• 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
• This strategy, known as Customer
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 “is a business strategy that aims to
understand, anticipate and manage the needs of
an organisation‟s current and potential
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
CRM provide the following advantages:
Quality and Efficiency.
Decrease in overall costs.
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 is a
complex, lengthy, costly and timeconsuming effort that requires very specific
Major Steps for Implementing CRM:
◊ CRM Strategy Design and Organizational
◊ Planning and Analysis for CRM Execution
◊ CRM Execution and Monitoring.
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
• This committee in charge of implementing the
Business Needs Analysis
• Descriptive Information.
(e.g) Demographics, Psychographic of buyer
• Behavior Information.
(e.g) Past purchases, No. of Transactions.
• Emotional Information.
(e.g.) Attitude, Satisfaction.
Planning and Analysis for CRM Execution
• Process Evaluation and
Process Evaluation and Re-engineering
• Increase the value perceived by its
• 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.
Implementation and Monitoring
Monitoring and Maintaining the
Monitoring and Maintaining the CRM
• Steering Committee members are responsible
for monitoring, maintaining and updating the
system and report directly to the top
• Its also include the duties of measuring and
diagnosing the results, and setting up a follow
up meeting to take corrective action.
• It is the act of selling a product or service to a
customer as a result of another purchase.
• 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.
• 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.