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Crm 1


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This is a presentation based on customer relationship management, which is now-a-days a very important issue for every company as well for the customers. For capturing more and more customers …

This is a presentation based on customer relationship management, which is now-a-days a very important issue for every company as well for the customers. For capturing more and more customers satisfyingly, every firm need to get into this CRM.

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  • 1.
  • 3. How Can Key customers be ‘managed’?
    • KCRM is the most significant development in marketing. It helps to define marketing newly.
    • KCRM enables the marketing, sales & service functions to be integrated, clarifying company priorities, resources planned & cost-effective.
    • Customer-driven business management should be embraced by all functions at all levels.
    • The full implications of CRM could mean a dramatic shift in organization & changes in the business.
  • 4. New Emphasis On KCRM
    • Need for relationship is being generated by customers rather than suppliers. Pressures for partnership arise because of-
    • The Glut Economy , where customized product is needed.
    • New technology opens up the opportunities for competitor,& the existing company needs partnership to survive.
    • Shorter Product Life Cycle leads the customers to get choosy. So, relationship is needed.
    • The quality revolution & need for just-in-time production .
    • Alliances, joint-ventures help to reduce risk, lower the cost &improve profitability.
    • As the channels of distribution is complex & fragmented.
  • 5. Every Customer Is- A Market Segment
    • As with each customer relationship is build up, so each customer becomes a single market segment. Every single potential customer is a market segment.
    • Marketing success depends upon the integration of three activities –
    • Identification, analysis and selection of market segment
    • Creation of relevant products and services according to the customer needs.
    • Sales activity focused on key customer within the targeted segments.
  • 6. Continued..
    • The effective co-ordination of these activities is hampered because of –
    • Poor internal communication of marketing strategy arise when salespeople try to sell indiscriminately to any prospect.
    • Inadequate channels for the feedback of market intelligence by sales and customer service.
    • We must remember that the success of any supplier depends upon the careful selection and management of relationships with key customers.
  • 7. How Does KCRM Affect The Sales Function?
    • The job of customer manager differs from the sales manager in these aspects-
    • Prospecting - its about ideal customer profile, targeting specific/potential customer & mutual beneficial business in partnership with customers.
    • Product -KCRM helps to negotiate with customers for customized product to fit their need.
    • Organization -as a team-leader customer manager multi-level & multi function contacts between suppliers & customers organization.
    • Profile -KCRM gives the total understanding of how business works.
    • Style -change in the company are for maintaining the profitable customer relationships.
  • 8. CONTINUED...
    • Responsibility- the above duties of the customer manager is totally different.
    • Authority- customer managers have wide ranges of authority & financial information.
    • Culture- KCRM is a kind of PRO-ACTIVE in customer relationship, but the sales function is RE-ACTIVE.
    • Competition- where there is KCRM, there is difficulty to find substitute in the market.
    • Targets- profits & the long-term stakeholder value is the target .
  • 9. The benefits of collaborative supplier- customer relationships
    • Lower unit costs.
    • Lower production costs & enhance overall competitiveness.
    • Greater business stability by collaborative planning & commitment.
    • Selecting target customers, planned achievement of company goals is possible.
    • Image enhancement related to the status of the customer in the market.
    • Product development by Joint – funding.
    • Continuity & stability of supply.
    • Lower unit costs.
    • Better identification of both market & product opportunities.
    • Well defined ways of communication.
    • Development of personal relationships.
    • Image enhancement when supplier has highly positive attributes.
    • Joint – funding on R&D costs.
    supplier customer
  • 10. What Are The Implications Of Human Resource?
    • Key customer managers need skills in selling & negotiation, also to participate in the marketing plans of both supplier & customer company.
    • Some skill requirements are-
    • Understanding of how business works, both their own & customers’.
    • Ability to counsel, advice, & influence.
    • Ability to identify key result areas.
    • Ability to plan & allocate resources cost effectively.
    • Ability to negotiate effectively.
    • Ability to lead a team.
    • Understanding of interactive skills & international cultures.
  • 11. Corporate Objectives & The Key Customer Manager
    • As key customer managers carry an important and may be significant percentages of volume, revenue and profit, it is essential that the mangers will gather-
    • Market intelligence- what is going on, the trends in product & technology.
    • Customer knowledge- what is the key customers objectives & plans.
    • Creative ideas for new products and services .
    • Appreciation of the various recourse allocation.
  • 12. Steps in the adoption and implementation of KCRM
    • Understanding corporate objectives and poor competences
    • Generating business plans
    • Prioritize customer and prospect database
    • Agree development, maintenance and target strategies for key customers
    • Calculate and organize key customers workload resources
    • Get senior mgt commitment & motivate customer team members.
    • Prepare detailed individual key customer development plans.
    • Set up a key customer profitability measurement system.
    • Establish a key customer information system.
    • Establish a key customer satisfaction measurement system.
    • Collaboratively negotiate the business for mutual stability & gain .
  • 13. The Pitfalls of KCRM
    • The increased dependence on relatively few customers and there may be some vulnerable situation.
    • There may be possibility of pressure on profit margins.
    • The concentration on key customers may cause other customers to be insecure.
  • 14. What will KCRM do for the company
    • The prime purpose of KCRM is to respond to a customer-driven environment & to maximize the ROI.
    • In any business, financial performance depends ultimately on creating capturable customer value (CCV) as efficiently as possible.
    • On the next slide, there is a figure which illustrates the cascade of value within Dell Computers.
    • When customers buy a PC from Dell, they perceive a value in the benefits.
    • Value depends both on the product/service and on the customers’ needs.
    • PC’s are almost commodity product.
    • The more Dell can differentiate its products from competitors, the more CCV will be available to Dell.
  • 15. KCRM Effort Is Dedicated To....
    • Develop new product business- offsetting high R&D costs it is beneficiary to be collaborating with specific customer
    • Increase added-value means to ensure that the product is designed to add more value to customer.
    • Gain market leadership- as it leads to the market share= volume=lowest unit cost.
    • To spread risk and reduce vulnerability- KCRM help in expanding the customer base. So that a supplier is not dependent on 1 or 2 customers.
    • To maintain existing business- KCRM helps to do this job efficiently.
    • To keep competition in check- tying up the key customers help to drive out the competitors.
    • To address operational problems- KCRM co-ordinates many functional departments like-pricing, distribution, customer service, technical support etc.
  • 16. Is KCRM Right For Your Company?
    • The KCRM concept can be applied to many companies, but a company must examine closely the drivers of CCV. The drivers are-
    • The distinctiveness of the value delivered- which is shaped by
    • ---the depth of the customers knowledge.
    • ---tailoribility of product/service.
    • The value of the problem solved - shaped by
    • --- frequency of purchase
    • ---value of interaction
    • ---complexity of the product
    • Based on these criteria, a table assessing the CCV in various markets is on the next slide--------
  • 17. Table: CCV drivers in various markets Fast-moving medium very high low very high = medium Consumer goods Investment very high low very high very high = high Banking Tax advice high medium very high very high = high Customized very high low very high high = medium Software Petrol very low very high very low medium = low Markets Tailoribility Frequency Complexity Value CCV
  • 18. continued...
    • KCRM is not applicable for every company. There are some situations in which KCRM is the best choice-
    • KCRM is more relevant to the business where-
    • few customers dominate market demand
    • significant economies of scale in production, distribution, promotion,& low unit costs.
    • product/service differentiation perceived by the customer.
    • complex decision making unit-where some decision makers are at headquarters, some at local office.
    • multifunction contacts
    • complex interactive product range-where different salespeople involved with same customer.
    • creative opportunities is there to tailor the products according to the customers need.
  • 19.