CONTENTS

• Customer Relation Management- Introduction

• Meaning of CRM
• Area of CRM
• Purpose of CRM
• Key Elements of CRM
• Evolution of CRM
• CRM Building Blocks
• Implementation of CRM
• Advantages and Disadvantages of CRM
• Introduction on E-CRM
• Different levels of CRM
• Implementing and integrating CRM solutions
 Customer Relationship Management

CRM stands For “Customer Relationship Management”.

 CRM refers to all strategies, techniques, tools, and technologies
used by enterprises for developing, retaining and acquiring customers.
This software ensures that every step of the interaction with consumers
goes smoothly and efficiently in order to increase the overall profits.
CRM
means a combination of business strategies, software and processes that help build
long-lasting

- Relationships between companies and their customers.

- CRM software records customer contact information such as email, telephone,

website social media profile, and more.

- It can automatically pull in other information, such as recent news about the

company's activity, and it can store details such as a system organizes this

information to give you a complete record of individuals and client's personal

preferences on communications.
The CRM companies, so you can better understand your relationship over time.

CRM software improves customer relationship management by creating a 360°

view of the customer, capturing their interactions with the business, and by
surfacing the information needed to have better conversations with customers.
Meaning of CRM

Customer Relationship Management refers to the methodologies and tools

that help businesses manage customer relationships in an organized way.

Customer relationship management is a broadly recognized, widely-

implemented strategy for managing a company’s interactions with customers,
clients and sales prospects. It involves using technology to organize, automate,
and synchronize business processes— principally sales activities, but also those
for marketing, customer service, and technical support.
Ares of CRM
There are three areas which in general company interacts with its
customers.

1) Front Office Contacts :

These involve the direct contact your employees have with your
customers which can include phone calls, e-mail, instant messages and
face to face communication.

2) Back Office Operations :

These are processes that are used to facilitate the front office, such as
finance communications, marketing, customer billing and advertising.

3) Business Contacts :
Your employees will interact with customers and suppliers through
networking, industry events and trade associations.
Purpose of CRM

The idea of CRM is that it helps businesses use technology and human
resources to gain insight into the behavior of customers and the value of
those customers. With an effective CRM strategy, a business can increase
revenues by:

1) Providing services and products that are exactly what your

customers want
2) Guiding any kind of interplay and/or cooperation with clients
3) Offering better customer service
4) Cross selling products more effectively
5) Helping sales staff close deals faster
6) Retaining existing customers and discovering
new ones
7) Make call centers more efficient
8) Simplify marketing and sales processes.
For small businesses, customer relationship management includes:
1) CRM processes that help identify and target their best customers,
generate quality sales leads, and plan and implement marketing
campaigns with clear goals and objectives.

2) CRM processes that help form individualized relationships with

customers (to improve customer satisfaction) and provide the highest
level of customer service to the most profitable customers.

3) CRM processes that provide employees with the information they

need to know their customers' wants and needs, and build relationships
between the company and its customers.
Customer relationship management tools include software and browser-
based applications that collect and organize information about customers.
For instance, as part of their CRM strategy, a business might use a database
of customer information to help construct a customer satisfaction
survey, or decide which new product their customers might be interested in.
Key Elements of CRM
CRM can be broken down into a number of different components which
many software vendors have developed packages for.

For the most part, there are three areas which are core to successful
customer relationship management :
1) Customer Service
2) Sales Force Automation
3) Campaign Management
1) Customer Service:
The customer service function in your company represents the front
office functions that interact with your customers. These are the business
processes that allow your company to sell products and services to your
customers, communicate with your customers with regards marketing
and dealing with the after sales service requirements of your customers.
Each interaction with the customer is recorded and stored within the
CRM software where it can be retrieved by other employees if needed.
2) Sales Force Automation :
Your company’s sales department is constantly looking for sales
opportunities with existing and new customers. The sales force automation
functionality of CRM software allows the sales teams to record each
contact with customers, the details of the contact and if follow up is
required. This can provide a sales force with greater efficiencies as there is
little chance for duplication of effort. The ability for employees outside of
the sales team to have access to this data ensures that they have the most
recent contact information with customers. This is important when
customers contact employees outside of the sales team so that customers
are given the best level of customer service.
3) Campaign Management :
The sales team approach prospective customers in the hope of winning
new business. The approach taken by the sales team is often focused in
a campaign, where a group of specific customers are targeted based
on a set of criteria. These customers will receive targeted marketing
materials and often special pricing or terms are offered as an
inducement. CRM software is used to record the campaign details,
customer responses and analysis performed as part of the campaign.
 In today's fast-paced, competitive business environment it's more
important than ever to create and maintain long-lasting business
relationships.

Today, CRM manages business processes spanning sales, support, and

marketing creating effective customer interactions. Given the purpose of
CRM, the functionality is straight forward, and the benefits of successful
deployments clearly generate value and profitability for any company.
Great CRM solutions need to encourage users to interact with the
application as well as be in-tune with the business and IT cost-saving
needs.
➢For the up to date CRM to be world class it needs to be revolutionary in
market incursion and evolutionary in technological up gradation.

➢Today the major business focus is towards endowing value addition to the
sales cycle, and customer retention rather than constructing a new
customer base which is costlier and also an uncertain chase from business
perspective. The basic philosophy behind CRM is that a company's
relationship with the customer would be the biggest asset in the long
run.
Before implementing any Customer Relationship Management solution in
the organization there are many Question's which need a comprehensive
explanation from the users' point of view:

•What is the added value preposition of the CRM to the organization?

•What would be the environment under which the implementation would

be done?

•How would the synergies be reflecting in the processes of the company?

CRM Building Blocks

Below are listed the following building blocks for

successful CRM projects:
1) Vision:
The board must take leadership in creating a CRM vision for the
enterprise. The CRM vision should be used as the guide to the creation
of a CRM strategy.

2) Strategy:
The CRM strategy is all about how to build and develop a valuable
asset: the customer base. It must set objectives and metrics for attaining
that goal. It directs the objectives of other operational strategies
and the CRM implementation strategy.

3) Customer experience :
The customer experience must be designed in line with the CRM vision
and must be constantly refined, based on actively sought customer
feedback.
4) Organizational collaboration :
Changes to organizational structures, processes, metrics,
incentives, skills, and even the enterprise culture must be made to deliver
the required external customer experience. Ongoing change
management will be key.

5) Process:
Successful customer process reengineering should create
processes that not only meet customers' expectations and support the
customer value proposal, but also provide competitive differentiation
and contribute to a designed customer experience.

6) Information :
Successful CRM demands the creation of a customer-information
blood supply that flows around the organization, as well as tight
operational and analytical systems.

7) Technology :
CRM technologies form a fundamental part of any enterprise's
application portfolio and architecture.
8) Metrics:
Enterprises must set measurable CRM objectives and monitor all
levels of CRM indicators to turn customers into assets. Without performance
management, a CRM implementation will fail.

The above building blocks are part of the strategy framework to

help organizations go through the important CRM journey. However,
successful implementation and using the CRM solution to benefit the
business depends largely on the people (from senior management down)
within the organization to truly adopt and embrace it.
➢ Advantages of CRM
By using CRM methodology, an enterprise can:
➢ Advantages of CRM
By using CRM methodology, an enterprise can:
1. Provide better customer service
2. Increase customer revenues
3. Discover new customers
4. Cross sell/Up Sell products more effectively
5. Help sales staff close deals faster
6. Make call centers more efficient
7. Simplify marketing and sales processes.
The Types of data, CRM software collects
CRM software collects the following types of data:

1. Responses to campaigns
2. Sales and purchase data
3. Account information
4. Web registration data
5. Service and support records
6. Demographic data
7. Shipping and fulfillment dates
8. Web sales data.
Disadvantages of CRM Systems
While advantages usually outweigh disadvantages for most
organizations implementing an CRM system, here are some of the most
common obstacles experienced:
1. Record Loss.
2. Training.
3. Require additional work inputting data.
4. Require continuous maintenance, information, updating, and system
upgrading costly.
5. Difficult to integrate with other management information systems.
➢ E-CRM
As the internet is becoming more and more important in business
life, many companies consider it as an opportunity to reduce customer-
service costs, tighten customer relationships and most important further
personalize marketing messages and enable mass customization. Together
with the creation of Sales Force Automation (SFA), where electronic
methods were used to gather data and analyze customer information, the
trend of the upcoming Internet can be seen as the foundation of what we
know as e-CRM today.
We can define e-CRM as activities to manage customer relationships by
.
using the Internet, web browsers or other electronic touch points. The
challenge hereby is to offer communication and information on the right
topic, in the right amount, and at the right time that fits the customer’s
specific needs.
Today's customers are a fast-moving, demanding crowd. They are
looking for products and services that are proven yet innovative. They want
information at their fingertips. With the right CRM solutions in place, we can
help organizations to build and nurture lasting one-on-one relationships with
customers. Thus, it enhances the business efficiencies and profitability.
Different levels of e-CRM
In defining the scope of e-CRM, three different levels can be distinguished:

1. Foundational services: This includes the minimum necessary services

such as web site effectiveness and responsiveness as well as order
fulfillment.

2. Customer-centered services: These services include order tracking,

product configuration and customization as well as security/trust.

3. Value-added services
These are extra services such as online auctions and online training and
education.