2022

Lecture- 1 & 2
Lesson Plan
Definition of CRM
Components of CRM
Common misconceptions about CRM
The Tesco Clubcard is Tesco’s way of rewarding its most loyal customers. For every pound you spend online
or in-store, you’ll get a point. These points, when accumulated, can be traded in for Tesco Clubcard
‘vouchers’ (for instance, 150 points gets you a £1.50 voucher).
A voucher can then be traded in for rewards, such as an afternoon at Cineworld with the kids (a timeless
experience), or an evening at Pizza Express (enjoy it while you can). Clubcard holders can also collect points
at Tesco fuel stations, and by filling out feedback surveys online.

What's in it for Tesco?

If you’ve ever used iTunes (Apple’s online music streaming service), you’ll have an Apple ID – and if you’ve ever used an Apple
device, you’ll have had to register it using an Apple ID, too.
These unique IDs synchronise across devices, remember music and film selections, and provide personalised
recommendations based on what you've been watching or listening to. For the user, it offers convenience. And for Apple, it’s
a constantly updating data set, telling the company exactly what its customers like and allowing for effortless, targeted
marketing.

Well, CRM is a good place to start – and for Uber, it’s industry-leading CRM software provider Salesforce that’s powering the
ride-sharing giant’s strategy. Salesforce helps Uber extract data from people engaging with its brand on social media. With
this system in place, Uber can reply with haste to customer complaints, and track all its interactions with the public from an
intuitive dashboard.
And, of course, it runs its own loyalty program. Uber Rewards lets you earn points every time you ride or eat with Uber, and
redeem them across its increasing range of services
 The expression customer relationship management (CRM) has only been in use since the
early 1990s. Since then there have been many attempts to define the domain of CRM,

Information Industry
CRM is an information industry
term for methodologies, software
and usually Internet capabilities
that help an enterprise manage
customer relationships in an
organized way.
Integrated
Management Process Integrated Approach
Information System
CRM is an integrated approach to CRM is an integrated information
CRM is the process of managing all
identifying, acquiring and retaining system that is used to plan, schedule
aspects of interaction a company
customers. By enabling and control the pre-sales and post-
has with its customers, including
organizations to manage and sales activities in an organization. CRM
prospecting, sales and service.
coordinate customer interactions embraces all aspects of dealing with
CRM applications attempt to
across multiple channels, prospects and customers, including
provide insight into and improve
departments, lines of business and the call centre, sales-force, marketing,
the company/customer
geographies, CRM helps technical support and fi eld service.
relationship by combining all these
organizations maximize the value The primary goal of CRM is to improve
views of customer interaction into
of every customer interaction and long-term growth and profi tability
one picture
drive superior corporate through a better understanding of
performance customer behaviour

The primary goal of CRM is to increase customer loyalty and in turn improve business profitability.
An enterprise-wide business strategy for achieving customer-specific
objectives by taking customer-specific actions

Peppers and Rogers (2004)

“CRM is a philosophy and business strategy, supported by a system and a

technology, designed to improve human interactions in a business environment.

Paul Greenberg (2004)

Analytics – Analytics is the process of studying, handling, and representing data in

are
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rC
various graphical formats such as charts, tables, trends, etc., in order to observe market

H m e

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trends.

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Business Reporting – Business Reporting includes accurate reports of sales, customer care, and
HR
marketing
ement
anag
alytics M
An
Customer Service – Customer Service involves collecting and sending the CRM System
following customer-related information to the concerned department:
Lead
Mana
geme
Au nt
to
Human Resource Management – Human Resource Management involves W m
or ati
employing and placing the most eligible human resource at a required place in

Ma
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lo on

Automation
Sales Force

rk
the business
w

et
ing
Lead Management – Lead Management involves keeping a track of the sales leads and distribution,
managing the campaigns, designing customized forms, finalizing the mailing lists, and studying the
purchase patterns of the customers
 are
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Marketing – Marketing involves forming and implementing sales strategies by

rC
H m e

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studying existing and potential customers in order to sell the product

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HR
Sales Force Automation – Sales Force Automation includes ement
anag
forecasting, recording sales, processing, and keeping a track of alytics M
An
the potential interactions CRM System
Lead
Mana
geme
Workflow Automation – Workflow Automation involves streamlining and Au nt
scheduling various processes that run in parallel. It reduces costs and time
to
W m
or ati
and prevents assigning the same task to multiple employees

Ma
kf
lo on

Automation
Sales Force

rk
w

et
ing
Improve Workforce Productivity

Enhance Business Sales

Expand the Customer Base

Improve Customer Satisfaction

1970's Emergence of Material
Resource Planning.
1972 System analysis and
Programming (SAP) started.
1977. Larry Ellison started Oracle
Corporation
1978 Baan started the Baan
Corporation for financial and
administrative consultation.
1979 Oracle offered first
commercial SQL Relational
Database Management system
Robert and Kate Kestnbaum
pioneered database marketing,
collected customer contact, and
analyzed customer information
1986 ACT ! created Contact
Management system (CMS) to
store the data and organize
customer information.
1987 PeopleSoft created Human
Resource Management System
(HRMS)
Brock control system started Sales Microsoft entered CRM market
Force automation and added the with its product dynamics CRM
features of database marketing, Oracle acquired Siebel, and
CMS, Inventory control, and numerous other enterprise
customer interaction tracking application vendors
1993 Tom Siebel started Siebel 2007 Salesforce introduced the
systems, soon become leading world to clod CRM
provider of SFA
1995 SFA and CMS evolved as very
similar modern CRM software
1999 ECRM vendors emerged.
CRM also entered into the mobile
market
 Geo-Location
Marketing Sales- Force Contact Center Work-Flow Lead Human Resource Analytics
Technology AI
Automation Automation Automation Automation Management Management Management
or location based
services
 Strategic Strategic CRM is a core customer-centric business strategy that aims at
winning and keeping profi table customers

OPerational
Operational CRM focuses on the automation of customer-facing processes
such as selling, marketing and customer service

Analytical Analytical CRM focuses on the intelligent mining of customer-related data for
strategic or tactical purposes

Collaborative
Collaborative CRM applies technology across organizational boundaries with
a view to optimizing company, partner and customer value
 CRM is CRM is a CRM is an IT CRM is
database marketing issue about
marketing process loyalty
schemes
Lecture- 3
Customer Life Cycle
B2b CRM
Customer Asset
 Obtaining
information
from
customers
Building loyal
customers Creating
superior
customer
value

Acquisition Working
of new towards
customers increased
profitability
 Henry is a young entrepreneur who owns a general store located in an urban settlement. But it’s no ordinary general store. Henry knows his regular
customers and takes good care of them

Eduard enters the store and

Customer Eduard is approaching the
Henry kindly greets him and
store and Henry sees him from the
addresses him by his name
window (the process of identification).
(personalization).

Henry remembers what

Eduard usually buys, that he
has a wife and two kids
(customer data)
During the shopping Henry talks with Eduard
Henry is thanks to all this
and gently tries to gather additional
information always able to information (establishing relationship,
The advantage for Eduard is the time saving if he is in a hurry
offer him exactly the goods possibility for cross- selling, analysis).
because Henry knows his needs and can serve him faster as
he needs.
well as allow him to leave a debit (trust based on a long-term
Eduard appreciates the interest and personal
relationship) approach and returns often to this store.
 Consider- customer becomes aware of a
need and investigates alternative solutions.
Purchase – customer evaluates and chooses
the best alternative and places an order.

Customer life cycle

Set up Customer installs the product and
learns how to use it.
Use – Customer operates and maintains the
The Customer life cycle is the total time that the customer is engaged with your company from the customer’s product and finally makes the decision to
experience and viewpoint. In customer relationship management (CRM), the customer life cycle is a term used retire it or upgrade, which starts the cycle all
over again.
to describe the progression of steps a customer goes through when considering, purchasing, using, and Stages in
Customer maintaining loyalty to a product or service
Customer life
life cycle cycle

B2B CRM
B2B CRM is the strategic process of
Customer Assets strengthening relationships with business
customers, especially important clients, beyond

The concept of the customer being an asset is

very important because investing in customer
Customer
Assets
B2B CRM transactional relationships to manage the value
of these buyer-seller relationships better.

relationships often does not generate short-term

gains. Customer information: It is a tangible asset
that can be inventoried and managed. Customer
Value: Identifying and rewarding the most loyal
customers increase their value to the company
Before Purchase
Lecture- 4
CRM Goals
 It has been reported that 65% of businesses adopt a CRM
software platform within the first five years of operation,
indicating a clear need for solutions that help companies
work with a large volume of customer data
The ultimate goal of the discipline of customer relationship management, and associated CRM systems, is efficiently
managing and improving business relationships. There are stages in creating and leveraging customer relationships that
break down the entire relationship lifecycle into phases with distinct goals.

CUSTOMER CUSTOMER
CUSTOMER
RETENTION DEVELOPMENT
ACQUISITION
01 Targeting your most
02 Keeping customers interested by
03 Up-selling, cross-selling, and
offering exceptional products and cross-channel product
profitable customers outstanding customer service development

CUSTOMER CUSTOMER
CONVERSION CONSULTATION
05 Converting your highest 04 Using customer feedback to
value customers to brand improve product and
advocates operations
 Long-term Customer Systematic Flexible Customer
Relationships centric Approach Integration Satisfaction
Lecture- 5
Customer TOUCHPOINT
Finding customer touchpoints
Importance of touchpoints
 Customer touchpoints are your brand’s points of customer contact, from
start to finish. For example, customers may find your business online or in
an ad, see ratings and reviews, visit your website, shop at your retail store,
or contact your customer service. Seems like a long list, but these are just a
few of your touchpoints!
 During Purchase
Store or office
Website After Purchase
Before Purchase Catalog Billing
Social Media Promotions Transactional emails
Ratings and Reviews Staff or sales team Marketing e-mails
Testimonials Phone system service and support teams
World of Mouth Point of Sale Online help centre
Community involvement Follow-ups
Advertising Thankyou Cards
Marketing/ PR
Customer touchpoints Before
help you enhance your customer experience. They help
Purchase
you connect with your customers and strengthen your relationship with them.
It’s important to be present and active over multiple touchpoints as your
customers do not spend all their time on one channel.
In addition to engaging with your customers over multiple touchpoints, you
also need to carry conversational context across the channels, creating an
omnichannel experience.
Before Purchase
Lecture- 6