Customer Relationship Management

Introduction:
CRM refers to the methodologies and tools that help businesses manage customer relationships in an organized way. CRM uses IT to create a cross functional enterprise system that integrates and automates many of customer serving processes in sales, marketing and customer services that interact with the company.

Major Applications Of CRM

Contact & Account Management

Marketing Fulfillments

Sales

Customer Services & Support

Retention & Loyalty

Phases of CRM
Acquire Enhance Retain

Acquire By Offering New Products Complete Solution Of Customer Problems By Direct Marketing

Contd
Enhance By Providing Better Facilities Like Online Billing E-Shopping Online Customization Of Product Timely Response Of Customer Complains By Cross Selling & Up Selling

Contd
Retain By Identify the most loyal & profitable customers. By Facilitate them beyond their expectations .

CRM People
Customers

Users
Suppliers

Customer Requirements:

Control over buying process Best possible price All payment options Communication designed to suit needs

Applications

Information in the system can be accessed and entered by employees in different departments:
Sales
Marketing Customer Finance Training Product Human

Service

Development

Resource Development

Related Aspects
1. Front Office Operation
Direct interaction with customers

2. Back Office Operations

Operations that ultimately affect the activities of the front office

3. Business Relationships
Interaction with other companies and partners

4. Analysis
Key CRM data can be analyzed in order to plan

Key Elements of CRM

1. Validation: Correct data

Ensuring that the data you have on your customers is correct

2. Discovery: Use of data mining techniques

To find relationships that you did not know existed

Sometimes conventional analysis is impaired by your own natural assumptions and prejudices
Discovery techniques help to solve these issues by starting from ground zero

3. Action: Right communication

Your customers and prospects need to have the right messages communicated to them

Essentials of CRM

CRM is a corporate strategy composed of applications, technology and products that fulfill three essential requirements:

1. Organization Perspective 360 view of each customer 2. Customer Perspective Customers to have a consistent view 3. Front Office Staff Perspective Staff performance

Processes & Systems

Understand & Differentiate Develop & Customize

Interact & Deliver

Acquire & Retain

How CRM helps business?

1. 2. 3. 4. 5. 6. Personalized customer contacts Customer specific product catalog and catalog views Customer Specific prices and condition Customer Specific products and configuration Customer Specific products recommendations Customer specific user interfaces in e-selling solutions

How to ensure optimal benefits?

1. Create a customer focused business strategy 2. Have a CRM friendly organizational structure 3. Build a customer information environment

Practical Example:
Many grocery stores offer customer rewards cards to their customers. These cards allow the store to target specific customers Stores are laid-out according to their demographics Marketing materials are sent using the data gathered

Common Reasons for CRM Failure

1. Implementation Cost 2. Politician Friction 3. Initiatives Driven by Technology 4. Tendency to push work to the customer 5. No measurement for success or accountability 6. Poorly implemented

More Reasons for Failure:

Implementation was limited to the software installation Lack of communication between everyone in the customer relationship chain Technology being implemented without proper support Lack of training to the staff

Pizza example - Perspective

Pizza example
If you go regularly
Rapport with employees You forgive if they mess up with one or two expectations

Degree of confidence determines tolerance

If using first time, and even one expectation is not met

You will never go again