ct u r e #6

Le

Customer Relationship
Management
What it’s all about?
 Learning Outcome

Students will know about role of CRM systems in relationship

management and culture and structure of a relationship oriented
organisation
Recapitulate

• Winning and keeping profitable customer is a __________type of

CRM
A. Strategic
B. Analytical
C. Operational
D. All of the above
Tell

Organisations transforms customer related data into actionable insights

is _________type of CRM.
A. Strategic
B. Analytical
C. Operational
D. All of the above
According to your opinion, what are the key benefits of CRM?
Few Question to Ask….

• What type of organisation is necessary to create a CRM strategy?

• What characterizes the mission of the relationship-oriented
organisation applying a CRM strategy?
• What is characteristic for the culture of a relationship-oriented
organisation?
• What is the structure of a relationship-oriented organisation?
• What is the customer pyramid and how does it relate to the
organisation of relationship management?
• What is the role of CRM systems in relationship management?
 Case Let: Working with Salespeople

Salespeople are part of an overall team. When a salesperson tries to work independently, the
results are not always very effective. This activity highlights an ineffective situation for a mobile
home loan salesman for a bank. Review the situation – what can you recommend to improve
the firm’s current sales appointment practices?

ACTIVITY/TASK
When customers phone the bank’s call center and inquire about a home loan they are always
offered an appointment the mobile home loan salesperson (who will come out and visit them).
If they are interested, the appointment is then immediately booked in the mobile lender’s
electronic diary. Each day the mobile lender checks his electronic diary and goes to the
scheduled appointment/s. However, the mobile lender has become very unhappy that the call
centre is making appointments with people who are not ready to buy yet (many just want
information). He is complaining that the call centre “is wasting his time” and wants something
done about it!
Let’s Discuss…….

• Why is the salesperson unhappy in this situation?

• Would the call center staff be happy in always passing the sales
inquiry to the salesperson? Why?
• How did this disorganized situation occur? (Who’s at fault?)
• What would you recommend to improve this situation/practice?
Let’s Discuss

According to you opinion what is the relevance and benefits of a

relationship-oriented culture in a travel agency?
Answer

• The supply chain becomes more effective, modernised and alert to

rapidly changing markets, technology, and customer needs.
• As trust and confidence within the working atmosphere growth,
employees do not simply propose improvements in on-going
processes; they rather actively reach out to their environment with
new improvement options and plans that make the company more
market competitive.
• Even at the economic level, a well-organised culture leads to growth
in productivity and performance. A culture that intensely engages
people is understandably a lot more productive (Phegan, 2013).
Here a few tips for your travel agency to become more relationship-oriented:

• Meet in person. Nothing beats face-to-face interactions. It is worth the extra time
and money.
• Choose your team according to those who adapt and are good at building
relationships.
• Always cooperate on a face-to-face basis to fasten the relationship-building
process.
• Help the same customer each time to demonstrate you want to engage in a long-
term relationship.
• Use the telephone, rather than e-mail, if you cannot meet in person. If necessary,
summarize the conversation in an e-mail.
• Send e-mails in a conversational manner, rather than just making use of bullet
points.
• Avoid rushing into decisions if the customer is not sure yet.
Source: (worldwideerc.org, 2017)
The relationship-oriented culture

• ‘People dare to show their true selves.’

• People with ‘well-developed right brain hemispheres’
are deployed.
• Overtures are made in the proper manner; a sufficient
level of empathy is shown in the other.
• People come across as sincere.
Structure: organising around customers

The customer pyramid

People

Social competencies:

• the capacity for empathy;

• the ability to create congruence;
• the ability to use an unconditionally positive approach
to the other person.
From strategy to critical success factors
Balanced scorecard for a Japanese restaurant