1. CRM

2. Business Challenges
 Businesses in many industries may lose up 50% of their
customers over a five year period.
 Studies have shown it’s 6 to 7 times more expensive to
acquire a new customer than it is to retain a current
customer.
 As little as a 5% increase in customer retention can
increase profits by 25 to 95%.
 Yet many businesses are still focused only on customer
acquisition and see customers from the fragmented view
of individual transactions

3. Cost of new customer acquisition
≈7-8 times of retaining current
customers Customer Relationship
(Yankee Research – global connectivity Management
experts)
50% current customers do not
contribute to profit
(AMR Research)
Top 20% customers contribute 60%
of revenue and 70% of profit
 20 : 80 rule
Fortune 500 companies will lose
50% of customers in 5 years
(Peppers & Rogers Group)
Only 4% of unsatisfied customer
complain. 65~90% do not repurchase
(Anderson Consulting)
82% of customers whose complaints
resolved repurchased
Customer is important
98% coupon are scrapped.
Analysis on Customers essential

4. Customer is
There is only one boss. The customer!
He can fire everybody in the company, from the
chairman on down, simply by spending his money
somewhere else.
Sam Walton,
founder of Wal-Mart
When products become so similar and
technologies are commonly available ,
CUSTOMER EXPERIENCE is the only true
differentiator

5. Today’s customer is …
• Smarter
• leaner
• more price conscious
• has lower morale
• overwhelmed by competitors
• more demanding
• less forgiving
• harder to satisfy
• less loyal

6. Core Marketing Concepts

7. A fundamental paradigm shift is occurring
in how company market to customers.
What's In What's Out
One-to-One Marketing Mass Marketing
Customized Products Standardized Products
Share of Wallet Market Share
Life Time Value Present Value
Event Driven Marketing Program Driven Marketing
Know Your Customers Know Your Products
Manage Your Customers Manage Your Products
Differentiate Customers Differentiate Products
Cross-sell / Retention Acquisition
l0% of Market, l00% of 100% of Market, 10% of
Customer Customer

8. What CRM means?
 Customer ?
 Relationship ?
Channels of interaction, segmentations
 Management?
organization of customer related information

9. Relationships with whom?
All stakeholders including
 Customer
 Employees
 Suppliers
 Government
 Citizens
I focus on Customers here.
The Customer Relationship Management (CRM).

10. The Meaning of Relationships
 Continuity
 Mutuality
 Interdependence
 Understanding
 Trust

11. Three simple business goals of CRM
Acquire the „right“
Customer
Value of customer relation
customers with
high potential Retention
value
Customer
Development
Cross- and up- Retain profitable
Customer sell by offering customers and
Acquisition the right products increase their
at the right time long-term value
Evolution of customer relation over time

12. The process of
 Targeting
 Acquiring
 Servicing
 Retaining
and
 Building long-term relationships with
customers

13. CRM Versus Mass Marketing
Traditional
Traditional
Mass “Shotgun” Approach
“Shotgun” Approach
Mass
Marketing
Marketing
CRM
CRM “Rifle” Approach
“Rifle” Approach

14. Define customer
relationship management

15. CRM is NOT…
1. …a technology.”
• “CRM is just a new system to install, new code to write.”
2. …sales force automation (SFA).”
• “CRM is just a business development process for our salespeople.”
3. …customer loyalty.”
• “CRM is a synonym for customer loyalty.”
4. …database marketing.”
• “CRM just allows us to leverage our customer data better.”
5. …call center technology.”
• “CRM is just a way to cut costs in the call center.”
6. …a project.”
• “We can install CRM in 30 days with this team of three!”
7. …a producer of intangible benefits.”
• “You just can’t measure relationship management concretely.”
8. …a business panacea.”
• “Just install the software … apparently it solves problems.”

16. CRM is a customer-focused
business philosophy designed to
effectively create experiences
that attract, acquire and retain
customers.
To realize the benefits,
enterprises must implement collaborative processes
and technologies that support customer interactions throughout all
channels.

17. CRM ?
A company-wide business strategy
designed to optimize profitability,
revenue, and customer satisfaction by
focusing on highly defined and precise
customer groups.

18. Customer Relationship Management
“..an enterprise approach to understanding
and influencing communications in order
to improve customer acquisition, customer
retention, customer loyalty, and customer
profitability.”

19. Customer-centric
Under this philosophy, the company
customizes its products and service
offering based on data generated through
interactions between the customer and the
company

20. CRM Definitions
An data-driven approach that
An enterprise wide business
enables companies to assess each
strategy designed to optimize
profitability, revenue and customer customer’s current needs and potential
profitability and tailor sales offers and
satisfaction by organizing the
enterprise around customer segments, service. It often involves using multiple
channels to improve effectiveness and
fostering customer-satisfying behaviors
efficiency. (Goff et al. 1998 Mckinsey
and linking processes from customers
through supplies. (Gartner Group) Quarterly, No3)
A management discipline utilizing An enterprise approach to
specialized tools, technologies, and understanding and influencing
techniques to facilitate the operation customer behavior through
and improvement of front-office continuous relevant communication to
business functions with the intent of improve customer acquisition,
optimizing the total value derived customer retention, and customer
through customer relationship. (Pivotal profitability. (NCR corps.,1999)
software Inc. 1999)

21. What is CRM?
Organizing Around
Organizing Around Tracking Interactions
Tracking Interactions
Segments
Segments
Fostering Satisfaction
Fostering Satisfaction Linking Processes
Linking Processes
Special Promotions
Special Promotions
Targeting
Targeting
Markets and Individuals
Markets and Individuals

22. People - Belief that your customers and employees are
your most important asset and that long-term survival
depends on these relationships.
Process - Structuring your organization and business
processes to support the culture.
Technology - Automating and integrating business
processes to capitalize on the culture.

23. CRM is a Management Tool, encompassing all
functions, for focusing on the customer
Sales
Service
Marketing
Mfg
Product
Planning
Purchasing
Spares
R&D
CRM is a set of operating business processes built around
the customer

24. CRM is the front end (customer facing) activity. It needs to be firmly
supported by all other back-end processes.
CRM
ERP FAST FWD
SCM R&D
MFG
PURCHASING
All improvement initiatives under the CRM Umbrella

25. Makes Four Marketing Dreams Come True
1. Dream to target and serve customers on an individual
basis ( prefer 1 to1 marketing to mass marketing.
2. Dream to enjoy log term relationships with them,
especially with the profitable customers (preferring
commitment to flirting).
3. Dream to get rid of barriers and distortions created by
the non-value adding intermediaries (preferring
disintermediarization and direct marketing)
4. Dream to reduce marketing cost progressively.

26. Architecture of CRM
 There are three parts of application architecture of CRM:
 operational - automation to the basic business processes
(marketing, sales, service)
 analytical - support to analyze customer behavior, implements
business intelligence alike technology
 co-operational - ensures the contact with customers (phone,
email, fax, web, sms, post, in person)

27. Operational CRM
 Operational CRM means supporting the so-called "front office"
business processes, which include customer contact (sales,
marketing and service)
 Operational part of CRM typically involves three general areas of
business:
 Sales force automation (SFA)
 Customer service and support (CSS)
 Enterprise marketing automation (EMA)

28. Analytical CRM
 Data gathered within operational CRM are analyzed to segment
customers or to identify cross- and up-selling potential.
Collaborative CRM
 Collaborative CRM facilitates interactions with customers through
all channels (personal, letter, fax, phone, web, e-mail) and
supports co-ordination of employee teams and channel.

29. CRM Components
Closed Loop Processing
Operational CRM Analytical CRM
Business Operation Management Planning/ Business Performance Management
Analysis
Action Marketing data Sales Data Customer Data
Marketing Sales Service
Analysis Analysis Analysis
Feed
Back
Collaborative CRM
Customer Interaction Management
Web Call Center Web Sales
Personalization Automation & Service

30. Add Customer Attrition to the P&L Sheet

31. Components of Operational and Analytical CRM
 Operational CRM:
effective and efficient use and management of people, process and technology
 Analytical CRM:
the measurement of people, process and technology

32. Value Value
Segmentation
Segmentation
Conversion
Member Customer
Retain
Communication Communication
Bridge the divide….

33. Customer is
KING
Understand him !!!
Bottom-line !!!!

34. How to build Loyalty?
Framework of building Loyalty
Degree of
Drivers Phased Elements
Relationship
Improving
Customer Attitude,
Core Products/Service
Satisfaction not Action
Innovation of Channel Mgmt.
Reward Program Repurchase Action, not Affinity Customer
CRM /Continuing Campaign / Cross-selling (Artificial Loyalty)
Loyalty
Recognition
Trust/
(CR Strategy) of Relationship,
Intimacy
Referral

35. A Brand-Infused Causal Model

36. Loyalty-the customer-facing tip of the
CRM Iceberg
Increase
Cross-sell Encourage
Loyalty Multi-channel
Buying
CRM
Encourage Identify
WOM Customers at
(word of mouth) Customer Direct all Touchpoints
Communications
Increase Email (email, postcards, etc.)
Click-thru and Increase Re-buy
Open Rates Rates

38. Organization
Customers

39. Touchpoints
Field Sales
Website
Email
Call Center
POS
Traditional Mail
Retail
Fax
PDA

40. Field Sales
Sales
Website
Email
Marketing
Call Center
POS
Service
Traditional Mail
Retail Finance
Fax
Production
PDA

41. Field Sales
Sales
Website
Email
Marketing
Call Center
POS
Service
Traditional Mail
Retail Finance
Fax
Production
PDA

42. Field Sales
Sales
Website
Email
Marketing
Call Center
POS
CRM Service
Traditional Mail
Retail Finance
Fax
Production
PDA

43. Process, Technology, People
Field Sales
Sales
Website Selling Knowledge
Product Knowledge
Email Solutions Knowledge
Customer Knowledge Marketing
Call Center
POS
CRM Service
Traditional Mail
Retail Finance
Fax
Production
PDA

44. That’s is the introduction and familiarization with
CRM…