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Meaning & Definition of Customer Relationship Management (CRM)

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0% found this document useful (0 votes)
47 views28 pages

Meaning & Definition of Customer Relationship Management (CRM)

Uploaded by

suresh pendyala
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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VAAGDEVI DEGREE & P.

G COLLEGE

HANAMKONDA

(AUTONOMOUS)

Meaning & definition of Customer Relationship management (CRM)


Customer relationship management is an information industry term for methodologies software
and usually internet capabilities that help an enterprise manager customer relation in an
organized way.

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.

Need and Importance of CRM


The need of CRM is

1. Better service to customers


2. Customization of market offering
3. Reduction in customer defection
4. Increase and improvement in long-term relationship
5. Increase in customer equality
6. Competitive advantage
7. Building and maintaining corporate image
8. Higher return on investment

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.

Customization of market offering: company can customize a product or service depending on


the data available with the firm. The firm can facilitate customer interaction through the
company contact centre and website.
Reduction in customer defection: CRM emphasis on training and development of the
employees to become more customers oriented.
Increase and improvement in long-term relationship: some firm are treat their
customers as partners. Firms solicit the help of the customers to design new products to
improve their services.
Increase in customer equality: CRM in increased equality as firms focus on marketing
efforts more on most customers. The main aim of CRM is to produce high customer
equality.
Competitive advantage: the firms that adopt CRM get competitive advantage helps
generating on high return investments.
Building and maintaining corporate image: The image of the firm also gets enhanced.
Higher return on investment: due to CRM a company gains a position to generate higher
return on investment. This is because of the repeat purchases on the part of the loyal
customers.
Features of CRM:
CRM is a strategy which is customized by an organization to manage and administration its
customers and vendors in an efficient manner for achieving excellence in business. The
features are.

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:

1. To simplify marketing and sales process


2. To make call centers more efficient
3. To provide better customer service
4. To discover new customers and increase customer revenue
5. To cross sales products more efficiently.

Role of CRM
The various role of CRM are

1. Role of CRM in banking sector


a. Customer service and retention
b. Call centers
c. Sales
2. Role of CRM in telecom industry.
3. Customer relationship in service industry
4. Role of CRM in retail industry

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 service industry: CRM is a process implemented by a company to handle


its contact with its customers by storing information on current and prospective customers.
a. All sales and services related to interaction a company as with each individual customers.
b. Track and retail personal customization for company and online experience to improve
relationship.

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.

Emergence of CRM Practice:


1. Use of CRM in industrial era
2. Use of CRM in various industries
3. Use of CRM in service Economy
4. Use of CRM in total quality management
5. Use of CRM in digital marketing
6. Use of CRM in accounts management
7. Use of CRM in international Business.

Factors of CRM
The factors of CRM are

1. Top management commitment and support


2. Define and communicate and CRM strategy
3. Culture change
4. Interdepartmental integration
5. Skillful staff
6. Key information on customers
7. Manage IT structure
8. Customer involvement
9. Service Quality

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.

Interdepartmental integration: from a strategic prospective CRM implementation as


organization wide influence different functions and department of the organization should be
integrated & connected with a structure that supports the flow of information.

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

Manage IT structure for: Considering CRM as only a technological solution is vital


misconception that resulted on increasing failure of CRM projects. Nevertheless IT is an enabler
for acquiring and managing valuable data on customers.

Customer involvement: Direct and indirect involvement of customers in CRM designing is a


tool for strengthening practical CRM. Such an individual helps the organization to analyze the
customer relationship lifecycle consequently find the areas of problems that can be managed by
CRM.

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.

Advantages and Disadvantages of CRM


Advantages:

1. Reduction in customer recruitment cost.


2. Generation of more and more loyal
3. Expansion of customer base
4. Reduction in advertisement and other sales promotion expenses
5. Benefiting customer selectivity approach
6. Increase in the number of profitable customers
7. Easy introduction of new products
8. Increase in customer partnering
9. Easy business expansion possibilities.

Disadvantages:

1. System integration
2. Resentment
3. A learning curve

Process of CRM

Analysis customer data &


identify in target customer
Collecting customer data Learning
;

Implementing CRM Action Developing CRM programs


programs
Consumers touch points:
A customer / consumer touch point is any type of contact a customer engages in with your
brand. Touch points can be direct (websites, SEO, advertising, Email, marketing etc ) or indirect
( social media , vlogs, forums, reviews etc.) And may happen at any point in the customer
journey before during or after a purchase.

Characteristics of consumer touch points

1 .On the path to purchase


a. on line and offline ads
b. Video content
c. Product demos
d. Reviews and research
e. Websites and blogs
2. during purchase
a. Company website
b. Pricing information
c. Packaging and labeling
d. Physical stores
e. Sales representation
f. Point of sales
g. Product pages & catalogs
3. after purchase
a. Customer on boarding
b. Transactional email
c. Renewal & discounted subscription plans
d. Follow ups
4. In customer service
a. Live chat
b. Chat bots
c. SMS
d. Social media
e. Support emails
f. Self service portal
g. Customer success programs
h. Customer loyalty programs
WRT sales
WRT sales means with respect to or with regard to WRT sales and services private limited is
private in corporate 19th march 1969. It is classified has non- government company's at Mumbai.
It is authorized shared capital 10 lakhs and it is paid up capital 5 lakhs.
WRT sales stands for “With respect to sales” This abbreviation is often used in businesses and
sales context to refer to specific aspect or metric related to sales performance such as
1. Sales growth WRT previous quarters
2. Revenues WRT sales volume
3. Profit margin WRT sales revenues
In general “with respect to “is a common abbreviation used to indicate a relationship or
comparison between two or more metrics.

Types of customer Needs in CRM


1. Price
2. Functionality and convenient (easy to available)
3. Reliability and sustainability (survive)
4. Risk Reduction
5. Empathy and sympathy
6. Experience
7. Efficiency
8. Design
9. Performance
10. Transparently
11. Risk
12. Terms
13. Integration & comparability
14. Information
15. Control
16. Variety of option
17. Accessibility
Customer Needs in Service:

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

Personalization: Tailor interactions to individual customers based on their preferences, behavior


and history.
Omini channel engagement: provide seamless experiences across touch points, including social
media, email, and phone and in person.
Data driven insights: leverage analytics to gain customers insights identify trends and make
informed decisions.
Customer segmentation: Divide customers into groups based on shared characteristics to target
specific needs.
Loyalty programs: Loyalty programs reward repeat customers to courage retention and loyalty.
Social CRM: Engage with social media to build relationships and resolve issues.
Employee empowerment: Equip- customers facing staff with the tools and authority to resolve
issue efficient.
Continuous feedback: Collect and act on customer’s feedback to improve product and services.
Account based marketing: focus on building relationship with key accounts and decision
making.
Integration with other systems: connect CRM with other business systems like marketing
automation and ERP for unified view.

Impact of CRM on business Revenues


CRM has a significant impact on business revenue. Here are some ways CRM can positively
affect revenues.
1. Improved sales
2. Enhanced customer retentions
3. Data driven decision making
4. increased efficiency
5. Better marketing
6. Up -selling and cross- selling
7. Improved customers insights
8. Reduced costs
Improved sales: CRM helps sales teams manage, leads opportunities and customer
interactions, leading to increased conversions and revenue growth.
Enhanced customer retention: CRM enables businesses to deliver personalized
experiences, building strong relationships and loyalty and increasing repeat business.
Data driven decision making: CRM provides valuable insights and analytics enabling
businesses to make informed decision, identify new opportunities and optimize revenue
streams.
Increased efficiency: CRM automates routine tasks stream line processes and improves
productivity allowing business to focus on high value activities that drive driven.
Better marketing: CRM helps businesses understand customer needs, preferences, behavior
enabling enhanced targeted marketing, campaigning that drive revenue and growth.
Up-selling and Cross-Selling: CRM identifies opportunities for up-selling and cross selling,
increasing average order. Value and revenue per customers.
Improved customer insights: CRM provides 360 degree views of customers ensiling
businesses to identify new revenues opportunities and tailor of offerings to meet their needs.
Reduced costs: CRM helps businesses reduce cost associated with customer acquisition,
retentions and service increasing overall revenue and profitability.
UNIT-2
ELEMENTS OF CRM
--------------------------------------------------------------------------------------------

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

Contact management: Storing customers contact information and interaction history.


Sales force management: Automation sales process such as lead tracking and people line
management.
Market automation: Automatic marketing campaign and lead generation.
Customer service and support: Manage customer enquiries, issues and feedback.
Analytics and reporting: Analyzing customer data and behavior to inform business decisions.
Account management: Managing customer accounts, including account information and
activity history.
Lead management: Managing leads including lead generation, qualification and conversation.
Opportunity Management: Managing sales opportunity, including tracking and forecasting

Customer Service Management in CRM Customer


Service management is crucial aspects in CRM they are
1. Incident management
2. Problem management
3. Request full-fillment
4. Service level management
5. Customer self service
6. Field service management
7. Customer feed-back & survey
8. Knowledgement and management
9. Ticketing & care management
10. Reporting and analytics
11. Customer communication management
12. Service catalog management
Incident management: Managing customer complaints, issues or requests.
Problem management: Identifying and solving root causes of customer issues.
Request full-fillment: Managing request such as enquiry or orders.
Service level management: Defining and managing service level management.
Customer self service: providing customer with online resources and tools and resolve issues.
Field service management: Managing on site customer service and support.
Customer feedback and survey: collecting and analyzing customer feedback.
Knowledgement and management: creating and sharing knowledge bases for customer
support.
Ticketing and care management: Managing service request and issues.
Reporting and analyzing: Analyzing customer service performance and motivation.
Customer communication management: Managing customer interactions across channel.
Service catalog management: creating and managing service offerings and matrix.
Types of customers
The types of customers are:
1. Loyal customers
2. New customers
3. Discount customers
4. Impulse customers
5. Need based customers
6. Want based customers
7. Business customers
8. End user customers
9. Re- seller customers
10. Digital customers.
Loyal Customers: who can consistently purchase from customers.
New customers: First time buyer who have recently purchase from a business.
Discount Customers: Price sensitive customers who look for deals and discounts.
Eg: D-Mart customers.
Impulse customers: Spontaneous buyers who make unplanned purchases.
Need based customers: Customers who purchase products or services to full-fill specific needs.
Want based customers: Customers who buy products or services based on desire rather than
necessity.
Business customers: Organizations or company that purchase products or services for business
use.
End user customers: Individuals who use products and services for personal use.
Re-seller customers: Business that purchase products and services to re-sell them.
Digital Customers: Customers who interact with businesses online or through digital channels.
Process for continuous Improvement
1. Identify the areas for improvement
2. Employee involvement
3. Constant Feedback
4. Develop a solution
5. Enhance customer Experience
6. Evaluate
7. Implement PDCA cycle
8. Process Mapping
9. Technology implementation
Identify the areas for improvement: once you are monitored your CRM’s performance over a
set of period such as quarterly, half yearly, annually. You have the data need to identify and
gathered relevant data is crucial to identify the areas that require to improvement.
Employee involvement: In order to make the continuous improvement of a process successful,
it’s essential to involve the employees. They will be learning on them also makes the SMES &
process owners engaged in continuous process improvement.
Constant feedback: Continuous improvement goes behind simply asking for ideas and then
rolling out changes themselves must be constantly.
Develop solution: Solution development is a methodology or frame work for realizing project
goals, usually for the sake of improving existing technology systems it could develop a solution.
Enhance customer Experience: It focuses on customer needs, expectations understanding the
product improvement creating a programme for capturing, feedback and acting on those insights
in customers’ relationship management process can help you identify the most valuable
customers & offer top-notch experience to keep them with your business.
Evaluate: Evaluate the results after you have implemented your solution, it’s time to see if t is
worked. Evaluate the results of your solution against your original.

Meaning and Definition of Team work


Teamwork is the collaborative effort of a group to achieve a common goal or to complete a task
in an effective and efficient way. Teamwork is seen within the framework of a team, which is a
group of interdependent individuals who work together towards a common goal.
Significance of team work

Teamwork in the workplace is important because it supports an organization's operational


efficiency. Strong team dynamics enable individual members to divide complex projects
into manageable tasks, which enhance productivity and enable an organization to function
more effectively. Moreover, successful teamwork creates a supportive network that can
significantly enhance job satisfaction and employee morale.
When teamwork is functioning at its best, it encourages the generation of new ideas, leading
to innovative solutions. It also helps individuals complete challenging tasks more
effectively. Team leaders play an important role in promoting open communication and
ensuring that each member's voice is heard, which can lead to better decision-making and a
positive impact on your company’s bottom line.

1. Teamwork cultivates effective communication


Effective teamwork in the workplace starts with solid communication. In order to work
together—whether when ideating or working on a new project—you need to communicate
to create cohesion and clear goals.
Communication starts by building camaraderie and team synergy. A great way to do this is
by organizing team building activities. This could be a quick icebreaker at the beginning of
a meeting or a whole day spent solving fictional problems with teammates.
2. Teamwork improves brainstorming

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.

3. Teamwork encourages a common goal

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.

4. Teamwork in the workplace improves problem solving skills


Problems can be difficult to solve on your own. That’s why working together as a team can
offer quicker and often more effective solutions.

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.

5. Teamwork helps build trust


Trust in the workplace is something that is built over time. It takes transparent
communication, one-on-one sessions, and support to build that trust with team members.
A team that trusts each other feels comfortable communicating ideas, collaborating in the
workplace, and growing individual strength. Not just that, but they also feel a sense of
belonging within the group.

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.

6. Teamwork improves company culture


Most companies strive for a good organizational culture, but it’s not as easy as having chats
at the water cooler or a monthly pizza party. Company culture involves making your team
members feel heard and empowered to do their best work while offering them work-life
balance and an overall enjoyable work environment.

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.

7. Teamwork creates efficiency


From communicating effectively to improving company culture, teamwork drives many
benefits, including creating team efficiency. An efficient team works together to quickly
manage problems and daily tasks. As a result, efficient teams use resources more effectively
and reach their deliverables faster. When it comes to organizational growth, few strategies
are as impactful as cultivating streamlined efficiency through teamwork in the workplace.
Such cohesion is instrumental in fostering innovative solutions while maintaining consistent
quality.
Example: There’s a new project on the horizon for Ray and his team. Ray’s first instinct
was to ask Kat, his senior specialist, to tackle it since she’s the best fit to handle the task.
After analyzing the difficulty of the project, he decides to have his entire team tackle it
together. To his surprise, they completed the project in just half the initial timeline.
8. Teamwork increases employee engagement
A little known secret to fostering long-term happiness and engagement is to nurture
teamwork in the workplace. When team members feel part of a supportive group, they're
more likely to be content and involved, which naturally boosts their work satisfaction over
time.
To increase employee engagement, encourage teamwork inside and outside of work.
Schedule time for your team to connect about more than just work. Your team will feel more
open when working in a group, which leads to a higher retention rate.
Example: Kat’s team has been working hard on a top priority project. Unfortunately, issues
arose and now they have to stay late to finish the project before the weekend. Kat knows
that she needs to do something to keep the team’s spirits and energy up. She decides to start
the evening with a team building activity. This immediately engages the team and gets
everyone excited to put their heads together and finish the project off strong.

9. Teamwork motivates high performing teams


Accountability is a powerful motivator, and teamwork in the workplace is a surefire way to
instill this sense of responsibility. It spurs team members not just to meet expectations, but
to exceed them and willingly contribute their best ideas to the group's endeavors. The higher
performing each team member is, the higher performing your overall team will be, meaning
you can create high quality work more efficiently. Not only is a high performing team good
for your company, but it also helps job satisfaction, as doing well will motivate individuals
to continue growing their skill set.
Example: It’s team review time and Kat gets a shoutout at all hands for implementing a new
process to increase productivity. Kabir, a new team member, feels empowered to work hard
and will receive a superb review next quarter.

10. Teamwork in the workplace develops individual strengths


Teamwork isn’t just about team success—it also supports individual development as well.
Team members who grow their individual knowledge can then share that with others during
future projects.
Example: Kabir is new to the team and working on his first task. He’s a little stuck so he
reaches out to a team member for help. Kat shares her tips on how she works on a similar
task. She even shares a tool that Kabir didn’t know about. This helps him complete the task
more efficiently.
11. Teamwork improves decision making skills
While problem solving and decision making sound similar, decision making skills are all
encompassing. To be good at decision making, you need the confidence to make quick
decisions based on the knowledge you’ve gathered in your role.
Teamwork in the workplace is invaluable for improving decision-making abilities. It creates
an environment where team members are encouraged to tackle questions and make decisions
promptly, which is essential for real-time problem-solving.
Example: Kabir is leading his first team meeting for a new project. As he’s explaining the
upcoming timeline and deliverables, an executive asks who will be working on the project.
Kabir is quick to answer confidently, as he’s already brainstormed with his team on who
will tackle what.

Meeting the Customer Expectations


1. Stay open feedback
2. Know your customer
3. customer-centric
4. Be proactive
5. Personalized customer experience
6. Deliver on your promises
7. Research your customer base
8. Be transparent
9. Align Expectations with Reality

Stay open to feedback: Customer feedback software, constant product improvement,


and open communication help build long-term customer connections. Listening to your
consumers allows...

Know your customer: Letting customers know that you've made a mistake will not
damage your business, but not being straightforward will.

Customer-centric: environment instills a deeper understanding of consumer needs across all


levels of an organization.

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.

CRM system and their Uses

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

An operational CRM streamlines and simplifies a company’s primary business processes. In


doing so, it spans marketing, sales, and customer service helping companies generate leads and
convert those leads into contacts. It also provides the customer service infrastructure necessary to
delight and retain customers. There are three basic components of an 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.

Advantages of collaborative CRM

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.

Analytical CRM is an essential part of managing customer relations. Analytical CRM


accumulates and analyzes consumer data of various kinds, including:

 Sales data: purchase and return history, brand preferences, etc.


 Financial data: payment and credit history, including payment type, credit scores, etc.
 Marketing data: customer response rates to marketing campaigns, customer satisfaction
data, retention data, etc.

Advantages of analytical CRM

1. Better lead conversation rate


2. Improved market analysis before running a marketing campaign
3. Boost customer loyalty and satisfaction
4. More accurate financial forecasting and planning
5. The suggested actions come from vast amounts of consumer data that would be too
difficult for one person to handle
6. Automatic processes allow analytical CRM to conclude future customer behavior,
customer buying power or customer needs
7. Understand the customers better, and boost sales performance
8. Better focus your sales efforts by using precisely those products and communication
strategies that suit the audience you want to sell to.
UNIT-3
CUSTOMER SERVICE
----------------------------------------------------------------------------------------------------

Customer service meaning and definition:


Customer service refers to the assistance an organization offers to its customers before or after
they buy or use products or services. Customer service includes actions such as offering product
suggestions, troubleshooting issues and complaints, or responding to general questions.

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.

Processes and practices of customer Engagement

 Communication: Effective communication is essential for customer engagement.


This can occur through various channels, such as social media, email, phone calls,
chat bots, and in-person interactions. Companies use these channels to provide
information, answer questions, and gather feedback from customers.
 Personalization: Tailoring interactions and offers to individual customer preferences
and needs can significantly enhance engagement. Personalization can involve
customizing product recommendations, marketing messages, and customer service
interactions.

 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.

 Loyalty Programs: Loyalty programs and rewards can incentivize customers to


engage with a brand more frequently. These programs may offer discounts, points, or
exclusive benefits to loyal customers.

 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.

 Community Building: Creating online or offline communities for customers to


connect with each other and the brand can foster a sense of belonging and
engagement. These communities can be on social media, forums, or through events
and gatherings.

 Responsiveness: Timely responses to customer inquiries and concerns demonstrate a


commitment to customer satisfaction. Companies that are quick to address issues and
provide solutions can build trust and loyalty.

 Omni channel Experience: Offering a seamless experience across various channels


and touch points ensures that customers can engage with a brand in the way that is
most convenient for them.

 Continuous Improvement: Companies should regularly assess their customer


engagement strategies, gather feedback, and adapt to changing customer preferences
and market dynamics.

Providing customer service in B2B Retail environment

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 important

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.

Handling customer service concerns


Handling customer service concerns effectively is crucial for maintaining customer satisfaction,
loyalty, and reputation. Here's a step-by-step.

Step 1: Acknowledge and Respond

a. Respond promptly (within 24 hours)

b. Acknowledge customer concerns

c. Express empathy and apologize (if necessary)

Step 2: Gather Information

a. Clarify the issue

b. Gather relevant data (order number, purchase date)

c. Review customer history (previous interactions)


Step 3: Investigate and Resolve

a. Investigate the root cause

b. Offer a solution or alternatives

c. Explain the resolution process

Step 4: Implement Solution

a. Execute the agreed-upon solution

b. Ensure timely resolution

c. Follow up to confirm satisfaction

Step 5: Follow-up and Review

a. Verify customer satisfaction

b. Review resolution effectiveness

c. Document lessons learned

Best practices for resolving customer complaints:


 Initial Response
1. Acknowledge and respond promptly (within 24 hours)
2. Express empathy and apologize (if necessary)
3. Gather information and clarify the issue

 Investigation and Resolution


1. Investigate the root cause
2. Offer a solution or alternatives
3. Explain the resolution process
4. Provide clear explanations and timelines

 Resolution Implementation
1. Execute the agreed-upon solution
2. Ensure timely resolution
3. Follow up to confirm satisfaction

 Follow-up and Review


1. Verify customer satisfaction
2. Review resolution effectiveness
3. Document lessons learned

Decision-making processes in addressing customer service problem


Decision-making in customer service is defined as the process of assessing customer inquiries or
issues, evaluating available solutions or protocols, and selecting the most appropriate course of
action to resolve the situation efficiently and effectively

1. Identify the problem

2. Analyze the problem

3. Choose the best solution

4. Implement the solution

5. Evaluate the solution

6. Use tools or methods

1. Identify the problem

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.

2. Analyze the problem

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.

3. Choose the best solution

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.

4. Implement the solution


The fourth step is to implement the solution and follow through with your actions. This means
taking the necessary steps to execute your decision, and ensuring that the customer receives the
expected outcome and service. You need to monitor the progress and results of your actions, and
adjust them if needed.

5. Evaluate the solution

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.

6. Use tools or methods

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.

Customer grievance system Strategies


While the term “Grievance Redressal” primarily covers the receipt and processing of complaints from
citizens and consumer, a wider definition includes actions taken on any issue raised by them to avail
services more effectively.
Consumer Grievance Redressal System. Under the provisions of the Consumer Protection Act,
1986, a three tier quasi-judicial mechanism has been established at the district, State and
National levels to provide for simple, inexpensive and speedy redressal of consumer disputes.

1. Acknowledge the grievance


2. Formal investigation,
3. Centralized Complaint Submissions.
4. Investigate
5. Resolution
6. Decision-making abilities.
7. Encourage open communication
8. Appeal process
9. documentation

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