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Customer Relationship Management
Customer Relationship Management
MANAGEMENT
CUSTOMER
Customer is always right
The customer comes first
Customer=Valued assets
It costs 6X more to sell to a new
customer
then to sell to an existing
One dissatisfied customer will tell 810
others
Increasing 5% customer retention,
profit will
increase by 85%
50 % chance to sell to existing
customer,
while one 15% chance to sell new
customer
If complaints are handled properly,
CUSTOMER LOYALTY
WHAT IS CRM
Customer
Management
CUSTOMER RELATIONSHIP
MANAGEMENT
1. CRM integrates several functions and also brings together
processes, technology and people.
2. CRM is good understanding of the customers
3. An approach which effectively MANAGES THE CUSTOMER
RELATIONSHIPS.
4. An integrated and automated processes of SALES,MARKETING
and SERVICE STRATEGY.
3. IT DEFINITION
METHODOLOGIES, SOFTWARE AND USUALLY INTERNET
CAPABILITIES that help an organization to manage customer
relation in an organized manner.
CRM provide family of modules or tools that enables the
business and its employee to deliver fast, convenient,
dependable and consisting services to the customer.
Leading vendors of CRM: Siebel system, Oracle, people
EXPLANATION OF CRM
Key Point to Succeed
Create a Database
Analysis
Customer Selection
Customer Targeting
Relationship Marketing
Privacy Issues
Metrics
CRM Framework
CRM - PHASES
Customer
Life
Cycle
Acquire
Direct
Marketing
CRM Functional
Solution
Enhance
Customer
Support
CRM
Integrated Solution
Partner
Sales Force
Automation
Proactive
service
Cross/Up-Sell
Shared
Customer
data
Retain
Collaborative
service
Company
Customer
Co
nt
ac
t
&
Ac
co
Mg un
nt t
.
Sales:
Cross-Sell
Up-Sell
Email
PR0SPECT
Fax
OF
CUSTOMER
Telephon
e
Retention
& Loyalty
program
Marketing
&
Fulfillmen
ts
We
b
er
m
sto ce &
u
C rvi rt
Se ppo
su
CRM SALES
CROSS-SELLING
Customer of one product or service might also be
interested in purchasing the related product or services.
Ex: Insurance
UP-SELLING
Selling a new or existing customer a better product then
they are currently being using or seeking by proving
product information, configuration.
SOCIAL- CRM
Uses social media services, technique and technology to engage
the customer.
Empowers all employees to optimize the power of social
interactions to get closer to the customer.
Use of social networking site, Facebook, Twitter,
FUNCTIONS OF CRM
OPERATIONAL - CRM
Goal of Operational CRM is to provide electronic support for
the "front office" business processes, which include all
customer contact (eg. sales, marketing and service).
Aims to deliver customer-centric business processes and
operations.
Enables a 360-degree view of each customer
Delivers personalised and efficient marketing, sales, and
service
OPERATIONAL - CRM
ERP
Oder mgmt
OPERATIONAL CRM
CSS
BACK OFFICE
SCM
Order
promo
Service
automation
Marketing
automation
Mobile
sales
Sales Force
automation
Field
service
FRONT OFFICE
MOBILE OFFICE
COMPONENTS OF
OPERATIONAL - CRM
Marketing
Automation
Sales force
Automation
OPERATIONAL - CRM
Enterprise
marketing
automation
(EMA)
Customer
service and
support
(CSS)
ANALYTICAL - CRM
ANALYTICAL - CRM
To develop insight into customers needs.
To determine what other products and services
you can sell to your customers in order to
increase the Average Revenue Per User
(customer) ARPU.
Profitability analysis
Personalisation
Analysis of customer behavior
Prediction of the probability of customer
defection (churn analysis)
ANALYTICAL - CRM
DATA
WAREHOUSIN
G
CUSTOMER
DATA MGMT
Application
CUSTOMER
DATAMART
PRODUCT
DATA MART
Marketing campaign
ANALYTICAL - CRM
DATA
WAREHOUSIN
G
DATA
MINING
COLLABORATIVE - CRM
Collaborative CRM's
ultimate goal is to use
information collected from
all departments to improve
the quality of customer
service
This requires a clear
contact management
strategy which enables
everyone in an
organisation to see who is
talking to who.
COLLABORATIVE - CRM
C
U
S
T
I
T
R
E
C
T
I
O
N
VOICE
WEB STORE
FRONT
CONFERENCING
WEBINAR
DIRECT
INTERACTION
BUSINESS PROCESS
WITH CUSTOMER FOCUS
CRM STRATEGIES
CUSTOMER ACQUISITION :
Build the relationship with
customer profiling, search,
buying pattern, comm.
CUSTOMER RETENTION :
1:1 comm., updating, analysis,
improving customer satisfaction
LOYALTY : Re-buy, Re-patronize.
Increase, search, capture.
EVANGELISM : Holistic approach
to retain the customer. Brand
promoters &
Sales promoters.
COST REDUCTION : lower
inventory, speedier delivery,
marketing cost reduction.
CAN A ORGANIZATION
E-CRM
1. The objective of CRM and E-CRM are same
2. E-CRM, Managing customer relationships
electronically, primarily through the internet, by
organization is popularly known as E-CRM.
3. E-CRM uses electronic medium like internet, wireless
application protocol (WAP).
4. Factors to use E-CRM: high cost of acquiring new customer,
Cut-throat competition
globalization
time saving of the customer
personalized online relationships with
customer
high customer churn rate given birth
to E-CRM
4. Ways to personalize online relation with customer: E-Mail
Help
desk software
5. Opportunities to learn about their customer and offer them
highest level of services.