CRM CONCEPTS

Dr. Vandana Khanna

What is CRM??
It is a comprehensive set of processes and technologies for managing the relationships with potential and current customers and business partners across marketing, sales, and service regardless of the communication channel. channel.
Brent Frei, President and CEO, Onyx Software Frei,

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Dr. Vandana Khanna

What is CRM??
Customer Relationship Management is the commitment of the company to place the customer experience at the center of its priorities and to ensure that incentive systems, processes, and information resources leverage the relationship by enhancing the experience. experience.
Peter Keen, Chairman, Keen Innovations

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Dr. Vandana Khanna

What is CRM??
CRM is an enterprise-wide mindset, dogma, and enterpriseset of business processes and policies that are designed to acquire, retain, and service customers. customers.
Scott Fletcher, President and COO, ePipeline

CRM is a disciplined business strategy to create and sustain long-term, profitable customer longrelationships. relationships. Robert Thompson, President, Front Line Solutions, Inc. Inc. Customer Relationship Management (CRM) is a business strategy to select and manage customers to optimize long-term value. longvalue. CRMGuru. CRMGuru.com
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Objectives of CRM
To identify and establish, maintain and enhance and , when necessary, terminate relationships with customers and other stakeholders, at a profit so that the objectives of all parties involved are met; met; and this is done by mutual exchange and fulfillment of promises. promises.
Grnroos 1994

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Dr. Vandana Khanna

Competitive Advantage
The ability to learn more about our customers faster than the competition The ability to turn that learning into action faster than the competition. competition.
Jack Welch

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Dr. Vandana Khanna

Increasing Value of the Customer Base

Get : Acquire Profitable Customer Keep : 1. Retain Profitable Customers
2. Win Back Profitable Customers 3. Eliminate Unprofitable Customers

Grow : 1. Up sell Additional Products In A Solution

2. Cross Sell Other Products To Customers 3. Referral And Word-of-mouth Benefits 4. Reduce Service And Operational Costs
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CRM as a Hub of Applied Learning

Recognize needs/wants of defined segments. segments. Cultivate and develop interest, trust and desire. desire. Acquire customer and establish a relationship. relationship. Customize promotion, information, interactions. interactions. Customize offers, products and services. services. Customize channel outlets and locations. locations. Collect, Warehouse and Analysis data. data. A customer focus without accurate information is similar to attempting to circumnavigate the planet without a map. 3/1/2012 Dr. Vandana Khanna 8

Architecture of CRM
The application architecture of CRM is divided into three parts: parts: Operational CRM Analytical CRM Collaborative CRM

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Dr. Vandana Khanna

Operational CRM
Operational CRM is the automation of horizontally integrated business processes involving front-office customer touch points frontacross sales, marketing and customer service via multiple interconnected delivery channels. channels.
Metagroup

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Operational CRM
It refers to the measures supporting the front office business processes, including customer contact. contact. It focuses on software and installations and the changes in process affecting day to day operations. operations. Gives information necessary for carrying out the tasks interfaces with back-end backapplications. applications.
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Operational CRM
Technologies such as ERP (Enterprise Resource Planning), SCM (Supply Chain Management software), EAI (Enterprise Application Integration), Data warehousing, SFA (Sales Force Automation) helps companies to mass customize and deliver the products to customers. customers.

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Analytical CRM
Analytical CRM is the analysis of data created on the operational side of CRM and through other relevant operational data sources for the purposes of business performance, management and customercustomerspecific analysis. analysis.
Metagroup

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Dr. Vandana Khanna

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Analytical CRM
It focuses on strategic planning needed to build customer value, as well as cultural measurement and organizational changes required to implement strategy successfully. successfully. The data gathered are analyzed to segment customers or to identify the potential for enhancing relationships with customers. customers. Customer analysis leads to increase share of the customer s wallet. wallet.
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Collaborative CRM
Collaborative Customer Relationship Management is to coordinate the multimultichannel service and support given to the customer by providing the infrastructure for responsive and effective support to customer issues, questions, complaints, etc. etc.

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Collaborative CRM
It facilitates effective interactions with customers through Varity of channels like personal, letters, fax, phone, e-mail, etc. etc. It supports the co-ordination between coemployee teams and channels. channels. Helps in integration of people, processes and data together. together. Helps in offering better services to customers and in retaining them over longer periods. periods.
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CRM Architecture

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CRM Solution Structure

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Objectives of Operational CRM

Higher customer satisfaction by improved quality of contacts Cost savings by cross-functional integration crossof processes and process support Cost saving by deeper integration of communication with customers with companycompany-internal processes

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Benefits of Operational CRM

Delivers Personalized & efficient marketing sales and services through multichannel collaboration Sales people and services engineers can access complete history of all customer interaction with the company regardless of the touch point

Enables a 360 degree view of the customer(s) while interacting with them
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Benefits of Analytical CRM

Decreases Customer churn rate by identification of customer which are likely to quit and increase loyalty & efficient marketing sales and services through multichannel collaboration Enables segmentation by customer value Increases sales per customer by up-selling and cross-selling

Increases profitability and control costs

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Allows quick design and develop value-added products and services that meet customer needs

Improves supply chain management, resulting in lower costs and more competitive pricing
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Dr. Vandana Khanna

Benefits of Collaborative CRM

Enables efficient productive customer interactions across all communications channels Integrates view of the customer while interaction at the transaction level

Enables web collaboration to reduce customer service costs

Integrates call centers enabling multi-channel personal customer interaction

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Potential Benefits of CRM System

Benefits for Organization
Customer Focus Customer Retention Share of Customer/ Share of wallet LongLong-term Profitability CrossCross-selling and Up-selling Up-

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Potential Benefits of CRM System

Customer s Benefits
Continuity Contact touch points Personalized service Enhanced satisfaction Safety

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Potential Costs of CRM System

Organization s Costs
Infrastructure Investments Reaction to process

Customer s Costs
Privacy and opportunity Future relationships

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