Customer Relationship
Management
Why CRM

Define CRM
Understand the importance of CRM
Explain the determinants of CRM and key stages in its
development
Bene...
Define CRM
CRM is “the development and maintenance of mutually
beneficial
long-term relationships with strategically signif...
Understand the Importance
of CRM
CRM is a business philosophy based on upon individual customers
and customised products a...
CRM Determinants

                              Trust

The willingness to rely on the ability, integrity, and motivation o...
CRM Determinants

In addition to trust and value, salespeople must:

Understand customer needs and problems;

Meet their c...
Stages in the Development
of CRM
   Stages in the development of a Customer Relationship
The Pre-relationship Stage
   The...
Summary

CRM is a new business philosophy based on trust and value;

The core function of CRM is the value creation proces...
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Why Crm By Ken Odero

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Sales Force Automation, Campaign Management and Customer Service

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  • Why Crm By Ken Odero

    1. 1. Customer Relationship Management
    2. 2. Why CRM Define CRM Understand the importance of CRM Explain the determinants of CRM and key stages in its development Benefits
    3. 3. Define CRM CRM is “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers” (Buttle, 2000) CRM is “an IT enhanced value process, which identifies, develops, integrates and focuses the various competencies of the firm to the ‘voice’ of the customer in order to deliver long-term superior customer value, at a profit to well identified existing and potential customers”. (Plakoyiannaki and Tzokas, 2001)
    4. 4. Understand the Importance of CRM CRM is a business philosophy based on upon individual customers and customised products and services supported by open lines of communication and feedback from the participating firms that mutually benefit both buying and selling organisations. The buying and selling firms enter into a “learning relationship”, with the customer being willing to collaborate with the seller and grow as a loyal customer. In return,, the seller works to maximize the value of the relationship for the customer’s benefit. In short, CRM provides selling organisations with the platform to obtain a competitive advantage by embracing customer needs and building value-driven long-term relationships.
    5. 5. CRM Determinants Trust The willingness to rely on the ability, integrity, and motivation of one company to serve the needs of the other company as agreed upon implicitly and explicitly. Value The ability of a selling organisation to satisfy the needs of the customer at a comparatively lower cost or higher benefit than that offered by competitors and measured in monetary, temporal, functional and psychological terms.
    6. 6. CRM Determinants In addition to trust and value, salespeople must: Understand customer needs and problems; Meet their commitments; Provide superior after sales support; Make sure that the customer is always told the truth (must be honest); and Have a passionate interest in establishing and retaining a long- term relationship (e.g., have long-term perspective).
    7. 7. Stages in the Development of CRM Stages in the development of a Customer Relationship The Pre-relationship Stage The event that triggers a buyer to seek a new business partner. The Early Stage Experience is accumulated between the buyer and seller although a great degree of uncertainty and distance exists. The Development Stage Increased levels of transactions lead to a higher degree of commitment and the distance is reduced to a social exchange. The Long-term Stage Characterised by the companies’ mutual importance to each other. The Final Stage The interaction between the companies becomes institutionalized.
    8. 8. 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
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