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CRM is the strategic use of information, process, technology, and
people to manage customer’s relationship with your company
(marketing, sales, services and support ) across the whole
customer life cycle.
Although our definition of CRM is broad and complex but its goal is

To maximize the value of your company’s customer asset.

•Customer loyalty
•Company’s revenue
•Company’s profit
CRM focused on strategic impact rather than operational
impact. Benefits are generally long term rather than
CRM is total discipline. To understand CRM it as having
a same component as any manufacturing busines.
Lets take it as.
CRM technology Machine
People Power
Customer information Raw material
Process and interaction Product
CRM technology and people to turn customer information
into process and interaction that builds customer loyalty.
CRM includes all the functions that directly touch the
customer throughout his/her entire life with your company.
It touches multiple organizations and crosses boundaries but
function usually included in CRM effort is marketing, sales,
customer services and product support ( it is whether internal
or through channel partner, whether on or off the web.
– so the definition of CRM is quite broad and covers many,but CRM is
limited to activity that take place in the customer facing function
including marketing, sales, services, and product support. It means it
is limited to front office function.
INFORMATION : Information is raw material of CRM. These
type of information are useful to CRM.

•Identification data
•Marketing data
•List data
•Overlay data

2. PROCESS : Customer centered processes are the “product” of

CRM. some examples are;
•All current process that directly touch the customer.
•Touch points by which we interact with customer such as
phone, e-mail etc.
•Integrating and rationalizing the processes from
customer’s point of view.
TECHNOLOGY: Technology is machinery that enables the CRM to
work. These are examples of technologies that CRM may find useful;

•Software product (process automation tools, analysis

tools, web site development, and management tools.)

•Networking and integrating application and database.

Security features, such as encryption tools and firewalls.

PEOPLE: People are power supply of CRM. The energy source

must be set to the right voltage for entire system to work. People
are reset through various change management tools and support
mechanisms, such as;
•Training and education.
•New tools.
•Measurement and

The customer life cycle is total time that a customer is engaged

with your company from the customer’s experience and viewpoint.
There is high level of cycle that is consistent for customers, no matter
the product or services and no matter how much how much the customer spend on
each stage;
1. Consider: Customer becomes aware of need and investigates alternative
2.Purchase: Customer evaluates and chooses the best alternatives and place an
3. Setup: Customer install the product and learn how to use it.
4. Use: Customer operates and maintain the product and finally makes the decision
to retire it or upgrade, which starts the cycle all over again.

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Increased profit

Integrated and
Personalized interaction
That increased value to customer

Data enabled processes/tools

Integrated customer knowledge

Customer transaction data silos

Why CRM ?
Keeping in mind the pace at which technology is changing today, any
company which is a step ahead of others because of some web product or
service will not be able to hold on to that advantage for long. The key to
stability in today's dynamic marketplace is forging long-term relationships
with the customers.

Customers can be divided into three zones:

1. Zone of defection where customers are extremely hostile and have the
lowest level of satisfaction.
2. Zone of indifference where customers are not sure. They have a medium
level of satisfaction and loyalty towards the company.
3. The third level of customers are in the zone of affection described as
"Apostles". CRM focuses on bringing customers from level 1 to level 3 and
retaining apostle customers.
How would you expect the storekeeper at
your nearest store, where you are a frequent
visitor, to offer you personalized service?
Well, he would know your favorite items and preferred brands, won't he? So,
he organizes them to be in your easy reach. Perhaps he may himself
suggest a new product, which was introduced recently, that falls within your
Interest area. Now this is not very imaginative isn't it? It required quite a few
visits for you to get this personalized service. What about someone just like
you who is coming to this store for the first time?

To make it more clear, now consider your storekeeper friend. Based on his
about you, he can go a step further and watch your buying pattern. He also
tries to understand all the youth in a similar age group and then tries to say that
all youth in the age group 21- 29 who come to my store prefer these types of
products. Their buying peaks in summer and therefore it makes sense to run
promotions targeting the youth in summer.
CRM Customer Relationship Management is one of the newest innovations in customer
service today. CRM stands for customer relationship management and helps the
management and customer service staffs cope with customer Concerns and issues.
CRM involves gathering a lot of data about the customer. The data is then used to
Facilitate customer service transactions by making the information needed to resolve the
issue Or concern readily available to those dealing with the customers. This results in
more satisfied customers, a more profitable business and more resources available to
the support staff. Further more, CRM Customer Relationship Management systems are
a great help to the management in deciding on the future course of the company.

As mentioned, there is much data needed for the CRM system to work. These fields
include the customer name, address, date of transactions, pending and finished
transactions, issues and complaints, status of order, shipping and fulfillment dates,
account information, demographic data and many more. This information is important
in providing the customer the answer that he or she needs to resolve the issue without
having to wait for a long time and without going to several departments
With just a few mouse clicks, a customer support representative for example can track
the location of the customer’s package or order. This is infinitely better than the
cumbersome process of tracking shipments previously. Furthermore, the customer
service representative will also be able to see the previous concerns of the customer.
This is a great help especially if the customer is calling about the same issue since he
or she will not have to repeat the story all over again. This results in less time in
resolving the issue, thus, higher productivity of the support staff.

CRM Customer Relationship Management systems are also important to the top
management because it provides crucial data like customer satisfaction and efficiency
of service by the frontline crews. A piece of customer relationship management
software will also be able to generate the needed reports for product development
or new concepts. Furthermore, this system will also be a great help for the top
management in deciding the company’s future course of action, whether it involves
phasing out one of the products on the shelves or making adjustments to one of the
products sold.
In the world of servicing guests, there are as many challenges as there are, well...
challenging customers, but I think in the current age of "branding" one of the biggest
ones is ensuring a consistent customer service experience. This challenge is three-
pronged: First, managers must be able to manage consistency in the face of
interchanging slow and busy times and seasons. Second, consistency needs to be
ensured across job titles, roles, and pay ranges. Third (or perhaps First, if you'd like),
the marketing message must be in tune with a plan to set guest expectations
according to the season and customer tier considerations.

The guest servicing standards themselves should focus on not just consistent
responses, but also should prevent consecutive negative experiences. In other words,
if a guest has experienced a negative event (i.e. complained that the room wasn't
clean upon check in), this fact needs to be captured and made available to customer-
facing employees so that they can put an extra effort into making sure that the
remainder of the hotel stay or restaurant experience is as positive as possible.
A further back-end benefit to capturing the negative event information is that
it will enable analysis of customer experience shortcomings. This in turn
allows for active methods for managing, monitoring, and predicting customer
satisfaction, which can then lead to fine-tuning the marketing message,
interaction standards, and employee training. Predictive analytics can be
used to understand latent pain or dissatisfaction before it percolates and
impacts customer loyalty.
Customer relationship management (CRM) is more than the practice of
collecting guest-centric data. It’s the art of using historical, personal, and
experiential information to personalize a guest’s stay while generating
incremental revenue opportunities. Knowing a traveler is an avid sports fan
creates the opportunity to market tickets to a game; knowing a guest had a
less-than-memorable experience in the hotel restaurant gives you a chance
to win them back the next time they are in town.
Microsoft partners have developed a number of leading CRM solutions
based on the latest generation of Microsoft technology. Using the Microsoft
suite of applications, devices, and technology, Microsoft partners can
provide you with CRM solutions that personalize the guest experience and
help you generate more revenue.
With the latest offerings in CRM, hoteliers can

Develop comprehensive guest profiles from reservation information

and demonstrate to guests that the property is in touch with their

Drive guest-centric data down to the transaction level, allowing

employees and guest-facing technology to deliver greater value to
the guest.

Generate a realistic profile on the spending and stay patterns of

guests, allowing the property to create guest-centric marketing for
increased loyalty and spending