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CUSTOMERRELATIONSHIP
MANAGEMENT
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Customer Relationship Management (CRM) is now an
essential part of the business strategy, as the development
of new technologies has increased tremendously the
possible benefits for large as well as small companies.Today, CRM is an important influence for any company
to:
Improve the service delivered to your customers
Improve both your customers' satisfaction and yourcustomer retention
Identify and recognize your best customers
Optimize the processes of your customer interactions,
and thus reduce costs
Capitalize on your customer knowledgeWin new customers
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CRM technology enables
information about the customer to be stored in
databases
businesses to analyze that data, pull out customer
preferences and make clear their behavior
easy access to that data across departments thatmay be widely geographically dispersed
easy access for customers in terms of online
transactions speedy personalized communications
that enable the customer to feel valued andspecial even though in reality they may be just
one of hundreds of thousands of customers
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The three parts to CRMtechnology, processes and people
In a sense, the technology part of CRMthe database - largely
equates to the information that was previously stored 'in the heads'of Managers of small businesses. But good customer relationships
are about far more than that.
Processes, or key steps, have to be put into place to make sure
that such data is used effectively. In fact it is the processes thathold the whole thing together.
And the people involved in any way with the customer have to be
aware of those processes and preferably believe in those processes
so that a seamless service can be delivered to the customer
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...a management strategy that enables
an organization to become customer-
focused and develop stronger
relationships with its customers. It
helps piece together information about
customers, sales, marketing
effectiveness, responsiveness and
market trends.
DEFINITION OF
CRM
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CRM :
The concept of CRM is premised on the
simple logic of business :it must keep tracking customers once
attracted; retain them in business portfolio
and profit from their growth.
CRM epitomizes the marriage ofrelationship marketing with the emerging
information technology.
Integration of people, process ,
technology and data
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CRM can be viewed in 4 principal ways :
Firstly it is a contemporary response to theemerging climate of unprecedented customer
churn, waning brand loyalty and lower
profitability.
Secondly, CRM is central to the task of makingan organization customer centric.
Thirdly, CRM is the surest symbol embracing IT
in business.
Fourthly , CRM is the most certain way to
increase value to the customers and profitability
to the practicing organizations.
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Effective CRM practices can mean the
difference between the success and failureof a business across all industries.
CRM is a way of differentiation between
customers to provide greater value to more
valuable customers. The meaning of more
valuable would be in terms of the monetary
spending received from the customer alongwith recency and frequency of visit.
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Definition :
CRM is the business strategy that
aims to understand, anticipate,manage and personalize the needs
of an organization's current and
potential customers"
Rather it is the IT face of business
processes that aims to establish
enduring and mutually beneficialrelationships with customers in
order to drive customer retention,
value and profitability up.
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Important features of CRM :It permits a one-toone marketing
as compared to mass marketing
It stresses commitment over flirtinIt helps disintermediation and
delayed distribution aspects.
It helps reducing marketing costsignificantly.
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Retail in India :
India 's largest industry, the retail sector isvalued at $200 billion accounting for over 10
per cent of the country's GDP and around
eight per cent of the country's employment.Modern retail has entered India as seen in
sprawling shopping centers, multi-storied
malls and huge complexes offer shopping,entertainment and food all under one roof.
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CRM in Retail :
Expectations of customer is increasing, he asks for
more and more value for the same price, andwhoever provides him increasing value for money,
he buys products from that marketer.
Every retailer today is aiming at an attempt to
make a casual customer into a loyal customer whodevelops a bond with the retail store he/she visits.
Customer relationship management as a
transactional exchange helps the marketer to
understand the customer's sentiments and buying
habits so that the customer can be provided withproducts and services before he starts demanding
them.
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A successful and effective
CRM program results in increase
of Customers Lifetime Value forthe store.
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The Pareto's Principle which talksabout generating 80% of sales
from 20% of the customers This
can only happen if the retailer hasthe 20% as its most profitable
customers and not just normal
customers
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The variety of activities together play an
important role in bringing repeat customers
and in turn generating positive word ofmouth to also increase new footfalls into
the store. Data Mining activities through
CRM also provides insights and knowledge
about the retailers most valuable customers
who result in maximum sales.
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Description: A Customer RelationshipManagement (CRM) system model embeds
modules like
:Business-to-Business (B2B) CRM,
:Marketing Automation, Sales Force
Automation, Customer Service and Support,
Partner Management, Contract Management
and Creation, Project and Team Management,Business-to-Consumer (B2C) CRM, Internet
Sales, E-Mail Response Management, B2C
Analytics and Business Intelligence,
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Other CRM-Related Application Areas, E-mail
marketing, Customer reference, Commission
management, Field service, Relationship capital
management, Survey software, Sales proposal
software, Product and price configuration, Web
conferencing, Mobile computing, Channel
management, Retail solutions, TechnicalFunctionality and Support, Business
Functionality, Technical Functionality, and
Ongoing CRM Solution Support
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Business-to-Business (B2B) CRM. The
Business-to-Business (B2B) CRM enables
organizations to manage the whole
customer/partner lifecycle and rapidly
establish a selling channel, whether merelyconventional or online through web-based
applications (E-Sales)It encompasses
modules from marketing automation toproject execution, and contract
management.
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Concept
CRM is abusiness philosophy based on upon individual
customers and customised products and servicessupported byopen lines of communication and feedback
from the participating firms thatmutually benefit both
buying and selling organisations.
The buying and selling firms enter into a learning
relationship, with the customer being willing to
collaborate with the seller and grow as a loyal customer.
In return,, the seller works tomaximize the value of the
relationship for the customers benefit.
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