PRESENTED BY

ROHIT
MBA 2nd Year
(180558)
What is CRM?
Customer Relationship Management is an approach to
manage a company’s interaction with current and
potential customers.

It uses data analysis about customer’s history with a company

to improve business relationship with customers, specifically
focusing on customer retention and ultimately driving sales
growth.
CRM Definition
CRM is a cross functional process for achieving:
A continuing dialogue with customers
Across all their contact and access points, with
Personalized treatment for the most valuable customers
To increase customer retention and the effectiveness of
marketing initiatives
CRM Components
CRM’s can be broken down into three key components.

Front Office
Interaction Operations
With (sales,
Operational
Customers marketing,
(email, letters, service etc)
phone,
meetings, fax
etc)
Enhance
Collaborative Analytical Company
Relationship
with Customer
Evolution Of CRM
The Customer Relationship
Target
Find
Understand Attract Engage

Attract
Qualify
Close
Learn from
Develop Develop
Need For CRM
To meet the changing expectations of customer due to:
(a) social and demographic factors.
(b) economic situations.
(c) educational standards.
(d) competitors product
(e) experience.

Loyal customers are the source of most profits

A relatively small percentage of customers may generate most of the profits.
Marketing cost and efforts are less for existing customers.
Dissatisfied customers tell others about their experiences.
So do satisfied customers.

Slowing the rate of defection grows the customer base.

Reducing costs (e.g. through self-service).

Customer Life Cycle Management
Customer Need Assessment and
Acquisition

Customer
Customer
development
Retention and
Through
Referrals for new
Personalization and
Customers
Customization

Customer Equity
Leverage through
Cross Selling and
Up Selling
 CRM Process Framework
Formation Management & Governance
Performance
Purpose Team Structure
-increases effectiveness
-improve efficiency Role Specification

Planning Process
Programs Relationship Performance
-Account Mgmt ProcessAlignment -Strategic
-Retention Mktg. -Financial
-Co-op Agreement Monitoring Process -Marketing
-Strategic Partnership • Retention
Communication • Satisfaction
• loyalty
Employee Motivation
Partners
Employee Training
-Criteria
-Process Evolution
-Enhancement
-Improvement
 Service Quality Model
Word - of- Mouth Past
Personal Needs Experience
Communications
Expected Service
Customer
Perceived Service
External
Service Service Delivery Communications
Provider to Customers

Service quality specifications

Management perceptions of
Customer Expectations
 Service Quality Gaps

Gap 1 : Not knowing what customers expect

Gap 2 : Not selecting the right service design standards

Gap 3 : Not delivering to Service Standards

Gap 4 : Not matching Performance to Promises

Gap 5 : Perceived Service and Expected Service

 The Key Stages of CRM
State
Stage Culture
Satisfaction Based Re-active Meet customer needs
Respond to complaints
Minimal evaluation of
customer service levels
Performance Based Pro-Active Evaluate customer perception
Identify customer retention
factors

Commitment Very Pro- Evaluate multiple customer

needs
Based Active
Continuous inbound/outbound
flow and feedback
Continuous improvement
 Benefits Of CRM
Convenience

Improvement in overall quality of customer experience

Increased profitability

More effective marketing.

Improved customer service and support.

.
Greater efficiency and cost reduction.

Increased customer loyalty. (time frame)

Pitfalls
• Huge money is required to implement ECRM.

• Highly knowledge requiring process.

• Results are not according to expectations.

• Sales and Marketing are reluctant to adopt new automated

CRM system.
Economics Of Customer Retention

“Winning back a lost customer can cost up to 50-100 timesas much as keeping a
current one satisfied.”
Rob Yanker, Partner, McKinsey & Company

Understanding your customer is key to retention…..