Customer Relationship Management(CRM ) involves managing all aspects of a customer¶s relationship with an organization.  involves customers, organizations, relationships and the combination creates the need for management.  is the establishment ,development ,maintenance and optimization of long term mutually valuable relationships between customers and organizations. CRM is an integrated information system solution that allows identification, acquisition, retention and expansion of customers.

Web and email


Call centre Customer Informatio n

Custome rs

Back office





Customer prediction What will Happen?

Business value Customer segmentation

Why Happened?

customer identification What Happened?


REPORTING ³Asking What Happened´ What is the total revenue by customers? How many units did we manufacture? Where did we sell the most products? What were total sales by product? How many customers did we serve? What are our

ANALYZING ³Asking why it happened´ Why did sales not meet forecasts? Why was production so low? Why did we not sell as many units as last year? Who are our customers? Why was customer revenue so high? Why are inventory

PREDICTING ³Asking what will happen´ What customers are at risk of leaving? What products will the customer buy? Who are the best candidates for a mailing? What is the best way to reach the customers? What is the lifetime profitability of a customer? What transactions


Areas of CRM Activity Force Automation (SFA)  Customer Service and Support (CSS)  Help Desk  Field Service  Marketing Automation  Sales 6 .

Staples used SFA to integrate catalog. online. Ex. tracks movement of leads through the pipeline. allows better usage of customer data. simplifies relationship management. integrates activities across sales channels. in-store sales efforts directed at its best customers 7 .Areas of CRM Activity Sales Force Automation 35-40% of all CRM activity Manages lead generation. forecasts for opportunities (SWOT) Goldmine and SalesLogix are examples of prepackaged SFA solutions.

and track trouble tickets. inquiries. and Clarify are major vendors 8 .Areas of CRM Activity Customer Service and Support (CSS) 20-25% of CRM Assign. solution attempts through resolution Provides information to support customer call center activity Gleans customer data from those interactions and records it in SFA for later use Remedy. Siebel. Vantive. escalate.

Tivoli. are providers Ex. LivePerson. Land¶s End Live allows customers browse FAQ¶s but also click a link to talk directly with live representative.Areas of CRM Activity Help Desk 15-20% of all CRM Allows individuals to access network database to solve their own problems or find information. 9 . Can be internal or external Human Click..

Ensures appropriate resource allocation by matching available resources to job requirements Major vendors are RTS. Market information can be gathered and logged into central database. edispatch 10 . Metrix. as well as access information from the remote site. Can feed information from customer problems into SFA for salesperson leads.Areas of CRM Activity Field Service CRM 3-5% of all CRM activity Mobile service technicians can log information about work orders and service calls.

and promotions. products. Epiphany. customerization. Oracle.webgroove.com. but growing 5X faster than all others Interfaces with data warehouses and data mining activities to tailor page views. 11 . Siebel.Areas of CRM Activity Marketing Automation 3-5% of CRM. Can interact with SFA to support field sales efforts Provides customized customer interactions critical to segment of one marketing. mass customization. www. so that the right offer goes to the right person at the right time. and Personify are leaders. etc.

Scheduling sales contact and providing appropriate information.Applications of CRM y Contact and account management Capture and track relevant data about every past and planned contact Stores the data in a common customer database y Sales Provides the sales reps with the software tools and company data sources they need y Marketing and fulfillment Helps marketing professionals accomplish direct marketing campaign. Capture and manage customer response data. 12 .

13 . web based self service y Retention and loyalty programs try to help company identify. help desk.y Customer service and support provides service reps with software tools and real time access to the common customer database manage customer service requests. call center. reward and market to their most loyal and profitable customers.

integrity. temporal. y Value y 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. 14 . and motivation of one company to serve the needs of the other company as agreed upon implicitly and explicitly. functional and psychological terms.Determinants of CRM y y Trust The willingness to rely on the ability.

. and Have a passionate interest in establishing and retaining a long-term relationship (e. y 15 . Provide superior after sales support. Meet their commitments. salespeople must: Understand customer needs and problems.Determinants of CRM y y y y y In addition to trust and value.g. have long-term perspective). Make sure that the customer is always told the truth (must be honest).

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

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. 1997) 17 .

Volume. Scout: and Access. and Safeguard Indirect functions (are the actions necessary to convince the customer to participate in various marketing activities).Functions of Customer Relationship Management Direct functions (are the basic requirements of a company that are necessary to survive in the competitive marketplace) Profit. Innovation: Market. 18 .

approaching key decision makers in the buying firm. 19 . negotiating and advancing dialogue and mutual trust. coordinating the cooperation between the customers and their company. and leading the customer relationship development team are the individuals in any organisation who act both as relationship builders and as relationship promoters.The role of salespeople as relationship builders and promoters Salespeople by: identifying potential customers and their needs. encouraging the inter-organisational learning process. contributing to constructive resolution of existing conflicts.

Acquire y Enhance y Retain y 3 phases of CRM 20 .

Demonstrate an understanding of the customer¶s needs. develop and enhance the process that is aimed at building trust and commitment with the customer. Identify buying influences. Plan the initial sales call. Gather and study pre-call information.Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate. Initiating the relationship Engage in strategic prospecting and qualifying. Identify opportunities to build a relationship. and Illustrate the value of a relationship with the customer 21 .

Link the solutions with the customer¶s needs. 22 .Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate. Discuss customer concerns. Customise the relationship. Summarize the solution to confirm benefits. develop and enhance the process that is aimed at building trust and commitment with the customer. and Secure commitment. Developing the relationship Select an appropriate offering.

and Work to add value and enhance mutual opportunities. 23 . Enhancing the relationship Assess customer satisfaction. develop and enhance the process that is aimed at building trust and commitment with the customer.Managing Customer Relationships The global salesperson must be involved in the following activities in order to initiate. Maintain open. Take action to ensure satisfaction. two-way communication.

Customer Life cycle Acquire Direct marketing enhance Cross-sell and up-sell retain CRM Functional solutions Proactive service Sales force automation Customer support CRM integrated solutions partner Internet customer 24 company .

Processes & Systems 25 .

any successful CRM initiative is highly dependent on a solid understanding of customers  26 .Processes & Systems  Important  Business starts with the acquisition of customers However.

1. purchase patterns & channels Segmentation to identify logical unique groups Primary research to capture needs and attitudes Customer valuation to understand profitability  Differentiate  Based on the value customers are expected to deliver 27 . Understand & differentiate  Understand     Demographics.

channels and media can be customized based on the needs of quantitative customer segments  Customize  Based on the potential value delivered by customer segment 28 . Develop & Customize  Develop  Products.2. services.

responsiveness and service excellence 29 . Interact & Deliver  Interact   Not just through marketing. customer service & online  Deliver   Delivering value is a cornerstone Factors including quality. speed. ease of use. convenience. shipping. sales and media Distribution.3.

4. Deliver on value Customers change as they through differing life stages Modify the service 30 move  . Acquire & Retain  Acquire  Learning about customers makes it easy to identify those producing the greatest value  Retain    Maintain interaction.

Pizza example Perspective 31 .

Pizza example ` Subconscious Expectations x Pizza with specified toppings x Take 10 minutes x Come in a packed box x Remain warm till you reach home x Charges ± standard and acceptable price x Pizza will taste reasonably good ` You will come back if all the above are me 32 .

Pizza example € If you go regularly x Rapport with employees x You forgive if they mess up with one or two expectations € Degree of confidence determines tolerance x If using first time. and even one expectation is not met x You will never go again 33 .

Pizza example y Exceeded expectations x Deliver on all expectations x Give you a garlic bread FREE ! y You will tell everyone about it 34 .

Types of CRM Operational CRM Analytical CRM Sales Intelligence CRM Campaign Management Collaborative CRM Consumer Relationship CRM Simple CRM Social CRM 35 .

). ‡ Operational CRM processes customer data for a variety of purposes: Managing campaigns Sales force automation Sales force management system ‡ Operational CRM 36 . e. ‡ Operational CRM provides support to "front office" business processes. to sales. order management. and sales/marketing automation and management. marketing and service staff.g. invoice/billing. Interactions with customers are generally stored in customers' contact histories. eliminating the need to individually obtain this information directly from the customer. and staff can retrieve customer information as necessary. prior support calls etc. Reaching to the customer at right time at right place is preferable.Operational CRM is related to typical business functions involving customer services. ‡ The contact history provides staff members with immediate access to important information on the customer (products owned.

customer acquisition. the more information that the analytical software has available for 37 analysis. product development) ‡ Management information system (e. cross-selling.g. and report customer data to a user. store. e.g. extract. the better its predictions and recommendations will be. who then analyzes them as needed. ‡ . Analytical CRM analyzes customer data for a variety of purposes: ‡ Designing and executing targeted marketing campaigns ‡ Designing and executing campaigns. financial forecasting and customer profitability analysis) ‡ Analytical CRM generally makes heavy use of data mining and other techniques to produce useful results for decision-making. process.g. interpret. It is at the analytical stage that the importance of fully integrated CRM software becomes most apparent. up-selling ‡ Analyzing customer behavior in order to make decisions relating to products and services (e.pricing. Logically speaking.Analytical CRM Analytical CRM involves activities that capture.

A different technique is cross-selling in which a seller tries to sell something else in addition to the original sale. traders. etc." or "that of selling an additional product or service to an existing customer". upgrades. markets. or other add-ons in an attempt to make a more profitable sale. ‡ 38 . Up-selling implies selling something that is more profitable or otherwise preferable for the seller instead of the original sale.Cross-selling is defined by the Oxford English Dictionary as "the action or practice of selling among or between established clients. but up-selling can also be simply exposing the customer to other options he or she may not have considered previously. ‡ Up-selling is a sales technique whereby a salesperson attempts to have the customer purchase more expensive items. Up-selling usually involves marketing more profitable services or products.

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suppliers and partner by using new information system such email. link and data bank 41 . feedback received by customer support agents can provide other staff members with information on the services and features requested by customers. CRM facilitates communication between customers. coordination. and collaboration between vendors and customers. For example. CRM also plays a role of data distributor within customers. producers and partners.Collaborative CRM ‡ y y y y Collaborative CRM deals with all the necessary communication. Collaborative CRM's ultimate goal is to use information collected by all departments to improve the quality of services provided by the company. Producers can use CRM information to develop products or find new market.

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y y y y y y Sales Intelligence CRM is similar to Analytical CRM. Features include alerts sent to sales staff regarding: Cross-selling/Up-selling opportunities Customer Drift Sales performance Customer trends Customer margins Customer alignment Sales Intelligence CRM 43 . but is intended as a more direct sales tool.

post) 3) Tracking.y Campaign Management combines elements of Operational and Analytical CRM. and analyzing campaign statistics. storing.g. on special offers) to selected recipients using various channels (e.g. Campaign management functions include: 1) Target groups formed from the client base according to selected criteria 2) Sending campaign-related material (e. e-mail. telephone. including tracking responses and analyzing trends Campaign Management 44 . SMS.

Early warnings can be issued regarding product issues (e.g. Representatives handle inbound contact from anonymous consumers and customers.y Consumer Relationship System (CRS) covers aspects of a company's dealing with customers handled by the Consumer Affairs and Customer Relations contact centers within a company. item recalls) and current consumer sentiment can be tracked (voice of the customer). Consumer Relationship CRM 45 .

These systems are designed to create the most value for the immediate end user rather than the organization as a whole. organizational unit.y Simple CRM systems breakdown the traditional CRM system to focus on the core values--managing contacts and activities with customers and prospects. Many times they focus on satisfying the needs of a particular marketplace niche. Simple CRM 46 . or type of user rather than an entire organization.

typically built into the system dashboard.y Beginning in 2007. sentiment analysis. Some of the first features added are social network monitoring feeds (ie Twitter timeline). the rapid growth in social media and social networking forced CRM product companies to integrate "social" features into their traditional CRM systems. and other analytics. Social CRM 47 . Other emerging capabilities include messaging.

and direct sales). as well as service to partners (PRM).CRM 48 . and customer service applications and analysis. e . e-CRM also includes online process applications such as segmentation and personalization. Through Internet technologies. The use of these technologies made customer services.y y y y y The term eCRM was coined in the mid-1990s. the Internet.call centers. sales. data generated about customers can be easily fed into marketing. POS terminals. when customers started using Web browsers. much more effective and efficient than it was before the Internet. and other electronic touch points (e-mail.

and methods. eCRM has become a requirement for survival. not just a competitive advantage. In the world connected by the Internet. 49 .  e-CRM covers a broad range of topics. tools. ranging from the proper design of digital products and services to pricing and loyalty programs.

and order fulfillment.According to Voss (2000). and security/trust. and online training and education. site effectiveness. These are the services that matter the most to customers. online auctions. (2) Customer-centered services include order tracking. configuration and customization. how quickly and accurately the service is provided). (3) Value-added services are extra services such as dynamic brokering. there are three levels of e-CRM: (1) Foundational services include the minimum necessary services such as site responsiveness (e..g. 50 .

 New convergence in CRM Telephony Internet Mobile. Digital Cable & telemarketing SMS TV & satellite 51 .

Business benefits of CRM are not guaranteed. y For eg.com estimated that 42 percent CRM FAILURE sites experienced of the top 125 CRM failures y 52 . y 20% report says that CRM implementations had actually damaged long standing customer relationships. the founder and CEO of Customer. y Research shows that 50% of CRM projects did not produce the results that were promised.

4.. 6. Trying to automate a poorly defined processes. Failure to identify and focus on specific business problems. which can occur for a variety of reasons such as unclear benefits (i. 5. Reasons of failure of CRM 53 . but doesn¶t help a rep sell more effectively) and usability issues. Lack of active senior management (non-IT) sponsorship. 3.1.e. 2. There are few tangible benefits to CRM. Poor user acceptance. Lack of understanding and participation Difficulty measuring and valuing intangible benefits. CRM is a tool for management.

use defined metrics. not just quantity. marketing. is addressed. Carefully consider the four components of CRM: sales. y Consider how CRM software can help visa-vis the organization¶s objectives. y 54 . Make sure quality. y Survey how CRM accomplishments are measured. service. and channel/partner management..Suggestions for implementing CRM and avoiding CRM failure.

Decide whether to use the best-of-breed approach or to go with one vendor. There are more than 60 vendors. y Prioritize the organization¶s requirements as: must. such as PeopleSoft and SAP. also offer CRM products. or reengineering the CRM. others provide only certain functions. Some (like Siebel) provide comprehensive packages. y Evaluate all levels in the organization. y 55 . field service. desired.Decide on a strategy: refining existing CRM processes. and salespeople. and not important. y Select an appropriate CRM software. but particularly frontline agents. ERP vendors.

Thank You 56 .

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