Customer Relationship Management-Sem Shaikh

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Customer Relationship Management-Sem Shaikh

  1. 1. 2  Customer relationship management (CRM)  Term applied to processes implemented by a company to handle its contact with its customers  CRM is a software-based approach to handling customer relationships  Store information on current and prospective customers
  2. 2. 3  Control over buying process  Information, comparison, selection, easy to find  Best possible price  Delivery (free), quality  All payment options  Secure  Communication designed to suit needs  Computerized, complex, caring
  3. 3. 4  All forms of trading  Direct  Traditional  Retail  E-commerce  Wholesale  Combination
  4. 4. 5  New convergence  Telephony & telemarketing  Internet  Mobile, SMS  Digital TV  Cable & satellite
  5. 5. 6  Control over buying process  Information, comparison, selection, easy to find  Best possible price  Delivery (free), quality  All payment options  Secure  Communication designed to suit needs  Computerized, complex, caring
  6. 6. 7  All forms of trading  Direct  Traditional  Retail  E-commerce  Wholesale  Combination
  7. 7. 8  New convergence  Telephony & telemarketing  Internet  Mobile, SMS  Digital TV  Cable & satellite
  8. 8. 9  Customer relationship management (CRM)  From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a variety of employees in different roles and departments  CRM is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provides a mechanism for tracking customer information
  9. 9. 10  Information in the system can be accessed and entered by employees in different departments)  Sales  Marketing  Customer service  Training  Professional development  Performance management  Human resource development
  10. 10. 11  Details on any customer contacts can also be stored in the system  The rationale behind this approach is to improve services provided directly to customers  To use the information in the system for targeted marketing and sales purposes
  11. 11. 12  Many inter-related aspects  Front office operation  Back office operations  Business relationships  Analysis
  12. 12. 13  Direct interaction with customers  Face to face meetings  Phone calls  E-mail  Online services etc
  13. 13. 14  Operations that ultimately affect the activities of the front office  Billing  Maintenance  Planning  Marketing  Advertising  Finance  Manufacturing
  14. 14. 15  Interaction with other companies and partners  Suppliers/vendors  Retail outlets/distributors  Industry networks (lobbying groups, trade assn’)  This external network supports front and back office activities
  15. 15. 16  Key CRM data can be analyzed in order to plan  Target-marketing campaigns  Conceive business strategies  Judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability)
  16. 16. 17
  17. 17. 18  CRM initiatives often fail  Implementation was limited to software installation  Inadequate motivations for employees to learn, provide input, and take full advantage of the information systems
  18. 18. 20  Three key phases  1. Customer Acquisition  2. Customer Retention  3. Customer Extension  Three contextual factors  4. Marketing Orientation  5. Value Creation  6. Innovative IT.
  19. 19. 21
  20. 20. 22  Attracting our customer  For the first purchase  We have acquired our customer  Growth  Market orientation, innovative IT & value creation  Aim is to increase the number of customers that purchase from us for the FIRST TIME
  21. 21. 23  Re-purchase  Our customer returns and buys for a second time  This is most likely to be the purchase of a similar product or service, or the next level of product or service.  Growth  Market orientation, innovative IT & value creation  Aim is to increase the number of customers that purchase from us REGULARLY
  22. 22. 24  Additional, supplementary purchases  Our customers are regularly purchasing  We introduce products and services to our loyal customers different from original purchase  Once purchased, our goal is to retain them as customers for the extended products or services  Growth  Market orientation, innovative IT & value creation  Aim is to increase the number of customers that purchase ADDITIONAL products
  23. 23. 25
  24. 24. 26  Focused upon the three levels of needs of customers  Actual, tangible product  Core product and its benefit  Also the augmented product such as a warranty and customer service
  25. 25. 27 Core Benefit Basic Product Expected Product Augmented product Potential Product
  26. 26. 28  Generation of shareholder value  Based upon the satisfaction of customer needs (as with marketing orientation)  Delivery of a sustainable competitive advantage
  27. 27. 29
  28. 28. 30
  29. 29. 31
  30. 30. 32  Updated IT  Efficient, speedy and focus upon customer needs  Whilst IT and/or software are not the entire story for CRM, it is vital to its success  CRM software collects data on consumers and their transactions  Organizations will track individuals, and try to market products and services to them based upon similar buyer behavior seen in other individuals
  31. 31. 33
  32. 32. 34  1. Validation  2. Discovery  3. Action
  33. 33. 36  1. Validation  2. Discovery  3. Action
  34. 34. 37  Correct data  Ensuring that the data you have on your customers is not only correct  Also, in a suitable state for targeting communications programs
  35. 35. 38  Use of data mining techniques  To find relationships that you did not know existed  Sometimes conventional analysis is impaired by your own natural assumptions and prejudices  Discovery techniques help to solve these issues by starting from ground zero  They simply search for relationships in the database against a set of objectives
  36. 36. 39  Right communication  Your customers and prospects need to have the right messages communicated to them  Quality Inter-Action drives quality Trans-Action  This is done with a Campaign Management tool that can automatically select the right targets and the right messages via the right channels  The responses are then fed back into the Validation process for evaluation and refinement
  37. 37. 40  CRM is corporate strategy composed of applications, technology and products that fulfill three essential requirements  1. Organization perspective  2. Customer perspective  3. Front office staff perspective
  38. 38. 41  360° view of each customer  For consistent and unified contact with that customer whenever anyone anywhere in the enterprise deals with that customer  This knowledge increases the opportunities for sales and the effectiveness of customer service
  39. 39. 42  Customers to have a consistent view  To enable your customers to have a consistent view of your enterprise, regardless of the way the customer contacts you  This improves customer satisfaction and customer retention 2. Customer perspective
  40. 40. 43  Staff performance  To enable front office staff to perform sales, service and marketing tasks more efficiently as a team  Increasing expertise and reducing costs
  41. 41. 45
  42. 42. 46  Important  Business starts with the acquisition of customers  However, any successful CRM initiative is highly dependent on a solid understanding of customers
  43. 43. 47  Understand  Demographics, purchase patterns & channels  Segmentation to identify logical unique groups  Primary research to capture needs and attitudes  Customer valuation to understand profitability  Differentiate  Based on the value customers are expected to deliver
  44. 44. 48  Develop  Products, services, channels and media can be customized based on the needs of quantitative customer segments  Customize  Based on the potential value delivered by customer segment
  45. 45. 49  Interact  Not just through marketing, sales and media  Distribution, shipping, customer service & online  Deliver  Delivering value is a cornerstone  Factors including quality, convenience, speed, ease of use, responsiveness and service excellence
  46. 46. 50  Acquire  Learning about customers makes it easy to identify those producing the greatest value  Retain  Maintain interaction;  Deliver on value  Customers change as they move through differing life stages  Modify the service
  47. 47.  Subconscious Expectations  Pizza with specified toppings  Take 10 minutes  Come in a packed box  Remain warm till you reach home  Charges – standard and acceptable price  Pizza will taste reasonably good  You will come back is all the above are met
  48. 48.  If you go regularly  Rapport with employees  You forgive if they mess up with one or two expectations  Degree of confidence determines tolerance  If using first time, and even one expectation is not met  You will never go again
  49. 49. Exceeded expectations  Deliver on all expectations  Give you a garlic bread FREE ! You will tell everyone about it

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