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Customer Relationship Management

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What is CRM, Need, Evolution, Approaches, Features, Adv & Disadv, e-CRM and its details.

What is CRM, Need, Evolution, Approaches, Features, Adv & Disadv, e-CRM and its details.

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  • 1. CRM is an integrated approach for identifying, acquiring, and retaining customers. By enabling organizations to manage and coordinate customer interactions across multiple channels, departments, lines of business, and geographies, CRM helps organizations maximize the value of every customer interaction and drive superior corporate performance.
  • 2. CRM Features • Sales and marketing approach to building long- term customer relationships • CRM allows businesses to manage and streamline sales, marketing, customer service, call centre, and sales force functions. • CRM systems support multiple forms of customer interaction • Increases integration of sales and customer care.
  • 3. Why CRM? • It costs six times more to sell to new customer than to sell to an existing one. • A typical dissatisfied customer will tell 8-10 people • By increasing the customer retention rate by 5%, profits could increase by by 85% • 70% of the complaining customers will remain loyal if problem is solved • 90% of companies do not have the sales and service integration to support e-commerce
  • 4. Evolution of CRM Materials Requirements Planning (MRP) Manufacturing Resource Planning (MRP II) Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Customer Relationship Management (CRM)
  • 5. Traditional approaches of Doing Business
  • 6. Traditional approach • Intimate the Buyer through Fax, Courier and other means • On receipt of the documents the Buyer will start processing the rest of the formalities • If any change has to be done, then the Buyer will have to Fax, send it through Mail to the Customers • In turn, the Customer has to respond back to the queries • This is the normal time-taking, expensive and quite cumbersome process for information exchange currently.
  • 7. Disadvantages in the Traditional Approach • Increase in the Communication Costs • Increase in overall operational cycle time • More manpower required for customer support • Cumbersome procedure with potential to create bottlenecks
  • 8. Advantage of Using CRM • Easy access of order details to Buyers • Slashing of order processing cycle times • Cost reduction of customer support resources • Decrease in communication costs • Enhanced customer satisfaction owing to improved quality of service
  • 9. Customer Relationship Management Value ( $ ) Duration of Customer Relationship Targeting Acquisition Retention Expansion • What is the best channel for • How can we improve • How many products does • Who Do we target • What segments are most each segment retention our average customer buy • What is the acquisition cost • What is our average • How can we induce our profitable • What segments match our for a channel / segment customer relationship current base to buy more • Do certain channels deliver length products Value Proposition • How can we hold customer • Who are the prime targets • What is the best segmentation certain types of customers • Cost effective acquisition for as long as possible for expansion strategy for us / our industry • What is the most cost • What is the cost of effective method of expansion retention Customer Relationship Management can be simply defined as everything involved with managing the customer relationship.
  • 10. Who Provides CRM?
  • 11. Every Company‟s Big Unknown ... Customer Value Full Potential Number of Relationships Current Current Customer Value Current Relationship Duration
  • 12. Customer Relationship Management Process Capture Capture Customer Customer Data Data and Measure and Measure Results Results Capture Customer The Customer Data and Measure Store Data, Mine Results Capture Customer and Make The CRM Data and Measure Information Results Accessible Dynamic Take Action to Capture Customer Enrich the Customer Data and Measure Relationship Results Build and Customer Capture Manage Data and Measure Customer Value Results
  • 13. Implementing CRM must be approached from an Integrated Perspective Capture Capture Customer Customer Data Data and Measure and Measure Capturing gigabytes of customer Results Results data in disparate operational systems that are next to impossible to access may render the data Taking action to improve the useless. Capture Customer relationship without measuring CRM The Customer Data and Measure the results provides no evidence Store Data, Mine Results of success or failure and limits without an Capture Customer and Make the opportunity for learning. Data and Measure information Integrated Results Accessible A data warehouse full of data Approach without the tools to extract knowledge is nothing more than expensive inventory. Sophisticated mining tools only Take Action to Capture Customer produce results only as good as Enrich the Customer Data and Measure the data they mine. Relationship Results Build and Customer Capture Manage Data and Measure Customer Value Results Implementing new technologies without the knowledge on how to enrich Developing insights on how to improve the value of the relationship is likely to yield a return the customer relationship without having the below the cost of the capital infrastructure to take action has no impact on the expenditure. bottom line. In addition, there is no opportunity to test the ‘theoretical’ analysis. All areas must be implemented, to some degree, to effectively manage the customer relationship. When pieces are implemented in isolation, the benefits are less than overwhelming.
  • 14. CRM Technologies on the Rise “The overall use of technology for selling is growing by more than 50% annually.” – Gartner Group “Sales Force Automation is the fastest growing segment of the high-growth Client/server $3,000 $2,744 (Dollars In Millions) market, estimated to represent $3 billion in revenues by 1997.” $2,500 $1,960 – Market Intelligence Research Corp. $2,000 $1,400 $1,500 $1,000 “Sales Force Automation will become a major $1,000 driver behind enterprise-wide BPR $500 (inexorably linked to development of the customer-focused organization)” $0 1996 1997 1998 1999 – META Group CRM Revenue “Customer Management is a major initiative at Source: IDC 1996 nearly 80% of Fortune 500 companies and will grow to a $4.8 billion market by 1999.” – Aberdeen Group, Inc.
  • 15. The CRM Market - No Clear Market Leader 60% of the $2.0B CRM software license market is  controlled by 3 vendors Siebel Trilogy Baan/Aurum 60% of the Top 3 share is controlled by Siebel  The consulting market for CRM is a large and growing  high margin / high revenue opportunity in contrast to the shrinking ERP market
  • 16. CRM Vendors Vendor CRM Market Position • Acknowledge leader • Very integrator focused TRILOGY • Leader in their niches • Not integrator focused • Excellent product • Number 2, but struggling • Product continually delayed ® • Intimidation capacity lessening • Bold announcements • Claim high strategic priority
  • 17. e-CRM • The web is a perfect medium for managing clients. Why bother spending hours educating the client on your products, USPs and how to get to your office, when all of this can be placed on the web. • A natural extension to this is online real-time CV monitoring. The candidate checks your website to see where their CV is in the recruitment pipeline; much like checking the whereabouts of a parcel dispatched via UPS. • The web can be used to create a virtual community around your brand. This can also form the basis of another feedback loop. Let client‟s let off steam in „virtual‟ public via an open forum. Demonstrate your attention to customer care by handling the complaint via the open forum, and thereby impress onlookers.
  • 18. Be Aware !! • Measurement is key, but chose the metrics carefully – o Sales per person as opposed to number of times they say thank you • Identify who are your low margin and high hassle customers – o Drop them, unless they are all like that – o Focus on your most profitable customers • Ensure the web site downloads quickly – o Scrub the introductory Flash animation. You are not in the animation business.
  • 19. Is CRM Technology Driven ?? Enterprise leaders still consider CRM a technology. They typically say, quot;We know what real CRM means; it's about deploying a super-efficient software system and setting up a call center.quot; One example that truly stands out is Nutan Mumbai Tiffin Box Suppliers' Charity Trust, which has offered robust customer delivery for more than 100 years. Real CRM. Real Customer Delight.
  • 20. “Happy staff makes happy customersquot;
  • 21. Thank You

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