Customer Relationship Management - ASSIGNMENT

Udayan Data

1. CRM – Prepare an infographic or a mindmap based on your
understanding of CRM

2. Creating unique Customer Experience is a key component to
effective CRM and Customer loyalty – Give an example of the ways good and bad Customer experiences are created across different retail channels like retail store, email, mobile phone, etc.

3. What are the key challenges in implementing CRM strategy 4. Briefly explain the various types of CRM 5. Briefly trace the evolution of marketing from mass marketing to
relationship marketing

Prepare an infographic or a mindmap of CRM – Basic features

securing. identifying. nurturing. . and retaining clients in order to enable a company to increase revenue by preserving customer loyalty and retention.Prepare an infographic or a mindmap based on your understanding of CRM  The Customer Relationship Management life cycle process illustrates that we need to know your customer and enable the various customer-centric processes of acquiring.

Prepare an infographic or a mindmap of CRM .

Prepare an infographic or a mindmap of CRM .

2. many retailers have lost touch with the first step to successful CRM: understanding what customers really want from retailers. Creating unique Customer Experience  Customer relationship management (CRM) is becoming a mainstream practice for retailers looking to increase sales and profitability. But many current initiatives don’t have the customer-centric focus that today’s market requires. The clusters are comprised of individual drivers that are correlated with one another in terms of their impact on customer satisfaction: . In their rush to make the next sale.  We applied statistical analysis to the survey results and discovered five groups or ―clusters‖ of satisfaction drivers.

Creating unique Customer Experience  Person-to-person experience—The store has helpful.  • Data integration and analytics—The store provides the same product selection and product information across all sales channels. .  • Marketing and communications—The store‘s promotions are wellcommunicated. friendly. organized. adequately stocked with quality merchandise and provides ―fun‖ experiences. knowledgeable employees who anticipate customer needs and exceed customer expectations. well-designed. easy to redeem and valuable to customers.  • Store experience—The store is clean. and uses information from a consumer‘s past purchases to provide better service.  • Price and value—The price that customers pay for goods is matched by the perceived value that they receive for making the purchase.

A core CRM team should be formed in addition to the participation from Top Management. Only after the requirements are clear should they be handed over to IT for implementation.What are the key challenges in implementing CRM strategy  Defining Clear Objectives: The organization should have a clear set of objectives which it would like to achieve through the CRM. Without doing so.  Appointing a Core CRM Team: The CRM initiative is not an IT project. IT and end-users. the company can‘t assess the benefits or the ROI of the CRM system. Senior Executives. These objectives need to be listed and defined as measurable metrics. . Customer Service.

This also means that end users should perform day-to-day operations through the CRM application by default and not optionally. Also. accessible to all. One good practice is to create a central repository. Key processes that need to be defined from the start are Change Management process. it is important to re-align the work culture of the teams around it. which stores all the process definitions.What are the key challenges in implementing CRM strategy  Defining the Processes: It is important for the processes to be clearly defined and enforced in order to set up the CRM project for success.  Managing the Application: Once the CRM has been rolled-out. This allows the document to be available for referencing by anyone using the system. Feature Re-evaluation process. The business operation should properly map with the CRM application. clear security measures with access management need to be in place to make sure that important data is not accessible by those who shouldn‘t be accessing it. .etc.

Ideally select a partner who can do both. technology limitations and listens to the employees. It is important that your partner shares the risks of your implementation.What are the key challenges in implementing CRM strategy  Finding the Right Partner: The rate of CRM success considerably goes up with the right solution partner. are ideal . strategy & implementation. Working with a vendor who understands local work culture.

It can also be used to help the next type of CRM system. Sales Force Automation.  Sales Force Automation This CRM system will keep a record of every stage of the sales process. helping employees automate activities like making reports. it will bring together a client‘s contact information. purchase history and any previous communication they have had with the company on one web page so that the employee can provide them with rapid service and response.Briefly explain the various types of CRM  Operational This kind of CRM system focuses on using software applications which help incorporate the various sets of information available on each customer into one useful file. For example. marketing and customer service departments. This kind of CRM provides support to the sales. scheduling calls and mailings .

by providing them with new tools and technologies like instant messaging.  Collaborative Collaborative systems focus on integrating external contacts – like vendors and distributors – and providing data to its customers through an extranet. and then by using techniques like data mining. allowing for better creation of long term strategies for sales and customer management. They will look at data from all the different databases. This allows the customers to be proactive about improving the service they get from the company. This allows the company to look at the data from the wider angle.Briefly explain the various types of CRM  Analytical Analytical systems will look into customer data from an analytical angle to better come up with sales and marketing strategies that can be effective for future sales. will come up with patterns and trends. .

Briefly explain the various types of CRM  Campaign Management This is a combination of Analytical and Operational systems as it can store. but is used as a sales tool for employees who can look at trends and sales performance . calling them or sending them marketing emails with special offers.  Sales Intelligence This is similar to an Analytical system. It can also be effective in targeting specific types of customers by sending emails. analyze and track the various campaigns the company has.

a company has access to many other opportunities that the customer will have at some point. The idea is to broadcast a message that will reach the largest number of people possible. By satisfying this need.Briefly trace the evolution of marketing from mass marketing to relationship marketing  Mass marketing evolves in Relationship Marketing — Mass Marketing is a type of marketing(or attempting to sell through persuasion) of a product to a wide audience. These core objectives are key to achieving a mutually satisfying result for both the consumer and the vendor. Traditionally mass marketing has focused on radio. but instead buys a solution for a specific problem or need. what these needs will be . television and newspapers as the medium used to reach this broad audience Relationship marketing prioritizes customer retention and satisfaction in any marketing strategy.. it will be able to gain a lot more than just a single sell. if the company can build a relationship with the customer . Relationship marketing brings customer centricity to the spotlight. This vision has implicit the fact that a customer does not buy a product. — — . Thus.find out who he is.

Print etc.  However.  Customers grouped into mass markets and were communicated through mass media.Mass Marketing  Historically large-scale mass production and distribution methods adopted. products became standardized.  Customers had to find the best option that fulfilled their needs.  Suited well for a supplier‘s economy — .  Cost-efficiencies drove prices lower.TV.

 Technology has enabled large scale customized production : called masscustomization. — .  This increases supply.  Technology has made the reach of companies global.Today‘s Markets  Foreign suppliers and competition from non traditional suppliers has increased competition. and so the need for better service.

 Consumers now prefer suppliers that provide good quality at a fair price.Today‘s Markets  Stagnation of growth in customer base.  They find such a supplier and stay with them for a long time.  Customers are increasingly convenience shopping as opposed to price driven shopping. — .  Too much competition for customer‘s free time.

Customer retention+ Share of customer Basic premise: – Retain customers over a long term and satisfy the largest portion of their needs with your products and services. The “leaky bucket‖ concept is out. — . Today‘s consumers want companies to – Understand their needs and wants – Adapt their products and services to these needs and wants The company takes partial responsibility for the customer‘s choice of product.

Developing Relationship Marketing Capabilities Initial steps include: – Data collection – Data access and marketing tools – Product and service customization – Customer service procedures – Customer access channels Key measures: – Customer satisfaction – Share of Wallet – Stability of relationship — .

Developing Relationship Marketing Capabilities If implemented properly customers are locked in due to satisfaction. personalized. — . Communication is through multiple channels. and value. This increases the cost on the customer‘s part when they have to switch suppliers. ease of service. Customer service should be interactive.

Developing Relationship Marketing Capabilities Use customer service opportunities to — Verify if needs and preferences have been addressed — Measure levels of satisfaction — Find any other questions that need to be answered — Additional customer information such as change in status — Verify if presenting new products or options is appropriate — .

Developing Relationship Marketing Capabilities Use customer service opportunities to — Verify if needs and preferences have been addressed — Measure levels of satisfaction — Find any other questions that need to be answered — Additional customer information such as change in status — Verify if presenting new products or options is appropriate — .

Customer Information Requires more information than traditional direct marketing. . Optimal types of customer information will vary by industry. Building a customer information base is an iterative long term process. and marketing programs. company market positioning.

Example: Cellular Phones  Stage 1: — Preliminary information collected during the first purchase to make recommendations  Stage 2: — Based on the calling patterns and bills make refined recommendations and offer better deals that the customer cannot refuse. .

Example: Dell Computers Trend evident in service industries such as – Insurance – Computer systems – Telephone – Financial Services Customer service is a better differentiating weapon than price or features. .Customization and Added Value Provide tangible benefits to customers through customization.

— Training and empowering the customer service staff. — Developing infrastructure to collect and maintain customer information . — Developing a suite of products and services that can be customized.Customization and Added Value Competitive advantage gained through — Implementing a corporate culture focusing on the customer.

new organizational thinking .information technology .Customization and Added Value  Mass customization occurs when consumers become co-creators in the content of their experiences  Enablers of mass customization .process technology .digitization of product .

Customization and Added Value  Issues in mass customization .strategic relationship between producers and consumers in market for customized goods .compensation for customer input .pricing of customized products .

In several new channels customers control the time of access Companies control only the content delivered. — Example: Internet. Key to success is to integrate information flows from multiple channels and co ordinate marketing activity.Two Way Communication Focus is on customer‘s choice of channels. e-mail. . Cellular phones.

creates mktg-oriented transaction and sends original to operations system .Mktg-oriented transaction is sent to system that makes promotional decisions .Customer service rep sends transaction downstream to operations system .Message Broker intercepts transaction.Two Way Communication  Message Broker system could be implemented . message broker decides which should be delivered and in what order .Once promotional decisions are made.

Marketing Objectives  Customer Awareness and Education  Customer Acquisition  Customer Acceleration  Customer Retention  Niche Marketing  Lapsed Customer Reactivation .

Building Customer Loyalty  Key measurement for loyalty: Retention  5% increase in retention rate can increase lifetime value by 75% (F. Reichheld)  The top 20% customers yield 80% of revenue  So. treat the ‗Gold‘ better than others  What to do with ‗Losers‘ ? .

Learning .Building Customer Loyalty  Relationship effects of retaining non profitable customers .Reference accounts .Referral .Innovation .

Provide extra conveniences that have secondary purpose of increasing consumption .Establish an ‗insiders‘ or ‗special privilege‘ club .Develop catalog with premiums available with proof of purchase .Create a prestige society offering both practical benefits and self-image symbols -Establish an apparently personal relationship .Building Customer Loyalty Five customer loyalty promotions .

Marketing from mass marketing to relationship marketing Thank you .

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