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Customer loyalty and technology as crm tool
 

Customer loyalty and technology as crm tool

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    Customer loyalty and technology as crm tool Customer loyalty and technology as crm tool Presentation Transcript

    • Customer Loyalty and Technology as CRM tool
      Presented by:
      AmitDubey 201034
      JeetPradhan 201070
      Rahul Pathak 201072PankajShukla 201095
      Ajit Singh 201096
    • What is CRM?
      End-to-end customer management
      Process enabled by set of technologies
      Process designed to integrate all customer interactions through all channels
      Like all processes organisational change is needed
      CRM systems need information and applications support
      CRM processes should be consistent and repeatable
    • Illusion of Customer Relationship Management
      Customers are not outsiders.
      We are all customers – of utilities, service providers, financial institutions, government agencies.
      CRM is about how WE want to be treated by our service providers.
      When we talk about customers (THEM), we mean us
      How do you want to be treated by your service providers?
      That is exactly how your customers want to be treated by you.
    • Customer Service and Customer Satisfaction
      Poor customer service is still pervasive despite awareness of the need for and benefits of improved customer service.
      Many organisations have not changed their business processes to deliver improved customer service and provide what customers want.
      Improved customer service means optimising end-to-end processes from the customer viewpoint
      • Involves linking multiple internal processes to get cross-functional view from customer perspective
    • What Customers Really Want – More For Less
      More Of
      Value
      Responsiveness
      Involvement
      Consideration
      Dependability
      Flexibility
      Less Of
      Aggravation
      Time to Complete Transaction
      Rigidity
      Cost
      Bureaucracy
      Excuses
      Lack of Integration
    • What Organisations Try to Do – More With Less
      More Of
      Work
      Customers
      Sales
      Revenue
      Margin
      Less Of
      Personnel
      Facilities
      Cost
    • Balance Between Internal and External
      Need to balance management focus between “more with less” and “most for less”
      More with less focuses on internal reductions: cost, staff
      More for less focuses on external improvements
      Only a cross-functional customer-oriented view of business processes can achieve this balance
      Internal processes focus on operational functions
      Cross-functional view links internal processes to get end-to-end customer view of organisation
      Cross-functional processes are those that really affect customers – from start to end
    • Overall CRM Solution Architecture
    • Technology and Application Components of a CRM Strategy
    • Why CRM
      Greater competition
      Economics of customer retention
      Available technology
      Options to increase customer profitability:
      Get more customers
      Optimise value of existing customers
      Retain right customers longer
      Implement at lower cost
      Costs of options:
      Customer acquisition 5-10 greater than retention
      Loyal customers spend more and pay premium
      Loyal customers must like and trust companies
    • CRM Process
      CRM is about:
      Integration of customer contact points
      Synchronisation of customer information and management assets
      Identification highest (and lowest) value customers
      Servicing those with greatest actual or potential value
      CRM enables:
      Reduction of marketing costs through effective
      targeted campaigns
      Increase in customer satisfaction and retention
      Increase in sales
      Improvement in profitability by customer and sale
    • Which Customers?
      20% of customers generate 80% of profit
      5% increase in customer retention means 25%-95% increase in profitability
      New customers take 8-10 contacts before sale
      Existing customers take 2-3 contacts before sale
    • Customer Service
      95% of customers who have had problems will continue to do business if problems are resolved
      For every complaint you receive there are another 20 potential complaints that have not been articulated but still represent
      Good customers tell about 3 others of their experience
      Bad customers tell about 8 of their experience
      68% of former customers left because of poor customer service
    • Customer Earnings Over Time (Service Industry Example)
    • Role of Data Warehouse in CRM
      Technology/infrastructure core of architecture
      Allow marketers to make decisions on customer segmentations and profiles and match products/offers
      Data Warehouse enables CRM processes
      CRM elements depend on quality of information in
      Data Warehouse and accuracy of derived results
      Central common repository or all relevant allows effective data sharing and reduces latency
      CRM assumes good information
    • Data Mining
      Exploration and analysis, by automatic or semi-automatic means, of large quantities of data in order to discover meaningful patterns and rules
      In order to develop new products and services that are demanded by the customer, that can be delivered profitably by the organisation and to remove unwanted customers and/or products
    • How To Create Customer Loyalty
      Bond with the customer early
      All customers are not created equal
      Convey your company's value proposition in everything you do
      Do more than make your point
      Know why customers leave
      Measure everything
      Build opportunities for repeat business
    • How To Create Customer Loyalty
      Always ask for referrals
      Make loyalty-building a team effort
      Meet customers' expectations
      Go beyond rewards programs
      Turn complaints into opportunities as quickly as possible
      Engage customers in a two-way dialogue
      Survey customers, and pay attention to the responses
      Create a system for collecting, analyzing and acting upon all customer feedback
    • CRM Benefits
    • Four problem that prevent a firm effectively using CRM
      Large Investment
      Difficulty in getting every one customer oriented
      Not all customers want an ongoing relationship
      Assumption behind CRM may not always hold true
    • Breaking Down CRM: What CRM Really Comprises
      CRM Imperative
      Crafting the right value proposition
      Instituting the best processes
      Motivating employees
      Learning to retain customer
      Acquiring the right customer
      You Get It When…
      • Have identified most valuable customers
      • Have calculated share of their wallet for goods/services
      • Have studied what products/services customers need today, tomorrow
      • Have surveyed what competitors offer today, tomorrow
      • Have spotted what products/services we should offer
      • Have researched the best way to deliver products/services to customers
      • Including alliance need to strike, tech need to invest, and services capabilities that need to be developed or acquired
      • Know what tools our employees need to use to foster customer relationships
      • Have identified HR systems needed to boost employee loyalty
      • Have learned why customers defect and how to win them back
      • Have analyzed what competitors do to win your high value customers
      • Senior management monitors customer defection metrics
      CRM Technology Can Help…
      • Analyze customer revenue & cost data to identify current and future high value customers
      • Target direct-marketing efforts better
      • Capture relevant product/service behavior data
      • Create new distribution channels
      • Develop new pricing models
      • Build communities
      • Process transaction faster
      • Provide better info to the front line
      • Manage logistic and supply chain more efficiently
      • Catalyze collaborative commerce
      • Align incentives and metrics
      • Deploy knowledge management systems
      • Track customer defection and retention levels
      • Track customer service satisfaction levels
      Source: Darrel K., Reichheld F., and Schefter P., “Avoid the Four Perils of CRM” Harvard Business Review (Feb, 2002) pg. 106
    • Top 8 CRM Organisation
      Direct line
      Amazon.com
      HSBC
      Hewlett Packard
      Lloyds TSB
      Dell
      BBC
      British Airways
    • Amazon.com
      Site easy to navigate
      Database remembers your previous sales choice
      Remembers credit card number
      Such small details helps in building customer relationship.
    • CRM at Lloyds TSB
    • Siebel at British Telecom
    • Continued…