Customer Relationship Management

• 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 thinking. • 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 opportunities.

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Increasing sales effectivenessMake 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

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Access to customer informationWith 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 accuracy.

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. .

AREAS OF CRM ACTIVITY
qSALES FORCE AUTOMATION (SFA) qCUSTOMER SERVICE AND SUPPORT (CSS) qHELP DESK qFIELD SERVICE qMARKETING AUTOMATION

SALES FORCE AUTOMATION
• 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 customers.

• 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

v 

CUSTOMER SERVICE & SUPPORT is the part of a Customer service and support (CSS)
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 activity

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• Build customer satisfaction & loyalty

• Resolve customer issues after the sales responsively • • 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.

HELP DESK
• 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
 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.

MARKETING AUTOMATION
• 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 others. • Can interact with SFA to support field sales efforts. • Marketing automation (MA) applies technology to marketing processes.

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MARKETING AUTOMATION PROCESS FLOW

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 loyalty….

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 information. • Analyze human resources and ensure that everyone has an understanding of philosophy of CRM •

Implementation of CRM
• To implement CRM, following factors need to be given due consideration: 1. 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 customers.

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 trends.

RFM Data in CRM
• 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 customers. • 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

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 external ü Growth in numbers of customers ü Maximisation of opportunities ü Increased access to a source of market and
ü ü ü ü ü ü ü ü ü

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:
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Cross-sell Up-sell Retain Acquire Reactivate Experience (Enhancement through better customer interaction strategies)

Errors
• Technology Errors  Customer data is in more places than expected.
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Different CRM solutions are in place but do not work well together.

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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? 

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Benefits of CRM
  Sourc e of benef i ts Benef i ts Identificati on Clean data about customer Single Customer View Help sales force Cross selling Differentiat ion Understanding the customer Interaction Customer satisfaction and loyalty Customizatio n Customer satisfaction and loyalty

Cost effective marketing campaign Reduce direct mailing cost

Cost effective customer service

Lower cost of acquisition and retention of customer Maximize share of wallet

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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 external • 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 customers 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
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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 requirements 14.Improved quality communication and networking 15.Reduced costs of buying and using product and services 16.Better stand against global competition……. 49 •

Lifetime Value (LTV) of a Customer
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 Customer
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 customers….

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

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Revenue & Cost Goals
• • Increase revenue growth through customer satisfaction • Reduce costs of sales and distribution • Minimize customer support costs

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