Overview :

• Customer Relationship Management, also known as CRM, helps

businesses successfully implement strategies, practices and
technologies aimed at winning and retaining customers profitably.
• The objective of this business and management course is to equip
you with a sound foundation of CRM concepts and best practices
so you can implement CRM practices successfully for long-term
profitability.
Overview :

• Businesses aim to win and keep customers. Their

competitors also seek to do the same. Even the most
successful firms, with excellent marketing programs for
attracting customers, have trouble with customer retention.

• In this course, you will learn how to shift from a short-

term customer transaction based mode of operation to a
long-term relationship mode and understand the benefits of
having strong customer relations.
Purpose of CRM
• Why we need CRM
• Defining CRM
• Identifying different customer types
• Developing customers i.e. Loyalty programs
• A buzz phrase…with meaning
• Good CRM has a sophisticated database
• Management of customers –
don’t have to be passive recipients of their
behavior
Syllabus / Topics covered include:

• Customer Relationship Management

• Consumer Behavior
• Sales Management
• Distribution Management
• CRM in Service Industry
• CEM-Customer Experience Management for Service Business
• E- Business
• E-Commerce - The Web Presence
• The impact of e-business on different fields and industries
• Business Communication
• Case Studies
Definitions
• “is a business strategy with outcomes
– that optimise profitability, revenue and
customer satisfaction
– by organizing around customer segments,
– fostering customer-satisfying behaviors and
– implementing customer-centric processes.”
• “is a strategy
– used to learn more about customers' needs and
behaviors
– in order to develop stronger relationships with
them.”
History of CRM

B&S RM CIMS CRM e-CRM

Time line

Late 80’s Early 90’s Mid 90’s 2002 - Future

B&S – Buying & Selling

RM – Relationship Marketing
CIMS – Customer Information Management Systems
CRM – Customer Relationship Management
e-CRM- A subset of CRM that focuses on enabling customer interactions
via e-channels (The web, email and wireless, social media)
DEFINITION OF CRM :

1. Peter Drucker said: “The business of business is getting and

keeping customers”. These words are totally true in relation to
CRM.

2. CRM is defined by [Couldwell 1998] as “a combination of

business process and technology that seeks to understand a
company’s customers from the perspective of who they are,
what they do, and what they are like”.
DEFINITION OF CRM :

3. According to Saravanakumar (2009), CRM is all about

maintaining a sustainable competitive advantage by serving
existing customers and attracting new customers.

From these definitions, it can be concluded that CRM is a type of

strategy that helps the organization in achieving the customer’s
satisfaction and therefore, their maintenance in business.
Underpinning Theory
• Customers have many points of contact with
an organisation
• Retaining customers is far most cost effective
than recruiting new ones
• Some customers are more profitable than
others
– The “80/20” rule
– For most firms, 80 percent of profit comes from 20
percent of customers
• Use of Technology
CONSUMER BEHAVIOR

CRM Aspects-
•Front office Operations
Direct interaction with customers (e.g. face to face meetings, phone
calls, e-mail, online services)

•Back Office Operations

(Operations that ultimately affect the activities of the front office)
(e.g., billing, maintenance,
planning, marketing, advertising, finance, manufacturing, etc.)

•Business Relationships
( Interaction with other companies and partners)
•Analysis
(plan target-marketing campaigns, conceive business strategies,
and judge the success of CRM activities (e.g., market share, number and
types of customers, revenue, profitability)
TYPES OF CRM
• OPERATIONAL CRM:
 support to "front office" business processes.

• Analytical CRM
 The more information that the analytical software has available for analysis, the better its
predictions and recommendations will be.

• Collaborative CRM:

• Consumer Relationship CRM

 Departments handle in-bound contact from anonymous consumers and customers. Early
warnings can be issued regarding product issues (e.g. item recalls) and consumer feedback.
• Social CRM:
 The rapid growth in social media and social networking forced CRM product companies to
integrate "social" features into their traditional CRM systems. Other emerging capabilities
include messaging, sentiment analysis
Strategies for Building Relationship
It’s size its market share, nature of product , volume of
sales, geographical concentration, socio – economic status and
customers concerned, competitors.

•People
•Process
•Product
•Organization
•Setting Satisfactory Service Standard
•Concentration on Competitors
•Consumer Analysis
•Cost Analysis
•Concentration on the Paying ability of Customers
Customer Retention

• Use of Existing Information

• Reluctant Employees

• Insufficient Attention
Branding Switching Behavior

• Dissatisfaction with present brand

• Change in fashion
• Promises made by competitors
• Change in the perceived benefits
• Pressure of salespersons and so on
• Personal Reasons
An example

The Elements of CRM

Sales force Customer service/call Marketing
automation center management automation

Call center telephone sales Call Centers Campaign

Managing aspects management
E-commerce Of customer contact

Field sales
Web-based Content
Retail self service management

Data analysis
Third-party brokers, Field services
And business
Distributors, agents and dispatch
Intelligence tools

Data warehouse and data cleaning tools

Potential Benefits Of CRM

• Customer retention
• Share of customer or share of
wallet
• Cross-selling
• Up-selling
Potential Costs Of CRM

• IT infrastructure
• Process change
– Process Time Savings
– Value for Faster Processing
– Value due to Improved Management Decisions
– Improved Functionality(competitive advantage)
Benefits Of CRM For Customers

• Continuity
• A contact point
• Personalisation
Three phases of CRM
• Acquiring New Relationships
– You acquire new customers by promoting your
company’s product and service leadership.
• Enhancing Existing Relationships
– You enhance the relationship by encouraging
excellence in cross-selling and up-selling, thereby
deepening and broadening the relationship.
• Retaining Customer Relationships
– Retention focuses on service adaptability – delivering
not what the market wants but what customers want.
Steps to improve CRM

1. Build a database
2. Analyse, define types, profitability
3. Customer selection
4. Activities to delight selected
customers
5. Analyse again to see how we’re
doing
What should be in the database

• Demographics
– How do you get people to provide this?
• History of contacts
• Transaction history or summary
• Response to marketing
communications
– How did you hear about us (this offer?)
Behavioral Patterns

• Behavioral patterns
– Customer Buying pattern & satisfaction
• Consumption channel
Behavioral Patterns

•Benefit segments
•Degree of loyalty
•Permission
Analytically Derived Segments

• Analytically derived
• On-line analytical processing
(OLAP)
• Customer lifetime value
• Intangible benefits
CRM Applications
Customer Types
• Platinum Heavy, reliable users, not price-
sensitive, try new products, loyal
• Gold Large users who push for price
breaks, shop around and not so loyal
• Iron Low volume or intermittent users; cost
to serve them is quite high
• Lead Demanding, want special attention but
don’t buy much and show no loyalty
Advantages of CRM
• While company is quickly growing, customers are more
satisfied as well
• Service provided in a better way, and a quicker way
• Sales force automated
• Integrated customer information
• Certain processes eliminated
• Operation cost cut, and time efficient
• Brand names more quickly established
• A central database so that everyone in your company can
keep track of customer contacts
• Sales and marketing teams can benefit from having all this
inside knowledge about customers
• Lets you set up rules for distributing work throughout your
company
• Lets you pick and choose the functionality that you want
Disadvantages of CRM
• Organizational wise change of priority to customers.
• Significant investment of time and money
• Threatens management’s control/power struggle
• Heightens people’s resistance to change
• Inappropriate integration leads to disaster
LINKS

https://www.youtube.com/watch?v=
OSPIatjGhzk&ab_channel=Zoho
CRM IN SERVICE INDUSTRY
SERVICE SECTOR
CRM IN SERVICE SECTOR
CONCLUSION
CLOSING COMMENTS
Thanks