KCRMBy

Ken BurnettChapter 1

BY

Kingkortabbyabemuro

KKB,KCRM,C#1

What's In?Why KCRM?How KCRM can Help?KCRM? Or No to KCRM?How KCRM affect sales?KCRM & HRMKCRM in 11 steps for Dummies

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Why KCRM is the BUZZ!!?Glut economyTechnological InnovationQuality Seeking CustomersShorter PLCDynamic Market place & Organization

CultureChanged Channel of Distribution

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Every Customer is a Market SegmentCustomization? Customerization?

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Companies Should Focus……..They can demonstrate distinctive competenceThey can create sustainable competitive

advantage

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A Market Segment must be…..MeasurableSubstantialAccessibleDifferentiableActionable

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To Ensure Success, A Company must …….Identify, analyze, & select right market

segment.Creating relevant product and services.Focusing sales activities on Key Customers

within the target segment.

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But beware of……..Poor Communication both internal & externalInadequate channels to collect feedbackTop-Down Planning Approach

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KCRM in Your CompanyWhat can it do for you?

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KCRM can……..Help to respond to a customer driven

environmentTo maximize the return on investmentIn any business, financial performance

depends on creating capturable customer value (CCV) as efficiently as possible.

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KCRM can……..(cont.)

Distribution of Added Value0

500

1000

1500

2000

2500$2280

$1824$1708

$116

CCVActual Value CapturedStakeholder's ShareShareholder's Share

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Customer Benefit Value = $10000

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KCRM Helps in KCRM helps an organization in addressing

operational problems, to help the management of older businesses, phasing out the weaker ones, or building a new SBU and it also helps to be the market leader through risk management, competition control and obviously by offering more value to the customers.

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KCRM…..Yes or No?

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KCRM is For you if……………KCRM is more relevant to the business where:

Few Customers dominating market demand. Significant economies of scale.

Ex: GP vs. TELETALK. Product service differentiation

Ex: Customized Software Decision making unit is complex.

Ex: Industrial Buying Competition is intense

KCRM might be Harmful if…………Market is highly fragmented with few dominant

customers. Ex: daily necessary goods.

Little product differentiation. Ex: Petrol

The product is not technically or financially significant.Ex: Daily Soap

Economies of scale is low.If the firm enjoy monopoly.

Ex: Central Bank.

Pitfalls of KCRMThe increased dependence on relatively few

customers. Ex: Cement industry.

Pressure on Profit Margins if Key Customers abuse this preferred

customer status. Dealing with more professional buyers.Prospective customers may be neglected in

this process.Ex: Jewelers.

Resources NeededWhat we need?

KCRM & ResourcesFor the Customer For the Supplier

Continuity and Stability of Supply Lower Production Cost

Lower Unit Cost Lower Unit Cost

Technical Developments Greater Business Stability

Better Market & Product Opportunity Identification

Plan Achievement of Goals

Well Defined line of Communication Product Development

Joint Research Funding Image Enhancement

How does KCRM affect the sales functionProspectingProductOrganizationProfileStyle

ResponsibilityAuthorityCultureCompetitionTargets

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KCRM & HRMaking HR Ready to Face KCRM

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Skill Requirements of the KEY Customer ManagerUnderstanding How it worksAbility to counsel, advice and influenceAbility to identify key result areasAbility to plan & allocate resourceAbility to negotiateAbility to lead a multidisciplinary team

Customer manager’s contribution to the CompanyMarketing intelligenceCustomer knowledgeCreative ideasAppreciations

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KCRM for DummiesHow to apply KCRM

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Implement KCRMUnderstand Corporate ObjectivesGenerate PlansPrioritizeAgree Upon PlansOrganize resources neededGet commitments from Top MgtDevelop detailed PlansSet up a profitability measurement systemIntroduce KC infosysIntroduce KC satisfaction measurement SysFind mutual stability & GAIN!!!

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At a Glance…………..KCRM Helps But Not Everywhere, Every case

and Every TimeIt is needed to be implemented to achieve

profitabilityThe Company must have some HR

capabilitiesIt also needs to follow some steps.

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The End

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