Meaning & Definition of Customer Relationship Management (CRM)
Meaning & Definition of Customer Relationship Management (CRM)
G COLLEGE
HANAMKONDA
(AUTONOMOUS)
Definition of CRM
According to Paul, Green berg CRM is a philosophy and a business strategy supported by system
and a technology designed to improve interactions business environment.
Better service to customers: CRM provides more avenues for customers to communicate
and explain their needs to the organization through numerous contact points customers
spread increased satisfaction and feeling of being special & important because of the
increased personalization of services and customization of goods offer to them.
Eg: ICICI bank maintains a list of priority customers and provides them with additional facilities
& special offers.
1. Customer needs
2. Customer response
3. Customer satisfaction
4. Customer loyalty
5. Customer retention
6. Customer complaints
7. Customer service
Customer needs: An organization can never assume what activity a customer needs. Hence it
is extremely important to interview a customer about all the likes and dislikes so that the actual
needs can be ascertained and prioritized.
Customer response: Customer response is a reaction by the organization to the queries and
activities of the customer. Dealing with the queries intelligently is very important as small
misunderstanding could convey unlike perceptions.
Customer satisfaction: customer satisfaction is the measure of now the needs & responses are
collaborated and delivered to excel customer’s exceptions.
Customer loyalty: customer loyalty is the tendency of the customers to remain in business with
a particular supplier and buy the products regularly.
Customer retention: customer retention is strategic process to keep are retain the existing
customers and not letting them to diverge or defect to other suppliers or organization for
business.
Customer complaints: always there exist a challenge for suppliers to deal with complaints
raised by customers normally raising a complaint indicates the act of dis-satisfaction of the
customers. There can be several reasons for a customer to launch complaints.
Customer service: Customer service is the process of delivering information and services all the
products and brands customer satisfaction defends on quality of services provided to him by the
supplier.
Objectives of CRM
The main areas of focus are as name suggests customer relationship and management of
relationship and the main objectives to implement “CRM “in the business strategy they are:
Role of CRM
The various role of CRM are
Role of CRM in banking sector: CRM plays a vital role to the banking industry. Many
banks have used CRM tools to acquire more customers and to improve relation with them.
Role of CRM in telecom industry : information technology and tele -communication are
constantly evolving industries in terms of technologies, growth global reach and
understandably facing high level threat of obsolesce.
Role of CRM in retail industry: Retail is India’s largest industry as per 10% of the
countries “GDP “and around 8% of the employment. Technological improvement is
responsible for majority of innovation in retail sector over past few years.
Nature of CRM:
1. Save time
2. Look professional
3. Save money
4. Convenient
5. Secure
6. Faster lead generation simplified goal setting.
Save time: CRM automates a lot of usually time during taxes, giving sales people more to do
what they are actually paid to do namely sale to prospects.
Look professional: which do you look better to prospects a sale person who keeps all they
information in a computer data base.
Save money: The more impressively CRM can cost a lot of money. But if you don’t need quiet
that much technology working for you, its easy to find less expensive or even free alternative.
Convenient: in whole sales team is using the same.CRM that it is easy to share that
information as needed. Most CRMs allow or frequently used mails the team can share templates.
Secure: what happens nightly dealing crew accidently throughout sum post it archives? With a
CRM information is usually stored either in central data base or in the CRM providers system.
Simplified goal setting: By pulling all the data together into one place “CRM “make it easy to
track performance both within & cross team. CRM can also bring all this information together
into reports that help with forecasting.
Factors of CRM
The factors of CRM are
Top management commitment and support : Top management involvement in the CRM
implementation plans as been identified in almost all success factors studies as a crucial factor
that ensure successful implementation of CRM.
CRM strategy: It is is alignment of the strategy to the company’s strategy good facilitating the
transformation changing work structure and environment towards customer centric approach.
Culture change: organizations should develop a culture where all staff are encouraged to share
and learn from new work structure and information that is based on customer.
Skillful staff: Employees play a key role in the successes of CRM prospects. Issues of the
nature of learning new works system, training programs, change resistance , willing to share
information & motivating staff would be take into consideration.
Key information on customers: Acquiring and analyzing the right quantity and quality
information on customer helps to customer needs
Service Quality: Service quality is taken to me a global judgment or attitude relating tool an
assessment of level of superiority or excellence of services provided by the department and
support personnel.
Disadvantages:
1. System integration
2. Resentment
3. A learning curve
Process of CRM
Performance Price
Convenience Quality
Customer needs in
service
Reliability Ease of use
Comparability Efficiency
CRM strategies
CRM strategies or techniques used to manage and analyze customer interactions, data and
relationships to improve customer satisfaction. Loyalty and ultimately drive business growth.
Here are some effective strategies.
1. Personalization
2. Omini channel engagement
3. Data driven insights
4. Customer segmentation
5. Loyalty programs
6. Social CRM
7. Employee empowerment
8. Continuous feedback
9. Account based marketing
10. Integration with other system
Elements of CRM
CRM systems several key elements that help business, manage this interactions with customers
and clients there are some of the main elements of CRM.
1. Contact management
2. Sales force management
3. Market automation
4. Customer service and support
5. Analytics and reporting
6. Account management
7. Lead management
8. Opportunity management
9. Partnership management
10. Integration
Brainstorming is a powerful method that helps teams think outside of the box. It involves
individuals working together by communicating ideas for a number of initiatives. These
could include projects, processes, products, and services.
Good teamwork means your team communicates and feels comfortable sharing their
thoughts and ideas. Without teamwork, your brainstorming sessions could suffer, and, in
turn, so could your team’s quality and performance.
Brainstorming example: Kat needs to come up with three design ideas for a new landing
page. Instead of ideating by herself, she asks the team to join in on a brainstorming session.
Since there are many team members sharing ideas, Kat receives more than enough ideas to
get started.
Having a common goal in mind is essential when it comes to prioritizing projects and new
initiatives. With multiple team members working on individual tasks, a project goal helps
keep deliverables aligned and ensures objectives are met.
There are a number of ways you can communicate a goal in a way that both encourages
teamwork in the workplace and promotes collaboration. These include:
Business case: A business case is a document that details the value of a project or initiative.
This ensures each team member has the same starting point before diving into a project.
Team meeting: Meetings are a great way to get your team in one place to communicate
expectations and work together. Having an initial meeting—as well as a post mortem
meeting once the project is over—can help determine deliverables and ensure objectives
were met.
Timeline software: Timeline tools can help your team visualize the work you need to
complete and how you’ll hit your project goals. Clarifying task due dates
and dependencies unlocks teamwork and allows team members to thrive.
Goal-oriented example: Kat is leading a meeting on a new process that’s being put into
place. Kabir asks what the purpose of the process is. Kat explains that they’ll be adding a
new tool to their scheduling process to automate some of the team’s work, like tedious and
time consuming tasks. Now, the team understands the underlying goal.
Not only does this help create an efficient process for problem solving, but using teamwork
creates shared goals.
Example: Project manager Kat finds out there is an issue with image implementation that’s
postponing the project launch date. Instead of trying to solve it alone, she enlists her team in
a brainstorming session to come up with solutions. Because she asked her team for help, she
was able to co-create a solution in just an hour, as opposed to what could have taken days by
herself.
Example: Ray has a task that’s overdue. His manager, Kabir, offers to sit down with him
and offer support. Afterward, Ray feels relieved and has the confidence to complete the
task. Next time he has an issue, he knows he can reach out to Kabir for support.
Example: Kabir’s team has a huddle every Monday where they share what they did over the
weekend and any upcoming projects for the week. Since they get to talk about both personal
and work-related topics, the team enjoys their Monday meeting. In fact, communication and
overall culture have improved since the team began meeting on Mondays.
Know your customer: Letting customers know that you've made a mistake will not
damage your business, but not being straightforward will.
Be proactive: Once you're aware of common customer problems, you need to get ahead of them.
Instead of waiting for customers to come to you with questions...
Personalized customer experience: Customers don't like to receive generic responses to their
questions or issues. They want swift and accurate answers.
Deliver on your promises: Deliver what you promise and do it when you say you are going to
do it ·
Research your customer base. Delving into demographic information, psychographic traits,
and consumer behavior patterns helps businesses stay.
Be transparent. 57% of consumers say they will stop buying from a company if they feel their
trust has been broken. That is why you need to be upfront with ...
Align Expectations with Reality. Customer service strategy needs to align with actual
interactions between employees and customers.
A customer relationship management (CRM) system helps manage customer data. It supports
sales management, delivers actionable insights, integrates with social media, and facilitates team
communication. Cloud-based CRM systems offer complete mobility and access to an ecosystem.
1. Operational CRM
2. Collaborative CRM
3. Analytical CRM
Operational CRM
1. Marketing automation
Marketing automation, which streamlines the many marketing processes within multichannel
digital marketing campaigns. This can include email marketing, as well as live chats, website
monitoring, and lead management.
2. Sales automation
Sales automation, which, at its most basic, streamlines the many time-consuming, manual tasks
that occur during the sales process.
3. Customer service
Customer service software, which automates, which speeds up multiple customer service
processes, such as call center routing and information management, and provides various
customer self-service options, including chatbots, policy/compliance management and
automation tools, and knowledge bases.
Advantages of operational CRM
Improve marketing processes. Drill down precision focused data into your client. Learn more
about likely buyers, and then start campaigns to attract similar buyers. Using the consumer data
in your CRM, you can analyze purchasing trends and customer preferences to configure the best
marketing strategies possible.
Increase internal communication. It’s no surprise, departments that don’t connect usually don’t
function for the same purpose. When a company has access to the same data, it places all of them
on the same field and plays the same game. TTheperational CRM capability to collect, store, and
disseminate data makes it an excellent tool for interdepartmental communication and information
sharing.
Enhance up selling and cross-selling. Operational CRMs start collecting data from your
customers from the first touch point and retain those records through the customer’s lifecycle,
recording every transaction, contact, and problem. This prepares the sales team for the right
opportunities to up sell and cross-sell. Sales reps may use sales strategies customized for each
customer with purchasing experience available to them.
Increase in Revenue. For every $1 invested in them, operational CRMs are known to generate
more than $8 of value. You can’t go wrong with a CRM to your company at an 8:1 ROI. Scaling
up your sales team and giving them tools to better sell and close would undoubtedly increase
your business revenue.
They increased Customer Satisfaction. If you can’t help your clients, they won’t hang around
if you can’t give them excellent service. That’s why your CRM system is critical to have in
place. Customers tend to repeat themselves, so arming the employees with a centralized CRM
system would almost immediately boost customer service.
Collaborative CRM
Selling is a collaborative process. This does not mean that your marketing team and sales team
go on sales calls together, or even sit in the same office. But the marketing and sales data should
work together. A collaborative CRM integrates marketing automation, sales force
automation, CPQ, and ERP data so that everything works together to close deals, and gives each
team a clearer picture of customers’ needs and expectations.
There are two well-known types of collaborative CRM systems (CRMS).
1. Contact management
Contact management systems are used by sales teams to track contact and account/company
details and every customer/prospect interaction. Contact management systems are the foundation
of collaborative sales processes since they house your first-party customer data.
2. Channel management
Channel management systems can encompass sales, customer service, and marketing systems.
For example, digital marketing and account-based marketing (ABM) campaigns operate across
different channels to reach as many people as possible. Both can be integral parts of a cross-
channel marketing strategy that works to engage with people no matter where they are or how
they want to interact with you.
Improves customer service: Some consumers prefer email contact, others like social media,
over-the-phone, or face-to-face contact. It may be hard to keep track of who likes what. One of
the key benefits of collaborative CRM is that you can reach out automatically through the right,
most powerful communication channel.
Customer data available for multi-channel interactions : Your customers connect with you in
several ways, through different platforms. Collaborative CRM enables you to integrate data from
all your communication channels and link your call center activities to your other operations,
providing interactions that exceed any single department or team role.
Retain existing clients: Collaborative CRM lets you build a detailed profile of the consumer and
their expectations for best practice. You’ll be able to meet them via the platform they want,
armed with up-to-date information — a quite certain-fire way to drive customer engagement and
minimize churn.
Makes better work process: Getting customer interaction data in one location would make the
company smarter. Team members will be able to view individual case files in real-time. The
need for face-to-face meetings has gone down, and defects and redundancies are avoided; thus,
service costs are reduced.
Analytical CRM
Analytical CRM is a subset of CRM in which a company collects data about its customer
interactions, to increase customer satisfaction and customer retention rates. Analytical CRM
is a behind-the-scenes process; the client is not aware of the capture and analysis of their actions
and interactions with the company.
Customer engagement:
Customer engagement is defined as the ongoing interaction and connection between a
business or brand and its customers. It encompasses all the ways in which a company
interacts with its customer base to build and maintain relationships, foster loyalty, and
enhance the overall customer experience. Customer engagement is a crucial aspect of a
successful business strategy, as it can lead to increased customer satisfaction, retention, and
ultimately, business growth.
Feedback and Surveys: Companies often seek feedback from customers through
surveys and reviews. This information helps them understand customer satisfaction
levels, identify areas for improvement, and make data-driven decisions to enhance the
customer experience.
Content Marketing: Providing valuable and relevant content, such as blog posts,
videos, and articles, can keep customers engaged and informed about a company’s
products and industry trends.
B2B customer service: B2B customer service is all about ensuring the continuity of your
product or service operations by providing quick responses, prompt troubleshooting, and fast
resolutions whenever your customers face any challenges.
B2B customer service is the foundation of lasting business relationships that drive mutual
success. Exceptional customer service is a critical differentiator, particularly in larger and more
complex transactions. Below are some benefits of B2B customer service.
Fosters long-term relationships: Consistent, high-quality customer service builds trust and
loyalty, which are essential for long-term business partnerships.
Enhances brand reputation: Positive service experiences lead to word-of-mouth referrals,
strengthening your brand's reputation in the industry.
Drives customer retention: Exceptional service reduces the likelihood of churn, keeping
valuable customers engaged and satisfied over time.
Supports higher revenue potential: Satisfied B2B customers are more likely to make repeat
purchases and explore additional services or products.
Facilitates competitive differentiation: Superior customer service can set your business apart
in a crowded market, offering a unique selling proposition.
Reduces resolution time: Effective service strategies lead to faster problem-solving, minimizing
downtime for your customers' operations.
Improves product and service feedback: Direct interaction with customers provides valuable
insights that can guide improvements and innovation.
Effective B2B customer service ensures that every issue is addressed with urgency and expertise,
reflecting the value you place on your business relationships. This commitment to excellence in
service not only secures customer loyalty but also sets the stage for long-term partnerships and
success.
Resolution Implementation
1. Execute the agreed-upon solution
2. Ensure timely resolution
3. Follow up to confirm satisfaction
The first step in any problem-solving and decision-making process is to identify the problem
clearly and accurately. This means asking the right questions, listening actively, and empathizing
with the customer. You need to understand the customer's needs, expectations, and emotions, and
avoid making assumptions or jumping to conclusions.
The second step is to analyze the problem and identify the root causes, the possible solutions,
and the potential consequences. This means using critical thinking, creativity, and logic to
evaluate the situation and generate alternatives. You need to weigh the pros and cons of each
option, and consider the impact on the customer, the organization, and yourself.
The third step is to choose the best solution based on your analysis and judgment. This means
selecting the option that best meets the customer's needs, aligns with the organization's goals and
policies, and respects your own values and ethics. You need to communicate your decision
clearly and confidently to the customer, and explain the reasons and benefits behind it.
The fifth step is to evaluate the solution and reflect on your performance. This means measuring
the effectiveness and efficiency of your decision and actions, and assessing the customer's
feedback and satisfaction. You need to identify what worked well and what didn't, and learn
from your experience.
The sixth step is to use tools or methods that can aid you in your problem-solving and decision-
making process. Depending on the complexity of the problem and your own style, there are a
variety of methods you can use. For instance, The 5 Whys is a straightforward technique that
helps identify the root cause of a problem by asking "why" five times.
Customer Grievance
A customer grievance is a formal or informal complaint or concern expressed by a customer
regarding a product, service, or past experience offered by the business. It is a way for customers
to communicate their discontent with a specific service or product to interact with the company.