Customer Focus and Relationship Management
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Customer Focus and Relationship Management

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Customer Relationship Management

Customer Relationship Management

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    Customer Focus and Relationship Management Customer Focus and Relationship Management Presentation Transcript

    • CUSTOMER FOCUS & RELATIONSHIP MANAGEMENT
    • Introduction • The way for an organization to retain its client base and ensure repeat purchases is to develop a data-based, customer-focused management strategy that aims to increase customer satisfaction by cultivating long-term relationships. • This strategy, known as Customer Relationship Management.
    • Customer Focus  The orientation of an organization toward serving its client‟s needs.  Firm‟s attention to what customers want or need an organizational orientation toward satisfying the needs of potential and actual Customer.
    • Customer Relationship Management CRM  CRM “is a business strategy that aims to understand, anticipate and manage the needs of an organisation‟s current and potential customers”.  CRM “is an information industry term for methodologies, software, and usually internet capabilities that help an enterprise manage customer relationships in an organised way”.
    • Definition of CRM “CRM is concerned with the creation, development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value”.
    • Benefits Of Customer Relationship Management CRM provide the following advantages:  Quality and Efficiency.  Decrease in overall costs.  Increase Profitability.
    • Benefits of CRM Benefits of CRM include: • Reduced costs, because the right things are being done (i.e., effective and efficient operation) • Increased customer satisfaction, because they are getting exactly what they want (i.e. meeting and exceeding expectations) • Ensuring that the focus of the organisation is external • Growth in numbers of customers • Maximisation of opportunities (e.g. increased services, referrals, etc.) • Increased access to a source of market and competitor information • Highlighting poor operational processes • Long term profitability and sustainability
    • 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.
    • Implementing CRM Implementing CRM is a complex, lengthy, costly and timeconsuming effort that requires very specific expertise.  Major Steps for Implementing CRM: ◊ CRM Strategy Design and Organizational Readiness ◊ Planning and Analysis for CRM Execution ◊ CRM Execution and Monitoring.
    • Implementing CRM CRM Strategy Design and Organizational Readiness o Creating Organizational Readiness o Setting up a Steering Committee o Business Needs Analysis
    • Creating Organizational Readiness • CRM is about designing and re-engineering customer interaction processes. • It can be successfully implemented with executive‟s and employee‟s readiness to invest a great amount of time and resources to make CRM a reality.
    • Setting up a Steering Committee • Representatives from each department directly concerned with CRM such as IT, Sales, Marketing, Finance, Production, Hu man Resource Department are included in the Steering Committee. • This committee in charge of implementing the CRM system.
    • Business Needs Analysis • Descriptive Information. (e.g) Demographics, Psychographic of buyer team members. • Behavior Information. (e.g) Past purchases, No. of Transactions. • Emotional Information. (e.g.) Attitude, Satisfaction.
    • Implementing CRM Planning and Analysis for CRM Execution • Process Evaluation and Re-engineering
    • Process Evaluation and Re-engineering • Increase the value perceived by its customers. • Identify the point of contact and the information that should be collected and dispersed within the organization so as to have a better understanding of customers and be able to serve them better.
    • Implementing CRM Implementation and Monitoring  Monitoring and Maintaining the CRM System
    • Monitoring and Maintaining the CRM system • Steering Committee members are responsible for monitoring, maintaining and updating the system and report directly to the top management. • Its also include the duties of measuring and diagnosing the results, and setting up a follow up meeting to take corrective action.
    • CRM in Marketing CRM Marketing Initiatives • Cross-selling. • Behavior Prediction.
    • Cross-selling • It is the act of selling a product or service to a customer as a result of another purchase. Behavior Prediction • It helps marketing departments determine what customers are likely to do in the future. • Understanding which product a particular customer is like, Predicting what product/ service a customer is like to buy next.
    • Conclusion • CRM focuses on segmenting customers on the basis of needs or profitability and on designing and implementing programs to allocate the appropriated resources to each customer efficiently and effectively. Correctly implementing CRM systems can enhance an organization‟s ability to improve customer service, which in turn can generate revenue as well as a competitive advantage.