Presented by Harish K. Lakshmaiah Shetty P. Mishaal Hamza

PRESENTED BY
Harish K.
Lakshmaiah
Shetty P.
Mishaal Hamza
What is CRM?
 Customer Relationship Management is a comprehensive
strategy and process of acquiring, retaining and
partnering with selective customers to create superior
value for the company and the customer.
 CRM is a management approach a model that puts a customer
at the core of a company processes and practices.
 CRM leverages cutting edge technology integrated strategic
planning up-close and personal marketing techniques and
Organization development tools to build internal external
relationships that increase profit margins and productivity
within a company.
CRM Definition
 CRM is a cross functional process for achieving:
 A continuing dialogue with customers
 Across all their contact and access points, with
 Personalized treatment for the most valuable customers
 To increase customer retention and the effectiveness of
marketing initiatives
CRM Components
 CRM’s can be broken down into three key components.
Front Office
Interaction Operations
With (sales,
Operational
Customers marketing,
(email, letters, service etc)
phone,
meetings, fax
etc)
Enhance
Collaborative Analytical Company
Relationship
with Customer
Evolution Of CRM
The Customer Relationship
 Target
 Find
Attract Engage
 Understand
 Attract
 Qualify
 Close
 Learn from
Develop
 Develop
Need For CRM
 To meet the changing expectations of customer due to:
(a) social and demographic factors.
(b) economic situations.
(c) educational standards.
(d) competitors product
(e) experience.
 Loyal customers are the source of most profits

 A relatively small percentage of customers may generate most of the profits.
 Marketing cost and efforts are less for existing customers.
 Dissatisfied customers tell others about their experiences.
 So do satisfied customers.
 Slowing the rate of defection grows the customer base.
 Reducing costs (e.g. through self-service).

Customer Life Cycle Management
Customer Need Assessment and
Acquisition
Customer
Customer
development
Retention and
Through
Referrals for new
Personalization and
Customers
Customization
Customer Equity
Leverage through
Cross Selling and
Up Selling
CRM Process Framework
Formation Management & Governance
Performance
Purpose Team Structure
-increases effectiveness
-improve efficiency Role Specification
Planning Process
Programs Relationship Performance
-Account Mgmt Process Alignment -Strategic
-Retention Mktg. -Financial
-Co-op Agreement Monitoring Process -Marketing
-Strategic Partnership • Retention
Communication • Satisfaction
• loyalty
Employee Motivation
Partners
Employee Training
-Criteria
-Process Evolution
-Enhancement
-Improvement
Service Quality Model
Word - of- Mouth Past
Personal Needs Experience
Communications
Expected Service
Customer
Perceived Service
External
Service Service Delivery Communications
Provider to Customers
Service quality specifications
Management perceptions of
Customer Expectations
Service Quality Gaps
Gap 1 : Not knowing what customers expect

Gap 2 : Not selecting the right service design standards
Gap 3 : Not delivering to Service Standards
Gap 4 : Not matching Performance to Promises
Gap 5 : Perceived Service and Expected Service
Gap Analysis Grid
SATISFACTION
I Low High
M High Attributes that
need attention - Current
P area where company
O priorities should strength
be focused
R
T
A Low Unnecessary
N Low Priority strengths -
C possible over
skill
E
The Key Stages of CRM
Stage State Culture
Satisfaction Based Re-active Meet customer needs
Respond to complaints
Minimal evaluation of
customer service levels
Performance Based Pro-Active Evaluate customer perception
Identify customer retention
factors
Commitment Very Pro- Evaluate multiple customer

needs
Based Active
Continuous inbound/outbound
flow and feedback
Continuous improvement
Electronic Customer Relationship
Management
Latest paradigm in the world of CRM

NEED OF e-CRM
 Due to the introduction of new technology
 To satisfy the customers at global level.

(Sometimes customer itself prefer to do online
purchasing.)
 Basically e-CRM is concerned with attracting & keeping

economically valuable customers & eliminating less
profitable ones.
Difference Between CRM And e-CRM
CRITERION CRM e-CRM
Customer Contacts Traditional Means-Retail Through Internet, E- Mail,
Store, Telephone Or Fax Wireless, Mobile And PDA
Technologies
System Interface Works With Backend Designed For Frontend As

Application Through ERP Well As backend
System Applications Through ERP,
Data Mart And Data
Warehouse
System IT Requires PC Clients To Here, Browser Is The

Download Various Applets Customers Portal To e-CRM
And Applications.
Contd..
CRITERION CRM eCRM
Customization and Different People Require Personalized Views Based
Personalization Different Information But On Purchase Are Possible.
Personalized Views For
Different Audience Are Not
Possible Here
System Focus System Is Designed Around System Is Designed Around

Product And Job Functions. The Customers Need.
Here, Applications Are Enterprise Wide Portals Are
designed Around One Designed And Not Limited
Department Or Business To A Single Department.
Unit.
Systems Maintenance And Implementation Is Longer System Implementation
Modifications And Costly. Require Less Time And Cost.
Process of e-CRM
Benefits Of e-CRM
 Convenience
 Improvement in overall quality of customer experience
 Increased profitability
 More effective marketing.
 Improved customer service and support.

.
 Greater efficiency and cost reduction.
 Increased customer loyalty. (time frame)

Pitfalls
• Huge money is required to implement ECRM.
• Highly knowledge requiring process.
• Results are not according to expectations.
• Sales and Marketing are reluctant to adopt new automated

CRM system.
e-CRM Implementation Steps
Categorizing Customers
*You have no choice but to handle *Cultivate relationship.
them very carefully. Spend energy
H Will consume energy. Go out of your way
i #Think of innovate ways of getting # Think of strategies to move
g them on your side, but the cost of them away from competition
acquisition must be controlled Will consume disproportionately
h high energy
* Focus on short term profitability * Very cautious decision needed
Spend minimum energy to meet Re-examine business plan &
your objectives strategy. Evaluate that your loss
# Don’t pursue does not become nightmare for
Use opportunity as it comes you
L Short term acquisition should not # Needs in-depth strategic review
o affect as acquisition alone and
dissatisfaction later could be more
w Long term image harmful
Low High
Profitability Potential
* Existing Customer # Potential Customers

Economics Of Customer Retention
“Winning back a lost customer can cost up to 50-100 times as much as keeping a
current one satisfied.”
Rob Yanker, Partner, McKinsey & Company
Understanding your customer is key to retention…..

Determinants Of Customer Added Value
Image Value
Total
Product Value
customer
Services Value
value
Customer
Monetary Price delivered value
Time cost Total
Energy cost customer
Psychic cost cost

Myths of CRM
• CRM is Primarily about Technology
• Successful CRM projects are managed by IT
• “Executive buy-in is the key”
• “We need to roll this out across the enterprise
ASAP”
• “CRM systems are intuitive…. Users will only
need some initial hand holding.”
CRM: Not A Panacea
 Not feasible for every market and customers
 customers don’t want to be committed to every brand/relationship
 Not feasible for low-involvement, habitual purchasing in B2B or
B2C
 Some markets/customers may have low “personalization potential”.
 Shopping agents used by consumers undercut the idea of relp’s.
 The organizational capability to produce a

seamless/personalized experience is more difficult to master
than a transactional approach.
 Lower tier customers may become disaffected when they find out
service is differentiated.
References
 Websites:
- ephany.com
- google.com
- peoplesoft.com
- bwiwatch.com

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 Loyal customers are the source of most profits

 Slowing the rate of defection grows the customer base.

 Reducing costs (e.g. through self-service).

Gap 1 : Not knowing what customers expect

Commitment Very Pro- Evaluate multiple customer

Latest paradigm in the world of CRM

 To satisfy the customers at global level.

 Basically e-CRM is concerned with attracting & keeping

System Interface Works With Backend Designed For Frontend As

System IT Requires PC Clients To Here, Browser Is The

System Focus System Is Designed Around System Is Designed Around

 Improvement in overall quality of customer experience

 More effective marketing.

 Improved customer service and support.

 Increased customer loyalty. (time frame)

• Highly knowledge requiring process.

• Results are not according to expectations.

• Sales and Marketing are reluctant to adopt new automated

* Existing Customer # Potential Customers

Understanding your customer is key to retention…..

Energy cost customer

Psychic cost cost

 Shopping agents used by consumers undercut the idea of relp’s.

 The organizational capability to produce a

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