CRM is a powerful functional area of Marketing Management. It is therefore desirable that one should have a relook at the concept of marketing in some of its evolutionary phases with the change in focus from products to relationships during the past 50years. Marketing and the Marketing communication mix are changing. New opportunities new threats, new tools and innovations are emerging. The worlds more than 650crore consumers and probably 50crore industrial buyers are becoming increasingly accessible. Marketing has moved from –
Customers acquisition ( winning new customers ) to
Customers retention ( keeping customers for life )
The critical dominator in today’s commercial world is still CRM Marketing.
CRM is broadly recognized and widely implemented strategy for managing and nurturing a company’s interactions with customer’s clients and sales prospects. It involves using technology to organize automate and synchronize business process – Principally sales activities, but also Those for marketing, Customer Services & technological support. When an implementation is effective, people, processes and technology work in synergy to increase profitability, and reduce operational costs.
There is only one boss. The customer! He can fire everybody in the company, from the chairman on down, simply by spending his money somewhere else.
------------- Sam Walton, founder of Wal-Mart
Our greatest asset is customer! Treat each customer as if they are only one! --------- LAURICE LEITAO
Customer is king
Know your customer……to capture & retain them!
If, we don’t take of our customers someone else
Phases & Determents of CRM
For the last 30 years there has been a substantial shift. The primary and secondary sector to the tertiary sector in industrialized countries. The tertiary sector is now the largest sector of the economy. The service sector consists of the ‘soft’ parts of the economy. Where people offer their knowledge and time to improve productivity, performance, potentials the basic characteristic of this sector is the production of services instead of end products.
CRM IN SERVICE SECTOR
The service sector is receiving much deserved attention resulting from its inevitable role in a country’s economic development. Where it is mainly focusing of developing an inbound relationship with the customer. Which helps in terms of retaining the customer. Because service is an “intangible good” include attention, advice, experience, discussion. The scope of CRM in service sector is vast where it includes Govt, health care / hospitality education, banking, insurance, financial, legal, consulting, news media, hospitality(restaurants, hotels, casinos ), tourism, retail sales etc.,
Hospitality opts for CRM :-
Developing CRM strategies
Information and Communication Technologies(ICT)
CRM based market research
Health Care Industry opts for CRM
Data base Construction
CRM for Physicians
Information Technology opts for CRM
IT Factors for CRM
Traditional marketing doesn’t need to use Information Technologies extensively because they is no need to distinguish, differentiate, interact with and customize for individual customers needs. Although some argue that it has a small role in CRM each of the four key CRM tasks depends heavily on Information Technologies and Systems.
Process Identification Differentiation Interaction Customization Goal Identify individual customers Evaluate customer value and needs Build a continuing relationship 1. Fulfil customer needs 2. Generate Profit Traditional mass Marketing Not Done Clustering Call centre 1. Sales 2. Services CRM Customer Profiling Individual Level analysis 1. Call centre management 2. Auto response system 1. Sales automation 2. Marketing process automation Information technologies 1. Cookies 2. Web Site personalization 1. Data Mining 2. Organization learning 1. Web Application 2. Wireless Communication 1. ERP 2. E-Commerce
Education sector opts for CRM
Student Relationship Management (SRM)
Telecom sector opts for CRM
Customer service is Key to sales and loyalty
Customer service become the differentiator
Banking sector opts for CRM
CRM banking focusing on the customer
Satisfied the customer
Centralized the information
Financial sector opts for CRM
Increase of customer knowledge of employees.
Provision of an excellent view of customer relationship.
Easy access to collated financial data
Storage and provision of financial data of customers
Enabling the building of trust for brokers, agents and financial planners etc.
Managing financial deals
Insurance sector opts for CRM
CRM insurance integrates marketing with other operations
Increased insurance market share
Insurance CRM guarantees lead management
Insurance application queries /claim status queries can be answered sooner.
Retail Banking opts for CRM
Latest technology used by retail banking
Very good data base maintaining by the banks
Scope of more ATM’s
Call centers opts for CRM
CRM benefits to the call center sector
Provision and sto ra ge of valuable customer data
Helps in assisting call centers with shorter call duration,
CRM is of considerable use in follow up actions
Employees perform their duties easily and with less strain on a/c of its user friendly attributes.
Outsourcing opts for CRM
Reducing operating costs
Advantage sooner the competitor
Better business process
Operations being greatly improved
Effective and increased customer service.
Retail sector opts for CRM
Retail sector is Indian’s largest industry; this sector is valued at $200 billion account for over 10% of the country’s GDP and around 8% of the country’s employment. Modern retail has entered India as seen in sprawling shopping centers.
According to Pareto’s principle 80% of sales from 20% of the customers. But this would happen if the retailer has the 20% as its most profitable customer and not just normal customer.
The following are the some of the examples where retail malls are following
Pantaloon touch with its loyal customers through mailers, SMS, telephone informing them about their developments and promotions.
Shoppers stop known as the ‘first citizen card’ where customer can enjoy reward points for every purchase.
Customer Relationship Management entails all aspects of interaction a company has with its customer, whether it is sales or service related; it starts with the foundation of relationship marketing.
CRM is a systematic approach towards using information and ongoing dialogue to built long lasting mutually beneficial customer relationship. From the above all available data it is clear that how CRM is placing a vital role in service sector. So, it makes more strengthen this sector.
CRM requires a cultural change with organizations.
CRM can be enabled by technology, but this alone will not deliver business benefits – change management is vital.
The customer experience needs to be consistently enhanced.
Its an ongoing business process and will create sustainable competitive advantage.
“ If you aren't listening to your customer, your competitors will.”