Professional Documents
Culture Documents
(CRM Overview)
Suhas Aradhye
Flow
CRM Overview
– Conceptual Framework of Customer Relationship Management
– CRM Literature & Basic Concept
– Link between CRM, Database Marketing, and the Importance of
CRM
– Why is CRM an issue today
– Advantages accruing to Corporate on account of CRM practice
Sam Walton,
Multi-billionaire entrepreneur; founder of Wal-Mart
1 In a recent study, it was shown that the main reason companies lose customers is
because of Poor Customer Service!
2 A whopping 68% of customers say they took their business elsewhere because of
poor customer service!
Why????
• A recent study by Xerox found that over 60% of people who change brands
or stores WERE satisfied with their previous choice.
• People who say they are satisfied are just NOT dissatisfied.
But Ultimately…
Excellent Service is creating an exceptional customer experience every single time
1 Xerox found that its very satisfied customers were six times more likely to
repurchase company equipment than were customers who were merely satisfied.
1 One auto dealer’s annual cost of replacing a sales rep who had eight years of
experience with one who had less than a year was $432,000 in lost sales.
1 Service workers are happiest when they are empowered to make things right for
customers and when they have the responsibilities that add depth to their work.
CRM Literature & Basic Concept
FOR ANY SERVICE THE BASIC MINIMUM RE QUIREMENT IS
CUSTOMER’S SATISFACTION
Purpose
Increase Effectiveness
• Team Structure Relationship
Performance
Improve Efficiency • Role Specification
• Planning Process • Strategic
Programs
Account Management • Process Alignment • Financial
Retention Marketing • Monitoring Process • Marketing
Co-op Agreements
Strategic Partnerships
• Communication Retention
Satisfaction
• Employee Motivation Loyalty
Partners • Employee Training
Criteria
Process
Evolution
Enhancement
Improvement
CRM Programs
Customer Mass Markets Distributers B2B Markets
Types
Program Types
Continuity After Marketing Continuous
Marketing Loyalty Replenishment Special Sourcing
Programs ECR Programs Arrangements
Cross-selling
Database Marketing is when you store information about your customers or prospects in
your computers database program. You would then use that to more effectively market
to them. Database marketing can save you money by letting you target your promotional
efforts to your best prospects.
Database Marketing
• Customer Databases
– Identify and analyze customer population
– Group based on similarities
– Recommend separate marketing campaigns for different groups
• CRM
– Applies database marketing techniques at customer level
– Develops strong company-to-customer relationships
• Direct Marketing is a 1:1 interactive system of marketing which uses one or more
media to effect a measurable response or transaction
• Direct Mail is a (media) channel used to deliver a measurable, personal, direct
marketing message to a targeted person or company
• Relationship Marketing or Customer Relationship Marketing (CRM) is managing
the complete customer experience in pursuit of an intimate customer relationship,
resulting in longer-term customer loyalty, value and profitability
• A database is the engine to automatically manage many of the processes required
to record, profile, segment, report and measure changes in customer behaviour
• Data capability – ability to implement database driven relationship marketing
• ATL = Above the Line = all paid media space we see or hear – TV, press,
magazine, radio, billboard etc
• BTL = Below the Line = 1:1 communications B2B or B2C – direct mail, email or
E-dm, SMS, unaddressed or junk mail, etc
What is Profiling?
―If you can’t measure it, you can’t manage it” - the results of all our marketing
communications activity is measured then replicated or fine tuned to improve the
result by:
Setting measurable targets for all marketing activity
Continuously measuring & monitoring the performance of our marketing
activity vs the established target and industry benchmarks
Calculating the ROI on all marketing activity
Analysing what worked and what didn’t, and most importantly why
Fine tuning to improve marketing effectiveness and drive cost efficiencies
Lack of a Strategy
Focus on Price
Lack of tests & controls
Too big and delayed
Failure to use the web
Building In-House
Treating all customers alike
Lack of a retention program
Lack of leadership
It was not just what they sold but, how they sold it!
Reconfiguring the value chain to achieve lower costs and/or better service
1 Food Service –
to Restaurants / Hotels / Institutional Food Service Outlets
1 Consumer Direct Mail Order with Outbound Telemarketing –
to 1.5 million active Consumers
1 Retail & Catalogue Resellers –
Help companies to develop meat department in their stores in Catalogue or on the
Internet
1 Own Retail Outlets –
Give a Customer a Chance to Speak Face to Face with our ―Steak Experts‖ and
Convenience drop in Shopping
1 On Line Marketing –
Since 1990 www.omahasteaks.com
Example #2
Charles Schwab
2005 Eliminates Account Service & Order Handling fees for Retail Accounts &
Small business retirement plans-