Your SlideShare is downloading. ×
  • Like
Crm
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply
Published

 

Published in Education
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
64
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
2
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Customer Relationship Management As the world has became more dynamic with the passage of time and people are looking for more comfort and customization of facilities in their lives so is true with the marketing. The traditional marketing has also transformed itself to the new highest and that is CRM (Customer Relationship Management). The reason behind all this is the stiffer competition in the business world along with changed approach of the people towards life, people want to be valued and pampered. Difference between Traditional Marketing and CRM Following are some of the differences between Traditional Marketing Concept and Modern Customer Relationship Management: Traditional Marketing Goal View Marketing Customer Needs Approach Customer Relationship Management Expand customer base, increase Establish a profitable, long-term, one-to-one market share relationship with customers Product oriented Customer oriented Mass marketing and mass production Mass customization, one-to-one marketing Standardization of customer needs Customization, preferences, expectations Transactional relationship Relational approach So based on all the above difference between traditional Marketing and Customer relationship Management the gurus of marketing define the customer Relationship Management as follows: “The creation, development and enhancement of individualized customer relationships by carefully targeting customers resulting in maximizing their total customer life-time value”
  • 2. In other words it may be said that: “The process of Identifcation, establishment, maintainence, and enhancment of lasting relationships with customers by corporations is Customer Relationsghip Management” (Kristin Anderson, 2002) Following diagram shows that how the data and information follows in customer relationship management process; Purpose of CRM (Customer Relationship Management) The very first focal point of CRM is value creation for the customer and the company over the longer span of time. The base line is that when customers value the service that they receive from suppliers, they are less likely to look to alternative suppliers for the satisfaction of their needs subjected to if they really feel pampered and being taken good care. Customer Relationship Management is a way of gaining Competitive Advantage for the business and organizations over competitors that are in the similar line of business. (Dyché, 2001) Why CRM is important? Since 1980’s there was a rapid shifts in business which changed customer power due to the advancement in technology and productions processes supply started exceeding demand for most of the products which gave the customer choice to choose among sellers and so sellers had little pricing power in such situation the only protection available to suppliers was to build a lasting relationship with their customers. Achieving this objective was not easy without CRM.
  • 3. Today businesses create and deliver multi-product offerings by different kinds of networks, alliances and partnerships to compete in the market. Retaining and building relationships with customers is the essence of corporate performance along with other value-adding allies. The adoption of C.R.M. is being fuelled by recognition that long-term relationships with customers are one of the most important assets of an organization. (Why Infosys global sales force get best salary deal, 2013) Information Technology and CRM The involvement of information technology has entirely transformed the way of doing business the rational commerce has been changed to E-commerce and so the CRM is not possible without the help of I.T. Companies Use the I.T in the following way for their CRM: Phone calls, emails, text messages services The companies who have access to customers contact details along with their service or purchase preferences use these tools like calls, emails and sms to alert customers to new, similar or alternative services or products: For example all the commercial banks pursue their accounts holders for other financial products which they offer like Credit Cards, Auto Finance and Mortgage finance. They get the data from their database and their sales teams call directly to the people. Cookies A Cookie is a parcel of text sent by a server to a web browser and then sent back unchanged by the browser each time it accesses that server. Companies use cookies for authenticating, tracking, and maintaining specific information about users, such as site preferences and the contents of their electronic shopping carts. For example each time when you access the YouTube it will show you some recommended videos, these videos are recommended based on your previous activity and search on YouTube.
  • 4. Loyalty cards A loyalty card is used as tool to persuade the customers for the repeat purchase. On the other hand a retailer loyalty card is source of gathering data about customers which in turn leads to customer comprehension and cost insights (e.g. customer retention rates at different spending levels, response rates to offers, and new customer conversion rates) which enables the business to take appropriate marketing action and follow-up analysis. For Example the Loyalty Cards Issued by Carrefour by the name of “My Club” and “Shukran Card” issued by Max Fashion, Splash and Center-point. Face-to-face CRM Customer relationship Management is not just limited to data mining and use of high tech tools it may also be carried out in face-to-face interactions without the use of technology. Staff members often remember the faces/names and favorite services/products of regular customers and use this information to create a customized service for them. For example, in a spa the crew members often know the customers who are regular and they also know their favorite treatments likings and disliking. However face-to-face CRM could prove less effective and possible when organizations have a large number of customers like Hypermarkets (e.g LULU) and Fast Food outlets (e.g KFC) as it would be more difficult to remember details about each of them. Benefits of CRM      Reduced costs, as the right things are being done Increased customer satisfaction Ensuring that the focus of the organization and its external growth Increased access to a source of Information about market and competitors Highlighting operational processes long term profitability and sustainability Bibliography Dyché, J. (2001). The CRM Handbook. London: McGrawHill. Kristin Anderson, C. K. (2002). Customer Relationship Management. McGrawhill. Why Infosys global sales force get best salary deal. (2013). The Economic Times .