Amit Surana 118Hrishikesh Baruah 119Shashanka Yerabaty 120
A strategy to optimise profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviours and implementing customer-centric processes. - Gartner Aimed at maximizing their total customer life-time value, in addition to acquiring newer ones.
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.
• Core business and its future evolution.• Type of CRM appropriate for our business.• IT infrastructure – present & required.• Selection of vendors and partners.
In the cellular business, it costs five times more to acquire a customer. It is the same in every business. Retaining this customer is the critical first step for success. (Harsh Goenka, Chairman, RPG Enterprises, India) The average new customer spends $24.50 at a given web site in the first 3 months as a shopper. The average repeat customer spends $52.50 every 3 months. Most companies lose 50% of their customers in 5 years (Harvard University)
Customer relationship should be built with customers that are likely to provide value for services. Not all customers are equally important Building relationships with customers that will provide little value could result in a loss of time, staff and financial resources
Increased customer relationship. Target specific customers Repository of all the data. Use of databases,data mining..
Phone calls, emails, mobile phone text messages, or WAP services can be used to reach to the customers. Illustration: When tickets are purchased online via Makemytrip.com, the website retains the customers details and their purchase history. The website regularly send emails to previous customers to inform them of similar upcoming events or special discounts. This helps to ensure that customers will continue to purchase tickets from Makemytrip.com in the future.
CRM software- “Front office” solutionsMany call centres use CRM software to store all of theircustomers details. When a customer calls, the system can beused to retrieve and store information relevant to thecustomer. By serving the customer quickly and efficiently, andalso keeping all information on a customer in one place, acompany aims to make cost savings, and also encourage newcustomers.
Staff members often remember the names and favourite services/products of regular customers and use this information to create a personalised service for them. For example, in a hospital library you will know the name of nurses that come in often and probably remember the area that they work in. However, face-to-face CRM could prove less useful when organisations have a large number of customers as it would be more difficult to remember details about each of them.
Benefits Drawbacks Effective & efficient. Difficult to work with Increased customer Costly satisfaction. Requires additional work inputting data. Growth in numbers of Requires continuous customers maintenance, information Increased access to a updating source of market and Difficult to integrate with competitor information. other MIS Long term profitability and sustainability