Customer Relationship

Management

Ms.D.Alamelu, AP/SRIT BSchool

 WHY?
⦿ the increasing power of computers
⦿ the decreasing cost of computers, in real terms
⦿ the increased storage capacity of computers
⦿ the significant reduction in the cost of storage of a megabyte of data
⦿ the availability of increasingly sophisticated tools to undertake data
analysis,
data mining and data visualization
⦿ the rise of e-commerce and the ability to be able to target customers
via
 CON…..
⦿ an increased recognition of the importance of customer
retention and customer lifetime value
⦿ an increased sophistication in marketing approaches and
the development of better ways of targeting customers,
including:
■ one-to-one marketing
■ permission marketing 3
What is relationship management

⦿A wide range of abilities and tools to build and

maintain effective communications with different

people in our work (customers, co-workers,

employees, managers, business partners,

organizations, and much more).

 CRM DEFINITION

CRM is an integrated approach to identifying, acquiring and retaining

customers. By enabling organizations to manage and coordinate customer

interactions across multiple channels, departments, lines of business and

geographies, CRM helps organizations maximize the value of every

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 CRM is ultimately what the company defines it to be
depending on their business objectives…
 BASIC RELATIONSHIP MANAGEMENT
SKILLS

• Customer relationship and customer service

skills
• Communication skills
• Marketing and sales skills
• Being patient with a friendly attitude
• Be confident and build a trust
• Accomplish your relationship goals
A successful CRM implementation with :
• Properly trained Front Office staff
• Proper data and good use of it
• Proper workflow processes
• Proper integration of Front Office and Back
Office
• Proper software to support the strategy
• Full support of top management
 BENEFITS OF CRM

Quality and
efficiency

Decision Decrease in
support overall costs

Increase Customer
profitability Attention

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 STRENG
HTS

THREAT WEAKNE
S SWOT SSES

OPPORTU
NITIES

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• Identifies best customers
• Holds all customer
information
• Increases sales efficiency
• Ensures customer satisfaction
• Overload of information
• Does not arrive with information
already entered
• Lack of cultural preparation
• Ability to please customer
• Increase sales base
• Improve relationship with
customer
• Loss of personal interaction
• Over automation
• Poor integration with back office
systems
 Commercial contexts of CRM
CRM is practised in a wide variety of commercial contexts,
which present a range of different customer relationship
management problems.
Four contexts:
Banks
Automobile manufacturers
High-tech companies
Consumer goods manufacturers 15
The not-for-profit
context
⦿ Universities have
deployed CRM to
manage their student
and alumni
relationships.

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 EVOLUTION OF CRM

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 TRANSACTIONAL Vs RELATIONAL APPROACH
⦿ As industries have matured, there have been changes in market
demand and competitive intensity that have led to a shift from
transaction marketing to relationship marketing.
⦿ The objective of this ‘transactional’ approach to marketing was to
develop strategies that would optimize expenditure on the marketing
mix in order to maximize sales.
⦿ In many instances consumers and customers were more sophisticated
and less responsive to the traditional marketing pressures, particularly
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 SHIFT TO RELATIONAL APPROACH
 a move from functionally based marketing to cross-functionally based
Marketing
 an approach which addresses multiple ‘market domains’, or
stakeholder groups – not just the traditional customer market
 a shift from marketing activities which emphasize customer
acquisition to marketing activities which emphasize customer
retention as well as acquisition.
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 KEY PRINCIPLES OF RELATIONAL APPROACH
⦿ An emphasis on retention of profitable customers
⦿ An emphasis on multiple markets
⦿ An emphasis on a cross-functional approach to marketing

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 The rise of CRM
⦿ the shift in business focus from transactional marketing to relationship
marrketing
⦿ the realization that customers are a business asset and not simply a
commercial audience
⦿ the transition in structuring organizations, on a strategic basis, from functions
to processes
⦿ the recognition of the benefits of using information proactively rather than
solely reactively
⦿ the greater utilization of technology in managing and maximizing the value of
information
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⦿ the acceptance of the need for trade-off between delivering and extracting