PowerPoint Presentation

Mahipal Singh RathoreMBA 3rd Sem.The customer is the most important person on our premises. He is not dependent on us we are dependent on him. He is not interruption to our work he is the purpose of it .He is not an outsider to our business he is a part of it. We are not doing favour by serving him. He is doing a favour by giving an opportunity to do so.

-Mahatma Gandhi

HISTORY OF CRMDawn of CRM- Emerged in 1980 and the earlier version was called Database Marketing.

Rise of CRM- 1990s saw great improvement in terms of CRM. Companies began to see benefits of offering perks to the customers.

Fully Developed CRM- Latest version used in todays organizations.

DEFINITION OF CRM

CRM is concerned with the creation, development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value

Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.

CRM is the development and maintenance of mutually beneficial long-term relationships with strategically significant customers

Changing Business Scenario - Need for CRM

Customer Relationship Management (CRM)Traditional MarketingCRMGoal: Expand customer base, increase market share by mass marketingGoal: Establish a profitable, long-term, one-to-one relationship with customers; understanding their needs, preferences, expectationsProduct oriented viewCustomer oriented viewMass marketing / mass productionMass customization, one-to-one marketingStandardization of customer needsCustomer-supplier relationshipTransactional relationshipRelational approach OBJECTIVES OF CRMINCREASE IN CUSTOMER SERVICE

INCREASE EFFICIENCY

LOWERING MARKETING COST

AIDING THE DEPARTMENTThe purpose of CRM :The focus of CRM is on creating value for the customer and the company over the longer term.When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs . CRM enables organisations to gain competitive advantage over competitors that supply similar products or services .

Why is CRM important?Todays businesses compete with multi-product offerings created and delivered by networks, alliances and partnerships of many kinds. Both retaining customers and building relationships with other value-adding allies is critical to corporate performance. The adoption of C.R.M. is being fuelled by a recognition that long-term relationships with customers are one of the most important assets of an organisation.

Why did CRM develop ? CRM developed for a number of reasons:The 1980s onwards saw rapid shifts in business that changed customer power .Supply exceeded demands for most products. Sellers had little pricing power .The only protection available to suppliers of goods and services was in their relationships with customers .

What does CRM involve ?CRM involves the following:Organisations must become customer focusedOrganisations must be prepared to adapt so that it take customer needs into account and delivers themMarket research must be undertaken to assess customer needs and satisfaction

TYPES OF CRMTypes of CRM are:Analytical CRMCollaborative CRMOperational CRMGeographic CRMSales Intelligence CRM

ANALYTICAL CRM:- Analytical CRM is designed to analyze deeply the customers information and data and unwrap or disclose the essential convention and intension of behaviour of customers on which capitalization can be done by the organization.COLLABORATIVE CRM:- Collaborative CRM deals with synchronization and integration of customer interaction and channels of communications like phone, email, fax, web etc. with the intent of referencing the customers a consistent and systematic way.

OPERATIONAL CRM:- Operational CRM is mainly focused on automation, improvement and enhancement of business processes which are based on customer-facing or customer supporting.

GEOGRAPHICAL CRM:- Geographic CRM (GCRM) combines geographic information system and traditional CRM. Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer visits.

SALES INTELLIGENCE CRM:-Top-performing sales organizations are meeting the challenges of identifying the most likely buyers of their products and services through the deployment of sales intelligence solutions that introduce a wide variety of data streams to their front-line staff. By empowering their sellers with better information about their prospect companies, markets and individuals, these firms are able to maximize their chances of hitting quota, and at the same time create efficiencies within the sales operations environmentImplementing CRM:When introducing or developing CRM, a strategic review of the organisations current position should be undertaken Organisations need to address four issues :What is our core business and how will it evolve in the future?What form of CRM is appropriate for our business now and in the future?What IT infrastructure do we have and what do we need to support the future organisation needs?What vendors and partners do we need to choose?

Process to implement CRM :

BENEFITS OF CRMReduced costs, because the right things are being done (ie., effective and efficient operation) Increased customer satisfaction, because they are getting exactly what they want (ie. meeting and exceeding expectations) Ensuring that the focus of the organisation is external Growth in numbers of customers .Maximisation of opportunities (eg. increased services, referrals, etc.) Increased access to a source of market and competitor information Highlighting poor operational processes Long term profitability and sustainability

FUTURE OF CRM RETENTION RATE

INCREASED SALES

REDUCED COSTS

SIGNIFICANT ROLE

TECHNOLOGY

CUSTOMER INFORMATION

INTERACTIVE

CUSTOMER INDIVIDUALITY

GLOBALISATION

Foreign Companies Adopting CRM

& Many More.

Example -Amazon.comElectronic commerce companyAmazon.com, Inc. is an American electronic commerce company with headquarters in Seattle, Washington. It is the largest Internet-based company in the United States. CEO:Jeff BezosFounder:Jeff BezosFounded:July 5, 1994,Bellevue, Washington, United StatesHeadquarters:Seattle,WA,United States of AmericaThe online store, Amazon, uses cookies to provide a personalised service for its customers. Amazon requires customers to register with the service when they purchase items. When registered customers log in to Amazon at a later time, they are greeted with a welcome message which uses their name (for e.g. Hello John). In addition, their previous purchases are highlighted and a list of similar items that the customer may wish to purchase are also highlighted.

Indian Companies adopting CRM

& Many More.

ConclusionCompanies that are not improving their relationships with customers are gambling with the future of their businesses.

Focus on adding value to customers, not efficiency or control-oriented imitations.

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