 CRM definition & importance.

 CRM & Database Marketing.

 CVL.
 CRM strategy.
 CRM implementation.
 CRM dilemma.
 CRM its more than building relationships with
customers to match a company’s product and service
offer better with customer needs.

 CRM is about Developing a unified and cohesive view

of the customer, without regard to how the customer
chooses to communicate with the organization (in
person, by mail, internet, or telephone). Emphasis is
placed on enhanced customer service and the use of
call centers to provide consistency in how the
company interacts with customers.

 CRM may Focus only on the creation and use of a

customer database to support decision makers
1. Identifying, satisfying, retaining and
maximizing the value of a firm’s best
customers.

2. Wrapping the firm around the customer to

ensure that each contact with the
customer is appropriate and based upon
extensive knowledge.( British airways )

3. Creating a full picture of the customer.

 Helping an enterprise to enable its marketing
departments to identify and target their best customers,
manage marketing campaigns and generate quality
leads for the sales team.

Assistingthe organization to improve telesales,

account, and sales management by optimizing services.

identifyingthe most profitable customers and providing

them the highest level of service.

Providingemployees with the information and

processes necessary to know their customers,
understand and identify customer needs.
A database created through CRM technology should
contain information about the following:
1.Transaction: should include a complete purchase history for each
customer with accompanying details

2.Customer contacts: with multiple channels of distribution and

communication the database should record all customer contacts with
the company and its distributors.

3.Descriptive Information: for each individual customer, relevant

descriptive data that provide the basis for market segmentation and
targeted marketing communications.

4.Response to marketing stimuli: whether the customer responded

to specific advertising a price offer, a direct marketing initiative, or a
sales call, or any other direct contact .
Data
Environment Campaign
Management
Outbound
Campaigns
(CM)

iti d
tiv un
es
ac tbo
Ou
Customer
Data Next Best
Traffic Knowledge Inbound • Call centre
Warehouse Activity
Management activities • Shops
(DWH) (NBA)
(CKM) • Web
Indicators
calculation
• Daily Traffic
• Behavioral trends
• Data mining
• Reporting
• Ad hoc analysis
 bi hip
Full Potential

y
ita ns
lit
of io
Pr lat
Re
Number of Relationships

Current
Current
Customer
Value

Current

Relationship Duration
Customer Lifetime Value Metric:
Past Profit Produced by Customer for the Firm
(the sum of all the margins of all the products purchased overtime)
▬
The Cost of Reaching that Customer

+
Forecast of margins on future purchases

Discounted back to
present value
 CLV offers opportunity to examine individual customers.
 CLV provide an estimate of the profitability of a
customer during the time span of the relationship.
 Powerful tool for focusing marketing & promotional
efforts where they will be most productive.
 Companies recognize the importance of understanding
CLV are 60% more profitable than firms that don’t
consider CLV.
• 20 % of customers yield 80 % of
the profits.
• Find the High value customers

which are typically a small part of

total customer base.
CRM can be viewed from:
•Company Wide
•Customer facing
•Functional levels
 Customer Care

Single View Sales

Complete view of CRM:
Focused on
1.Increasing company Marketing
customer
profitability. .added value
2. Adding customer Value. IT

Finance

Company Wide Customer Functional

Steps in developing CRM Strategy:
1.Organizational Commitment to CRM
2.The Project Team
3.Business Needs analysis
4.The CRM Strategy
 Other Value
Stakeholders Proposition
CRM
Strategy

Enterpris
e Business
Transformati Case
on Plan Customer
Strategy
 An effective CRM
implementation aids in the
acquisition of new customers,
improves customer
satisfaction and retention
rates and adds to the life cycle
value of customer
relationships.
win-win model (Customer and Company value receives)

Customer value: Evaluating the customer the customer

satisfaction performance (CDI, IVR survey, Metrics features..etc

Value received by org:

1.Determining current potential customers profitability vs all
customers.
2.he economics of customer retention, acquisition and
opportunity for sales

CRM and value chain strategy: Perfect customer experience

model
 Support the creation of a “Customer
Centric” Culture
Customer
Experience
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I’m Soraya
Soraya &
& my
my
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job is to delight the

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Sales &
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help

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Plannin na
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…”
…”
 Stop doing business with unprofitable
customers? Less business? Or use them to
support the profitable ones?

 Treatment segmentation might creates

loyal customers and frustrated ones.

 Invest to make the non profitable

customers; profitable ones.
 CRM is beyond building a relationship or having a
solid data base.
 CRM focus on the customer and organization
value
 Solid strategy + solid implementation= solid
outcome
 CRM should matches the company’s organization
and customer/marketing strategy
 CRM includes the integrated function to come up
with solid proposition.
 CRM has a vital role to play in market targeting
and positing.
www.msdconnect.com
Thanks