Effective Communication for Effective Customer Relationship Management.

Presented by:Chandan Sinha BBA 4598/08  Saurabh Sharma BBA 45 /08  Kim Verma BBA 4510 /08  Mrigendra Shahi BBA 45106/08 For:Birla Institute of Technology Noida.


Customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing. CRM is a combination of policies, processes, and strategies implemented by an organization to unify its customer interactions and provide a means to track customer information. It involves the use of technology to enable organizations to continue attracting new and profitable customers, while forming ever tighter bonds with existing ones.



CRM includes many aspects which relate directly to one another:  Front office operations — Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc.  Back office operations — Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance, manufacturing, etc.)  Business relationships — Interaction with other companies and partners, such as suppliers/vendors and retail outlets/distributors, industry networks (lobbying groups, trade associations). This external network supports front and back office activities.  Analysis — Key CRM data can be analyzed in order to plan targetmarketing campaigns, conceive business strategies, and judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability).


Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990’s with the promise of forever changing the way businesses small and large interacted with their customer bases. The 1980’s saw the emergence of database marketing, which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a company’s customers. In the 1990’s companies began to improve on Customer Relationship Management by making it more of a two-way street. Instead of simply gathering data for their own use, they began giving back to their customers not only in terms of the obvious goal of improved customer service, but in incentives, gifts and other perks for customer loyalty.

Major players in CRM

About 50% of the CRM market is currently divided between five major players in the industry: PeopleSoft, Oracle, SAP, Siebel and relative newcomer Telemation, based on Linux and developed by an old standard, Database Solutions. Inc. The other half of the market falls to a variety of other players, although Microsoft’s new emergence in the CRM market may cause a shift soon.

Types of CRM
There are several different approaches to CRM, with different software packages focusing on different aspects. In general, Customer Service, Campaign Management and Sales Force Automation form the core of the system (with SFA being the most popular).
1. 2. 3. 4. 5.

Operational CRM. Analytical CRM. Sales Intelligence CRM. Customer Relationship CRM. Geographic CRM.

Operational CRM.
Operational CRM provides support to "front office" business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers' contact histories, and staff can retrieve customer information as necessary.  Operational CRM processes customer data for a variety of purposes:  'Managing Campaigns'  Enterprise Marketing Automation  Sales force automation

Analytical CRM

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Analytical CRM analyzes customer data for a variety of purposes: Designing and executing targeted marketing campaigns Designing and executing campaigns, e.g. customer acquisition, cross-selling, up-selling Analysing customer behavior in order to make decisions relating to products and services (e.g. pricing, productdevelopment) Management information system (e.g. financial forecasting and customer profitability analysis) Analytical CRM generally makes heavy use of data mining.

Sales intelligence CRM

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Sales Intelligence CRM is similar to Analytical CRM, but is intended as a more direct sales tool. Features include alerts sent to sales staff regarding: Cross-selling/Up-selling/Switch-selling opportunities Customer drift Sales performance Customer trends Customer margins

Customer relationship CRM

Consumer Relationship System (CRS) covers aspects of a company's dealing with consumers and customers who are handled by the Consumer Affairs and Customer Relations contact centers within a company. Trained contact center representatives handle in-bound contacts from anonymous consumers and customers, replying to inquiries and fulfilling responses. Representatives capture consumer contact information, issues, and verbatim feedback which is stored in the CRM and made available to company stakeholders such as marketing, product management and development, legal, public relations, etc., for input to product and service improvements. The CRS workflow processing and reporting enable issuing of early warning alerts to product problems in the marketplace (e.g., item recalls) and capture of current consumer sentiment ('voice of the customer').

Geographic CRM

Geographic CRM (GCRM) combines geographic information system and traditional CRM. Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer visits.

Effective CRM

Customer service organisations must see the need to develop strategies to provide effective customer relations. Employees who are ambassadors of the organisation must be perceived that they have been trained to deal with irate customers, resolve conflict, and have the authority to retain customers on behalf of the organisation. The success of an organisation is also dependent upon the employee's being able to effectively demonstrate and communicate the policies and services in an effort that customers receive value for money.

Need for effective CRM

The success of an organization is also dependent upon the employee's being able to effectively demonstrate and communicate the policies and services in an effort that customers receive value for money. The following are reasons why customer relations must be improved in the organization: To To To To To To To To establish customer loyalty develop business relationships product position the internal operations of the organization create a positive environment to conduct business manage time effectively minimize negative exposures increase productivity maximize sales opportunities.

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Need for effective CRM

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To manage customer satisfaction levels

To communicate effectively To communicate a positive message

The task of providing effective customer relations is not easy. Some organisations maintain a level of customer relations with customers in an effort to keep the lid from blowing off. This is called "the get-by syndrome". Often customer relations between customers and employees are often described as, "what you see is what you get" and often come with no frills

Strategies to effective CRM
The following strategies are used by organizations to incorporate effective CRM:1. 2.

Relationship Strategy. Communication Strategy

Relationship Strategy

The relationship strategy states that the foundation of effective customer relations can be developed when the customer service professional goes beyond the norm of doing business. A two-tier approach should be executed in an effort to develop a business working relationship with existing and potential customers. One, it allows the customer relations professional the opportunity to develop a profile on the customer. Two, it also allows the customer relations professional to increase productivity because time will not be wasted on a probing exercise.

Communication strategy




The communication strategy states that the customer relations professional should be skillfully trained to communicate the right message to existing and potential customers. The communication message methodology used should include both verbal and nonverbal messages. During the interaction, the customer relations professional should make every attempt in the initial stages to convey that he or she has the customer's undivided attention. Non-verbal messages such as a weak handshake, no eye contact, inappropriate facial expressions, and a sense of being distracted, sends a clear signal to the customer that you are not interested in their needs.

Steps for Effective Communication
1. 2. 3.

4. 5.




Be sure to have clear picture of the message before conveying it to the customer. Ensure active participation. Be patient while communicating with the customer. Listen to the customer and answer questions fully. Connect successfully with customers lives both personally and professionally. This way the relation develops more personably. Collect all the important data necessary from the customer. Ask the customer for any further query politely, and do answer them politely. Maintain the tone of voice firm and stable.

CRM Today.

Today, CRM is still utilized most frequently by companies that rely heavily on two distinct features: customer service or technology. The three sectors of business that rely most heavily on CRM -- and use it to great advantage -- are financial services, a variety of high tech corporations and the telecommunications industry. The Internet provided a huge boon to the development of these huge databases by enabling offsite information storage. Where before companies had difficulty supporting the enormous amounts of information, the Internet provided new possibilities and CRM took off as providers began moving toward Internet solutions.

CRM Today


Today, CRM is still utilized most frequently by companies that rely heavily on two distinct features: customer service or technology. The three sectors of business that rely most heavily on CRM -- and use it to great advantage -- are financial services, a variety of high tech corporations and the telecommunications industry.

The overall extract of this information leads us to the conclusion that CRM is a boon to the industries, and has bought immense innovation in the field of industrialization. In this innovation by CRM, Business Communication plays a huge role. It is evident that effective and proper communication leads to a better customer relation, whereas on the contrary ineffective communication has a negative effect on the relationship development. Today organizations have left no stones unturned regarding communication, to gain customers and are constantly moving towards it. It is just the beginning for CRM globally, still there is more to witness of CRM in the coming future……………..

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