CRM

(Customer Relationship Management)

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CRM(Customer Relationship Management)

CRM is a methodology used to learn more abt

customer’s needs and behaviours in order to
develop strong relationships with customers.

It (CRM) is the process of carefully managing

detailed information about individual customers
and all customer “touch points” to maximize
customer loyalty.

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How can u figure out what customer want from you
in terms of service?

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The kind and level of service that you must
deliver depends on:
Who the customer is
What the customer expectations are
What experience they had with you and other
entities
What your strategy is
What role customer service play

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Standardization:
Pin down the service and to be able to
standardize it.
So that it can be consistently delivered.
Customization:
Differ Service from customer to customer.
The value of service as”relationship-building tool”
is its customizability.

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Some customer may require and deserve
better service than the others.

In some situations, u will want to be able

to provide service that will impress customer
so as to make an emotional connections.

 Whenever your employees can say to a

customer, "Let me take care of that for you,"
you are delivering a higher level of service
than the customer was expecting.

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CRM gives a framework for the activities.
It decides on:
What to do - the objectives
What is required to do it - the resources
Who should do it - the people
How to do it - the process
How long to do it - the time frame

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Benefits of Implementing CRM

Attracting new customers.

Quicker and more efficient response to
customer leads and customer information.
Simplification of marketing and sales
processes .
Understanding customer needs.
Better customer service.
Building customer loyalty.
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Basic Architechture of a CRM:

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Architecture of CRM:

There are three parts of application architecture of

CRM:
• Operational - automation to the basic business
processes (marketing, sales, service)
• Analytical - support to analyze customer
behavior, implements business intelligence alike
technology
• Collaborative - ensures the contact with customers
(phone, email, fax, web, sms, post, in person)

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Operational CRM:
Operational CRM means supporting the "front
office" business processes, which include customer
contact (sales, marketing and service).

Operational CRM provides the following benefits:

• Delivers personalized and efficient marketing,

sales, and service through multi-channel
collaboration.

• Sales people and service engineers can access

complete history of all customer interaction with
your company, regardless of the touch point.
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Analytical CRM:

In analytical CRM, data gathered within

operational CRM and/or other sources are
analyzed to segment customers or to identify
potential to enhance client relationship.

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Collaborative CRM :
Collaborative CRM facilitates interactions with
customers through all channels (personal, letter, fax,
phone, web, e-mail) and supports co-ordination of
employee teams and channels.

Collaborative CRM provides the following benefits:

• Enables efficient productive customer interactions

across all communications channels
• Enables web collaboration to reduce customer service
costs

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Related aspects:

Many inter-related aspects

 Front office operation
 Back office operations
 Business relationships

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Front office:

Direct interaction with customers

 Face to face meetings

 Phone calls

 E-mail

 Online services

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 Back office:

Operations that ultimately affect the activities of the

front office

 Billing
 Maintenance
 Planning
 Marketing
 Advertising
 Finance

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 Business relationships:

 Interaction with other companies and partners

• Suppliers/vendors
• Retail outlets/distributors
• Industry networks (lobbying groups, trade
assn’)

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Business strategy perspective:

 Three key phases

1. Customer Acquisition
2. Customer Retention
3. Customer Extension

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Customer Acquisition:

 Attracting our customer

• For the first purchase
• We have acquired our customer

 Growth
• Aim is to increase the number of customers that purchase
from us for the FIRST TIME

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Customer Retention:

 Re-purchase
• Our customer returns and buys for a second time
• This is most likely to be the purchase of a similar product or
service.

 Growth
• Aim is to increase the number of customers that purchase from
us REGULARLY

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 Customer Extension:

 Additional, supplementary purchases

• Our customers are regularly purchasing
• We introduce products and services to our loyal customers
different from original purchase
• Once purchased, our goal is to retain them as customers for the
extended products or services

 Growth
• Aim is to increase the number of customers that purchase
ADDITIONAL products

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Pizza example:
 Subconscious Expectations
Pizza with specified toppings
Take 10 minutes
Come in a packed box
Remain warm till you reach home
Charges – standard and acceptable price
Pizza will taste reasonably good
 You will come back if all the above are met

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 Exceeded expectations
• Deliver on all expectations
• Give you a garlic bread FREE !

You will tell everyone about it.

 Degree of confidence determines tolerance

 If using first time, and even one expectation
is not met
 You will never go again

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 If you go regularly
 Rapport with employees
 You forgive if they mess up with one or two
expectations.
 If they continue to do the same u will stop
going there and search for other shop.

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CRM is a business philosophy based on
TRUST and VALUE.

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