Professional Documents
Culture Documents
CUSTOMER RELATIONSHIP
MANAGEMENT
In some companies, just clicking on the link to the first offer will
convert the sales lead into a prospect. It may be time to have your
salespeople call to offer help and guide the sale.
Whatever the sales process for your product or service, an
email campaign delivered in your online CRM is the most engaging
and personal way to get them to pay attention to your message.
Customer
Way too many companies stop courting the business after they have
become a customer. Some feel that customers are not loyal anyway,
so what’s the point? Others believe that if they concentrate their
effort on delivering good products and excellent service – it will be
enough to earn whatever loyalty is possible.
Advocate
Satisfaction
Today’s customers face a growing range of choices in the products and services
they can buy . They are making their choice on the basis of their perceptions of
quality, service, and value. Companies need to understand the determinants of
customer value and satisfaction.
Retention
To create customer satisfaction, companies must manage their value chain as well
as the whole value delivery system in a customer-centered way. The company’s
goal is not only to get customers, but even more importantly to retain customers.
Customer relationship marketing provides the key to retaining customers and
involves providing financial and social benefits as well as structural ties to the
customers. Companies must decide how much relationship marketing to invest in
different market segments and individual customers, from such levels as basic,
reactive, accountable, proactive, and full partnership
CRM cycle
There are four phases to the customer life cycle. The four phases include;
marketing, customer acquisition, relationship management, and loss.
Marketing
The marketing part of the customer life cycle is when messages are sent to the
target market to attract prospect customers.
Customer Acquisition
The next phases is customer acquisition which means prospects become
customers when they place an order.
Relationship Management
The third stage is relationship management. Relationship management is when
resell processes increase the value of existing customers.
Loss/Churn
The end stage of a customer life cycle is loss/churn when inevitably in time a
company may lose a customer. The company then needs to establish a win-back
process. The company then needs to decide which lost customers are of most
value and try to win back their business.
CRM cycle
A CRM system integrates all four phases of the customer life cycle into three major
processes. These processes are solicitation, lead-tracking, and relationship
management. The diagram above depicts the four phases and the three major
processes. It shows the flow of phases and what each phase means.
Types of CRM
Operational CRM
Customer Needs
Customer Response
Customer Satisfaction
Customer Loyalty
Reclaiming Lost Customer
Customer Complaint
Customer service
Importance of CRM
CRM helps the organization to identify customer needs and re-focus its
strategy to serve his better. It helps the company to archive business
growth through development edge and excellence. Some of the major
issue it address are:
Employees.
Difficult to convince buyers when employees are not happy.
Employee relationship building is handled by human resources departments.
Employees are instrumental in building relationships with customers = they have
to be trained + to have access to data & systems used for relationship
management.
3. Lateral partners.
Other businesses that join with the firm for some common goal but not
for transactions with each other (not-for-profit organizations, or
governments).
4. Consumers.
The individuals who are end users of products and services.
Marketers must differentiate between business customers and final
consumers because different tactics are often employed in the B2C and
B2B markets.
CRM Implementation
When people spend money on a product, the last thing you want them
to think is “was this worth it?” To combat this, you should surprise each
one of your customers with a little bonus.
1. A perfect product
2. Delivered by a caring, friendly person in a timely fashion
3. The support of an effective problem resolution process.
KANO MODEL
Customer Satisfaction and Marketing Program
Evaluation
There are seven major gaps in the service quality concept , which are shown in
Figure·
•By getting the middle management to set, communicate and reinforce customer
oriented service standard.
•Measuring performance.
•Proposed by Parasuraman:
•Identified 22 variables:
•22 Variables of Service Quality Measurement Scale
Entirely web-based.
Through ECRM application Contact with customer is made through the phone and fax.
Besides, all the other traditional methods are used in addition to Internet, email, and
wireless technologies.
Geared more toward front end, which interacts with the back-end through use of ERP
systems, data warehouses, and data marts.
Personalized individual views based on purchase history and preferences. Individual has
ability to customize view.
System can be designed based on customer needs. Web application designed for
enterprise-wide use.
Reduction in time and cost. Implementation and maintenance can take place at one
location and on one server.
Security
Users can be defined with access to only certain options using a role based model.
Options applicable to certain roles can be graphically configured and users defined as
fulfilling a given role.
Pages can be encrypted using SSL and ECRM can be configured to only display pages
using SSL to ensure that all information passing over the internet is encrypted.
Users can be defined to see only certain modules on the main menu - so menu options
that they will not have access to be not even displayed on screen.
HTTP security can be configured over the top of the inbuilt security to provide two levels
of security the first to access the web-server at all and the second to actually get into web-
Based ERP.
An audit trail of which users did what is retained and is automatically maintained based
on how long the information is required to be kept.
Advantage of E-CRM
Sales applications
Common applications include calendar and scheduling, contact and account
management; compensation; opportunity and pipeline management; sales forecasting;
proposal generation and management; pricing; territory assignment and management;
and expense reporting.
Marketing applications
These include web based and traditional marketing campaign planning, execution, and
analysis; list generation and management; budgeting and forecasting and marketing
materials management.
Like web sites, "one size fits all" only ensures that
our database may not have the flexibility we need.
Our database may fail to collect the information that
we want and need for our business; or it may fail to
provide our customers all the information they need
to made a purchasing decision.
Definition of Data Warehouse
Traditional data mining programs help companies establish data patterns and
trends by using a number of complex algorithms and techniques.
Dashboards
Text-mining Tools
The third type of data mining tool sometimes is called a text-mining tool because of
its ability to mine data from different kinds of text — from Microsoft Word and
Acrobat PDF documents to simple text files, for example. These tools scan content
and convert the selected data into a format that is compatible with the tool's
database, thus providing users with an easy and convenient way of accessing data
without the need to open different applications.
DATA MINING TECHNIQUES
Neural networks have been used to solve a wide variety of tasks that
are hard to solve using ordinary rule-based programming, including
computer vision and speech recognition.
Decision trees
On-line Banking
Direct selling of books
Automobiles and insurance
Growth of service economy and total quality
management have driven adoption of CRM
Partner relationship with suppliers and customers
for TQM, JIT and MRP seen at Toyota, GM , IBM,
Ford and Motorola
Employee- Organisation Relationship
Radclyffe group conducted a study of call center and found that “satisfied”
contact center employees make for satisfied and loyal customers. Customer
decide whether or not to make future purchasing decisions with company,
or to recommend its service to other, as a direct result of their experiences
with a contact center representative. Organization must do short-term
investment in employee satisfaction efforts through employee training,
good working condition, standard pay and perquisites, participation in
management, employee empowerment etc.
Employee Employee
Behavior Behavior
Essentials of building employee relationship
Employee
Participatio
n
Communica
tion
Providing
strategic
learning
view of
opportunity
manageme
nt
Influencing
employee
behavior
towards
customer
Livening
Incorporati
growth path
ng
with
customer
customer
service in
service
appraisal
orientation
Motivating
employees
for service
innovation
Service Recovery
Service
ServiceFailure
Failureis
the process of NOT keeping promises
Above expectation
(great service)
4
2
Expected Service 3 Zone of Tolerance
5
1
Below 6
expectation
7 8 9
(poor service)
Service Failure – Two Topics
Actions (&
The systems
inactions) of staff
4
2
3
The process
5
1
6
7 8 9
Actions (&
The systems
inactions) of staff
Above expectation
(great service)
4
2
Expected Service 3 Zone of Tolerance
5
1
Below expectation 6
7 8 9
(poor service)
THE LOGIC:
Service Recovery:
is the process for Above expectation (great
resolving Failures service) 4
7 8 9
that maintains the Expected
2
3
Zone of
Tolerance
perception of quality Service 5
1
Below expectation 6
7 8 9
(poor service)
Frequent,
Appropriate Appropriately
trustworthy
compensation trained staff
communication
Potential customer issues
Opportunistic Unrealistic
high-pitched wheel
claims expectations
Service recovery paradox.
Successfully fixing a problem with a defective
product may lead to higher consumer
satisfaction than in the case where no problem
occurred at all.
Problems………….
• to disappointed customer
Plan