BPFI Session 08

Business Process Implementation Using CRM
Objectives
In this session, you will learn to:

Identify Customer Relationship Management
Implement customer relationships
Identify obstacles in implementing Customer Relationship
Management
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Identifying Customer Relationship Management
Customer Relationship Management (CRM):

Helps in improving customer satisfaction.
Helps in retaining the customers and increasing the customer
base in the long run.
Helps in increasing the revenue.

Defining CRM
CRM is:
A systematic approach, adopted by organizations, towards
using customer information and building long-lasting mutually
beneficial customer relationships.
A convergence of business strategies and information
technology.
Concerned with the way the employees use resources.
The goals of CRM are:
Delivering the requested product at the right time to customers
Offering exclusive services to the customers
Helping the sales team to capture business deals faster
Retaining regular customers and discovering new customers

Functional Areas of CRM
The functional areas of the organization that are directly

affected by CRM are:
Marketing
Sales
Service

Functional Areas of CRM (Contd.)
Marketing:
CRM helps analyze products and their features that customers
prefer. This analysis can help to:
Develop a marketing strategy.
Plan a marketing campaign.
Provide support to lead management.

Sales:
CRM helps the Sales department to utilize the customer
information to:
Manage the opportunities.
Manage the sales activities.

Service:
CRM helps the Service department to utilize the customer
information to:
Manage the service order.
Manage the warranty issues.
Manage the Information.

CRM Life Cycle
The CRM process:

Helps to improve the functioning of all the businesses, such as
sales, marketing, and service of an organization.
Can be best understood by analyzing the stages of the CRM
life cycle, which has the following four phases:
Customer comprehension and differentiation
Product development and customization
Customer interaction and product delivery
Customer acquisition and retention

CRM Life Cycle (Contd.)
The following figure represents the CRM life cycle.

Implementing Customer Relationships
An organization can build customer relationships by:

Understanding the customer needs.
Identifying the types of customers.
Understanding the customer life cycle.
Using various communication channels.
Recording customer queries and information.
Handling customers efficiently.

Understanding the Customer Needs
To serve the customers in an efficient manner, an

organization needs to understand its customers’
perspective.
Understanding customer needs:
Helps each department of the organization to increase the
customer base.
Affects the growth of business in any organization.

Identifying the Types of Customers
Depending on if the customers are internal or external to an

organization, they are classified as:
Internal Customers: Refer to employees and executives within
an organization. They support the organization in handling the
external customer requirements.
External Customers: Refer to the people and organizations
with a need for the organization’s product or service.
Depending upon their buying habit and behavior, external
customers are classified as:
Marketplace customers
Prospective customers
Former customers
Current customers

Understanding the Customer Life Cycle
The following figure represents the customer life cycle.

Using Various Communication Channels
Selection of a communication channel depends on:

The type of product.
The expenses incurred.
The communication channels can be:
Direct
Online
Call center
Media

Recording Customer Queries and Information
Recording customer queries and information in a

centralized database helps:
The marketing, sales, and service departments to access
common data.
The CSRs to quickly resolve similar type of queries from other
customers.

Handling Customers Efficiently
In CRM, customers are handled at:

Front-desk: Front-desk support involves direct interactions
between the customer and the organization.
Back-end: Back-end support involves analyzing the data that
contains customers’ queries and problems.

Demo: Types of Customers
Problem Statement:
Match the following scenarios with the type of customers to
which they refer.
Scenarios Type of Customer
Jack, a customer, has decided to buy his next car Marketplace customer
from a different auto dealer, who provides better
finance scheme along with extended warranty period.
Jack, a customer, visits a car showroom and makes Current customer

enquires regarding a particular car model.
Jack, a customer, visits a particular grocery store on Former customer

a weekly basis.
Jack, a customer, uses a motorbike. A car dealer Prospective customer

approached him and explained the easy payment
options he can avail to buy a car.

Demo: Communication Channels
Problem Statement:
Match the following scenarios with the type of customers to
which they refer.
Scenarios Type of Customer
Conducting a face-to-face interaction with the Online
customer, thereby understanding customer
expressions and instantly replying to customer
queries.
Interacting with national and international customers Call center
by using the Internet.
Interacting with customers over telephones by using Direct

a centralized customer interaction system.

Identifying Obstacles in Implementing CRM
For a successful CRM implementation, an organization

must be prepared to address the following challenges:
Cultural resistance
Organizational redesign
Time and financial obligations

Summary
In this session, you learned that:

CRM is a systematic approach that helps organizations use
customer information and build long-lasting mutually beneficial
customer relationships.
The goals of CRM are:
Delivering the requested product at the right time to customers
Offering exclusive services to the customers
Helping the sales team to quickly capture business deals
Retaining the regular customers and discovering new ones
The functional areas of the organization that are affected by
CRM are:
Marketing
Sales
Service

Summary (Contd.)
The CRM life cycle explains the CRM process carried out by
an organization to ensure that the needs and preferences of
the customers are fulfilled effectively and on time.
The various phases of the CRM life cycle are:
Customer comprehension and differentiation
Product development and customization
Customer interaction and product delivery
Customer acquisition and retention
An organization can build customer relationships by:
Understanding the customer needs.
Identifying the types of customers.
Understanding the customer life cycle.
Using various communication channels.
Recording customer queries and information.
Handling customers efficiently.

Summary (Contd.)
Depending on if the customers are internal or external to an

organization, they are classified as:
Internal Customers
External Customers
Depending upon the buying habit and behavior, external
customers are classified as:
Marketplace customers
Prospective customers
Former customers
Current customers
A Customer Life Cycle (CLC) depicts the behavior of a
customer towards an organization.

Summary (Contd.)
CLC varies depending upon the types of products. It generally

consists of the following four phases:
Identify
Acquire
Convert
Retain
The communication channels can be:
Direct
Online
Call center
Media
For a successful CRM implementation, an organization needs to
address three specific challenges. These are:
Cultural resistance
Organizational redesign
Time and financial obligations

BPFI Session 08

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Business Process Implementation Using CRM

In this session, you will learn to:

Ver. 1.0 Slide 1 of 23

Customer Relationship Management (CRM):

Ver. 1.0 Slide 2 of 23

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The functional areas of the organization that are directly

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The CRM process:

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The following figure represents the CRM life cycle.

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An organization can build customer relationships by:

Ver. 1.0 Slide 10 of 23

To serve the customers in an efficient manner, an

Ver. 1.0 Slide 11 of 23

Depending on if the customers are internal or external to an

Ver. 1.0 Slide 12 of 23

The following figure represents the customer life cycle.

Ver. 1.0 Slide 13 of 23

Selection of a communication channel depends on:

Ver. 1.0 Slide 14 of 23

Recording customer queries and information in a

Ver. 1.0 Slide 15 of 23

In CRM, customers are handled at:

Ver. 1.0 Slide 16 of 23

Jack, a customer, visits a car showroom and makes Current customer

Jack, a customer, visits a particular grocery store on Former customer

Jack, a customer, uses a motorbike. A car dealer Prospective customer

Ver. 1.0 Slide 17 of 23

Interacting with customers over telephones by using Direct

Ver. 1.0 Slide 18 of 23

For a successful CRM implementation, an organization

Ver. 1.0 Slide 19 of 23

In this session, you learned that:

Ver. 1.0 Slide 20 of 23

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Depending on if the customers are internal or external to an

Ver. 1.0 Slide 22 of 23

CLC varies depending upon the types of products. It generally

Ver. 1.0 Slide 23 of 23

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