM technology implementation becomes a
natural extension of the companys vision and strategic direction
andsupports the organizational structure and business processes.
Customer Value Management (CVM): The Driving Force Behind
CRM
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Success
The aim of all businesses should be to create a value proposition for
customers that aresuperior to and more profitable than the
competition. The value proposition can bespecifically described in
terms of:

The target customers;

The benefits offered to them and;

The price charged relative to the competition.The value creation process is
a critical component of CRM as it translates business andc us t ome r
s t r a t e g i e s i nt o s pe c i f i c s t a t e me nt s of wha t v a l ue i s t o
be de l i v e r e d t o c u s t o me r s a n d , c o n s e q u e n t l y , w h a t
v a l u e i s t o b e d e l i v e r e d t o t h e s u p p l i e r organization.
It consists of three key elements:

Determining what value the company can provide to its customers;

Determining the value the organization receives from its customers

By successf ul l y managi ng the val ue exchange, maxi mi zi ng
t he l i f et i me val ue of desirable customer segments.
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CRM: ADDMARC (An Advertising & Marketing Co.)
ADDMARC has transformed itself into a technology intensive services
group in the lastdecade. To achieve its long-term goal of being in a
position, ADDMARC has taken as e r i e s of i ni t i a t i v e s . As pa r t
of t he pl a ns , i t i s i mpl e me nt i ng v a r i ous pr oj e c t s
t oestablish world-class CRM practices, which would provide an
integrated view of itscustomers to everyone in the organization.CRM at
ADDMARC involves increased communication between its customers
andprospects, as well as within the group itself. The underlying idea is to
enhance very instance of contact with the customer. ADDMARC believes
that a true customer-centricrelationship can only be accomplished by
considering the unique perspectives of every single customer of the
organization.
THE CRM ROADMAP
It should allow ADDMARC to engage in customer service by
tracking completecustomer life-cycle history. To begin with, it will
automate process-flow tracking in theproduct sales process, and be
able to generate customized reports and promote crossselling.
From an architecture perspective, the enterprise-wide CRM
solution shouldseamlessly, integrate non-transactional related
customer information housed in theFront-Office with the transactional
information housed in the Back Office. Creating the
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enterprise CRM strategies required the combination of nine
distinct steps as shown below:
S T R A T E G Y
I N T E L L I G
E N C E P R O
C E S S A U
T O M A T I
O N O R G A N
I Z A T I O N
D A T A TECHNOLOGY
Source : "Creat i ng the Enterpri se CRM st rategy" by Asl am
Handy, Chi ef Technol ogy Of f i cer, Dialogos.
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By combing these nine steps can one really start listening to the
customers, andunderstand what t hey are sayi ng, may be even
i n real ti me. Once that i s achi eved, profits begin to follow as
optimization techniques are applied. Only then will the twocrucial
goals for a successful business-case driven project be achieved, viz.
1 . E f f e c t i v e c h a n g e
m a n a g e m e n t 2 . T e c h n o l o g y - e n a b l e d
e v o l u t i o n .
ADDMARC recognizes that customers make buying decisions based
on more than just price.... more than just product.
Customers make buying decisions based ontheir overarching
experience that includes product and price-, and price,-and
sales, service, recognition and support
. If ADDMARC can get al l of those factors right-consistently-we will
be rewarded with ongoing customer loyalty and value.

IMPLEMENTING CRM
A very detailed and comprehensive CRM Action Plan was developed
based on theunderstanding that CRM will require an
enterprise wide transformation
.The CRM Business Transformation Map below shows the various
aspects of thatchange. There are five inter-related areas. These
include:1 . B u s i n e s s F o c u s 2. Organi zati onal Structure
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3. Bus i ne s s Me t r i c s 4.Marketing Focus Technology. The ke y t o
bui l di ng t he CRM a c t i on pl a n wa s i n unde r s t a ndi ng
whe r e t he organization stood relative to each of the five aspects of
change. Interviews with key individuals throughout the
organization helped identify different initiatives that have been
launched, all focused on CRM. While all of the these initiatives may
have merit,failure, to address the total business transformation
requirements can lead to very short-lived success.
THE CRM BUSINESS CYCLEa) Understand and Differentiate
ADDMARC Group's customer need to see that the company is
differentiating serviceand communications based both on what
they've leaned independently and on whatthecustomer has told them.
At the same time, differentiation should be based on the valuecustomers
are expected to deliver.
b ) D e v e l o p & C u s t o m i z e
In the product-oriented world of yesterday, companies developed
products andservices and expected customers to buy them. In a
customer-focused world, producta nd c ha nne l de v e l opme nt
ha s t o f ol l ow t he c us t ome r ' s l e a d. Or g a ni z a t i ons a r e
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i ncreasi ngl y devel opi ng product s and servi ces, and even new
channel s based oncustomer needs and service.ADDMARC believes that
the extent of customization should be based on the potential value
delivered by the customer segment.
c ) I n t e r a c t & D e l i v e r
ADDMARC is strongly of the opinion that value is not just based on
the price of the product or the discounts offered. In fact, customer
perceptions of value are basedon a number of factors including the
quality of products and services, convenience, speed, ease of use,
responsiveness and service excellence.
d ) A c q u i r e & R e t a i n
Successful customer retention basically involves getting it "right" on an
ongoing basis. And that is exactly what ADDMARC aims to achieve out of
its CRM initiatives.Successf ul customer retenti on i s based very
si mpl y on the organi zat i on' s abi l i ty t oconstantly deliver on three
principles :

Maintain interaction; never stop listening.

Continue to deliver on the customer's definition of value.
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Remember that customers change as they move through differing life
stages; bealert for the changes and be prepared to modify the service and
value propositionas they change. And so the cycl e cont i nues. . . . As a
cycl e, the stages are i nterdependent andcontinuous. As one moves
from one stage to the next ADDMARC hopes to gainsinsight and
understanding that enhance the subsequent efforts.
CUSTOMER BASE :
It is not possible to have a relationship with someone you cannot
identify
, so i t is absolutely critical to 'know'
your customers
.This database is a repository for the information needed to have a mutually
rewardingrelationship with customers. For purposes of building such a
relationship, it includesthese 3 categories of information.

Basic information such as customer name and address

Relevant information about that individual such as age and income level,
family status and buying intention. This is dynamic and subject to
change.Data captured whenever the customer makes a transaction.Every
customer purchase presents you with an invaluable opportunity to enhance
your understanding of how your customers like to do business.
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Customer Media
The st rongest cust omer Medi a these 3 el ements are the
heart and soul of deep &lasting customer bond.To create a
relationship means one has to :

Know the customers likes and dislikes his psyche (
database
)

Keep up a continuous learning process about the customer (
dialogue
)

Have some way of communicating directly with them (
direct media
)
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WHAT IS THE RESULT?
A s uc c e s s f ul " l oy a l t y Pr og r a mme " ! Suc c e s s of a ny
c us t ome r r e l a t i ons hi ppr og r a mme de pe nds on t he
s uppor t of a da t a ba s e , us e of di r e c t me di a , s uc h
a s customized direct mail, newsletters, monthly statements and a
solid reward systemthat builds continuously. We could define this as
making each purchase a customerma ke s , i nc r e a s e t he v a l ue of
t he ne x t pur c ha s e t o t ha t c us t ome r . I n r e t ur n
t he c o mp a n y p r o f i t s b y i n c r e a s e d s a l e s t o s u c h
c u s t o me r s wh o a l s o a c t a s b r a n d ambassadors.
ADDMARC Experience
i . CRM i s not a technol ogy i ni t i at i ve. Technol ogy i s needed i n
order to i mpl ement CRM part i cul arl y t he customi zat i on
part but technol ogy i s not the dri ver of CRM, or the solution to
successful CRM implementation.i i . CRM i s not excl usi vel y a
marketi ng i ni ti at i ve. It resul ts i n more ef f ect i ve, data driven
marketing efforts.
iii.
CRM is not exclusively a sales initiative. It is just one functional
area that can benefit from CRM.
iv.
CRM is not exclusively a service initiative. It is again a functional area only
.
Thus it is essentially an
enterprise wide initiative
.
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The Broad View (Readiness of the Company)
Before embarking on a CRM program, it is imperative to search your (here,
refersto the company) souls. An exercise needs to be administered to a
number of people atdifferent levels and in different areas of your company.
Also a representative group of customers may be involved as there is
enormous value in hearing what your customerssay about your
readiness.Subjective answers should be sought for the following
questions:Q. 1How wel l can your company i dent i f y i ts end user
customers?Q. 2Ca n y our c ompa ny di f f e r e nt i a t e i t s
c us t ome r s ba s e d on t he i r v a l ue t o y ou a nd their needs from
you?Q. 3How wel l do you i nteract wi t h your
customers?Q. 4How wel l does your company customi ze i ts
products and servi ces based on what it knows about its
customers?Answers to the questions will provide your locus stand vis--vis
your intention andpreparedness of a CRM program.It i s al so ext remel y
essent i al t o understand the vari ous gaps t hat need to
beplugged. So the next logical step is:
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The One-to-One Gap Tool:
This exercise to be administered to employees at various levels and
functions, isdesigned to capture a robust analysis of your company.
It should also be given to arepresentative group of customers, with the
language tailored opportunity, in order toexpose the gap between internal
and external perceptions:
A ) P r o c e s s

Does the company have established quality assurance processes?

Are the company's business process customer centric?
B ) T e c h n o l o g y

Does the company take customers' needs into consideration when
selecting andimplementing technology?

Does the company provide its employees with technology that
enables them tohelp customers?
C)
Knowledge Strategy:

Does the company maintain a strategy for collecting and using information
aboutcustomers?
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How effectively does the company combine information on
customers with itsexperiences to generate knowledge about its
customers?
D ) P a r t n e r s h i p s

How does the company select its partners?

Doe s t he c ompa ny unde r s t a nd t he r e l a t i ons hi ps a mong
i t s c us t ome r s a nd partners?
E ) C u s t o m e r R e l a t i o n s h i p s

How effectively does the company differentiate its customers?

Wh a t s t e p s h a s t h e c o mp a n y t a k e n t o i mp r o v e t h e
t o t a l e x p e r i e n c e o f i t s customers?

How effectively does the company measure and react to customers'
expectations?

How e f f e c t i v e l y doe s t he c ompa ny unde r s t a nd a nd
a nt i c i pa t e c us t ome r ' s behaviour?
F) Employee Management

To what degree are empl oyees empowered t o make deci si ons
i n f avour of t hecustomer?

Has the company formally linked employees' rewards with
customer centric behaviour?
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F ) C o m p e t i t i v e S t r a t e g y

T o wh a t e x t e n t d o e s t h e c o mp a n y u n d e r s t a n d h o w
c u s t o me r s e f f e c t t h e organisation?

How much 'influence do customers' needs have on the company's
products andservices?

How effectively does the company build individualized marketing
programs?

How a wa r e i s t he c ompa ny of ot he r or g a ni z a t i ons
a ppr oa c he s t o bui l di ng relationships?After a thorough analysis and
understanding the organization's internal dynamics, we can come to the
stage when the implementation of a CRM solution has to be carriedout.
Integrated Customer Relationship Management:
The f ramework of t he ICRM pract i ce def i nes Compet i ti ve
Customer Rel at i onshi p based on customers needs under market
competitions.The chart also demonstrates its integrated process of
marketing strategy analysis: its t a r t s f r om ma r ke t pl a c e t o
unde r s t a nd t he Compe t i t i v e Cus t ome r
Re l a t i ons hi p structure and maps such relationship structure into
a companys database (the Zoom
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In process). It then develops marketing strategies to enhance a companys
CompetitiveCustomer Relationship based on the data analysis from
the database (the Zoom Outprocess).
Fig: Integrated Customer Relationship ManagementICRM i s about
i ntegrat i on: the i ntegrati on of data, t he i ntegrat i on of
marketi ngfunctions and the integration of database and
marketplace. Through the integratedprocess, ICRM overcomes the
serious limitations in the current CRM practice.1)Identify Competitive
Customer Relationship

what is competitive customer relationship

What drives competitive customer relationship2) Measure Competitive
Customer Relationship

how to measure Competitive Customer Relationship
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3) Improve Competitive Customer Relationship

-with which customers to build Relationship

-how to Improve Competitive Customer Relationshiphow to develop
effective customer relationship management strategiesI C R M i s t h e
f i r s t t h e o r e t i c a l f r a me wo r k f o r e f f e c t i v e c u s t o me r
r e l a t i o n s h i p management. It provides practical answers to the six
critical questions about customerr e l a t i o n s h i p ma n a g e me n t . I t
a l s o p r o v i d e s a s t a n d a r d ma r k e t i n g p r o c e s s
f o r companies to manage their customer relationship effectively.
ICRM is designed tomanage Competitive Customer Relationship.Below is
a table comparison about how ICRM handles the six critical questions
aboutcustomer relationship management differently from the current CRM
practice.
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Comparisons between ICRM and CRM
PROPOSED MODEL FOR CRM
The Model has 4 steps which may be followed by the company to introduce
CRM.These steps are to be implemented in strict order.
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Step 1 : Identifying Your Customers
The activities involved are :

Collect and enter more customer names into the existing database.

Collect additional information about your customers. Verify and update
customer data and delete outdated
S t e p 2 : Di f f e r e nt i a t i n g y o u r C u s t o me r s
Activity involved are :

Identify your organisation's top customers.

Determine which customers cost your organisation money.

Find higher value customers who have complained about your product or
servicemore than once in the last year.

Look for last year's large customers who have ordered half as much
or less this year.

Find customers who buy only one or two products from your
company but a lotfrom other business.
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Rank customers into A, B and C categories, roughly based on their
value to thecompany.
Step 3 : Interacting with Your Customer
Activities involved are :

Call your own company and ask questions; see how hard it is to get through
andget answers.

Call your competitions to compare their customer service with yours.

Initiate more dialogue with valuable customers

Improve complaint handling

Use technology to make doing business with the company easier.
Step 4 : Customizing Your Enterprise's Behaviour
Activities involved are :

Customized paperwork to save your customers time and your company
money.

Personalize your direct mail

Fill out forms for your customers

Ask customers how, and how often, they want to hear from you.

Find out what your customers want
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Ask your top ten customers what you can do differently to improve your
productor service

Involve top management in customer relations.If all these activities are
carried out with perfection, it may be assumed that thecompany shall have
an effective and robust CRM program.

CONCLUSIONS:
T h e d o ma i n o f C R M e x t e n d s i n t o ma n y a r e a s o f
ma r k e t i n g a n d s t r a t e g i c deci si ons. Its recent promi nence
i s f aci l i tated by t he convergence of several ot her paradigms of
marketing and by corporate initiatives that are developed around
thet heme of cooperat i on and col l aborati on of organi zat i on
uni ts and i ts stockhol ders , including customers. CRM refers to a
conceptually broad phenomenon of businessactivity; if the
phenomenon of cooperation and collaboration with customers
becomethe dominant paradigm of marketing practice and research,
CRM has the potential toe m e r g e a s t h e p r e d o m i n a n t
p e r s p e c t i v e o f m a r k e t i n g . F r o m a
c o r p o r a t e implementation point of view, CRM should not be
misunderstood to simply mean as of t wa r e s ol ut i ons
i mpl e me nt a t i on pr oj e c t . Bui l di ng c us t ome r r e l a t i ons hi p
i s a fundamental business of every enterprise and it requires a holistic
strategy and processto make it successful.
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RECOMMENDATIONS:
Based on the thorough analysis of the findings in the conclusion
section, we are in aposition to propose the recommendations. The
recommendations are in a form of a
list of activities
a nd a s e r i e s of
exercise
designed for executives, managers, andempl oyees at al l l evel s i n
t he company, as wel l as f or the customers and
channel partners. Reviewing the list and working through the exercises
will help the company to determine what type of program it can implement
immediately, what it needs to doto posi t i on i t f or a l arge-scal e
i ni ti at i ve, and how i t shoul d pri ori t i se the pl ans andactivities.
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