CRM stands for customer relationship management. It involves initiating, enhancing and maintaining long-term mutually beneficial relationships with customers and partners through business intelligence strategies. CRM systems allow companies to capture customer data, analyze it to develop insights, and use those insights to improve marketing, sales and customer service efforts with the goal of acquiring new customers, increasing sales to existing customers, and improving customer retention and loyalty. Companies that interact frequently with large numbers of customers in complex ways tend to benefit the most from CRM.
CRM stands for customer relationship management. It involves initiating, enhancing and maintaining long-term mutually beneficial relationships with customers and partners through business intelligence strategies. CRM systems allow companies to capture customer data, analyze it to develop insights, and use those insights to improve marketing, sales and customer service efforts with the goal of acquiring new customers, increasing sales to existing customers, and improving customer retention and loyalty. Companies that interact frequently with large numbers of customers in complex ways tend to benefit the most from CRM.
CRM stands for customer relationship management. It involves initiating, enhancing and maintaining long-term mutually beneficial relationships with customers and partners through business intelligence strategies. CRM systems allow companies to capture customer data, analyze it to develop insights, and use those insights to improve marketing, sales and customer service efforts with the goal of acquiring new customers, increasing sales to existing customers, and improving customer retention and loyalty. Companies that interact frequently with large numbers of customers in complex ways tend to benefit the most from CRM.
CRM stands for customer relationship management. It involves initiating, enhancing and maintaining long-term mutually beneficial relationships with customers and partners through business intelligence strategies. CRM systems allow companies to capture customer data, analyze it to develop insights, and use those insights to improve marketing, sales and customer service efforts with the goal of acquiring new customers, increasing sales to existing customers, and improving customer retention and loyalty. Companies that interact frequently with large numbers of customers in complex ways tend to benefit the most from CRM.
Download as PPT, PDF, TXT or read online from Scribd
Download as ppt, pdf, or txt
You are on page 1/ 17
Introduction to CRM
Session-1 Date: OLD VS. NEW MARKETING
• OLD MARKETING • NEW MARKETING
– Transaction oriented – Relationship oriented – Market share oriented – Share of wallet oriented – All customers are equal – All customers are not equal – Marketers sell – Marketers manage demand – 4P marketing – Relationship marketing – Mass marketing – Individual marketing – Sell to the customer – Manage customer experience – Focus on new customers – Focus on existing customers – Offensive – Defensive – Broadcast oriented – Dialogue oriented – Transaction profit – Customer lifetime value Business Implications Customer Connections Impact Results
“Very Satisfied” Companies that retain
customers are 6 times 5% more customers more likely to typically increase repurchase than merely profitability by 25% “Satisfied” customers
Acquiring new 90% of customers state customers is 6 to 10 that personalization times more expensive would influence their than retaining existing propensity to customers repurchase Sources in Appendix
3 Transaction Marketing • Transaction marketing – the traditional marketing emphasizes that a transaction is an exchange of values between parties & that money is one of the traded values.
• Enter “ Relationship Marketing”
Relationship = Trust
Honesty & Integrity in all dealings Look out for the other Openness in person’s TRUST communication interests Keep your promises & meet your obligations The Meaning of Relationship Marketing
Relationship marketing means identifying,
establishing, maintaining, and enhancing relationships with customers and other stakeholders at a profit, so that the objectives of all parties involved are met; this is done by a mutual exchange and fulfillment of promises. The Four Dimensions Marketing Relationships The Relationship Marketing Continuum
• First Level: Focus on Price
• Second Level: Social Interactions
• Third Level: Interdependent Partnerships
Comparing Transaction-Based Marketing and Relationship Marketing Strategies
10-9 Definition-1
“Customer Relationship Management is
the initiation, enhancement, and maintenance of mutually beneficial customer and partner long-term relationships through business intelligence-generated strategies based on the capture, storing, and analysis of information gathered from all customer and partner touch points and transaction processing systems.”
Baran, Galka, Strunk
Why CRM? • It costs six times more to sell to new customer than to sell to an existing one.
• A typical dissatisfied customer will tell 8-10 people
• By increasing the customer retention rate by 5%, profits
could increase by 85%
• Odds of selling to new customers = 15%, as compared
to those for existing customers (50%)
• 70% of the complaining customers will remain loyal if
problem is solved
• 90% of companies do not have the sales and service
integration to support e-commerce Customer Relationship Framework Benefits of CRM Marketing Benefits: Studies( Bain & Co) have shown that – Customers are profitable over time – The initial acquisition cost exceeds gross margin while retention costs are much lower. – A percent increase in sales to existing customer increases profits by 17 % . – The same amount to new customers increase profits by just 3 %. – A company can boost its profits by 85 % by reducing its annual churn by just 5 %. Why CRM Systems are Being Used
• Identifying prospects • Acquiring customers • Developing customers • Cross-selling and up-selling • Managing migration • Servicing • Retaining • Increasing loyalty • Winning back defectors Who Uses CRM and Why? Firms develop CRM systems for the following reasons: • To increase customer retention and customer loyalty • To stay even with their competition • To attempt to differentiate themselves from their competitors based on their ability to provide outstanding customer service • To encourage development of customer communities and social networks Which Companies Benefit Most from CRM?
• Companies serving large numbers of customers
through complex and frequent interactions:
– Communications companies – Retail banks – Insurance companies – Healthcare organizations – Utilities Which Companies Benefit the Least from CRM Today?
• Companies that engage in minimal interactions with
each customer – Auto dealers – Government agencies
