What is Customer Relationship management?

Customer relationship management is creating a team relationship among sales, marketing, and customer support activities within an organization. Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made. Shani and Chalasani define relationship marketing as “an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for mutual benefit of both sides, through interactive, individualized and value-added contacts over a period of time”. The core theme of all CRM and relationship marketing perspectives is its focus on co-operative and collaborative relationships between the firm and its customers, and/or other marketing factors. CRM is based on the premise that, by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them. Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries by Info quest. The conclusions of the study were: • A Totally Satisfied Customer contributes 2.6 times more revenue to a company as a Somewhat Satisfied Customer. • A Totally Satisfied Customer contributes 17 times as much revenue as a Somewhat Dissatisfied Customer. • A Totally Dissatisfied customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business. • By reducing customer defection (by as little as 5%) will result in increase in profits by 25% to 85% depending from industry to industry.

CRM is defined as: Customer Relationship management is a comprehensive strategy and process of acquiring. However. In CRM. Hence. In some cases. it could even lead to “outsourcing of some customers” so that a company better utilize its resources on those customers it can serve better and create mutual value. . retaining and partnering with selective customers to create superior value for the company and the customer. As is implicit in the above definition.An important facet of CRM is “customer selectivity”. The basic concept is that the customer is not someone outside the organization. the purpose of CRM is to improve marketing productivity. As several research studies have shown not all customers are equally profitable (Infact in some cases 80% of the sales come through 20% of the customers). The company must therefore be selective and tailor its program and marketing efforts by segmenting and selecting appropriate customers for individual marketing programs. Marketing productivity is achieved by increasing marketing efficiency and by enhancing marketing effectiveness. he is a part of the organization. marketing efficiency is achieved because cooperative and collaborative processes help in reducing transaction costs and overall development costs for the company. Two important processes for CRM include proactive customer business development and building partnering relationship with most important customers. the objective of a company is not to really prune its customer base but to identify appropriate customer programs and methods that would be profitable and create value for the firm and the customer. These lead to superior value creation.

• Maximizing Life time value Exploit up-selling and cross-selling potential. And the same customers’ reaction to a cellular company operator may be quite different as compared to a car dealer. Besides for the same product or the service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer.Lifestyle and age . As the satisfaction level for each customer improve so shall the customer retention with the organization. Preferences and Personalities . recognize and reward best customers disproportionately. Understanding each customer becomes particularly important. Tastes. By identifying life stage and life event trigger points by customer. What CRM needs to understand while differentiating customers is? .Key CRM principles Differentiate Customers: All customers are not equal. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances. .Sensitivities.Physical and psychological characteristics • Differentiating Offerings → Low value customer requiring high value customer offerings → Low value customer with potential to become high value in near future → High value customer requiring high value service → High value customer requiring low value service • Keeping Existing Customers Grading customers from very satisfied to very disappoint should help the organization in improving its customer satisfaction levels and scores. marketers can maximize share of purchase potential.Culture Background and education .

It has to innovate and meet the very needs of its clients/ customers so that they remain as advocates on the loyalty curve. Ironically. . Any company will like its mind share status to improve from being a suspect to being an advocate. improved the balance-sheets of all banks irrespective of their core performance. the Reserve Bank of India's moves to cut aggressively the interest rates after 1999. like manna from heaven. So banks had a windfall doing almost nothing. However. And to their credit. pushed up the prices of bonds. it is imperative that Indian banks wake up to this reality and re-focus on their core asset — the customer. they survived by adapting quickly to the new rules of the game. when the banking sector was opened up. the era of lazy banking is soon to end. Referral sales invariably are low cost high margin sales. The bond profits. Many managed to post profits. simply because they had customers.• Increase Loyalty Loyal customers are more profitable. Therefore. For them an unexpected bonanza came from government bonds in which most were hugely invested. Company has to invest in terms of its product and service offerings to its customers. Indian banks had presumed that their operations were customer-centric. A greater focus on Customer Relationship Management (CRM) is the only way the banking industry can protect its market share and boost growth. what with more freedom to come in. grow and acquire. India will see foreign banks come in. CRM in Banks For long. These banks ruled the roost. India will have a competitive banking market after 2009. As one of the most attractive emerging market destinations. The mesh of rules that propped up the Indian banking industry is now being dismantled rapidly. According to a RBI road-map. protected by regulations that did not allow free entry into the sector.

activities and culture to improve his satisfaction of service and. While this may sound quite straightforward. an expensive software product. create. it requires a well-thought-out initiative involving strategy. . Above all. should it link to an IT solution. probably. technology and business process. and what will it deliver to the banks? CRM is. Therefore. Only time will tell how Indian banks embrace the CRM philosophy and take on the competition from foreign entities. it requires the realisation that the CRM philosophy of doing business should be adopted incrementally with an iterative approach to learn at every stage of development. A successful CRM strategy aims at understanding the needs of the customer and integrating them with the organisation's strategy. in turn. people. CRM has also become a misnomer for a range of solutions from IT vendors. for large organisations it can be a mammoth task unless a gradual step-by-step process is adopted. as there is no single definition for it. maximise the profits for the organisation. or even a new method of data collection. people." What is CRM. technology. one of the least clearly defined business acronyms. It does not happen simply by buying the software and installing it. and processes. CRM is a simple philosophy that places the customer at the heart of a business organisation's processes. and satisfy customer needs.CRM would also make Indian bankers realise that the purpose of their business is to "create and keep a customer" and to "view the entire business process as consisting of a tightly integrated effort to discover. For CRM to be truly effective. Unfortunately. one of the best ways of launching a CRM initiative is to start with what the organisation is doing now and working out what should be done to improve its interface with its customers. Then and only then. CRM is variously misunderstood as a fancy sales strategy. It is probably easier to say what CRM is not. each providing its own spin on the idea. It is none of these.

Progressive globalization and achieving international standards. The Bank today is capitalized to the extent of Rs. i. and other four PSU companies. Life Insurance Corporation of India (LIC) and General Insurance Corporation Ltd. The Oriental Insurance Corporation and United Insurance Company Ltd.26%. This is one of the largest ATM networks in the country.I). The Bank has a network of over 2468 ATMs providing 24 hrs a day banking convenience to its customers. after the Government of India allowed new private banks to be established. Efficiency and effectiveness built on ethical practices.e. The New India Assurance Company. Integrity and People .About Axis Bank Axis Bank was the first of the new private banks to have begun operations in 1994. National Insurance Company Ltd. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. 355. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. Continuous technology upgradation while maintaining human values. Core Values • • • Customer Satisfaction through o Providing quality service effectively and efficiently o "Smile.. the Bank has a very wide network of more than 572 branch offices and Extension Counters. it enhances your face value" is a service quality stressed on o Periodic Customer Service Audits Maximisation of Stakeholder value Success through Teamwork. Mission And Values Our Mission • • • • Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI .74 crore with the public holding (other than promoters) at 57. Presently.

India is likely to emerge as a significant player in this segment. catering primarily to the American and European markets are coming up in and around the metros. Tata Teleservices. Carrierr Airrcon. both products as well as services. Adoption of CRM by Indian companies is at an infancy stage. India is fast becoming an important development base of major CRM companies. HP India. . AC Nielsen. and EpicenterTechnologies among many others. This trend is likely to increase in the future. Escotel. Call centres. among others. The CRM enabled companies include Modi Xerox. Satyam Infoway. Tata Telecom. India even has a CRM Foundation in New Delhi. Tata Infotech.Planet M. and Motorola India. With is vast talent pool. TVS Electronics. Founding members include Tata Telecom. It is therefore no surprise that the Indian companies are jumping into the CRM bandwagon to seize a chunk of the global market. Carrier Refrigeration.Conclusion Software is to India what oil was to Gulf. founded with the purpose of assessing and improving CRM practices. With the easing of infrastructure constraints. Modi Xerox. Global Groupware.

Sign up to vote on this title
UsefulNot useful