Term applied to processes implemented by a company to handle its contact with its customers
It is process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them.
set of methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.
CRM is a software-based approach to handling customer relationships
Components of CRM
Contact and Account Management Relevant data for customer profile is captured with the help of software. Necessary information is captured from prospective customers. CRM system stores data in common customer database. The database integrates customer account information and present it in desirable format to the company. This database can be accessed on Internet, intranet and on other network links. The data is used for sales, marketing, services and other applications. The contact management software contains various modules of databases, displays, charts, workflow programs.
Sales Sales process management follows a customized sales methodology with specific sales policies and procedures. Sales activities include - Product information, product configuration, sales prospectus, sales quote generation. CRM also provide the history of customer account so that the sales call can be scheduled accordingly.
Marketing and Fulfillment CRM helps the professionals in product marketing, target marketing, relationship marketing and campaign management. By analyzing customer and business value of direct marketing can be estimated. CRM also helps in customer retention, behavior prediction, channel optimization, personalization. Customer response and requests can be quickly scheduled and hence sales contacts.
Customer Service and Support CRM system provides service representatives with adequate software tools and access to customer database. It also helps to create, assign and manage the service requests by customers. Call center software is designed to route customer calls to respective attendants as per the skills and authority to handle special cases. Help desk software is developed to help customer service representative to help customers who face problems with product or service to resolve it. Web-based Self Service means help customer to access personalized information at company website.
Retention and Loyalty programs The primary objective of CRM is to enhance and optimize customer retention and loyalty. CRM systems are also useful in determining most loyal and profitable customers and reward. CRM analytical software includes determining tools and analytical marketing software whereas CRM databases consists of customer data ware house and CRM data marts.
Acquisition : techniques used to form relationships with new customers to achieve an online sale. For achieving this special CRM software tools and databases are used. The main purpose of this CRM function is to make aware the customer about the superior product by a distinguished company.
Enhance to keep customer satisfied and happy to offering superior service from specialists. The profitability of the business is increased by CRM sales for a automation and direct marketing. The customer experience the convenience of one stop shopping at reasonable prices.
Retention Customer retention refers to the actions an organization takes to retain existing customers i.e. the techniques to maintain relationships with existing customer. The customer retention has two distinct goals. 1. To retain customers of the organizations (repeat customers). 2. To keep customers using online channel (repeat visits).
Customer relationship management (CRM) solution is best treated as a six-stage process Stage six: Enhancing the customer experience Stage five: Marketing more effectively Stage four: Analysing Customer behaviour Stage three: Accessing information Stage two: Storing information Stage one: Collecting information
TYPES OF CRM There are following types of CRM 1.OPERATIONAL CRM 2. SFA 3.Analytical CRM 4.COLLABORATIVE CRM 5.GEOGRAPHIC CRM
OPERATIONAL CRM Operational CRM processes customer data for a variety of purposes: 'Managing Campaigns' Enterprise Marketing Automation Sales Force Automation Sales Management System
SALES FORCE AUTOMATION Sales Force Automation automates sales force-related activities such as: Activity Management: Scheduling sales calls or mailings Tracking responses Generating reports Opportunity Management and Assessment Account Management and Target Account Selling
ANALYTICAL CRM Analytical CRM analyzes customer data for a variety of purposes: Designing and executing targeted marketing campaigns Designing and executing campaigns, e.g. customer acquisition, cross-selling, up-selling Analysing customer behavior in order to make decisions relating to products and services (e.g. pricing, product development) Management information system (e.g. financial forecasting and customer profitability analysis) Analytical CRM generally makes heavy use of data mining.
COLLABORATIVE CRM Collaborative CRM covers aspects of a company's dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. Staff members from different departments can share information collected when interacting with customers. For example, feedback received by customer support agents can provide other staff members with information on the services and features requested by customers. Collaborative CRM's ultimate goal is to use information collected by all departments to improve the quality of services provided by the company.
Geographic CRM Geographic CRM (GCRM) combines geographic information system and traditional CRM. Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer visits.
This is done with a Campaign Management tool that can automatically select the right targets and the right messages via the right channels
The responses are then fed back into the Validation process for evaluation and refinement
What is the status of CRM adoption in India? Indian companies were slow in adopting CRM. One of the major reasons for this has been a lack of proper understanding of CRM as a concept and how it could benefit an organization. In the past, CRM was identified with call centers. However, this has changed in recent times with a better understanding of the various components of CRM and increased awareness levels of how it can drive efficiencies across the board.
DIFFERENT SECTOR CRM IN INDIA IT & TELECOM SECTOR HOSPITALITY SECTOR FINANCE SECTOR RAILWAYS TRAVELS AGENCIES INSURANCE SECTOR BANKING SECTOR OTHERS
What are the reasons for service sectors being early adopters of CRM?
Increased competition in the sector meant that organisations had to think of more innovative ways to acquire and retain customers. This sector has seen more investments in IT infrastructure which is an enabler for applications.
Though back-end systems are always important for smooth functioning of systems, for the service sector it is also important to have a user-friendly interface. Many companies in this sector have adopted CRM before investing in ERP. Verticals in the services sector include retail and commercial banks, brokerages, insurance, mutual funds, IT services, BPO, hospitality, travel, media and logistics.
CUSTOMER RELATIONSHIP MANAGEMENT CRM is the strategic use of information, process, technology, and people to manage customer’s relationship with your company (marketing, sales, services and support ) across the whole customer life cycle. Although our definition of CRM is broad and complex but its goal is simple To maximize the value of your company’s customer asset. including
THE CUSTOMER LIFE CYCLE Upgrade/ retire Aware investigation Maintain Consider Use Evaluate/ Choose Purchase Learn Setup Install Order
CUSTOMER LIFE CYCLE The customer life cycle is total time that a customer is engaged with your company from the customer’s experience and viewpoint. There is high level of cycle that is consistent for customers, no matter the product or services and no matter how much how much the customer spend on each stage; 1. Consider: Customer becomes aware of need and investigates alternative solution. 2.Purchase: Customer evaluates and chooses the best alternatives and place an order. 3. Set up: Customer install the product and learn how to use it. 4. Use: Customer operates and maintain the product and finally makes the decision to retire it or upgrade, which starts the cycle all over again.
eCRM provides to companies a means to conduct interactive, personalised and relevant communication with customers across both electronic and traditional channels.
It utilises a complete view of the customer to make decisions about messaging, offers, and channel
delivery. eCRM v/s CRM: The Differences Being able to take care of your customer via the Internet, or, customers being able to take care of themselves online: That’s the difference between CRM and eCRM.
The Need to Adopt eCRM Companies need to take firm initiatives on the eCRM frontier to Optimize the value of interactive relationship. Enable the business to extend its personalized messaging to the Web and e-mail. Co-ordinate marketing activities across all customer channels. Leverage customer information for more effective eMarketing and eBusiness. Focus business on improving customer relationship and earning a greater share of each customer’s business through consistent measurement, assessment and “actionable” customer contact strategies.
CRM : Benefits Excellent customer service is about being aware of customer needs and reacting to them effectively. CRM helps you to understand, anticipate and respond to your customers' needs in a consistent way, right across organization. CRM will help your business if you view it as a set of tools that let you do more for, and get more from, your customer. Keeps all your customer information in one place. Know and understand your customers. Know your best revenue opportunities. Spot the best sales campaigns.
Advantages Of CRM Using CRM, a business can : Provide better customer service Increase customer revenues Discover new customers Help sales staff close deals faster Make call centers more efficient Simplify marketing and sales processes
Challenges of CRM Problems of collecting and coordinating substantial data can lead to privacy problems. Firms still need to be sensitive to customer wishes about unsolicited contacts. Customer privacy request needs to be a part of CRM. Privacy and data security One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider the desire for customer privacy and data security, as well as the legislative and cultural norms. Some customers prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties.