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Customer Relationship

• Customer Relationship Management
(CRM) is a strategy that focuses on
building strong relationships with
customers and potential customers
for creating and maintaining a loyal
customer base.
• CRM works across all departments to
harmonize customer-centric
• It reduces costs, increases efficiency
and improves customer
Process of creating and maintaining
relationships with business customers
or consumers”

“A holistic process of identifying,

attracting, differentiating, and
retaining customers”

CRM is basically for developing long

lasting relationship with a customer.
 This maximizes profits, since it is
cheaper to retain a current customer
than it is to find a new one.

 It typically costs 5-10 times as much to
acquire a new customer as it does to
retain an existing one.

 It also consists of the processes a
company uses to track and organize
its contacts with its current and
prospective customers…..

CRM Objectives
 To simplify marketing and sales
process -
 With innovative Lead management
portal, you can ensure that the right
lead is distributed to the right sales
person at the right time.. With the
integrated customer service module,
even your customer support people
now become qualified lead generators
with up-selling and cross-selling
 Increasing sales effectiveness-
 Make your sales teams more effective by
automating tedious repetitive tasks. Leads
get entered into the system only once..
With CRM, your sales people can automate
a big chunk of their daily tasks such as
sending out e-mails, generating reports,
organizing leads and so on.
 With CRM's Mobile access, your sales
people have instant access to customer
information when they need it, without
being tethered to a computer. The Lead
portal can route leads to the best-suited
sales person, increasing your chances of
closing the deal
 Access to customer information-
 With CRM, all of your customer
information is in one centralized
location and is constantly updated
every time an activity happens with a
prospect or customer. So now you
have up to the minute tracking of all
your prospects and customers. With all
your opportunities tracked down to the
stage that it is in, you can forecast
your sales pipeline with a lot more

Reduce Customer Support Time –

 CRM enables your service agents to
answer all customer inquiries quickly,
accurately and consistently by phone,
e-mail, chat or in person. With FAQs
and the knowledge base you can help
your customers help themselves. By
offloading maximum customer
interactions to these self-service
channels, you can significantly reduce
your customer support costs.
 .






• Sales Force Automation (SFA) is the process of
maximizing the efficiency of the repeatable
processes a salesperson performs as a part of
identifying, qualifying, closing and supporting
business activities with new and existing

• Sales Force Automation is the technique of using

software to automate the business tasks of sales
including Account Management, Contact
Management, Sales Activity Management, Sales
Forecasting Analysis, and Sales Team
Performance Evaluation.
 Focus on cultivating customer relationships &
 Improving customer satisfaction

35-40% of all CRM activity

Sales force automation comprises of:

vAccount Management
vOpportunity Management
vContact Management
vActivity Management
vRevenue Forecasting
vReporting & Analysis


Customer service and support (CSS) is the part of a
company's customer relationship management
(CRM) department that interacts with a customer for
their immediate benefit, including components such
as the contact center.

• 20-25% of CRM

• Assign, escalate, and track trouble tickets, inquiries,

solution attempts through resolution

• Provides information to support customer call center


• Build customer satisfaction & loyalty

• Resolve customer issues after the sales


• It comprises two key functional areas:
 Cases:- Track every interaction of
customer service & support teams with
each customer.
 Solutions:- - Maintain a centralized
database of solutions to leverage knowledge
across the enterprise.

• In a business enterprise, a help desk is a
place that a user of information technology
can call to get help with a problem.
• 15-20% of all CRM
• Allows individuals to access network
database to solve their own problems or
find information.
• Can be internal or external.

 Field Service or Field Force Automation (FFA), is an
attempt to optimize processes and information
needed by companies who send technicians or staff
"into the field" (or out of the office.)

 It involves a combination of some or all of the

following: CRM applications, work order
management, dispatch, wireless technology, and
historical customer service data.

 3-5% of all CRM activity

 The maintenance and repair of equipment at the

customer's location.

• Ensures high efficiency by creating
integrated, highly-targeted campaigns
and tracking results across all channels.
• Target the Best Customers
• Manage Marketing Campaigns
• Generate Quality Leads

• It comprises of two main functional areas:
Campaign Management
 Lead Management
• 3-5% of CRM, but growing 5X faster than all
• Can interact with SFA to support field sales
• Marketing automation (MA) applies
technology to marketing processes.

Why CRM?
• It typically costs 5-10 times as much to
acquire a new customer as it does to
retain an existing one.
• “Some companies can boost profits by
almost 100% by retaining just 5%
more of their customers.”
• Most companies lose 50% of their
customers in 5 years .
• 70% of repeat purchases are made out
of indifference to the seller, NOT
Making CRM Happen
• Analyze the multiple channels
through which the company
interacts with customers.
• Examine how the company
understands its customers.
• Does it keep good data?
• How does it get that data?
• Does information flow between
functional areas?

• Provide fingertip access to all
• Analyze human resources and ensure
that everyone has an
understanding of philosophy of

Implementation of CRM
• To implement CRM, following factors
need to be given due
2.Easy interaction between customers
and company,
3.Easy access to information about
company like content of
customization, advantages of the
company, benefits to the
4 .Customers' information should be

updated always

5. Have cordial relationship with other

companies targeting the same

customer segment…..

Types of CRM
Basically there are three types of CRM which

are as follows:-
• Operational CRM: support to front office
• Analytical CRM: analyze customer data
• Collaborative CRM: inter staff coordination
Strategies of CRM
1.Customer retention
2.Customer acquisition
3.Customer loyalty
4.Cost reduction
5.Improve productivity
6.Enhancing e-business strategies

• Companies that invest in CRM
systems can learn even more
about their customers and offer
more personalized products and
services because they receive
relevant information daily in a
way that allows them to spot

RFM Data in
• Organizations can find their most
valuable customers through
“RFM” - Recency, Frequency, and

Monetary value
– How recently a customer purchased
items (Recency)
– How frequently a customer purchased
items (Frequency)
– How much a customer spends on each
purchase (Monetary Value)
The purpose of CRM

“The focus of CRM is on creating

value for the customer and the
company over the longer term” .

CRM enables organisations to gain

‘competitive advantage’ over
competitors that supply similar
products or services.
Goals of CRM
• Retention rate: CRM, relationship
building, increases customer loyalty
which increase revenue per customer
and frequency of purchases.
• Referrals: CRM can turn customers into
advocates. Referrals typically have
higher retention rates and spending
rates than other newly acquired
• Increased sales: CRM leads to increased
cross-selling, upgrades, or simply more
products by existing customers.
• Reduced costs: CRM can lead to more
Benefits of CRM
 Benefits of CRM include:

ü Provide better customer service


ü Cross sell products more effectively


ü Help sales staff close deals faster


ü Simplify marketing and sales processes


ü Increase customer revenues

ü Reduced costs, because the right things are

being done
ü Increased customer satisfaction,

 because they are getting exactly what

they want
ü Ensuring that the focus of the organisation is

ü Growth in numbers of customers

ü Maximisation of opportunities

ü Increased access to a source of market and

CRM failure reasons , future
of CRM & role of sales person
in relationship buildings.
• CRM (customer relationship management) is
an information industry term for
methodologies, software, and usually
Internet capabilities that help an
enterprise manage customer relationships
in an organized way. For example, an
enterprise might build a database about
its customers that described relationships
in sufficient detail so that management,
salespeople, people providing service, and
perhaps the customer directly could
access information, match customer
needs with product plans and offerings,
remind customers of service
requirements, know what other products a
customer had purchased, and so forth.
Failure reasons
CRM Strategy not clear

• CRM strategy and vision need to

define what customers experience
at each touchpoint, and how will
they be handled at each
touchpoint. The vision needs to be
clear to everyone. A major pitfall
occurs when your business
constituents have differing
expectations of CRM's benefits.
Sharing a common vision is key.
• By managing and measuring the sales
processes (‘opportunity management?and
"sales method?in CRM terms) it is possible to
take full advantage of CRM's potential. The
steps taken should include:
• Defining and developing new market segments
• Increasing the ability to:
– Cross-sell
– Up-sell
– Retain
– Acquire
– Reactivate
– Experience (Enhancement through better
customer interaction strategies)

• Technology Errors
 Customer data is in more places
than expected.

 Different CRM solutions are in

place but do not work well

People errors

• Introducing CRM to hundreds of

employees at a time.

• Changing the system, but not
the people.

Roles of sales persons
• Diagnostic
 This involves a salesperson in
probing and finding the cause of a
problem .Like an expert doctor, a
sales person diagnoses the needs of
his or her customers ..He or she also
diagnoses the competitive forces
present in the territory and their
impact on his or her product’s share.
• Information Provider
 The salesperson is expected to play the role
of an intelligence agent .In this role he or
she is expected to keep the management
posted of any significant developments in
the territory .For example ,has there been
any shift in the competitor’s strategy or
tactics? Has any new competitor entered
the territory? Has the competitor announced
any new trade incentive policy? Any
changes in customer situation like
expansion or diversification? Or any change
in persons responsible for buying? 
Benefits of CRM

  Identificati Differentiat Interaction Customizatio

on ion n

Sourc e Clean data Understanding Customer Customer

of about customer the customer satisfaction satisfaction
benef i Single and loyalty and loyalty
ts Customer View

Benef i Help sales Cost effective Cost effective Lower cost of

ts force marketing customer acquisition
Cross selling campaign service and retention
Reduce direct of customer
mailing cost Maximize share
of wallet

Benefits of CRM

Benefits of CRM include:
• reduced costs, because the right things are
being done
(i.e.., effective and efficient operation)

• increased customer satisfaction, because they
are getting
exactly what they want

(i.e.. meeting and exceeding expectations)

• ensuring that the focus of the organisation is


• growth in numbers of customers

• maximisation of opportunities
(e.g.. increased services, referrals, etc.)

• increased access to a source of market and

competitor information

CRM Benefits
1.Develop better communication channels
2.Collect customer related data
3.Create detailed profiles of individual
4.Increased customer satisfaction
5.Access to customer account history, order
information, and customer information at
all touch points
6.Identify new selling opportunities
7.Increased market share and profit margin
8.Increased revenues
CRM Benefits Contd..

9.More effective reach and marketing

10.Improved customer service and support
11.Improved response time to customer
requests for information
12.Enhanced customer loyalty
13.Improved ability to meet customer
14.Improved quality communication and
15.Reduced costs of buying and using product
and services
16.Better stand against global competition…….

Lifetime Value (LTV) of a

Ideally, customer’s LTV is the stream of

expected future
value flows discounted back to current
present value.
Benefits – Costs = Value
(to firm)
Benefits = revenues, referrals
Costs = COGS, marketing expenses, phone, e-mail, sales call
Lifetime Value (LTV) of a

Lifetime value is the net present value of

the profit that you will realize on the
average new customer during a given number
of years. – Hughes ‘00

This definition allows us to compare groups

of customers with other groups of
Benefits of CRM
• Improve the ability to retain (acquire)
• Maximize the “lifetime” of customers
• Improve service while keeping costs

Revenue & Cost Goals

• Increase revenue growth through
customer satisfaction
• Reduce costs of sales and
• Minimize customer support costs