Customer loyalty and technology as crm tool

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Customer loyalty and technology as crm tool

  1. 1. Customer Loyalty and Technology as CRM tool<br />Presented by:<br />AmitDubey 201034<br />JeetPradhan 201070<br />Rahul Pathak 201072PankajShukla 201095<br />Ajit Singh 201096<br />
  2. 2. What is CRM?<br />End-to-end customer management<br />Process enabled by set of technologies<br />Process designed to integrate all customer interactions through all channels<br />Like all processes organisational change is needed<br />CRM systems need information and applications support<br />CRM processes should be consistent and repeatable<br />
  3. 3. Illusion of Customer Relationship Management<br />Customers are not outsiders.<br />We are all customers – of utilities, service providers, financial institutions, government agencies.<br />CRM is about how WE want to be treated by our service providers.<br />When we talk about customers (THEM), we mean us<br />How do you want to be treated by your service providers?<br />That is exactly how your customers want to be treated by you.<br />
  4. 4. Customer Service and Customer Satisfaction<br />Poor customer service is still pervasive despite awareness of the need for and benefits of improved customer service.<br />Many organisations have not changed their business processes to deliver improved customer service and provide what customers want.<br />Improved customer service means optimising end-to-end processes from the customer viewpoint<br /><ul><li>Involves linking multiple internal processes to get cross-functional view from customer perspective</li></li></ul><li>What Customers Really Want – More For Less<br />More Of<br />Value<br />Responsiveness<br />Involvement<br />Consideration<br />Dependability<br />Flexibility<br />Less Of<br />Aggravation<br />Time to Complete Transaction<br />Rigidity<br />Cost<br />Bureaucracy<br />Excuses<br />Lack of Integration<br />
  5. 5. What Organisations Try to Do – More With Less<br />More Of<br />Work<br />Customers<br />Sales<br />Revenue<br />Margin<br />Less Of<br />Personnel<br />Facilities<br />Cost<br />
  6. 6. Balance Between Internal and External<br />Need to balance management focus between “more with less” and “most for less”<br />More with less focuses on internal reductions: cost, staff<br />More for less focuses on external improvements<br />Only a cross-functional customer-oriented view of business processes can achieve this balance<br />Internal processes focus on operational functions<br />Cross-functional view links internal processes to get end-to-end customer view of organisation<br />Cross-functional processes are those that really affect customers – from start to end<br />
  7. 7. Overall CRM Solution Architecture<br />
  8. 8. Technology and Application Components of a CRM Strategy<br />
  9. 9. Why CRM<br />Greater competition<br />Economics of customer retention<br />Available technology<br />Options to increase customer profitability:<br />Get more customers<br />Optimise value of existing customers<br />Retain right customers longer<br />Implement at lower cost<br />Costs of options:<br />Customer acquisition 5-10 greater than retention<br />Loyal customers spend more and pay premium<br />Loyal customers must like and trust companies<br />
  10. 10. CRM Process<br />CRM is about:<br />Integration of customer contact points<br />Synchronisation of customer information and management assets<br />Identification highest (and lowest) value customers<br />Servicing those with greatest actual or potential value<br />CRM enables:<br />Reduction of marketing costs through effective <br />targeted campaigns<br />Increase in customer satisfaction and retention<br />Increase in sales<br />Improvement in profitability by customer and sale<br />
  11. 11. Which Customers?<br />20% of customers generate 80% of profit<br />5% increase in customer retention means 25%-95% increase in profitability<br />New customers take 8-10 contacts before sale<br />Existing customers take 2-3 contacts before sale<br />
  12. 12. Customer Service<br />95% of customers who have had problems will continue to do business if problems are resolved<br />For every complaint you receive there are another 20 potential complaints that have not been articulated but still represent<br />Good customers tell about 3 others of their experience<br />Bad customers tell about 8 of their experience<br />68% of former customers left because of poor customer service<br />
  13. 13. Customer Earnings Over Time (Service Industry Example)<br />
  14. 14. Role of Data Warehouse in CRM<br />Technology/infrastructure core of architecture<br />Allow marketers to make decisions on customer segmentations and profiles and match products/offers<br />Data Warehouse enables CRM processes<br />CRM elements depend on quality of information in<br />Data Warehouse and accuracy of derived results<br />Central common repository or all relevant allows effective data sharing and reduces latency<br />CRM assumes good information<br />
  15. 15. Data Mining<br />Exploration and analysis, by automatic or semi-automatic means, of large quantities of data in order to discover meaningful patterns and rules<br />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<br />
  16. 16. How To Create Customer Loyalty<br />Bond with the customer early<br />All customers are not created equal<br />Convey your company's value proposition in everything you do<br />Do more than make your point<br />Know why customers leave<br />Measure everything<br />Build opportunities for repeat business<br />
  17. 17. How To Create Customer Loyalty<br />Always ask for referrals<br />Make loyalty-building a team effort<br />Meet customers' expectations<br />Go beyond rewards programs<br />Turn complaints into opportunities as quickly as possible<br />Engage customers in a two-way dialogue<br />Survey customers, and pay attention to the responses<br />Create a system for collecting, analyzing and acting upon all customer feedback<br />
  18. 18.
  19. 19. CRM Benefits<br />
  20. 20.
  21. 21. Four problem that prevent a firm effectively using CRM<br />Large Investment<br />Difficulty in getting every one customer oriented<br />Not all customers want an ongoing relationship<br />Assumption behind CRM may not always hold true<br />
  22. 22. Breaking Down CRM: What CRM Really Comprises<br />CRM Imperative<br />Crafting the right value proposition<br />Instituting the best processes<br />Motivating employees<br />Learning to retain customer<br />Acquiring the right customer<br />You Get It When…<br /><ul><li>Have identified most valuable customers
  23. 23. Have calculated share of their wallet for goods/services
  24. 24. Have studied what products/services customers need today, tomorrow
  25. 25. Have surveyed what competitors offer today, tomorrow
  26. 26. Have spotted what products/services we should offer
  27. 27. Have researched the best way to deliver products/services to customers
  28. 28. Including alliance need to strike, tech need to invest, and services capabilities that need to be developed or acquired
  29. 29. Know what tools our employees need to use to foster customer relationships
  30. 30. Have identified HR systems needed to boost employee loyalty
  31. 31. Have learned why customers defect and how to win them back
  32. 32. Have analyzed what competitors do to win your high value customers
  33. 33. Senior management monitors customer defection metrics</li></ul>CRM Technology Can Help…<br /><ul><li>Analyze customer revenue & cost data to identify current and future high value customers
  34. 34. Target direct-marketing efforts better
  35. 35. Capture relevant product/service behavior data
  36. 36. Create new distribution channels
  37. 37. Develop new pricing models
  38. 38. Build communities
  39. 39. Process transaction faster
  40. 40. Provide better info to the front line
  41. 41. Manage logistic and supply chain more efficiently
  42. 42. Catalyze collaborative commerce
  43. 43. Align incentives and metrics
  44. 44. Deploy knowledge management systems
  45. 45. Track customer defection and retention levels
  46. 46. Track customer service satisfaction levels</li></ul>Source: Darrel K., Reichheld F., and Schefter P., “Avoid the Four Perils of CRM” Harvard Business Review (Feb, 2002) pg. 106<br />
  47. 47. Top 8 CRM Organisation<br /> Direct line<br /> Amazon.com<br /> HSBC<br /> Hewlett Packard<br /> Lloyds TSB<br /> Dell<br /> BBC<br /> British Airways<br />
  48. 48. Amazon.com<br />Site easy to navigate<br /> Database remembers your previous sales choice<br /> Remembers credit card number<br /> Such small details helps in building customer relationship.<br />
  49. 49. CRM at Lloyds TSB<br />
  50. 50. Siebel at British Telecom<br />
  51. 51. Continued…<br />
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