Professional Documents
Culture Documents
1 - Introduction To CRM PDF
1 - Introduction To CRM PDF
1 - Introduction To CRM PDF
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Course Summary
Topic
Articles
Case Discussion
Evaluation
Class Participation
10
Case Submission
35
Quiz (2 x 10 marks)
20
35
Weight
Session objectives
By the end of the session, students are expected to:
Gain an overview of Relationship Marketing
Learn important concepts pertaining Customer
Relationship Marketing (CRM)
Understand the common CRM related mistakes made
by firms
Appreciate the importance of customer firm
relationship in CRM projects through discussion of an
article
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Rhyming Relationships
Its better to think about customer satisfaction,
than to settle for optimizing a solo transaction.
If you want to see profits becoming sensational
you need to start thinking of exchange as relational.
And if you want to see all your rivals go bust
you'll generate commitment by enhancing your trust.
There's simply no doubt that this all will transpire:
It's more profitable to retain than it is to acquire.
Source: American Marketing Association
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Overview of CRM
Culture
Process
Technology
Customer
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Relationships vs Transactions
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Forms of Relationships
1. Supplier Partnerships
2. Lateral Partnerships
Goods Suppliers
Service Suppliers
Competitors
Government
Non-Profit Org.
Focal firm
4. Internal Partnerships
3. Buyer Relationships
Ultimate Customers
Intermediaries
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Functional departments
Employees
Business Units
Value Proposition
Communication
Inducement
Pre-sale engagement
Customer Retention
Loyalty programs
Customization of products / services
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CRM means
Direct communication (e-mails, phone calls etc.)
Mass customization
Technical Jargon (OLAP, CIC etc.)
CRM Organization
Customer facing Operations [Call centre, Boundary Spanners]
Back Office [ IT, Marketing, Finance, Service Planning, Mfg.]
Support Agencies [Vendors, Channel Partners]
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Customer Database
Transactions, Customer
Contacts, Descriptive
Info, Response to Mktg.
Stimuli, Historical Data
Database Analysis
Customer Selection
Personalized E-mails (NBA,
South West Airlines),
Mailers, Coupons, RSS
feeds
Targeting Tools
Relationship Marketing
Irritation
Feeling of Violation
Fear
(Obtain consent before
Approaching customer)
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Privacy Issues
CRM Metrics
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Accidental disenfranchisement
Going behind the elite may erode your base (Customer Apartheid)
Think through what you are sacrificing before committing yourself
Incrementality
Implementation without homework can make you a laughing stock
If you have 100 hours, sharpen the axe for 99 hours
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Summary
WHY CRM?
Retain profitable customers
Reduce Customer Churn
Cheaper to retain customers
Opportunity to upsell &
cross-sell
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Superficial,
Fleeting
Two-way Relationships
Firms encourage bad behavior (e.g. Best Buy)
Best customer trap - creating expectation (e.g.
Filenes basement)
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