Customer Relationship

Management
By,
Dr. Madhurima Deb
 Marketing Defined
• A social and managerial process by which
individuals and groups obtain what they
need and want through creating and
exchanging products and value with
others.
 Exercise 1.1
• Identify and discuss five most important
founding concepts of marketing.
Core Marketing Concepts
Transform the 4Ps into a 4Cs.
Four Ps Four Cs
Product Customization
Price Clear value to the customer
Place Convenience
Promotion Communication
WHAT IS CUSTOMER RELATIONSHIP
MANAGEMENT ?
 Definition
• Automation of horizontally integrated business processes involving front
office customer contact points (marketing, sales, service and support) via
multiple interconnected delivery channels’, Metagroup (2000).
• Gronroos and Berry (1963), “CRM is the process of acquiring, developing
and retaining relationship with customers”.
• Gartner (2004), “CRM is an IT enabled business strategy the outcomes of
which optimizes profitability, revenue and customer satisfaction by
organizing around customer segments, fostering customer-satisfying
behaviors and implementing customer-centric process”.

• Eg. Flipkart, Amazon, Banks etc

 CRM as Business Strategy

Utilization of the scarce resources

in a profitable way.

Production/ Operation HR IT

Finance Sales & Marketing

 Elements of CRM
• In order to serve the customers profitably core
elements that are needed are,
1. Customer Knowledge
2. Relationship Strategy
3. Individual value proposition
4. Communication (multi-channel integration)
 Process and System of CRM
• It begins from ‘moment of truth’
• Integration of both front and back end
operation.
Success of CRM requires
1. Retain profitable customers in the business
portfolio.
2. Due to Industrial revolution relationship
dissipated between customer & suppliers.
3. Gaps increased.
4. From 1980’s onwards the concept of
relationship marketing slowly started gaining
momentum.