CRM Customer Relationship Management: A.Ayesha Siddiqua

CRM
CUSTOMER RELATIONSHIP
MANAGEMENT
A.AYESHA SIDDIQUA,
M.Com., M.Phil., SET, Ph.D.,
What is CRM
CRM Customer relationship management (CRM) is a
model for managing a company’s interactions with
current and future customers. It involves using
technology to organize, automate, and synchronize
sales, marketing, customer service, and technical
support.
CRM “is a business strategy that aims to understand,
predict and manage the needs of an organisation’s
current and potential customers”
Definition of CRM
“CRM is concerned with the creation, development
and enhancement of individualised customer
relationships with carefully targeted customers and
customer groups resulting in maximizing their total
customer life-time value”.
The purpose of CRM
Help a business to keep customers.
It helps the business to understand what it needs to do
to get more customers.
Reduce costs by managing costly complaints and
finding out what services are useless for customers.
Help a company figure out if its product is working
and, ultimately, increases profit.
Prime reason is to log and manage customer
relationships.
Stages of Customer Relationship
Visitor - The online CRM is the entry portal to your
company, however the visitor finds you. Whether they visit
with your representatives at a trade show, or fill out a web
form, they enter the front door of your virtual company and
into the online CRM to be greeted with a welcome and
offered something valuable to them. WARNING: Do not
skip this important stage or your emails may be rejected
later.
Engaged Visitor - online CRM is able to engage the sales
lead and rescue your sales. The first place you engage the
visitor is in the welcome email. Be gracious and welcoming.
Prospect
In some companies, just clicking on the link to the first offer
will convert the sales lead into a prospect. It may be time to
have your salespeople call to offer help and guide the sale.
Whatever the sales process for your product or service, an email
campaign delivered in your online CRM is the most engaging
and personal way to get them to pay attention to your message.
Customer
Way too many companies stop courting the business after they
have become a customer. Some feel that customers are not loyal
anyway, so what’s the point? Others believe that if they
concentrate their effort on delivering good products and
excellent service – it will be enough to earn whatever loyalty is
possible.
Advocate
In an online world where customers can post their
experience with your company to be seen by anyone
who may be interested – customers have the enviable
power to make or break your business. As
demonstrated by such companies as Apple, Amazon
and more, devout loyalty is possible when customers
feel important. They feel deeply attached to the
companies who make them feel valued and heard.
Relationship Marketing
Relationship marketing was first defined as a form of
marketing developed from direct response marketing
campaign which emphasizes customer retention and
satisfaction, rather than a dominant focus on sales
transactions.
Marketing activities that are aimed at developing and
managing trusting and long-term relationships with larger
customers.
In relationship marketing, customer profile, buying patterns,
and history of contacts are maintained in a sales database,
and an account executive is assigned to one or more major
customers to fulfill their needs and maintain the relationship.
Purpose of relationship marketing
Satisfaction
Today’s customers face a growing range of choices in the products and
services they can buy . They are making their choice on the basis of their
perceptions of quality, service, and value. Companies need to
understand the determinants of customer value and satisfaction.
Retention
To create customer satisfaction, companies must manage their value
chain as well as the whole value delivery system in a customer-centered
way. The company’s goal is not only to get customers, but even more
importantly to retain customers. Customer relationship marketing
provides the key to retaining customers and involves providing financial
and social benefits as well as structural ties to the customers. Companies
must decide how much relationship marketing to invest in different
market segments and individual customers, from such levels as basic,
reactive, accountable, proactive, and full partnership
Types of CRM
Nowadays, three major types of customer relationship management
systems, namely operational CRM, analytical CRM and collaborative
CRM are being used in many organizations.
Operational CRM
It provides support to front-office business processes that involve direct
interaction with customers through any communication channel, such
as phone, fax, e-mail, etc. The details of every interaction with
customers, including their requirements, preferences, topics of
discussion etc., are stored in the customers’ contact history and can be
retrieved by the organization’s staff whenever required. Thus, it presents
a unified view of customers across the organization and across all
communication channels. Examples of operational CRM applications are
sales force automation (SFA), customer service and support (CSS),
enterprise marketing automation (EMA),etc.
Analytical CRM
It enables to analyze customer data generated by
operational CRM applications, understand the customers’
behavior, and derive their true value to the organization.
This helps to approach the customers with related
information and proposals that satisfy their needs. The
analytical customer relationship management applications
use analytical marketing tools like data mining to extract
meaningful information like the buying patterns of the
customers, target market, profitable and unprofitable
customers, etc., that help to improve performance of the
business.
Collaborative CRM
It allows easier collaboration with customers,
suppliers, and business partners and, thus, enhances
sales and customer services across all the marketing
channels. The major goal of collaborative customer
relationship management applications is to improve
the quality of services provided to the customers,
thereby increasing the customers loyalty. Examples of
collaborative CRM applications are partner
relationship management (PRM), customer self-
service and feedback, etc.
Thank You...

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