Customer complaints are the schoolbooks from which we learn. Unknown
The customer is the most important person on our premises. He is not dependent on us we are dependent on him. He is not interruption to our work he is the purpose of it .He is not an outsider to our business he is a part of it. We are not doing favour by serving him. He is doing a favour by giving an opportunity to do so.
- Mahatma Gandhi
Customer Relationship Management
“ Process of creating and maintaining relationships with business customers or consumers”
“ A holistic process of identifying, attracting, differentiating, and retaining customers”
“ Integrating the firm’s value chain to create enhanced customer value at every step”
“ An integrated cross-functional focus on improving customer retention and profitability for the company.”
www.a2zmba.com Be everywhere, do everything, and never fail to astonish the customer. Macy's Motto
Customer Relationship Management
The use of information-enabled systems for enhancing individual customer relationship to ensure long-term customer loyalty and retention
Changing Business Scenario - Need for CRM www.a2zmba.com Common sense if of paramount importance in business and customer service. Unknown
It costs six times more to sell to new customer than to sell to an existing one.
A typical dissatisfied customer will tell 8-10 people
By increasing the customer retention rate by 5%, profits could increase by by 85%
Odds of selling to new customers = 15%, as compared to those for existing customers (50%)
70% of the complaining customers will remain loyal if problem is solved
90% of companies do not have the sales and service integration to support e-commerce
www.a2zmba.com Customer service is awareness of needs, problems, fears and aspirations. Unknown
www.a2zmba.com Marketing Selling Servicing Customer Management Process Threads Broadcast Mail Field Personnel Agents/Distributors Call Center Retail Internet Back Office Process/Systems Customer Interaction Channels Scope Depth Importance of CRM Are we making the right level and type of marketing, sales, and service investments in each of our customer segments? Customer Relationship Strategies Are we taking a holistic approach to our customers across processes and channels? Customer Relationship Structure Have we implemented best practices and technology in process/channel? Customer Relationship Performance
Gain the greatest number of new “Best” customers as early in their “lifespan” as possible.
Retain and expand your business and relationships with your customers through up selling, cross selling and servicing .
CRM Principles (Contd..)
Offer programs to ensure that your customers happily buy what you offer only from you.
Reduce costs related to marketing, sales, customer service and support.
Enhance your e-business strategies .
www.a2zmba.com Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong. Donald Porter V.P., British Airways
Deployment and Support www.a2zmba.com Enabling Technologies Data Warehousing Data Capture People Organization Knowledge Management The building blocks of CRM are the things that need to be in place for an effective Customer Relationship management program e-Business Sales Process Automation Call Centres MetaData Data Cleansing OLAP EIS External Databases Market Research Customer Touch Point Integration Statistical Modeling Data Mining Customer Profitability Segmentation
Benefits of CRM
Increases customer acquisition
Decreases cost and internal issues.
Increases revenue and hence profitability.
Increases morale of the employees. Increases creativity and hence makes a path for innovation.
Increases customer satisfaction
Decreases errors and time loss.
Decreases customer’s complaints.
Increases customer loyalty
www.a2zmba.com Customers are an investment. Maximize your return. PeopleSoft Ad
Benefits of CRM www.a2zmba.com Burak Goraglu
Ways to avoid CRM Pitfalls
CRM software should mould to company’s best practices, rather than forcing to use the best practices of the CRM vendor.
CRM vendor only provides 20 percent of the total CRM solution, organizations should examine how easy or difficult it will be to integrate the product into organizations new systems.
It should be kept in mind any CRM project that takes more than 90 days to implement, runs the risk of failure.
CRM technology is useless if the employees are unwilling or untrained to use CRM product. Hence organization should gain internal support by communicating the benefits of CRM and provide relevant training.
Areas of CRM Activity
Sales Force Automation (SFA)
Customer Service and Support (CSS)
www.a2zmba.com Do what you do so well that they will want to see it again and bring their friends. Walt Disney
eCRM is the customer–facing internet portion of CRM.
eCRM - to interact with the business through their preferred communication channel and it allows the business to offset expensive customer service agent with technology.
- high customer satisfaction and reduced cost through improved efficiency .
www.a2zmba.com Good leaders must first become good servants. Robert Greenleaf
Some CRM Vendors &Products
Siebel (Siebel 7)
Oracle (CRM 11i)
PeopleSoft (PeopleSoft 8.4 CRM)
Firstwave (eCRM 7.0)
Talisma (Talisma CRM)
Commence (Commence RM)
Microsoft (Microsoft CRM)
www.a2zmba.com In the world of Internet Customer Service, it's important to remember your competitor is only one mouse click away. Doug Warner
Tata Motors India’s largest integrated automaker with market share approaching 60 % in Commercial vehicles and 20% in passenger car market is known well for technology strategies.
Facing international competition TATA MOTORS took up the challenges by focusing on CUSTOMERS
Tata Motors realized that Globalization has changed the business environment in the organization.