Evolution of CRM
• Philosophy is to understand customers;
create and enhance the relationships with
them to maximize customer value and
Who is a customer?
• Important visitor of the Organisation.
• He is no disturbance in work but a
purpose for our work.
• A part of our business.
• A person on whom we are dependent.
Relation with customer
• deep and abiding regards for the
customers which are displayed from the
products and services offered.
• Getting and keeping the customers.
• CRM is a company wide comprehensive
business strategy designed to reduce
costs and increase profitability by
solidifying customer loyalty.
• Is an information industry term for
methodologies, software, and usually
Internet capabilities that help an enterprise
manage customer relationships in an
Involves multiple soft wares as well as
policies that promote:
• collection of customer information.
• Use that information to maximize
customer service and increase profits.
• It is a business policy which provides
vision to the company.
• After all, good customer relations are heart
of the business success.
TYPES OF CRM
1. OPERATIONAL CRM: The automation or support
of customer processes involving sales or service
2. COLLABORATIVE CRM: Direct communication
with customers not involving sales or service
representatives (‘self service’).
3. ANALYTICAL CRM: The analysis of customer
data for a broad range of purposes.
4. SALES INTELLIGENCE CRM: It is intended as a
more direct sales tool.
• Provides support to front office business
• Benefits: Customers can interact with different
people in a company anytime.
• Ex: Sales Force Automation: Designed to
automate sales force-related activities
• Provides a point of interaction between
customers and suppliers.
• Aims to get various departments into the
• It stresses on two-way communication instead of
• Ex: technologies like electronic communication.
• Also known as back office or strategic CRM.
• Involves understanding the customer activities
that take place in front office.
• Involves analysis and evaluation of data in data
SALES INTELLIGENCE CRM
• Features include the delivery of "alerts" to sales
people based on analysis of such factors as:
• Sales performance
• Customer trends
• Customer margins
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
Offer programs to ensure that your customers
happily buy what you offer only from you
COMPONENTS OF CRM
• To satisfy customer expectation, CRM
model implementation needs to integrates
the components of CRM
• It assists and supports BPR, thus
facilitates work practice changes and
adopting innovative ways .
• It plays important role by linking front and
back office function to provide efficient and
• A business process refers to collection of tasks
that results in a desired business outcome.
• To realize effective process change, company
should re-examine all of their customer
management business processes.
• Commitment from top level management
is crucial for success of CRM .
• CRM projects requires full time attention of
implementation of project team with
representatives like sales , marketing ,
manufacturing and IT.
Implementation of CRM
• Steps in implementation of CRM
– Sales Stage
– Envisioning Stage
– Planning and Design Stage
– Configuration and Development Stage
– Deployment Stage
– Support Stage
Choose your vendor successfully
Develop customer focused strategy before considering
Break the project into manageable pieces
Make sure the CRM plans include a scalable
Don’t underestimate the amount of data you might
collect for easy expansion of systems in the future
Be thoughtful about what data is collected and stored
Spend time creating the best business processes
Common Reasons for Failure
• Data is ignored
• Politics rule
• The IS organization and business users can't
• There is no plan
• CRM is implemented for the enterprise, not
• A flawed process is automated
• No attention is paid to skill sets
Ways to avoid failure
– Don’t fall victim to anything mentioned in
the previous slide
– Establish visible top-down support from
the most senior levels
– Communicate strategy and buy-in
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