Customer Relationship

Management
 Content

 Introduction
 What Is CRM?
 History of CRM
 Why CRM?
 Goals and Objectives
 Benefits of CRM
 How CRM Works!
 CRM Applications
 Key Elements of CRM
 CRM and its Components – Why are they essential?
 Advantages of CRM
 Disadvantages of CRM
 INTRODUCTION

 Customer Relationship Management (CRM) is growing in

importance due to the challenging business environment faced by
organizations throughout the world today.
 If customer relationships are the heart of business success, then
CRM is the valve the pumps a company's life blood.
 What Is CRM?

 CRM, or Customer Relationship Management, is a company-

wide business strategy designed to reduce costs and increase
profitability by solidifying customer satisfaction, loyalty, and
advocacy.
 History of CRM

 1980s: Database marketing emerges.

 1980s: Database helped larger organizations rather then
small who only got survey type info.
 1990s: CRM appears as a two-way communication device.
1990s: CRM leads to programs such as frequent flyer miles
and bonus points on credit cards.
 2000s: Internet has helped expand from stagnant database
and allows off-site information storage.
Customer Relationship Management (CRM): the
business elements of the system
 CRM: steps to success

Successful organizations use three steps to build

customer relationships:
 determine mutually satisfying goals between
organization and customers
 establish and maintain customer rapport
 produce positive “feelings” in the organization and
the customers
 Customer Relationship Management (CRM)
Information Systems

• Capture, consolidate, analyze customer data and distribute results to

various systems and customer touch points (contact points) across
enterprise

• Provide single enterprise view of customers

• Provide analytical tools for determining value, loyalty,
profitability of customers
• Assist in acquiring new customers, providing better service
and support to customers, customize offerings to customer
preferences, provide ongoing value to retain profitable
customers
• Provide customers with a single view of the enterprise at
touch points (web-site ): What would you consider
important in the design of this points of contact
 CRM I.T. software

• Ranges from niche tools to large-scale enterprise

applications
• Typically include tools for sales, customer service, and
marketing
• CRM I.T. system should include:
• Partner relationship management (PRM) modules
• Enhances collaboration between company and selling partners
• Employee relationship management (ERM) modules
• Deals with employee issues closely related to CRM, e.g. setting
objectives, employee performance management
 Sales force automation (SFA) modules

• Enable focusing efforts on most profitable customers

• Enables sharing customer and prospective customer
information (what other type of application/technology may
be used in conjunction with this)
• Helps reduce cost per sale and cost of acquiring, and retaining
customers
 Customer service modules

• Assigning and managing customer service requests

• E.g. managing advice phone lines, Web site support
 Marketing modules

• Capturing prospect and customer data,

• Providing product and service information
• Qualifying (determining) leads for targeted marketing
• Scheduling and tracking direct-marketing mailings or e-mail
 Analysing customer and marketing data

 Identifying profitable and unprofitable customers

 Designing products and services to satisfy specific
customer needs and interests (niche products)
 Identifying opportunities for cross-dressing
Customer Loyalty Management Process Map
 Business value of CRM

• Increased customer satisfaction

• Reduced direct marketing costs
• More effective marketing
• Lower costs for customer acquisition and retention
• Increased sales revenue
• By identifying profitable customers and segments for focused
marketing and cross-selling
• Reduced churn rate (number of customers who stop using or
purchasing products or services): indication of customer
dissatisfaction
Evolution of CRM
Cont..
 Goals and Objectives

1. Customer Satisfaction
2. Run an Efficient Business
3. Produce Better Marketing Campaigns
4. Gaining New Customers
5. Boost Sales
 Benefits of CRM

 Increased customer satisfaction

 Identify new selling opportunities
 Increased market share and profit margin
 Increased revenues
 More effective reach and marketing
 Improved customer service and support
 Improved response time to customer requests for
information
 Enhanced customer loyalty
 Improved ability to meet customer requirements
 Improved quality communication and networking
 How CRM Works!

 To make sure that all of your customers receive the most personal
attention possible, we at Straight Marketing make the process and
implementation of CRM easy and professional.
 Suppose you were bombarded with a customer’s telephone calls
every day, wanting to know the status and progress of the
services you are providing.
CRM Applications
 Three Types of CRM

 Operational CRM
 Collaborative CRM
 Analytical CRM
 Purpose

 providing services and products that are exactly what your customers want
 offering better customer service
 cross selling products more effectively
 helping sales staff close deals faster
 retaining existing customers and discovering new ones
 make call centers more efficient
 simplify marketing and sales processes.
 CRM and its Components

 People Management
 Lead Management
 Sales Force Automation
 Customer Service
 Marketing
 Workflow Automation
 Business Reporting
 Analytics
 Advantages of CRM

 While company is quickly growing, customers are more satisfied

as well
 Service provided in a better way, and a quicker way
 Sales force automated
 Integrated customer information
 Certain processes eliminated
 Operation cost cut, and time efficient
 Brand names more quickly established
 Lets you pick and choose the functionality that you want
 Disadvantages of CRM

-Organizational wise change of priority to customers.

- Significant investment of time and money
- Threatens management’s control/power struggle
- Heightens people’s resistance to change
- Inappropriate integration leads to disaster
 27

Types of CRM

Chapter 3 – Types of CRM

Introduction to Types of CRM
28

• Broadly there are three types of CRM

• Operational CRM
• Collaborative CRM
• Analytical CRM

Chapter 3 – Types of CRM

 Two main categories of CRM

 Operational CRM
 Customer-facing applications, e.g. tools for sales force
automation, call centre and customer service support,
marketing automation
 Analytical CRM
 Applications that analyse (OLAP, data mining, etc.) customer
data
 Based on data warehouses consolidating data from operational
CRM systems and customer touch points
 One important output: Customer lifetime value (CLTV)
 Value based on revenue produced by a customer, expenses
incurred in acquiring and servicing customer, and expected life
of relationship between customer and company
Analytical CRM data warehouse
Operational CRM
31

• Part of CRM that supports daily sales, marketing or service

tasks

• Involves creating target groups based on criteria

revealed by the data analysis or managing event
attendance e.g. in seminars

• Mostly involves areas where there is a direct

customer contact

• Deals with customer touch points e.g. a call to a

customer support helpline
Chapter 3 – Types of CRM
Components of Operational CRM
32

• Sales Force Automation

• Enterprise Marketing Automation

• Activity Management

• Campaign Management

Chapter 3 – Types of CRM

Collaborative CRM
33

• Collaborative CRM broadly consist of two major

aspects
• Interaction Management

• Channel Management

Chapter 3 – Types of CRM

Analytical CRM
34

• Analytical CRM supports back office operations and

analysis, It deals with all the operations and
processes that do not directly deal with customers

• Primary Goal of Analytical CRM is to develop, support

and enhance the work and decision making capability
of an organisation

Chapter 3 – Types of CRM

Features of Analytical CRM
35

• Seizing all the relevant and essential information of

customers for creation of knowledge repository

• Determining, developing and analysing inclusive set

of rules and analytical methods to scale and optimise
relationship with customers

• Implementing or deploying the results to enhance the

efficiency of CRM system and processes

Chapter 3 – Types of CRM

Features of Analytical CRM
36

• Combine and integrate the values of customers with

strategic business objectives

• Analytical CRM is a solid and consistent platform

which provide analytical applications to help predict,
scale and optimise customer relations

Chapter 3 – Types of CRM

 Advantages of Analytical CRM
37

• Leads in making more profitable customer base by

providing high value services

• Helps in retaining profitable customers through

sophisticated analysis and making new customers
that clones best customers

• Helps in addressing individual customer’s needs and

efficiently improving the relationships with new and
existing customers

• Chapter
Improves
3 – Types of CRM
customer satisfaction and loyalty
 Analytics has following role in the Customer
life Cycle Management
38

• Customer analytics

• Marketing analytics

• Sales Analytics

• Service Analytics

• Channel Analytics

Chapter 3 – Types of CRM

Future CRM Trends
Summary
 CONCLUSION

 For higher level customers that require personal assistance in the

CRM process (like the relationship with a major client), keep in
touch on a personal basis.
 Don’t rely solely on an email newsletter as a means of engaging
with these types of customers.
 Personal & professional attention is more than likely what they
pay for, and that’s what these customers should get.