CUSTOMER RELATIONSHIP

MANAGEMENT

“A business absolutely devoted to Customer Service Excellence will have only one worry about profits.
They will be embarrassingly large.”
− Sir Henry Ford
 Fundamentals of
CRM

Purposes of Customer
UNIT 1
Relationship

Introduction to History of Customer Service

CRM
What is Customer Relationship
Management?
 • What is CRM?
• Definition
FUNDAMENTALS • Types of CRM
OF CRM
• Misunderstandings About CRM
• Re-Defining CRM
• Constituencies of CRM
WHAT IS CRM? • Some Basics
 • CRM is an information industry term for methodologies, software and usually
Internet capabilities that help an enterprise manage customer relationships in an
organized way.

• CRM is the process of managing all aspects of interaction a company has with its
DEFINITIONS customers, including prospecting, sales and service. CRM applications attempt to
OF CRM provide insight into and improve the company/customer relationship by combining
all these views of customer interaction into one picture.

• 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 customer interaction and drive superior
corporate performance.
 • CRM is an integrated information system that is used to plan, schedule and control
the pre-sales and post-sales activities in an organization. CRM embraces all aspects
of dealing with prospects and customers, including the call centre, sales force,
marketing, technical support and field service. The primary goal of CRM is to
DEFINITIONS improve long-term growth and profitability through a better understanding of
OF CRM customer behaviour. CRM aims to provide more effective feedback and improved
integration to better gauge the return on investment (ROI) in these areas.

• CRM is a business strategy that maximizes profitability, revenue and customer

satisfaction by organizing around customer segments, fostering behaviour that
satisfies customers, and implementing customer-centric processes.
 Strategic
Strategic CRM is a core customer-centric business strategy that aims at
winning and keeping profitable customers.

Operational
TYPES OF CRM Operational CRM focuses on the automation of customer-facing processes
such as selling, marketing and customer service.

Analytical
Analytical CRM is the process through which organizations transform
customer-related data into actionable insight for either strategic or tactical
purposes.
Types of CRM

Strategic - Product-oriented businesses, Production-oriented businesses, Sales-oriented businesses, customer

or market-oriented Business

Operational Marketing automation, Sales force automation, Service automation (Detailed link)

Analytical – Customer related data may be found in enterprise-wide repositories: sales data (purchase history),
financial data (payment history, credit score), marketing data (campaign response, loyalty scheme data) and
service data.

WHERE DOES SOCIAL CRM FIT?

 • CRM is merely database marketing
• CRM is a marketing process
• CRM is an IT issue
• CRM is about loyalty schemes

Misunderstandings • CRM can be implemented by any company

About CRM • Identifying CRM with a software system
• CRM is a complicated system, difficult to understand
• CRM is expensive and unaffordable by small enterprises
• Who is responsible for CRM implementation - The Marketing, Sales,
Customer Service, or IT officials?
 CRM is the core business strategy that integrates internal
RE-DEFINING processes and functions, and external networks, to create and
deliver value to targeted customers at a profit. It is grounded on
CRM
high-quality customer-related data and enabled by information
technology.
 • Companies implementing CRM
• Customers and partners of those companies
• Vendors of CRM systems
CONSTITUENCIES • CRM cloud solutions providers
OF CRM
• Social media players
• Vendors of CRM hardware and infrastructure
• Management consultants
 • Develop better communication channels
• Collect customer related data and Create detailed profiles of individual customers
• Access to customer account history, order information, and customer information
at all touch points
• Identify new selling opportunities
• Increased market share and profit margin
PURPOSES OF
• Increased revenues with Increased customer satisfaction
CUSTOMER
• More effective reach and marketing
RELATIONSHIP
• Improved customer service and support
• Improved response time to customer requests for information
• Enhanced customer loyalty
• Improved ability to meet customer requirements
• Improved quality communication and networking
• Reduced costs of buying and using product and services
• Better stand against global competition
 • Introduction
• Evolution
HISTORY OF
CUSTOMER • Journey
SERVICE
• Current Trends
• Future
 • What is the meaning of CRM?
WHAT IS • What is CRM as a business strategy?
CUSTOMER
• What are the elements of CRM?
RELATIONSHIP
MANAGEMENT ? • What influences the success of CRM?
A CRM FURTHER
CATEGORIZED
INTO BELOW
STAGES

-AWARENESS
-DISCOVERY
-EVALUATION
-INTENT
-PURCHASE
-LOYALTY
 • Deliver live assistance to boost customer engagement
• Have an omnichannel presence
INNOVATIVE • Automate customer support
MARKETING AND • Continuous marketing engagement 
CUSTOMER
RELATIONSHIP • Use social media for customer service
MANAGEMENT (CRM) • Improve your conversion rates
• Increase customer satisfaction
• Develop a strong brand image
PRINCIPLES OF • Evolution of CRM
CUSTOMER
RELATIONSHIP • The thinking behind CRM
MANAGEMENT
EVOLUTION OF CRM
 • Why Do Companies Work at Being “Customer-Centric”?
• Customers are scarce
THE THINKING • Customers are the sole source of all a company’s revenue
BEHIND CRM • Customers create value in two ways
• ROI
• ROC
 • What Characterizes a relationship?
• Mutuality
• Interaction
• Iterative
THE THINKING • Provides ongoing benefit to both parties
BEHIND CRM • Requires a change in behavior for both parties
• Uniqueness
• Requires—and produces—trust
 • A Framework for Understanding: the 5 e’s of
Customer relationships
• Customer environment
• Customer expectations
• Customer emotions

THE THINKING • Customer experience (pre-post-after sales)

BEHIND CRM • Customer engagement

• Customer Loyalty: Is It an Attitude? Or a

Behavior?
• Attitudinal loyalty
• Behavioral loyalty