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Customer
Relationship
Management

DR. AMANDEEP SINGH

PROFESSOR
CHITKARA BUSINESS SCHOOL
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The Need

Customer Relationship Management

(CRM) is to create a competitive
advantage by being the best at
understanding, communicating,
delivering, and developing existing
customer relationships, in addition to
creating and keeping new customers.
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Definition

 CRM is a comprehensive strategy and

process of acquiring, retaining and partnering
with selective customers to create superior
value for the company and the customer.
 CRM is a business strategy designed to
optimize profitability, revenue, and customer
satisfaction
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Scope of CRM

 Comprehensive
 Approach
 Customer Relationship
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Need and Importance of CRM

 Better service to customers

 Customization of market offerings
 Reduction in the customer defection rate:
 Increase and improvement in long-term relationships
 Increase in customer equity
 Competitive advantage
 Building and maintaining corporate image
 Higher return on investment
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Objectives of CRM

 Improved Customer Satisfaction

 Improve The Efficiency of Business
 Expand Customer Base
 Enhance Sales And Support Teams
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History of CRM

 1960s Mass Production/Mass Product

 1970s Mass Market
 1980s Total Quality Management
 1990s Customer Relationship Management (CRM)
 2000s Customer Relationship Management (CRM)
 2010s e-Customer Relationship Management (e-CRM)
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The Evolution of Relationship Orientation

High

Relationship
Orientation

Low

Pre-I ndustrial Era I ndustrial Era (Product I nformation Era

(Relationship Centric - Centric) (Relationship Centric -
Small Scale) Large Scale)
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The post-industrial era saw the re-
emergence of relationship practices.

1. Rapid advances in technology (Inefficiencies of

mass marketing, Lack of fast, effective and interactive
models of customer contact, feedback and future potential)
2. Intensive competition in most markets
3. Growing importance of the service sector
4. Adoption of total quality management
programs
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Schools of Thought on CRM

1. The Anglo-Australia Approach

2. The Nordic Approach
3. The North American Approach.
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1. The Anglo-Australia Approach
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2. Nordic Approach
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3. The North American Approach
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CRM and Marketing

 Web Marketing
 Email Marketing
 Analyzing customers buying behavior online
 Forecasting future marketing strategies
 Building business impact models
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Target Marketing
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Relationship Marketing

This concept assumes that the

consumer prefers to have an
ongoing relationship with one
organisation rather than switching
organisations
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Evolution of Relationship Marketing
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Goals of Relationship Marketing

 Identify the customers who spend above

average.
 Loyal customers
 Find out the group of new customers
 As customers move from one life cycle stage
from another, needs evolve, buying pattern
fluctuates and product choices shift.
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Retention Strategies

 Level-1-Financial Bond
 Level 2- Social Bonds
 Level 3-Customisation Bonds
 Level 4- Structural Bonds
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CRM and Customer Service

Customer service is the provision of

labour and other resources, for the
purpose of increasing the value that
buyers receive from their purchases
and from the processes leading up to
the purchase
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Customer Service Advantages

 Strategic Advantage
 Culture
 Service Ideology
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What Customers Want

 Good People
 Friendly, helpful, courteous
 Empathetic
 Knowledgeable, accurate, thorough
 Resourceful, empowered
 Able to recommend solutions
 Able to anticipate needs
 Efficient
 Trustworthy, authentic
 Reliable
 Responsible
 Appropriate appearance
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What Customers Want…….

 Good Offering
 Good selection
 Good quality
 In stock
 Available demos
 Clear descriptions & pricing
 Competitive prices
 Financing, deferred payments
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What Customers Want…..

 Convenience
 Convenient locations
 Long hours
 Available help, fast service
 Signage that facilitates self-service
 Fast checkout
 Shipping/delivery
 Installation
 Phone/web support
 On-site repair
 Hassle-free returns
 Quick resolution of problems
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What Customers Want…..

 Good Environment
 Clean
 Organized
 Safe
 Low-pressure
 Energy level appropriate to clientele
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The Call Centre

 collective handling of letters, faxes, and e-mails at

one location is known as a call centre
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Call Centre Features

 Mathematical Theory
 Accommodation
 Technology
 ACD (automatic call distribution)
 Agent performance analytics
 BTTC (best time to call)/ Outbound call optimization
 IVR (interactive voice response)
 Guided Speech IVR
 CTI (computer telephony integration)
 Enterprise Campaign Management
 Outbound predictive dialler
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Call Centre Dynamics

 Inbound Call Center

Services, which are inbound in nature,
like providing customer/client services or
technical support functions, are handled
by Inbound Call Centers.
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Call Centre Dynamics

 Customer support services

 Information support
 Invoicing support services
 Delivery information and status support
 Customer support solutions
 Business Feedback
 Customer Opinion
 Product Survey
 Chat support: Web Call Back, Web Push
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Call Centre Dynamics

 Outbound Call Center:

Outbound Call Centers provide
services, which outbound in nature, like
providing telemarketing appointment
filling services.
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Call Centre Dynamics

 Telemarketing

 Appointment fixing

 Deal closing support

 Dynamic order filling services

 Customer satisfaction surveys

 Payment reminder

 Debt Collection

 Credit card verification solutions

 Outsourcing program notice

 Advertising and brand management solutions

 Follow-up calls and mailers

 Business correspondence assistance

 Registration and confirmation functions to a call center

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Primary Functions of Call Centers

 Customer Service
 Telesales
 Technical Support
 Dispatch
 Collections
 Research
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Criticism of Call Centres

 From Callers
 Operators working from a script.
 Non-expert operators (call screening).
 Incompetent or untrained operators incapable of
processing customers’ requests effectively.
 Overseas location, with language and accent
problems.
 Automated queuing systems.
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Criticism of Call Centres

 From Staff
 Close scrutiny by management (e.g. frequent random
eavesdropping on operator’s calls).
 Low pay.
 Restrictive working practices (e.g. there isn’t much space for
personal creativity since many operators are required to follow a
pre-written script).
 High stress: a common problem associated with front-end jobs
where employees deal directly with customers.
 Poor working conditions (e.g. poor facilities, poor maintenance
and cleaning, cramped working conditions, management
interference)
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customer lifetime value

Customer lifetime value (CLV) is a metric

that represents the total net profit a
company makes from any given customer.
CLV is a projection to estimate a customer's
monetary worth to a business after factoring
in the value of the relationship with a
customer over time.
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Common ways of calculating a CLV

 Average revenue per user

 Cohort analysis
 Individualized CLV
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CRM Roadblocks

 The Four Ps
 Process
 Perception
 Privacy
 Politics
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B2B CRM

 Manage Contacts Easily

 Improve Customer Experience
 Prepare Real-Time Quotes
 Create Automated Targeted Marketing
Campaigns
 Analytics and Reporting
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CRM Implementation
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CRM development success

 Incremental development.
 Requirements-driven development.
 Continuous user involvement.
 Implementation process rigor.
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CRM Implementation Roadmap