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Crm-G3: MBA III Semester Lecture-5

This document discusses customer relationship management (CRM) and its key concepts and components. It defines CRM as a business strategy designed to optimize profitability, revenue and customer satisfaction through marketing activities and managing relationships. It discusses customer touchpoints, the emergence of CRM practice over different stages, and components of CRM like relationship marketing and database marketing. Finally, it outlines who uses CRM systems and the significance of CRM for businesses in establishing communication, gathering customer information, enhancing satisfaction and loyalty.

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Twinkal chakradhari
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32 views

Crm-G3: MBA III Semester Lecture-5

This document discusses customer relationship management (CRM) and its key concepts and components. It defines CRM as a business strategy designed to optimize profitability, revenue and customer satisfaction through marketing activities and managing relationships. It discusses customer touchpoints, the emergence of CRM practice over different stages, and components of CRM like relationship marketing and database marketing. Finally, it outlines who uses CRM systems and the significance of CRM for businesses in establishing communication, gathering customer information, enhancing satisfaction and loyalty.

Uploaded by

Twinkal chakradhari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CRM- G3

MBA III Semester


Lecture-5
Topics Covered in
lecture 5
UNIT-2
• CRM Definitions
• Customer Touch Points
• Emergence of CRM practice
• Components of CRM
• Significance of CRM
• Relationship Marketing: Advantages VS Disadvantages
CRM Definitions
• CRM is a business process in which client relationships, customer loyalty and brand value
are built through marketing strategies and activities.
• CRM is a technology for managing all your company’s relationships and interactions with
customers and potential customers
• CRM is a business strategy designed to optimize profitability, revenue and customer
satisfaction.
• CRM is a philosophy and business strategy, supported by a system and a technology,
designed to improve human interactions in a business environment
• CRM is the Infrastructure that enables the delineation and increase in customer value and
the correct means by which to motivate valuable customers to remain loyal and buy again
• CRM is the process of carefully managing detailed information about individual customers
and all customer “touch points” to maximise loyalty.
What are these touch points?
• Any occasion on which
the customer
encounters the brand
or product/service
EXAMPLE: Guess the touch-points in a hotel?
What is CRM
• From the organization's point of view, this entire relationship includes
direct and indirect interactions with customers, such as sales and service-
related processes, and forecasting and analysis of customer trends and
behaviours.
• CRM encompasses a number of technologies used to streamline
customer interaction, which helps in finding, acquiring and retaining
customers

Ultimately, CRM serves to enhance the customer's overall experience.


CRM is an Amalgamation
CRM is blend of the following three concepts i.e.
1. Relationship Marketing
2. Database marketing
3. Customer Orientation
Types of Relationship Marketing
programmes
Relationship marketing is a facet of customer relationship management (CRM) that focuses on
customer loyalty and long-term customer engagement rather than shorter-term goals like customer
acquisition and individual sales
By observations of the corporate practices ,there are three types of relationship marketing programs
• Continuity marketing (persuading a customer to agree to automatic shipments, EX- supplement
medicine supplies, Life/General Insurance renewal collection, aquaguard servicing contracts )
• One- to – One marketing (provide personalised message and product to customers, pre approved
loan offer)
• Partnering programs (encouraging channel partners to sell vendor’s product/service)
They take different forms depending upon whether they are meant for end-customer, distributor
customers ,or business –to-business customers.
Marketers use a combination of one or more types of theses to build closer and mutually beneficial
relationships with their customers.
Emergence of CRM Stage 1
1) CRM was used as a functional approach
2)It involved two aspects: sales force automation(SFA, pre-sales) and customer supp
• The term Customer Relationship Management (CRM) service(CSS, post sales)
came into use in 1980s
• Before the use of technology and internet, it was difficult
to effectively trace customers’ information.
• It was also important for companies to handle large data
collected which needed to be updated on a regular basis. Stage 2
• With the shifting focus of companies towards customers,In this
it stage CRM was used to support front-office activities and
became more important to maintain database of millions the requirements of the customers
of customers
• Data analysis techniques and softwares started to be
implemented for analysing large pieces of information
• Complete information about customers was required
which led to integration of all the data bases of companies
• This gave birth to CRM applications and softwares Stage 3
Integration of Front-office CRM systems with Back-office CRM s
Who uses a CRM system?

CRM systems can be easily customized to meet the specific needs of


any business type and size

Hospitality
firms NGOs

Start-ups

Insurance
Legal
Large
enterprises Restaurants

Media
Significance of CRM
• Establishing effective communication channels
• Gathering effective information about customers
• Creating detailed profile of individual customers
• Achieving high level of customer satisfaction
• Tracking new sales opportunities
• Increasing market share and profit margins
• Enhancing customer loyalty
• Fulfilling customer requirement
Thank
You

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