CUSTOMER RELATIONSHIP MANAGEMENT

PRESENTED BY
SANJU JEEBOY
What is CRM?
It is process or methodology used to learn more about
customers' needs and behaviors in order to develop
stronger relationships with them.

 It is a set of methodologies, software, and usually

Internet capabilities that help an enterprise manage
customer relationships in an organized way.

CRM helps a company unify its customer interactions and

provide a means to track customer information.

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GOALS OF CRM
Use existing relationships to grow revenue
Use integrated information for excellent service
Introduce more repeatable sales processes and
procedures
Create new value and instill loyalty
Implement a more proactive solution strategy.

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Phases of CRM

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ACQUISITION
techniques used to form relationships with new
customers to achieve an online sale.
For achieving this special CRM software tools and
databases are used.
The main purpose of this CRM function is to make
aware the customer about the superior product by a
distinguished company

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ENHANCE
 to keep customer satisfied and happy to offering
superior service from specialists.
The profitability of the business is increased by CRM
sales for a automation and direct marketing.
The customer experience the convenience of one stop
shopping at reasonable prices.

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RETENTION
Customer retention refers to the actions an
organization takes to retain existing customers i.e.
the techniques to maintain relationships with
existing customer.

The customer retention has two distinct goals.

1.To retain customers of the organizations (repeat
customers).
2.To keep customers using online channel (repeat
visits).
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Integrated CRM Focus and Architecture
Customer Acquire Enhance Retain
Life Cycle (new customers) (purchase value) (existing customers)
Differentiation Bundling Adaptability
CRM • Innovation • Reduce cost • Listening
Key Focus • Convenience • Customer service • New product
• Repeatable process • Loyalty program

Core Direct Marketing Cross-/Up-Selling Proactive Service

Process Sales Force Automation Customer Support, Call Center

Enabling Telephone, Fax, E-mail, Web, VRU (Voice Response Unit)

Technology Legacy Systems + Computer/Internet Telephony Integration (CTI/ITI) +
Data Warehousing + Decision Support Technology (data model analysis)

Integrated Integrated
IntegratedCRM
CRMApplications
Applications
Solution (Customer
(Customercontent,
content,Customer
Customercontact
contactinfo.,
info.,End-to-end
End-to-endbusiness
business
processes,
processes,Inter-enterprise
Inter-enterprisecustomer
customercare
care(partnership
(partnershiprelationship
relationship
mgmt), System/tech integration
mgmt), System/tech integration

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Stages in the development of a Customer Relationship

The Pre-relationship Stage

The event that triggers a buyer to seek a new business partner.

The Early Stage

Experience is accumulated between the buyer and seller although
a great degree of uncertainty and distance exists.

The Development Stage

Increased levels of transactions lead to a higher degree of
commitment and the distance is reduced to a social exchange.

The Long-term Stage

Characterised by the companies’ mutual importance to each other.

The Final Stage

The interaction between the companies becomes institutionalized.
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 A Relationship Life Cycle Model

High cooperation
Low competition Pre- Development Maturity Decline
relationship stage stage stage
stage

Low cooperation
High competition

Time
(Wilkinson and Young, 1997)
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Determinants of CRM

Trust

The willingness to rely on the ability, integrity, and motivation of

one company to serve the needs of the other company as agreed upon
implicitly and explicitly.

Value

The ability of a selling organisation to satisfy the needs of the customer

at a comparatively lower cost or higher benefit than that offered by
competitors and measured in monetary, temporal, functional and
psychological terms.

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Determinants of CRM

In addition to trust and value, salespeople must:

Understand customer needs and problems;

Meet their commitments;

Provide superior after sales support;

Make sure that the customer is always told the truth

(must be honest); and

Have a passionate interest in establishing and retaining a long-

term relationship (e.g., have long-term perspective).

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Components of CRM

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Contact and Account Management
Relevant data for customer profile is captured with the
help of software.
Necessary information is captured from prospective
customers.
CRM system stores data in common customer database.
The database integrates customer account information
and present it in desirable format to the company.
This database can be accessed on Internet, intranet and
on other network links.
The data is used for sales, marketing, services and other
applications.
The contact management software contains various
modules of databases, displays, charts, workflow
programs.

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Sales
Sales process management follows a customized sales
methodology with specific sales policies and
procedures.
Sales activities include - Product information, product
configuration, sales prospectus, sales quote
generation.
CRM also provide the history of customer account so
that the sales call can be scheduled accordingly.

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Marketing and Fulfillment
CRM helps the professionals in product marketing,
target marketing, relationship marketing and
campaign management.
 By analyzing customer and business value of direct
marketing can be estimated.
CRM also helps in customer retention, behavior
prediction, channel optimization, personalization.
Customer response and requests can be quickly
scheduled and hence sales contacts.

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Customer Service and Support
CRM system provides service representatives with
adequate software tools and access to customer database. It
also helps to create, assign and manage the service requests
by customers.
Call center software is designed to route customer calls to
respective attendants as per the skills and authority to
handle special cases.
Help desk software is developed to help customer service
representative to help customers who face problems with
product or service to resolve it.
Web-based Self Service means help customer to access
personalized information at company website.

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Retention and Loyalty programs
The primary objective of CRM is to enhance and
optimize customer retention and loyalty.
CRM systems are also useful in determining most
loyal and profitable customers and reward.
CRM analytical software includes determining tools
and analytical marketing software whereas CRM
databases consists of customer data ware house and
CRM data marts.

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CHALLENGES
Problems of collecting and coordinating substantial
data can lead to privacy problems.
Firms still need to be sensitive to customer wishes
about unsolicited contacts. Customer privacy request
needs to be a part of CRM.

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Stages In CRM
Stage 1 - Collecting information
Stage 2 - Storing information
Stage 3 - Accessing information
Stage 4 - Analyzing customer behavior
Stage 5 - Marketing more effectively
Stage 6 - Enhancing the customer experience

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Approaches to CRM
There are several different approaches to CRM, with
different software packages focusing on different
aspects:

Operational CRM
Analytical CRM
Collaborative CRM

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Operational CRM
Gives support to ‘Front Office’ business process (e.g.
sales, marketing etc).
Any interaction with customers is stored in customers’
contact histories, which the staff can retrieve as
necessary.
Gives staff access to important information about the
customer, eliminating need for individually obtaining
it from the customer.

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Analytical CRM
Analytical CRM analyzes customer data for a variety
of purposes:
Designing and executing targeted marketing
campaigns.
Analyzing customer behavior in order to make
decisions relating to products and services (e.g.
pricing, product development).
Management information system (e.g. financial
forecasting and customer profitability analysis).

Analytical CRM generally makes heavy use of data

mining.
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Collaborative CRM
Helps unify information that is collected through
various departments’ interaction with customers.
Goal is to use information collected by all
departments to reduce costs and improve the quality
of services provided by the company.

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 CRM includes many aspects which relate directly to
one another
 Front office operations — Direct interaction with customers,
e.g. face to face meetings, phone calls, e-mail, online services
etc.
 Back office operations — Operations that ultimately affect the
activities of the front office
(e.g., billing, maintenance,planning, marketing, 
advertising, finance, manufacturing, etc.)
 Business relationships — Interaction with other companies and
partners, such as suppliers/vendors and retail
outlets/distributors, industry networks (lobbying groups, trade
associations). This external network supports front and back
office activities.
 Analysis — Key CRM data can be analyzed in order to plan
target-marketing campaigns, conceive business strategies, and
judge the success of CRM activities (e.g., market share, number
and types of customers, revenue, profitability). 26
BENEFITS OF CRM
Attracting new customers
Simplification of marketing and sales processes
Account information
Overall revenue increases
Cost reduction is achieved
Better customer service is achieved
Organizations can gain the competitive edge
Organizations can concentrate more on production
Constant supply of vital customer data
Customers receive satisfaction
Marketing and support expenses are reduced
Sales teams can be effectively monitored
Teamwork within the organization is achieved
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BENEFITS CONTD……
Communication channels are improved
Employees have access to customer details more easily
New selling opportunities can be discovered
Companies are enabled to be aware of customer needs and
are able to react to them in the right manner
CRM achieves an integrated internal business system
CRM technology goes a long way in benefiting the
organization itself
Companies have easy access to purchase histories
Automation of routine tasks becomes possible
Companies can monitor their performances regularly
Building customer loyalty
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CRM's New Areas
Enterprise CRM of Expertise
Relationship Marketing
Vertical CRM Solutions
Business Intelligence
e-Business
Content Management
Customer Analytics
Data Mining
Email Marketing
Employee Relationship Management
Enterprise Resource Planning
Knowledge Management
Partner Relationship Management
Sales Automation
Enterprise Resource Planning

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CRM Solution Providers

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Examples
DHL
Canon
Canon and CRM
Canon needed a comprehensive customer database
that could be made available to front office personnel.
It purchased and implemented a Siebel CRM package,
which implemented a Call Center CRM strategy in the
sales department, among other things.
Information that was stored for a period of 15 years was
used in an attempt to achieve customer satisfaction.
Canon had 2200 users involved in its implementation.
Overall improvement was seen in three main areas –
Call Center, Sales and Service.
DHL and CRM
DHL Global Mail needed a CRM solution that could
cater to a global network and ultimately provide a
holistic view of the customer right across the globe.
DHL used Salesforce.com as its CRM platform in the
dispatch and delivery of parcels, and business post
etc.
The CRM suite was installed simultaneously around
the globe within six months and integrated with the
existing systems to ensure data centralization.
It achieved an integrated approach to the customer
worldwide and a single view of the customer as well.
THANK YOU

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