Customer Relationship Mgmt | Customer Relationship Management | Sales

Customer Relationship Management

Ritesh Lal

Customer Relationship Management (CRM) CRM is “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers” CRM is a business philosophy based on upon individual customers and customised products and services supported by open lines of communication and feedback from the participating firms that mutually benefit both buying and selling organisations. .

Degree of Relationship Building  Basic Marketing  Reactive Marketing  Accountable Marketing  Partnership Marketing .

Value The ability of a selling organisation to satisfy the needs of the customer at a comparatively lower cost or higher benefit than that offered by competitors and measured in monetary. and motivation of one company to serve the needs of the customer as agreed upon. integrity. . functional and psychological terms.Determinants of CRM Trust The willingness to rely on the ability. temporal.

Determinants of CRM In addition to Trust and Value. and Have a passionate interest in establishing and retaining a longterm relationship . Provide superior after sales support. Meet their commitments. Make sure that the customer is always told the truth . sales people must: Understand customer needs and problems.

The Long-term Stage Characterised by the companies’ mutual importance to each other.Stages in the development of a Customer Relationshi The Pre-relationship Stage The event that triggers a buyer to seek a new business partner. The Development Stage Increased levels of transactions lead to a higher degree of commitment and the distance is reduced to a social exchange. The Final Stage The interaction between the companies becomes institutionalized. The Early Stage Experience is accumulated between the buyer and seller although a great degree of uncertainty and distance exists. .

1997) .A Relationship Life Cycle Model High cooperation Low competition Prerelationship stage Development stage Maturity stage Decline stage Low cooperation High competition Time (Wilkinson and Young.

Functions of Customer Relationship Management Direct functions (are the basic requirements of a company that are necessary to survive in the competitive marketplace) Profit Volume and Safeguard Indirect functions (are the actions necessary to convince the customer to participate in various marketing activities). Innovation Market .

Coordinating the cooperation between the customers and their company. Negotiating and advancing dialogue and mutual trust.The role of salespeople as relationship builders and promoters Role of Salespeople: Identifying potential customers and their needs. and leading the customer relationship development team (They are the individuals in any organisation who act both as relationship builders and as relationship promoters. contributing to constructive resolution of existing conflicts. Approaching key decision makers in the buying firm. . Encouraging the inter-organisational learning process.

1994) .Models of Customer Relationship Management The Evans and Luskin (1994) model for effective Relationship Marketing Relationship marketing inputs •Understanding customer expectations •Building service partnerships •Empowering employees •Total quality management Relationship marketing outcomes •Customer Satisfaction •Customer loyalty •Quality products •Increased profitability Assessment state •Customer feedback •Integration (Evans and Luskin.

and Illustrate the value of a relationship with the customer . Plan the initial sales call. Identify buying influences. Gather and study pre-call information.Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate. develop and enhance the process that is aimed at building trust and commitment with the customer. Initiating the relationship Engage in strategic prospecting and qualifying. Demonstrate an understanding of the customer’s needs. Identify opportunities to build a relationship.

Summarize the solution to confirm benefits. Discuss customer concerns. Developing the relationship Select an appropriate offering. Customise the relationship. .Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate. and Secure commitment. develop and enhance the process that is aimed at building trust and commitment with the customer. Link the solutions with the customer’s needs.

. and Work to add value and enhance mutual opportunities.Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate. Maintain open. develop and enhance the process that is aimed at building trust and commitment with the customer. Take action to ensure satisfaction. two-way communication. Enhancing the relationship Assess customer satisfaction.

Act as customer advocate. .Relationship networks The ultimate outcome of a successful CRM strategy is the creation of a unique company asset known as a relationship network. The additional aspects of a global salesperson’s job are to: Manage customer value. and Enhance customer loyalty and build a “healthy” and profitable network of relationships. A relationship network consists of the company and its major customers with whom the company has established long and enduring business relationships.

and loyal customers into partners. and The basic premise of CRM is to offer superior value to customers in an effort to turn prospects into customers. The role of global salespeople in the process is that of both relationship builders and relationship promoters.Summary CRM is a new business philosophy based on trust and value. customers into loyal customers. . Customer relationships develop over time. The core function of CRM is the value creation process.

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