SASMIRA’S Institute of Management Studies and Research Customer Relationship Management (CRM) Group Members: • Santosh Katke • Sonia Dongrikar • Dhvani Nagda • Siddhesh Karane • Mahesh Dongre • Khiren Gosar • Vishal Yadav 1
Outline Presentation• Definition of CRM and Why CRM?• Determinants of CRM• Objectives and Benefits of CRM.• Role of salespeople as relationship developers.• Types and Strategies of CRM• How to implement CRM?• Key point to Successful Implementation of CRM• Causes for CRM failure. 2 2
What is CRM?• CRM stands for Customer Relationship Management.• It is a process or methodology used to learn more about customers needs and behaviors in order to develop stronger relationships with them.• It is a strategy used to learn more about customers needs and behaviors in order to develop stronger relationships with them.• It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.• The overall goals are to find, attract and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. 3
Why is CRM?CRM are used to help business• Understand their customer• Understand their customers wants and needs• Target new customers• Help the business serve them more efficiently 4
Determinants of CRMTrustThe willingness to rely on the ability, integrity, and motivation of onecompany to serve the needs of the other company as agreed uponimplicitly and explicitly.ValueThe ability of a selling organisation to satisfy the needs of the customer ata comparatively lower cost or higher benefit than that offered bycompetitors and measured in monetary, temporal, functional andpsychological terms. 5
Determinants of CRMIn addition to Trust and Value, Sales person must -• Understand customer needs and problems• Meet their commitments• Provide superior after sales support• Make sure that customer is always told truth (must be honest)• Have passionate interest in establishing and retaining a long term relationship. (Eg. Have long term perspective) 6
Goal of CRMThe idea of CRM is that it helps businesses use technology and humanresources to gain insight into the behavior of customers and the value ofthose customers. With an effective CRM strategy, a business can increaserevenues by -•Providing services and products that are exactly what your customerswant•Offering better customer service•Cross selling product more effectively•Helps sales staff close deals faster•Retaining existing customers and discovering new ones. 7
Phrases in CRMThe three phases in which CRM support the relationship between abusiness and its customers are to:•Acquire•Enhance•Retain 8
Role of Salesperson• Identifying potential customers and their needs.• Approaching key decision makers in buying business.• Negotiating and advancing dialogue and mutual trust.• Coordinating the cooperation between the customers and their company.• Encouraging the inter - organizational learning process.• Contributing to constructive resolution of existing conflicts.• Leading to customer relationship development team. 9
Types of CRM• Operational• Analytical• Collaborative 10
Benefits of CRM An excellent customer relationships management is at the heart of every business success.With CRM, you will easily understand customer requirements, meet thoseneeds effectively, predict market trends and enhance your bottom line.Specifically, your business will have the following benefits:•Customer Satisfaction•Increased Revenue•Reduced Cost•Increases Profit 11
Strategies of CRM•Customer Acquisition.•Customer Retention.•Customer Loyalty.•Customer to be potential sales force.•Cost Reduction.•Improve Productivity Enhance your e-businessstrategies. 12 12
Implementation of CRM It doesnt happen by simply buying software and installing it. For CRM tobe truly effective, an organization must first understand who its customers are andwhat their value is over a lifetime. The company must then determine what theneeds of its customers are and how best to meet those needs. For example, manyfinancial institutions keep track of customers life stages in order to marketappropriate banking products like mortgages or IRAs to them at the right time to fittheir needs. Next, the organization must look into all of the different ways informationabout customers comes into a business, where and how this data is stored and howit is currently used. One company, for instance, may interact with customers in amyriad of different ways including mail campaigns, Web sites, brick-and-mortarstores, call centers, mobile sales force staff and marketing and advertising efforts.CRM systems link up each of these points. This collected data flows betweenoperational systems (like sales and inventory systems) and analytical systems thatcan help sort through these records for patterns. Company analysts can then combthrough the data to obtain a holistic view of each customer and pinpoint areas wherebetter services are needed. For example, if someone has a mortgage, a businessloan, an IRA and a large commercial checking account with one bank, it behooves 13the bank to treat this person well each time it has any contact with him or her.
Keys to Successful CRM Implementation • Develop your customer-focused strategy first before considering what kind of technology you need. • Break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones. Start with a pilot project that incorporates all the necessary departments but is small enough and flexible enough to allow tinkering along the way. • Make sure your CRM plans include a scalable architecture framework. Think carefully about what is best for your enterprise: a solution that ties together “best of breed” software from several vendors via Web Services or an integrated package of software from one vendor. • Dont underestimate how much data you might collect (there will be LOTS) and make sure that if you need to expand systems youll be able to. • Be thoughtful about what data is collected and stored. The impulse will be to grab and then store EVERY piece of data you can, but there is often no reason to store data. Storing useless data wastes time and 14 money.
Causes of CRM Failure Many things. From the beginning, lack of a communicationbetween everyone in the customer relationship chain can lead to anincomplete picture of the customer.Poor communication can lead to technology being implemented withoutproper support or buy-in from users. For example, if the sales force isntcompletely sold on the systems benefits, they may not input the kind ofdemographic data that is essential to the programs success.One Fortune 500 company is on its fourth try at a CRM implementation,because it did not do a good job at getting buy-in from its sale forcebeforehand and then training sales staff once the software was available. 15
Summary• CRM is a new business philosophy based on trust and value.• The core function of CRM is the value creation process.• Customer relationships develop over time.• The role of global salespeople in the process is that of both relationship builders and relationship promoters.• The basic premise of CRM is to offer superior value to customers in an effort to turn prospects into customers, customers into loyal customers, and loyal customers into partners. 16