m





 


 
m 
a

2 Customer Relationship Management is a comprehensive
strategy and process of acquiring, retaining and
partnering with selective customers to create superior
value for the company and the customerî
customer
2 CRM is a management approach a model that puts a customer
at the core of a company processes and practices.
practices.
2 CRM leverages cutting edge technology integrated strategic
planning up-
up-close and personal marketing techniques and
Organization development tools to build internal external
relationships that increase profit margins and productivity
within a company.
company.

 
2 CRM is a cross functional process for achieving:
2 A continuing dialogue with customers
2 Across all their contact and access points, with
2 Personalized treatment for the most valuable customers
2 To increase customer retention and the effectiveness of
marketing initiatives
  
2 CRM¶s can be broken down into three key components.

Fr t Jffice
I teracti J erati s
With (sales,
J erati al
ust mers marketi g,
(email, letters, service etc)
h e,
meeti gs, fax
etc)
E ha ce
lla rative alytical m a y
Relati shi
with ust mer
6  
 w 
  
2 warget
2 Find


6


2 Understand
2 Attract
2 Qualify
2 Close
2 Learn from

2 Develop
ë
2 wo meet the changing expectations of customer due to:
(a) social and demographic factors.
(b) economic situations.
(c) educational standards.
(d) competitors product
(e) experience.

2 Loyal customers are the source of most profits

2 A relatively small percentage of customers may generate most of the profits.
2 Marketing cost and efforts are less for existing customers.
2 Dissatisfied customers tell others about their experiences.
2 So do satisfied customers.

2 Slowing the rate of defection grows the customer base.

2 Reducing costs (e.g. through self-service).



 
ë 





  
  

w  

 !


 





6
 
  
 

 
 CRM Process Framework

!$

 

 "# 



 weam Structure
-increases effectiveness
-improve efficiency Role Specification

Planning Process

 
  

-Account Mgmt Process Alignment -Strategic
-Retention Mktg. -Financial
-Co-op Agreement Monitoring Process -Marketing
-Strategic Partnership ‡ Retention
Communication ‡ Satisfaction
‡ loyalty
Employee Motivation

 
Employee wraining
-Criteria
-Process 6 
-Enhancement
-Improvement
  %

aord - of- Mouth Past
Personal Needs Experience
Communications
6
 
Customer
Perceived Service
External
Service Service Delivery Communications
Provider to Customers
Service quality specifications

Management perceptions of
Customer Expectations
  %
#


Gap 1 : Not knowing what customers expect

Gap 2 : Not selecting the right service design standards
Gap 3 : Not delivering to Service Standards
Gap 4 : Not matching Performance to Promises
Gap 5 : Perceived Service and Expected Service
 #

#
w)w)ë
) ! (
 ( ×
    




 

 


 
 

 
 

 


w
 ! 

ë   &
 ! ' 
6 $
 w *


 
 


 +
 &
   
 
 
 


 
  

+
 &  6


)   



  ,& 6




+
  
   ' -' 
!
'
$
    
Electronic Customer Relationship
Management

Latest paradigm in the world of CRM

ë66
&
2 Due to the introduction of new technology

2 Due to globalization
(to satisfy the customers at global level)
Sometimes customer itself prefer to do online
purchasing.

2 Basically e-CRM is concerned with attracting &

keeping economically valuable customers &
eliminating less profitable ones.

 +!  &
CRITERION CRM e-CRM
Customer Contacts Traditional Means-Retail Through Internet, E- Mail,
Store, Telephone Or Fax ireless, Mobile And PDA
Technologies

System Interface orks ith Backend Designed For Frontend As

Application Through ERP ell As backend
System Applications Through ERP,
Data Mart And Data
arehouse

System IT Requires PC Clients To Here, Browser Is The

Download Various Applets Customers Portal To e-
And Applications. CRM
  ..
CRITERION CRM eCRM
Customization and Different People Require Personalized Views Based
Personalization Different Information But On Purchase Are Possible.
Personalized Views For
Different Audience Are Not
Possible Here

System Focus System Is Designed Around System Is Designed Around

Product And Job Functions. The Customers Need.
Here, Applications Are Enterprise ide Portals Are
designed Around One Designed And Not Limited
Department Or Business To A Single Department.
Unit.
Systems Maintenance And Implementation Is Longer System Implementation
Modifications And Costly. Require Less Time And Cost.
&
+ &
2 Convenience

2 Improvement in overall quality of customer experience

2 Increased profitability
According to Anderson consulting a typical $1b company can gain up to $130 million
through ECRM.
Another study shows that 10% gain in repeat customers can add about 10% in the
company¶s profit.
2 Increased customer loyalty
It include personalization concept of time saving.

collaborative filtering personalization s/w

2 More effective marketing.

2 Improved customer service and support.

whrough ECRM right tools helps sending right orders to right customers at right time.

2 Greater efficiency and cost reduction.



‡ Huge money is required to implement ECRM.

‡ Highly knowledge requiring process.

‡ Results are not according to expectations.

‡ Sales and Marketing are reluctant to adopt new automated

CRM system.
&) 
 
 
 

/0
  '
 /
 
  .

.
  
.    
( a  . #    !

   hink of innovate ways of getting   hink of strategies to move
 them on your side, but the cost of them away from competition
acquisition must be controlled aill consume disproportionately
high energy
/ 
  
' / , 
  
    &&

  '  
"

'1  
.. 6

 
  


2 Don¶t pursue   '  
 
Use opportunity as it comes 
 Short term acquisition should not  
eeds inin--depth strategic review
 affect as acquisition alone and
dissatisfaction later could be more
! Long term image harmful

! (
Profitability Potential

/6
  2 


6  

Î


 

 

 
 





!"#
!



 
   
   


,


)
,

w

,


 ,




 
  

w w


6  

  

  

‡ CRM is Primarily about wechnology

‡ Successful CRM projects are managed by Iw
‡ ³Executive buy-in is the key´
‡ ³We need to roll this out across the enterprise
ASAP´
‡ ³CRM systems are intuitive«. Users will only
need some initial hand holding.´
3ë



2 Not feasible for every market and customers
2 customers donǯt want to be committed to every brand/relationship
2 Not feasible for low-involvement, habitual purchasing in B2B or
B2C
2 Some markets/customers may have low Dzpersonalization potentialdz.

2 Shopping agents used by consumers undercut the idea of relpǯs.

2 The organizational capability to produce a

seamless/personalized experience is more difficult to master
than a transactional approach.

2 Lower tier customers may become disaffected when they find out
service is differentiated.
3ë



2 ³Past history with other management fads and mounting
evidence from the field suggests that most firms will fail
to gain even a fleeting advantage from their CRM
initiatives. Many will be purely defensive, having been
initiated to keep up with the leaders or to narrow
disadvantages. Meanwhile, firms such as Oracle, Siebel
and the Peppers and Rogers Group are busily diffusing
best practices, and hundreds of software vendors are
making their latest database, call center, and sales force
automation software widely available and economical to
use, thus ensuring that all competitors are equally
equipped.´ 






× Moving arget
 
2 Websites:
- ephany.com
- google.com