Customer Relationship Management

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Customer?

Preference

Need Want Perception Demand Expectation

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What is CRM?

Process of managing
detailed information Data

about individual customers

and carefully managing all
customer “touch points” Interactions

to maximize customer
Satisfaction
loyalty. and
retention

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Customer Relationship Cycle
New customer

Buyer Motivation Attention, Interest Attitude formation Integration / Action Learning (Use/Own) Trust and Advocacy
Psychology Comprehension, commitment
(Need / Wants) Preference, Expectation,
Perception Belief, conviction, Desire
See Think Engage Do Care

Buyer Problem Recognition Alternative Evaluation Purchase Decision Post purchase evaluation Repeat purchase Refer
Information Search
Decision
(Discovery) (Exploration) Adequacy of solution

Business Activation / Conversion Care Bond / Retention Loyalty

Awareness, Educate, Connect
priorities

Interaction

Engagement (Nurture)
Value
Management
Experience (Exceptional / Memorable)

Customer Satisfaction / Delight

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CRM Strategy

Widen customer < base >

Enhance customer < loyalty* >

Maximize customer < profitability >

+

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Listen and respond
Customer Centricity

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Customer Satisfaction is a customer’s feelings of pleasure or
disappointment that result from comparing a product or
service’s perceived performance (or outcome) to
expectations.

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Customer Loyalty New customer

Referral / WoM / Testimonials

Cross-Sell / Up-Sell)

Buyer Motivation Attention, Interest Attitude formation Integration / Action Learning (Use/Own) Trust and Advocacy
Psychology Comprehension, commitment
(Need / Wants) Preference, Expectation,
Perception Belief, conviction, Desire

Buyer Problem Recognition Information Search Alternative Evaluation Purchase Decision Post purchase evaluation Repeat purchase Refer
Decision
(Discovery) (Exploration) Adequacy of solution

Business Activation / Conversion Care Bond / Retention Loyalty

Awareness, Educate, Connect
priorities

Economic
Cost of acquisition Cost to Serve Cost of Loyalty
Impact
Share of wallet (Cross-
Sell / Up-Sell)

Customer Lifetime Value

Stays Longer Buys more (re-purchase) Willing to pay premium Less sensitive to Price Costs less to serve
Higher Lifetime Value Recommends to others – Referrals, WoM, Testimonials Helps innovation Customer equity
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NPS (Net Promoters Score)

Economic Impact Positive

Word of Mouth
How likely is it that you would Annual Spend Economic
recommend this product or service to a Benefits
Cost to Serve

Customer Lifetime Value (CLV in $)

friend or colleague?
Cost to Acquire

Initial Customer Initial Customer

Base Value Base Value

Cost to Acquire Promoters

Cost to Serve
Economic
Annual Spend Penalties
Negative
Word of Mouth
Detractors

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Facts…
A disappointed customer will notify 8-10 people but satisfied will inform to 4-5 people

A 5 percent reduction in the customer defection rate can increase profits by 25 percent to 85
percent, depending on the industry

54 percent to 70 percent will do business with the organization again if their

complaint is resolved

Average company loses 10% of its customers each year

Acquiring new customers can cost five times more than satisfying and retaining current ones.

90% of companies do not have the sales and service integration to support e-commerce

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CRM Features

Tools Information Collaboration Any Device Connect Track

Personalization Automation View Integration Insights Industry Soln.

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CRM Sales Plan, Manage & Execute (Direct Sales force, Channel Sales, e-commerce)
(Attract, Acquire, Grow and Retain, Consistent interaction, long-term relationship)

Sale Account Contract Sales performance

planning & Forecasting management management Management

Sales Targets, Account / Territory Management,

Demand plans , Historical
data, sales forecasts,
revenue projections,
collaboration, flexible
modelling
Customer specific pricing,
3600 View customer / Deal/Pipeline Management,
Value / Qty based
contacts I Segmentation I Prioritize resources, Targets
contracts, Agreements,
Interaction History I Buying and Quotas, Track
status tracking, cancellation
Center I Focus performance, Incentive and
rules, credit management
commission management

Opportunity Activity Quotes & order Sales

management management management Insights

Insights in Sales, Revenue

Visibility in Sales cycle, Order To Cash, quotes,
Capture Sales activities, trends, Opportunities, Sales
Focused Sales Pipeline, Orders, Pricing, product
Fosters collaboration, Success,
Collaboration, Influence availability, delivery
Groupware Integration, Sales Performance, Cost to
Management, demand commitment, status, Credit
Tracking Serve, reports and
generation worthiness, Integration
dashboards

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CRM Marketing Plan, Manage & Execute - Acquisition, Conversion & Retention
(Marketing accountability, effectiveness, productivity and efficiency, Customer insights, Visibility, Control and Track, Optimize, Collaborate, deepen customer relationship)

Marketing Lead Segmentation & Campaign

Resource Management Management Management
Planning and budget, Resource Targeted experience, Analyze,
Planning, Integrated Marketing plan, develop, execute & measure
calendar, Marketing program Generate, qualify, & distribute campaign Automation, Digital +
management, Marketing funds (nurture leads), Collaboration Traditional campaigns, Offer mgt.,
+ Spends mgt., Brand with sales personalize, collaboration, ELM,
management, Content Marketing permissions
Management (CMS)

Asset Loyalty Marketing

management Management Insights

Customer insights, Share of

Member Management, Reward
Digital Asset Management, Wallet, Market Share, Campaign
platform, incentivize,
Content Management ROI, Pattern recognition,
Acquisition to retention,
visualization, Spend Vs. Success,
Deepen relationship
Social media analysis

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CRM Service Plan, Manage & Execute
Service
planning & Forecasting
Service Targets, Demand plans ,
Historical data, Service
forecasts, revenue projections,
collaboration
Field Service
Management
Installed Base Management,
Customer and vendor warranty
Service order management,
Resource scheduling and
dispatching , Onsite service
execution, Resource
Management, returns and repair
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Contract Customer
management Service & Support
Service Request & complaint,
Contracts and agreements,
Case management, Service
periodic, Milestone, Usage
order management, Knowledge
based contracts, SLAs,
management, Multi channel
Renewals / cancellation
support
Warranty & Claim Service
Management Analytics
Insights in Sales, Revenue
management, Product and trends, Opportunities, Sales
warranty registration , , Success, Sales Performance,
Warranty claim processing, Cost to Serve, reports and
Recall handling dashboards
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CRM Architecture Example

Mobile Web In Store Contact Center Social Email

Digital Goods Print Things

Streaming
CRM Data & Process Management
User Management Process: Plans / Forecasts / Quotes / Orders / contract / Inventory (Stock) /
Segmentation / Recommendation / Campaign (Promotions) / offers / Interactions
Monitoring / Invoicing (Billing) / loyalty - Coupon / Payments / Complaints / Query / Cases

Integration Data: Accounts / contacts / Products / prices / Articles / Assets / transactions

Load Balancer

Data Base
Payment Providers Analytics

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Deciding Factors
Business
Strategy: Goals and Budget I Investment
FI: Margin Vs Revenue per customer Vs.
No. of customers I TCO
Focus: Products Vs Costs Vs. services
Value prop: Image Vs. Relationship Vs.
Product
Channels: GTM I Management
Challenges: Problem I Pain Point I Must
Have I Should Have I Nice to Have
Metrics: Growth I Market share I ROI I LTV
I SOW
People: Skill Set I Capabilities
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Vendor
Leadership: Vision, Strategy & Road
map I customer base I reputation I
Viability I Thought leadership I
Innovation
Partnership: Ecosystem
Capabilities: Product offerings I Skills I
Experience I Domain expertise
Price: Cost Vs Value
Architecture
Infrastructure: Shared Vs. Siloed I
Owned Vs Rented
Features: Suite Vs Best of Breed
Implementation: In-house Vs
Outsource
Integration: External I Backend
Scalability: Modular architecture
© Santosh Kavatkar
Product (CRM)
Price: Cost Vs Value
Usability: User Experience (UX),
Functionality: Global I local I
Industry Solutions I Cross platform I
flexibility – customization, digital I
Complexity I Customer experience I
Multi-channel ability
Analytics
Others: Maintenance I Reliability I
Security I Risk
Data
Ownership of data (API Access and
Backup) I Quality I Security I privacy
I Data driven processes I Content
16
CRM Insights # Cost to Serve
# Customer retention # Predictive analytics
# Credit worthiness
# Inventory # Prescriptive analytics
# Customer Satisfaction Feedback
# ROI Marketing
# Key Buying Factors (KBF)
# Plan Vs Actuals
# Pipeline conversion
# Customer reach # Lead conversion rate

# Service performance # Share of Wallet

# Service Average time # Social listening Intelligence – Clicks /
likes etc.
# Response and resolution time
RFM Brand Perception: Sentiments, Brand
# Handle time Awareness, Market share, Net Promoter
# Return %
Score
# Contact Center – call time, response time
# CLV – Customer Lifetime Value

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Imperative for success (CSF)

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Imperative for success (CSF) - approach

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Imperative for success (CSF) - Execution

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Imperative for success (CSF)

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Imperative for success (CSF)

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 Thank You
Santosh Kavatkar
Consulting I Digital Innovation I Customer Experience Management
Santosh (dot) Kavatkar (at) Gmail (dot) com
/santoshkavatkar

Disclaimer
Content, thoughts, and views expressed in this presentation and in class belongs solely to Presenter and not necessarily to the Presenter's employer, organization, committee or
other group or individual. Also, Presenter believes that use of materials in this presentation constitutes a ‘fair use’ of any such copyrighted material only for educational purposes.

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