WHAT IS CRM“CRM is concerned with the creation,development and enhancement of individualisedcustomer relationships with carefully targetedcustomers and customer groups resulting inmaximizing their total customer life-time value”
ORIGIN OF CRM Customer relationship management was originated in early 1970s CRM came as a process that dealt with relationships with customers surpassing the whole business As said by Father of management “The true business of every company is to make and keep customers”.
THE PURPOSE OF CRM The focus [of CRM] is on creating value for the customer and the company over the longer term. When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs . CRM enables organisations to gain competitive advantage over competitors that supply similar products or services.
CRM BUSINESS CYCLE Acquire & Retain UnderstandInteract & CR & Differentiat Deliver M e Develop & Customize
MANAGING EFFECTIVE CUSTOMER RELATION PROCESS . Custome r Retentio n Cross & Segmentati on & Need Up Sell Analysis Custome Campaign Manageme r service nt Lead Manageme nt
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Traditional Marketing CRMGoal: Expand customer base, Goal: Establish a profitable, long-increase market share by mass term, one-to-one relationship withmarketing customers; understanding their needs, preferences, expectationsProduct oriented view Customer oriented viewMass marketing / mass production Mass customization, one-to-one marketingStandardization of customer needs Customer-supplier relationshipTransactional relationship Relational approach 8
CHALLENGES IN CRM Richness of customer data. Integrated view of customer information. Feedback mechanism from customer. Intelligence at operational touch points. Consistence of communication. Convenience of interacting with insurer.
BENEFITS OF CRM Reduced costs, because the right things are being done (ie., effective and efficient operation) Increased customer satisfaction, because they are getting exactly what they want (ie. meeting and exceeding expectations) Ensuring that the focus of the organisation is external Growth in numbers of customers . Maximisation of opportunities (eg. increased services, referrals, etc.) Increased access to a source of market and competitor information Highlighting poor operational processes Long term profitability and sustainability