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.
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.
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.,
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
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.