Relationship Management and CRM

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Relationship Management and CRM

  1. 1. The Islamia University of BahawalpurMarketing ManagementGroup Members:Hassan Obaid (154)Sehrish Hassan (175)Shagufta Nawaz (181)Aimen Amin (142)Amna Aslam (146)Zeshan Mazhar (179)
  2. 2. RelationshipMarketing
  3. 3. What is Relationship Marketing?Long term strategy to buildrelationships with individualcustomers.
  4. 4. Definition of RM Consistent application of up to dateknowledge of individual customer toproduct and service design. RM focuses the firms attention oncustomer retention with a view to build along term relationship with the customer.
  5. 5. ComparisonTraditional Marketing• Transaction based.• Focus on single sale.• Quality is concern ofproduction.• Less emphasis on service.Relationship Marketing• Focus on customer relation.• Continuous customer contact.• Quality is concern of all.• High customer service.
  6. 6. CustomerRelationshipManagement
  7. 7. What I am going to discuss? CRM Introduction Functioning targets and roles Aspects of CRM Strategies Advantages Disadvantages
  8. 8. What is CRM?
  9. 9. Process of managing the detailed informationabout individual customers.Carefully managing all the customers ‘touch point’with the aim of maximizing customer loyalty.
  10. 10. Customer acquisitionLoyaltyValue RetentionRelationshipCRMPeopleProcessTechnology
  11. 11. Why CRM is required ?Customer focusRelationship buildingManagement
  12. 12. Primary Concern of any business Revenue generationSatisfaction  Delight ExperienceCustomer Focus
  13. 13. Relationship BuildingHigh acquisition costLong term gainsLow retention cost
  14. 14. ManagementProduct delivery SatisfactionMeasure and manage CustomerprofitabilityCustomer-centric
  15. 15. Other elements-communication componentsMarketingManagementOrder ProcessingCustomer servicingInside salesOutside salesSales support
  16. 16. FUNCTIONING TARGETANDROLES
  17. 17. C R MFunctioningtargetsUbiquity1 to 1marketingReal timeupdatesBetter analysisBuying Patterns&DemographicsRevenueenhancementSinglecustomer viewCost Reduction
  18. 18. Still, why to spend onCustomer-retention ratherthan customer acquisition???
  19. 19. Acquisition or RetentionAcquisition 3% increase in profits Cost is very high Life cycle is short Short term profit Unpredictable value chainbuildingRetention 17% increase in profits Cost is very low Life cycle is long Long term profit Value chain building
  20. 20. ASPECTS OF CRM
  21. 21. • Front office business support• Contact history is recorded• No communication gap• E.g.- call centers, BPO
  22. 22. • Directcommunication• Cost reduction• Serviceimprovement• E.g.- mail, internet
  23. 23. • Analysis of customer data• Design and target marketing campaigns• Product and service decision making• Management decisions
  24. 24. CRM STRATEGIES
  25. 25. ACQUISITIONProfilingSearchCommunicationBuying pattern
  26. 26. RETENTIONUpdatingImproving customer satisfactionNeed analysis1to 1 communication
  27. 27. Cost REDUCTIONLower inventory Marketing cost reductionSpeedier delivery
  28. 28. Advantages of CRMRetention of customers.Positive word of mouth.In-depth insight of customer.Share of customer high.
  29. 29. Disadvantages of CRMLack of privacy.Current focus, No focusing on futurecustomers.Limited criteria of prospects.
  30. 30. Any Questions?Thank you.

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