Customer Relationship Management

• CRM aims at establishing, maintaining, enhancing and retaining valued customers by developing a long-term relationship and providing a real-time customer centric relationship and customer service

Perspective of CRM

• Objective of CRM is to improve customer loyalty and company's profitability

• Application of CRM is to utilize Information and Communication Technologies (ICT) in both traditional and electronic environments

Sustaining Customer Relationship

• Pursuing continuity and growth with customer firms

• Building trust and commitment• Long-term collaborative relationship• Fulfilling mutually agreed upon

requirements• Promote honest and open

communication

CRM Applications

• Sales-force Automation and Sales Management

• Customer Service and Support• Marketing Function

CRM Development

• First Stage:– Improve sales management and

customer service

• Second Stage:– Integrate marketing activities

– Increase customer retention

– Reduce cost

• Third Stage

– Integrate entire organization

– Improve profitability

CRM and CLV

• CLV is the summation of profit contributions over time periods– Discounted– Adjusted for varying market costs

Benefits of CRM

• Unified Customer Database• Retaining customers• Acquiring customers

– Based on their value-add requirements

Methods Used to Influence Business Customers

• Sales Presentations• Negotiations

– Distributive– Integrative

Few CRM Applications

• Mysap CRM• Onyx V 6.0• PeopleSoft• Pivotal• Siebel• TibcoProcess RM

Beyond CRM

• Dealing with Customer's Customer