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A Workbook on
CUSTOMER RELATIONSHIP MANAGEMENT
SNIT
Business School
Handbook on
CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
Published By,
Dr. Suma S.R
Associate Professor and Head, SNIT B-School, Adoor
&
Harikrishnan N.R
T5 MBA (2017-19), SNIT B-School, Adoor
About the Book
The book has been designed to serve as an essential insight
necessary to understand CRM (Customer Relationship Management)
that especially meets the requirements of T5 MBA students of KTU
specializing in marketing. Substantive coverage has been given to
topics like CRM technology, Sales Force Automations, Enterprise
Marketing Automation, implementing CRM, Application Service
Provider, Impact of CRM on Marketing Channels and CRM Tools.
About the Authors
Dr. Suma S.R received her doctoral degree in Marketing from the
University of SCSVMV University, Kanchipuram. Currently she is the
Associate Professor and Head Of the Department-MBA, SNIT
Adoor. As an experienced person of more than ten years, she has
contributed and presented papers in various journals and conferences at
national and international level. Her teaching interests are in various
topics of Marketing and Quantitative Techniques. She published two
books on Green Marketing and Business and society.
Harikrishnan N. R is a college student who is
working towards to become a Marketing Manager and who will be
graduating with his MBA in June 2019 from SNIT B- School in Adoor.
From there he hopes to be accepted in Infosys in Techno park because his
brother is also working there. Harikrishnan N.R has spent many hours
oberving various theories and participated in various research programs
conducted by the institute. So that he would get a better idea of what he
could be looking forward to his future.
Dear Dr.Suma and Harikrishnan N.R,
Congratulations on getting your book “CUSTOMER RELATION MANAGEMENT” to
be published. I believe that you have written an excellent article that will raise lots of
eyebrows. I surely assure that this book will give lots of valuable informations to the
readers and hopefully they will be benefited. Moreover I feel proud that working together
in SREE NARAYANA INSTITUTE OF TECHNOLOGY (SNIT), ADOOR. I wish all the very
best for your success & may God the almighty shower his blessings on all your future
endeavors. Finally as a Principal of SREE NARAYANA INSTITUTE OF TECHNOLOGY, I
applaud your efforts.
GOD BLESS YOU.
Dr. J. George Chellin Chandran
Principal, SNIT Adoor.
PREFACE
I am delighted to note that Dr. Suma S.R. and Harikrishnan N.R.
came out with a learning support system for T5 MBA for the course
Customer Relationship Management (CRM). The learning material
covers the entire course syllabus and is sure to become a handy tool
for inquisitive students. It is the earnest duty of any genuine teacher
to make learning exercises happy and pleasant experiences. I expect
the efforts of Dr. Suma S.R. and Harikrishnan N.R. will be
appreciated as a combination of Pride, Enjoyment and Growth in the
domain of intellectual development. The future managers are
expected to welcome the effort as a finest tool in the pursuit of
knowledge. I wish all success to the team.
Prof. (Dr) Keshav Mohan
Academic Chairman & Director, SNIT B-School, Adoor
UNIT SYLLABUS PAGE NO:
I.
CRM: CRM technology components, customer life style,
customer interaction. Difference between CRM and
eCRM, features of eCRM
Sales Force Automations (SFA) barriers to successful SFA
functionality, technological aspect of SFA, data
synchronization, flexibility and performance, reporting
tools.
1-23
II.
Enterprise Marketing Automation (EMA): Components of
EMA, marketing campaign, campaign planning and
management, business analytic tools, EMA components
(promotions, events loyalty and retention programs),
response management.
Call Center: Customer interaction, the functionality,
technological
implementation, ACD (Automatic Call Distribution), IVR
(Interactive Voice Response), CTI (Computer Telephony
Integration), web enabling the call center, automated
intelligent call routing, logging & monitoring.
24-43
III.
Implementing CRM : Pre-implementation, kick off
meeting, requirements gathering, prototyping and detailed
proposal generation, development of customization,
Power use beta test and data import, training, roll out and
system hand off, ongoing support, system optimization,
follow up.
44-55
IV.
Introduction to Application Service Provider (ASP) Their
role and function, advantages and disadvantages of
implementing ASP.
Impact of CRM on Marketing Channels: Traditional
distribution channel structure supporting customer
relationship, emerging channel trends that impact CRM.
56-65
V.
CRM Tools: CRM tools – overall modules – lead
management – lead to sales life cycle-Communication
methodologies–relationship management – complaint
handling
66-80
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Unit
CCRRMM
1. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Customer Relationship Management is a strategy for managing an organization's relationships and
interactions with customers and potential customers. A CRM system helps companies stay connected to
customers, streamline processes, and improve profitability. The goal of a CRM system is to improve
business relationships.
CRM enables a business to deepen its relationships with customers, service users, colleagues,
partners and suppliers.
CRM is a concept of the mid – 1990’s. CRM requires organizational and business level approaches
– which are customer centric – for doing business rather than a simple marketing strategy. CRM involves
all of the corporate functions (marketing, manufacturing, customer services, field sales, and field service)
required to contact customers directly or indirectly. The term “touch points” is used in CRM to refer to the
many ways in which customers and firms interact.
Customer Relationship Management is a company-wide business strategy designed to reduce costs
and increase profitability by solidifying customer loyalty. True CRM brings together information from all
data sources within an organization (and where appropriate, from outside the organization) to give one,
holistic view of each customer in real time.
Meaning of CRM
Traditional marketing strategies focused on the four Ps (price, product, promotion, and place) to
increase market share. The main concern was to increase the volume of transactions between seller and
buyer. Volume of transactions is considered a good measure of the performance of marketing strategies and
tactics. CRM is a business strategy that goes beyond increasing transaction volume. Its objectives are to
increase profitability, revenue, and customer satisfaction. To achieve CRM, a companywide set of tools,
technologies, and procedures promote the relationship with the customer to increase sales.
CRM consists of three components:
 Customer
 Relationship, and
 Management
CRM tries to achieve a ‘single integrated view of customers’ and a ‘customer-centric approach’.
CRM: CRM technology components, customer life style, customer interaction. Difference between
CRM and eCRM, features of eCRM Sales Force Automations (SFA) barriers to successful SFA
functionality, technological aspect of SFA, data synchronization, flexibility and performance,
reporting tools.
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Fig: Components of CRM
Customer: Customer is the only source of the company’s present profit and future growth. It is difficult to
distinguish who is the real customer because the buying decision is frequently a collaborative activity
among participants of the decision-making process. Information technologies can provide the abilities to
distinguish and manage customers.
Relationship: The relationship between a company and its customers can be short-term or long-term,
continuous or discrete, and repeating or one-time. Even though customers have a positive attitude towards
the company and its products, their buying behavior is highly situational. For example, the buying pattern
for airline tickets depends on whether a person buys the ticket for their family vacation or a business trip.
CRM involves managing this relationship so it is profitable and mutually beneficial.
Management: CRM is not an activity only within a marketing department. Rather it involves continuous
corporate change in culture and processes. The customer information collected is transformed into
corporate knowledge that leads to activities that take advantage of the information and of market
opportunities.
Definition:
“Customer Relationship Management is a comprehensive strategy and process of acquiring,
retaining and partnering with selective customers to create superior value for the company and the
customer.” - Parvatiyar and Sheth
The three parts to CRM – technology, processes and people.
Customer relationship management (CRM) is a combination of people, processes and
technology that seeks to understand a company's customers. An integrated and holistic approach is
needed between these components is required for a successful CRM implementation.
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The process component of CRM tries to focus on individual customers. That is , businesses have to
shift the direction organisations process from product centric to customer centric. The new marketing
approach should consider customers’ needs at the centre of the business.
The technology component of CRM should be seen as key in implementing the CRM strategy and
to assist with the re-design of the business. Technology collects and analyses data on customer’s patterns
interprets customer behaviour and develops predictive models. It ensures timely responses, effective
customized communications and delivers customized products and services to individual customers.
The people component is the most difficult component which includes the organisational readiness
and collaboration with staff, which is essential for a successful CRM implementation. One of the greatest
challenges in implementing CRM is aligning people with the new strategies and processes. CRM entails
new processes, the value of which the organisation must understand and appreciate, and staff must be
involved with the strategy and be motivated to reach the objectives.
Advantages of CRM
By using CRM methodology, an enterprise can:
 Provide better customer service
 Enhanced contact management
 Increase customer revenues
 Discover new customers
 Reliable reporting
 Cross sell/Up Sell products more effectively (Empowered sales management)
 Help sales staff close deals faster
 Make call centers more efficient
 Simplify marketing and sales processes
 Increased customer satisfaction and retention
 Boosted marketing ROI
 Enriched products and services
Evolution of CRM
Today, CRM manages business processes, spanning sales, support, and marketing creating
effective customer interactions. The purpose of CRM, the functionality is straightforward, and the benefits
of successful deployments clearly generate value and profitability for any company. Great CRM solutions
need to encourage users to interact with the application as well as be in-tune with the business and IT cost-
saving needs.
For the up to date CRM to be world class it needs to be revolutionary in market incursion and
evolutionary in technological up gradation.
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Today the major business focus is towards endowing value addition to the sales cycle, and customer
retention rather than constructing a new customer base which is costlier and also an uncertain chase from
business perspective. The basic philosophy behind CRM is that a company's relationship with the customer
would be the biggest asset in the long run.
Before implementing any Customer Relationship Management solution in the organization there are many
Question's which need a comprehensive explanation from the users' point of view
 What is the added value preposition of the CRM to the organization?
 What would be the environment under which the implementation would be done?
 How would the synergies be reflecting in the processes of the company?
These are mere stencils of the holistic scenario prevalent right now, and are to a great extent a factor which
harms the opportunities of long term survival for any CRM vendor.
CRM Building Blocks
Following are the building blocks for successful CRM projects:
 Vision - The board must take leadership in creating a CRM vision for the enterprise. The CRM
vision should be used as the guide to the creation of a CRM strategy.
 Strategy - The CRM strategy is all about how to build and develop a valuable asset: the customer
base. It must set objectives and metrics for attaining that goal. It directs the objectives of other
operational strategies and the CRM implementation strategy.
 Customer experience - The customer experience must be designed in line with the CRM vision
and must be constantly refined, based on actively sought customer feedback.
 Organizational collaboration - Changes to organizational structures, processes, metrics,
incentives, skills, and even the enterprise culture must be made to deliver the required external
customer experience. Ongoing change management will be key.
 Process - Successful customer process reengineering should create processes that not only meet
customers' expectations and support the customer value proposal, but also provide competitive
differentiation and contribute to a designed customer experience.
 Information - Successful CRM demands the creation of a customer-information blood supply that
flows around the organization, as well as tight integration between operational and analytical
systems.
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 Technology - CRM technologies form a fundamental part of any enterprise's application portfolio
and architecture. CRM application needs should be considered as the provision of integrated
functionality that supports seamless customer-centric processes across all areas of the enterprise and
its partners.
 Metrics - Enterprises must set measurable CRM objectives and monitor all levels of CRM
indicators to turn customers into assets. Without performance management, a CRM implementation
will fail.
The above building blocks are part of the strategy framework to help organizations go through the
important CRM journey. However, successful implementation and using the CRM solution to benefit the
business depends largely on the people (from senior management down) within the organization to truly
adopt and embrace it.
1.1 CRM TECHNOLOGY
A software application can't completely replace the significance of effective face to face customer
service practices; the importance of customer relationship management (CRM) technology is widely
accepted in the modern business world. CRM software is designed to allow companies to facilitate
effective marketing, sales and data management efforts.
Components of Customer Relationship Management
There are a number of different components of Customer Relationship Management that are
essential to run an organization towards success. Every component is unique in itself and plays a major
undeniable role in the process.
 Sales Force Automation
Sales Force Automation is the most essential components of CRM. This is one such component that
is undertaken by the maximum business organizations. It includes forecasting, recording sales processing
as well as keeping a track of the potential interactions. It helps to know the revenue generation
opportunities better and that makes it very significant. The component also includes analyzing the sales
forecasts and the performances by the workforce. To achieve an overall improvement in the development
and growth of the industry, numerous components work hand in hand to form sales force automation as a
consequent unit. Some of the major elements of the same are Lead Management, Account Management,
Opportunity Management, Forecasting, Pipeline Analysis, Contact Management, Activity Management,
Email Management and Reporting.
 Human Resource Management
Human Resource Management involves the effective and correct use of human resource and skills
at the specific moment and situation. This requires to be make sure that the skills and intellectual levels of
the professionals match the tasks undertaken by them according to their job profiles. It is an essential
component not only for the large scale corporations but the medium industries as well. It involves adopting
an effective people strategy and studying the skills or the workforce and the growth being generated
thereby designing and implementing the strategies needed accordingly with the aim of achieving
development.
 Lead Management
Lead Management refers to keeping the track of the sales leads as well as their distribution. The
business that are most benefitted by this component of CRM are sales industries, marketing firms and
customer executive centres. It involves an efficient management of the campaigns, designing customized
forms, finalizing the mailing lists and several other elements. An extensive study of the purchase patterns
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of the customers as well as potential sales leads helps to capture the maximum number of sales leads to
improve the sales.
 Customer Service
Customer Relationship Management emphasizes on collecting customer information and data, their
purchase informations and patterns as well as involves providing the collected information to the necessary
and concerned departments. This makes customer service an essential component of CRM.
Almost all the major departments including the sales department, marketing team and the management
personnel are required to take steps to develop their awareness and understanding of the customer needs as
well as complaints. This undoubtedly makes the business or the company to deliver quick and perfect
solutions and assistance to the customers as well as cater to their needs which increases the dependability
and trust of the customers and people on the organization.
 Marketing
Marketing is one of the most significant components of Customer Relationship Management and it
refers to the promotional activities that are adopted by a company in order to promote their products. The
marketing could be targeted to a particular group of people as well as to the general crowd. Marketing
involves crafting and implementing strategies in order to sell the product. Customer Relationship
Management assists in the marketing process by enhancing and improving the effectiveness of the
strategies used for marketing and promotion.
This is done by making an observation and study of the potential customers. It is a component that brings
along various sub-elements or aspects. Some of the major elements of marketing are List Management,
Campaign Management, Activity Management, Document Management, Call Management, Mass Emails
and Reporting. The use of the aforesaid elements varies from business to business according to its nature
and requirements as well as the target crowd.
 Workflow Automation
A number of processes run simultaneously when it comes to the management and this requires an
efficient cost cutting as well as the streamlining of all the processes.The phenomenon of doing so is known
as Workflow Automation. It not only reduces the excess expenditure but also prevents the repetition of a
particular task by different people by reducing the work and work force that is getting wasted for avoidable
jobs. Routing out the paperwork and form filling are some of the elements of the process and it aims at
preventing the loss of time and excess effort.
 Business Reporting
CRM comes with a management of sales, customer care reports and marketing. The customer care
reports assist the executives of a company to gain an insight into their daily work management and
operations. This enables one to know the precise position of the company at any particular instance. CRM
provides the reports on the business and that makes it play a major role here. It is ensured that the reports
are accurate as well as precise. Another significant feature is the forecasting and the ability to export the
business reports on other systems. In order to make comparisons, one can save historical data as well.
 Analytics
Analytics is the process of studying and representing the data in order to observe the trends in the
market. Creating graphical representations of the data in the form of histograms, charts, figures and
diagrams utilizing the current data as well as the one generated in the past is essential to achieve a detailed
understanding and study of the trends. Analytics is an extremely significant element of Customer
Relationship Management as it allows to make in-depth study of information that is required to calculate
the progress in the business.
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1.2 CUSTOMER LIFE STYLE
Life style
A way of living of individuals, families (households), and societies, which they manifest in coping
with their physical, psychological, social, and economic environments on a day-to-day basis.
Lifestyle is expressed in both work and leisure behavior patterns and (on an individual basis) in
activities, attitudes, interests, opinions, values, and allocation of income. It also reflects people's self-image
or self-concept; the way they see themselves and believe they are seen by the others. Lifestyle is a
composite of motivations, needs, and wants and is influenced by factors such as culture, family, reference
groups, and social class.
Psychological factors
The Lifestyle of individuals has always been of great interest to marketers. They deal with everyday
behaviorally oriented facets of people as well as their feelings, attitudes, interests and opinion. A lifestyle
marketing perspective recognizes that people sort themselves into groups on the basis of the things they
like to do, how they like to spend their leisure time and how they choose to spend their disposable income.
The lifestyle concept was introduced by Bell (1958). William Lazer introduced the concept of lifestyle
patterns and its relationship to marketing, in 1963. He defined life style pattern as a systems concept. lt
refers to a distinctive or characteristic mode of living, in its aggregate and broadest sense, of a whole
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society or segment thereof... The aggregate of consumer purchases, and the manner in which they are
consumed, reflect a society’s [or] consumer’s lifestyle.
Lifestyle is an important concept used in segmenting markets and understanding target customers,
which is not provided by the study of demographics alone. Many researchers have focused on identifying
the lifestyle of the consumers’ to have better information about them.
Demographics alone do not give a complete picture of the consumer, thus hampering the marketer
in segmenting the market to its full potential. Bone (1991) indicates that the use of demographic
characteristics such as age, income and employment status can be misleading factors while segmenting
markets. The use of chronological age as a tool for segmentation is not as closely related to purchase
behavior as the psychological age. Though income is highly related to buying behavior, it is generally used
in segmenting the market; but it does not take into consideration factors such as activities, interest, health.
Social class adds a greater depth to demographics but it has to be supplemented by other information to
give a meaningful insight of the individual characteristics. Lifestyle segmentation has been a very useful
concept for marketing and advertisement planners.
By incorporating psychographics’ information with demographics, the marketer will better
understand the wants and needs of the consumers. Psychographics was a term first introduced by
Demby(1974) putting together psychology and demographics. Psychographic or Lifestyle refers to
consumers’ Activities Interests and Opinion(AIO). More specifically it focuses on what people like to do,
what are their areas of interests, and what are the opinion people hold on various matters. Hence lifestyle
patterns provide broader views about the consumers. The basic premise of lifestyle research is that the
more the marketers know and understand their customers, the more effectively they can communicate to
them and serve them.
Lifestyle characteristics have a great impact on the purchase behavior. In a consumption
environment, a person chooses a product or brand, which seems to possess a maximum possibility of the
definition or elaboration of his life style identity. Alternatively, a person makes a choice in a consumption
environment in order to define or actualize his life style, identify it through the products or brands chosen.
The analysis of consumer life styles (called psychographics) is an important factor in determining how
consumers make their purchase decisions.
Proprietary psychographic consumer segmentation system that classifies people into eight basic
lifestyle groups on the basis of two dimensions: resources and self-orientation. Resource dimension
includes education, income, intelligence, health, energy level, and eagerness to purchase resources that, in
general, increase from youth to middle age decline afterwards. Self-orientation is divided into three parts
(1) Principle oriented: having set views. (2) Status oriented: influenced by other's thinking. (3) Action
oriented: seeks activity, adventure, and variety. The eight basic lifestyle groups are (1) Actualizers, (2)
Fulfillers, (3) Believers, (4) Achievers, (5) Strivers, (6) Experiencers, (7) Makers, and (8) Strugglers
Lifestyle Data
Adding consumer lifestyle data takes the market analysis a step further. This data recognizes that
the way people live (lifestyle) influences what they purchase as much as where they live (geography) or
their age, income, or occupation (demography). Lifestyle data enables you to include people’s interests,
opinions, and activities and the effect these have on buying behavior in our analysis.
Sample Lifestyle Segment Summary
As an example, qualitative information provided by ESRI for its “College Towns” designation
includes:
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 Demographic: Most residents are between the ages of 18 and 34, and live in single-person or
shared households. The racial profile is typically similar to the nation as a whole, with three-
fourths of college town residents being white.
 Socioeconomic: Because many students only work part-time, the median household income ranks
near the low end of ESRI’s measurements. Most of the employed residents work in the service
industry, holding on-again, off-again campus jobs.
 Consumer Behavior: Convenience dictates food choices. With their busy lifestyles, residents in
college towns frequently eat out at fast-food restaurants and pizza outlets during the week. Because
many college students are new residents to a town, bedding, bath, and cooking products are popular
purchases. Music and nightlife venues are extremely popular in college towns.
Fig: Customer life time value
Figure:
Customer lifestyle stages
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1.3 CUSTOMER INTERACTION
Customers’ demands are increasing with the rapid onset of technological innovation. They have
already had great customer experiences with market leaders, and have seen first-hand what great customer
experience looks like. One thing they know for certain – a company that makes them feel special is a
company they should be investing their hard-earned money in. And, the best way to gain a loyal customer
is by having awesome customer interactions and build long-lasting relationships with them.
For example, if your customer service representatives are rude to the customer, they will surely be
unhappy with your customer service. And, if you suddenly realized your employees are not delighting
customers, you should focus your efforts on finding out the reason behind the problem. No one wants to be
rude or perform poorly – they are just unable to do so with whatever they have at their disposal.
Definition of Customer Interaction
This is the most basic form of communication between the company and the customer. Every single
interaction is another opportunity for the business to delight customers and retain them.
Types of Customers
There are four types of customers you are likely to encounter:
 Existing Customers: the ones who you already know and are actively serving.
 New Customers: the ones who have not yet invested, but are extremely likely to do so .
 Past Customers: the ones who have discontinued doing business with you.
 Prospective Customers: these are your future customers.
Types of Customer Interactions
 General Interactions: These are usual interactions with your business. For example, checking your
cell phone balance or enquiring about your latest products.
 Predictable Interactions: These interactions are predictable and can happen from time to time, thus
making them easy to plan for in advance. For example, when an insurance policy holder calls the
company for the very first time to enquire about their claims process.
 Unpredictable Interactions: These interactions, as the name implies, are unpredictable in nature and
can’t be planned in advance. For example, if the company’s website goes down during a transaction
or the server presents an error.
 Unwanted Interactions: These interactions have the potential to damage a company’s reputable, and
thus, are unwanted. An interesting thing to note is that these customers here are highly engaged, so
ignoring them is not an option. For example, when a telecom operator charges a customer for a
value added service he didn’t opt for.
Customer Interaction Life Cycle
The Customer Interaction Life Cycle is a pattern of behavior that is used to interact with customers in
an interaction. There are 5 stages in the customer interaction lifecycle:
1) Greeting
2) Understanding
3) Agreeing
4) Solving
5) Closing
Importance of Customer Interactions
Customer service has always been considered a reactive process. Customers contact a company
when something goes wrong, and the company solves the customer’s problem. However, it has changed
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more to a proactive role with the introduction of social media and other platforms. It is a part of the entire
customer experience, not the entire experience itself.
Moreover, a customer who receives a bad customer service experience will spread negative word of
mouth reviews about the company to his friends and family. According to American Express 2012 Global
Customer Service Barometer, Consumers are 2x more likely to share their bad customer service
experiences than they are to talk about positive experiences.
However, if such an event does occur, interacting with the customer is the best way to identify what is
causing the problem and solve it immediately.
Skills for Customer Interaction Management
There are a few pointers that can help in managing customers effectively:
 Be empathetic with your customers and sympathize with them.
 Don’t focus on the negative, focus on the positive.
 Be Attentive, friendly and listen to what your customers are saying.
 Know what you’re dealing with, in terms of the product & technology.
 Be patient and calm.
 Learn from every single customer you deal with.
Definition of Customer Interaction Management (CIM)
Customer interaction management is the process followed by companies to interact with its
customers. A customer interaction management solution is a software or system that facilitates the
interaction between the company and its customers. It is also designed to help managers handle teams
much better for maximum efficiency and performance.
Customer Interaction Management (CIM) refers to a type of Enterprise Software
Application which is responsible for managing the interaction between an organisation and its
customers. Normally, a CIM application will be deployed in a contact centre and used by the agents while
communicating with clients customers of the organisation. Customer Interaction Management systems
handle communication across multiple different channels, such as (but not exclusive to) e-
mail, SMS, telephone, Instant Messaging, white mail (scanned documents) and social media.
Four basic tasks are required to achieve the basic goals of CRM.
1) Customer Identification - To serve or provide value to the customer, the company must know or
identify the customer through marketing channels, transactions, and interactions over time.
2) Customer Differentiation - Each customer has their own lifetime value from the company's point of
view and each customer imposes unique demands and requirements for the company.
3) Customer Interaction - Customer demands change over time. From a CRM perspective, the
customer’s long-term profitability and relationship to the company is important. Therefore, the
company needs to learn about the customer continually. Keeping track of customer behavior and
needs is an important task of a CRM program.
4) Customization / Personalization - “Treat each customer uniquely” is the motto of the entire CRM
process. Through the personalization process, the company can increase customer loyalty. Jeff
Bezos, the CEO of Amazon.com, said, “our vision is that if we have 20 million customers, then we
should have 20 million stores”. The automation of personalization is being made feasible by
information technologies.
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Customer Interaction Cycle
1.4 CRM AND ECRM
E-CRM
The eCRM or electronic customer relationship management encompasses all the CRM functions
with the use of the net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms
of managing relationships with customers making use of information technology (IT). eCRM is enterprises
using IT to integrate internal organization resources and external "marketing" strategies to understand and
fulfill their customer’s needs. E-CRM expands the traditional CRM techniques by integrating new
electronic channels such as Web, wireless and voice technologies and combines it with e-business
applications into the overall enterprise CRM strategy
As the internet is becoming more and more important in business life, many companies consider it
as an opportunity to reduce customer-service costs, tighten customer relationships and most important,
further personalize marketing messages and enable mass customization. ECRM is being adopted by
companies because it increases customer loyalty and customer retention by improving customer
satisfaction, one of the objectives of eCRM. E-loyalty results in long-term profits for online retailers
because they incur less costs of recruiting new customers, plus they have an increase in customer retention.
Together with the creation of sales force automation (SFA), where electronic methods were used to gather
data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of
what we know as eCRM today.
Today's customers are a fast-moving, demanding crowd. They are looking for products and services
that are proven yet innovative. They want information at their fingertips. With the right CRM solutions in
place, we can help organizations to build and nurture lasting one-on-one relationships with customers.
Thus, it enhances the business efficiencies and profitability.
Different levels of eCRM
In defining the scope of eCRM, three different levels can be distinguished:
 Foundational services - This includes the minimum necessary services such as web site
effectiveness and responsiveness as well as order fulfillment.
 Customer-centered services - These services include order tracking, product configuration and
customization as well as security/trust.
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 Value-added services - These are extra services such as online auctions and online training and
education.
Self-services are becoming increasingly important in CRM activities. The rise of the Internet and
eCRM has boosted the options for self-service activities. A critical success factor is the integration of such
activities into traditional channels. CRM activities are mainly of two different types.
 Reactive service is where the customer has a problem and contacts the company.
 Proactive service is where the manager has decided not to wait for the customer to contact the
firm, but to be aggressive and contact the customer himself in order to establish a dialogue and
solve problems.
Framework of eCRM
E-CRM must address customer optimization along three dimensions
 Acquisition (increasing the number of customers)
 Expansion (increasing portability by encouraging customer to purchase more products and
service)
 Retention (increasing the amount of time that customer stays customers)
An e-CRM strategy must be able to identify the expansion potential for each customer. A Company should
be able to identify the opportunities to cross-sell and up-sell to the same set of customers. An e-CRM
solution should also establish a central mechanism to determine which customer should receive which
investment at the relationship level.
Various stages to evolution of eCRM
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Major differences between CRM and eCRM:
1) Customer contacts
CRM – Contact with customer made through the retail store, phone, and fax.
eCRM – All of the traditional methods are used in addition to Internet, email, wireless, and PDA
technologies.
2) System interface
CRM – Implements the use of ERP systems, emphasis is on the back-end.
eCRM – Geared more toward front end, which interacts with the back-end through use of ERP
systems, data warehouses, and data marts.
3) System overhead (client computers)
CRM – The client must download various applications to view the web-enabled applications. They
would have to be rewritten for different platform.
eCRM – Does not have these requirements because the client uses the browser.
4) Customization and personalization of information
CRM – Views differ based on the audience, and personalized views are not available. Individual
personalization requires program changes.
eCRM – Personalized individual views based on purchase history and preferences. Individual has
ability to customize view.
5) System focus
CRM – System (created for internal use) designed based on job function and products. Web
applications designed for a single department or business unit.
eCRM – System (created for external use) designed based on customer needs. Web application
designed for enterprise-wide use.
6) System maintenance and modification
CRM – More time involved in implementation and maintenance is more expensive because the
system exists at different locations and on various servers.
eCRM – Reduction in time and cost. Implementation and maintenance can take place at one
location and on one server.
Features of eCRM
• e-CRM implies capabilities like self-service knowledge bases, automated email response,
personalization of web content, online product bundling and pricing.
• e-CRM gives internet users the ability to interact with the business through their preferred
communication channel.
• It also allows business to offset expensive customer service agents with technology.
• e-CRM puts much emphasis on the customer satisfaction and reduced cost through improved
efficiency.
• e-CRM use customer data for personalization, cross-selling and up-selling.
• Sales Force Automation(SFA )and Enterprise Marketing Automation(EMA) is integrated in the
eCRM.
Upselling and cross selling
• Upselling is the practice in which a business tries to persuade customers to purchase a higher-end
product, an upgrade, or an additional item in order to make a more profitable sale.
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• Eg: a salesperson may influence a customer into purchasing the newest version of an item, rather
than the less-expensive current model, by pointing out its additional features.
• A similar marketing technique is cross selling, where the salesperson suggests the purchase of
additional products for sale. For example, he might say "Would you like some ice cream to go with
that cake?”. Both techniques increase profits for businesses, but research has shown that upselling
is generally more effective than cross-selling.
• Cross-selling and upselling are similar in that they both focus on providing additional value to
customers, instead of limiting them to already-encountered products. In both cases, the business
objective is to increase order value, inform customers about additional product options they may
not already know about.
• Upselling and cross-selling are mutually beneficial when done properly, providing maximum value
to customers and increasing revenue without the recurring cost of many marketing channels.
6 E’s in e-CRM
1. Electronic channels: New electronic channels such as the web and personalized e-messaging have
become the medium for fast, interactive and economic communication, challenging companies to
keep pace with this increased velocity. E-CRM thrives on these electronic channels.
2. Enterprise: Through E-CRM a company gains the means to touch and a shape a customer’s
experience through sales, services and corner offices whose occupants need to understand and
assess customer behavior.
3. Empowerment: E-CRM strategies must be structured to accommodate consumers who now have
the power to decide when and how to communicate with the company. Through, which channel, at
what frequency? An E-CRM solution must be structured to deliver timely pertinent, valuable
information that a customer accepts in exchange of his/her attention.
4. Economics: An E-CRM strategy ideally should concentrate on customer economics, which drive
smart asset-allocation decisions, directing efforts at individuals likely to provide the greatest return
on customer communication initiatives.
5. Evaluation: Understanding customer economics relies on a company’s ability to attribute customer
behavior to market programs, evaluate customer interactions along various customer touch point
channel, and compare anticipated ROI against actual returns through customer analytic reporting.
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6. External information: The e-CRM solution should be able to gain and leverage information from
such sources as third party information networks and web page profiler application.
1.5 SALES FORCE AUTOMATION (SFA)
Sales Force Automation is designed to help salesperson acquire & retain customers, reduce
administrative time, provide account mgt. & basically make salesperson activities something that earns
them & their company money.
Sales force automation is a technique of using software to automate the business tasks of sales,
including order processing, contact management, information sharing, inventory monitoring and control,
order tracking, customer management, sales forecast analysis and employee performance evaluation.
Definition:
The Sales Force Automation (SFA) refers to the technique wherein the software are used to
automate the business tasks such as inventory control system, account management, process management,
contact management, customer tracking, sales funnel management, sales forecasting analysis, product
knowledge, sales lead tracking system, sales team performance evaluation, etc.
The Sales Force Automation software can be customized according to the business needs or can be
purchased from the market that suits the business requirements. Some of the software available in the
market are:
 Salesforce.com
 Infusion soft
 Microsoft Dynamics CRM
 Prophet
 Plan Plus offline, etc.
SFA purpose
1) Increased revenue
 SFA should provide more income in the profit after implementation
 If you have an increase 100% in sales revenues but your cost of sales has increase your SFA
implementation fails.
2) Reduction in the cost of sales
 It is reduction in time engaged in reduction in administrative work or other non-sales related efforts.
 It reduces time required by sales people in data entry & sales people coordination.
3) Customer retention due to company
 If customers are happy they stay with you
 It is relationship with company & particular sales person
 SFA provides you the customer view with the help of customer history & communication
 SFA provides the intelligence & view to better plan
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4) Sales force increasing mobility
 They have to do many duties like meeting customers moving through airports etc.
 This like making mobility a competitive issue requiring effective mobile tools such as internet &
hand set.
5) Easily available customer information with single view
 Multiple departments may be interested in viewing status of customer account within each dept. are
individual with diff. role e.g. vice president, account manager, sales manager.
 SFA provides a universal view of all available data to all dept. at all times.
Advantages of Sales Force Automation
1. Increased Productivity
2. Competitive Advantage in terms of cost, revenue, and market share.
3. Timely information regarding the sales.
4. Increased customer satisfaction with the reduced response time.
5. Keeping proper records of the customer that can be tracked down easily.
6. The sales forecast can be done accurately with the help of past sales data.
7. Efficient utilization of scarce resources.
8. Less time required by the sales manager to prepare the daily, quarterly, monthly or annual reports.
9. Optimum utilization of time by the staff members.
Disadvantages of Sales Force Automation
1. Data entry is too much time consuming.
2. Difficult to accustom with the software system.
3. With automation, the personal touch is lost.
4. Tedious job of regularly upgrading the system, making the new entries, cleaning the unwanted data
entries and maintaining the system as a whole.
5. Sometimes difficult to integrate with company’s other management information systems.
6. The high cost involved in the installation and maintenance of the system.
The SFA is the part of the company’s Customer Relationship Management system; that records every stage
of the sales process. It is often called ad Customer Relations Management Software.
BARRIER TO SUCCESSFUL SFA
 The real challenge for SFA is that it must convince the salesperson that it will help them to be more
effective personally, do their job better, and help them make more money
 It is also critical to roll out quickly to show a return on investment as fast as possible. Sales persons
are skeptics and individualists. Because they will always look for excuses not to use any corporate-
mandated solution, they must feel part of the process and find that the process has something to
offer them, not just the organization.
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Functionalities of SFA Software
An SFA software can provide the following functionalities –
1) Account management − under this, the salespersons and managers get a complete overview of
customer relationship. It includes customer’s personal details, contact, past contacts, past orders
delivered, current orders, transactions, etc.
2) Contact management − It refers customers’ contact numbers, Email ID, address, contact
preferences, etc., for maintaining contacts by creation, updating, tracking appointments and
contacts, etc.
3) Contract management − It helps users to manage contracts with the customers by offering the
functions of tracking, monitoring, progressing, and terminating the contracts.
4) Document management − It helps the users maintain product lists, brochures, product
specification manuals, price lists, and quotation templates.
5) Event management − It enables to plan the events such as conference, trade show, webinars,
seminars, meetings, etc. with customers or other partners. It features event calendar, event reports,
etc.
6) Incentives management − the sales managers use this function to appraise and reward the
salesperson’s efforts. It can be linked to payroll application for automatic payment.
7) Lead management − It enables the business to create, assign leads to various salespersons for
equal task distribution, and track sales leads.
8) Opportunities management − It enables users to create opportunity, administer its progress, and
estimate users’ bonus.
9) Order management − Once the customers agree to purchase a product, this facility turns quotation
into accurately priced orders. It is composed of price lists and product configurator.
10) Pipeline management − It helps to maintain entire sales cycle right from identification of prospects
to order delivery and closure.
11) Product Encyclopedia − It is an electronic encyclopedia of products with their names, model
numbers, picture, and specifications. It is made accessible to the customer online.
12) Product Configuration − It enables users or customers to design and price the product by selecting
the specifications of their choice.
13) Product Visualization − It enables the users or customers to create a realistic 3D model of the
product. It is created by referring to the technical diagrams.
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14) Quotation management − It allows the salespersons and managers to create, edit, and deliver
customized proposal.
15) Sales prediction − It helps the salespersons and managers to forecast sales figures.
Figure: pipe-line management
Technological Aspect of SFA
SFA packages typically include a Web-ready database, an e-mail package, and customizable template s.
A three-tiered architecture is typically used to separate the database, server, and application to reduce
programming demands on clients. A module-based design is generally used, to allow users to customize
the package to suit their needs. Main technological aspects of SFA are,
1. Big Data:
In today’s world, competitive advantage for sales organizations depends largely upon the ability to
successfully capture, manage, and analyze massive volumes of customer data that contains insights into
customer behaviors and buying habits. Despite this, the average company only analyzes roughly 12% of
the data that they have available. This is where “big data” technology comes in.
Using big data analytics tools, sales organizations can now manage prospecting, a critical step in
the sales process. Traditionally, prospecting (finding and qualifying potential customers with specific needs
and wants) has been a time and labor-intensive process. Now, through the use of analytics and customer
data models, organizations can not only identify potential customers, but more accurately predict which
leads from B2C or B2B lead generation efforts are likely to become clients. This gives the sales team a
clearer idea of where to focus their efforts.
Analytics also help organizations determine which customers to target, how to use profiles to
identify lookalike customers and which buyers are most likely to respond to different messages and offers.
In short, big data analytics tools help organizations focus their sales efforts on the most promising and
profitable activities and customers.
2. Social Platforms:
The explosion of social technology has given rise to a number of social media platforms for
attracting and engaging new customers, a vital step in getting a customer into the sales funnel. Social media
platforms provide opportunities for companies to “shake hands” with customers, engaging them in
conversations about products and services for valuable insights that could lead to a sale. Unlike
conventional sales, social media makes it possible to shake millions of hands from across the entire world
all at once.
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Today’s customers are more connected than ever due to social media platforms. Statistics show that
a majority are turning to peer recommendations and reviews on social media as part of their product
research—in fact, for the average customer, peer recommendations carry 10 times the weight of
recommendations from salespeople. Even more revealing is the fact that most buyers have all but
completed their sales journey before ever contacting a seller. Organizations can follow this trail of digital
breadcrumbs from prospective buyers on social media, and better target potential customers at just the right
point in the decision making process.
Customer feedback on social media sites also helps businesses refine and shape their messages and
sales tactics to ensure greater success in the future. Social platforms offer a unique advantage for sales
teams, and studies suggest that 78% of sales professionals who use social media consistently outsell their
peers who don’t.
3. Cloud-based CRM Technology:
Customer Relationship Management systems are powerful tools designed to give organizations a
holistic view of the customer relationship by integrating marketing, sales, and customer support.
While traditional onsite CRM software has their merits, cloud technology takes CRM to a whole new level
by freeing up employees from onsite computers and servers. When CRM data is stored in the cloud, it can
be accessed directly from anywhere and at anytime.
When deployed correctly, a CRM presents a huge advantage for sales employees, as it allows them
to get fast and accurate insights on what customers are doing, what they’re drawn to, and when they are
mostly likely to buy. Armed with up-to-date, relevant information and the ability to contact customers and
prospects while on the go, a sales team becomes more agile, effective, and productive. Thanks to the cloud,
organizations can take advantage of software packages that integrate SFA and CRM into a single, cost-
effective solution.
4. Mobile technology:
The proliferation of mobile devices, such as smart phones and tablets, has changed many aspects of the
selling process forever. For customers, the ability to research, evaluate and purchase products and services
online using this technology has transformed the buying experience. Marketers and sales teams should take
that into account, since research shows 93% of consumers who use their mobile device to research
prospective products and services end up making a purchase.
1.6 DATA SYNCHRONIZATION
Data synchronization is the process of establishing consistency among data from a source to a target
data storage and vice versa and the continuous harmonization of the data over time. It is fundamental to a
wide variety of applications, including file synchronization and mobile device synchronization e.g., for
PDAs.
Data synchronization technologies are designed to synchronize a single set of data between two or
more devices, automatically copying changes back and forth. For example, a user's contact list on one
mobile device can be synchronized with other mobile devices or computers.
DATA SYNCHRONISATION IN CRM
 Data synchronization technologies are designed to synchronize a single set of data between two or
more devices, automatically copying changes back and forth.
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 Data synchronization can be local synchronization where the device and computer are side-by-side
and data is transferred or remote synchronization when a user is mobile and the data is
synchronized over a mobile network
7 Types of Data to Sync Between your ERP and Ecommerce
1) Customer Synchronize process:
2) Products/Items Synchronization
3) Inventory Synchronization
4) Sales Orders Synchronization
5) Tier Price and Volume Price Discount
6) Delivery Synchronization
7) Invoice Synchronization
1. Customer Synchronize process: The main agenda of business is that the data should be properly
synchronized. Synchronizing customer information between ERP and E-commerce systems is the first
step that will add uniformity in customer experience.
For example, a customer who often shops on your e-commerce store calls your customer service team
to change its shipping address and the required change is reflected in the ERP system. Any change in
customer information in either of the applications (ERP /Ecommerce) will reflect in the other
automatically post integration.
Customer information sync will help to drive benefits like personalize customer experience;
provide self-service customer portals and more.
2 Products/Items Synchronization: A customer visits e-commerce store and places an order. Businesses
often maintain all the basic product information in the ERP system. Without this information (product
and inventory) the e-commerce store cannot work effectively.
For example, You are a retailer where you manage product and inventory information independently
in your e-commerce and ERP systems.
A customer visits your e-commerce store, explores the store and really likes an item. He/ She visits the
product details page and finds that the product is available in the required size and is in stock. He/ She
places an order! After few days, the customer receives an email that his/ her order is canceled because
that product was out of stock and inventory information was not synced with the ERP system. If this
situation happens then there is a very high chance that the customer might never come back and even
recommend other customers to not buy from you. With integration and synchronization your E-
commerce and ERP systems will always be in sync with each other and you can very easily avoid
scenarios like these.
3 Inventory Synchronization: Product and Inventory sync will minimize back orders, improve
customer’s shopping experience and make it easy to sell on multiple channels, build trust and
confidence with your customers, managing product information, inventory management etc.
For example, the inventory information sync can be taken to a different level when the inventory is
managed and maintained in multiple warehouse locations. This would then require businesses to
maintain the warehouse and inventory information in ERP system and then sync the information back
to the e-commerce system.
4 Sales Orders Synchronization: Orders are probably the real reason why most businesses consider e-
commerce and ERP integration. There is a lot of synergy between e-commerce and ERP systems as far
as orders are concerned – while the orders are accepted in the e-commerce system and the actual
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fulfillment happens in the ERP system. Since your e-commerce and ERP systems are not integrated,
you manually transfer orders from your e-commerce system to your ERP system for fulfillment.
Remember, because of manual data transfer, you can only sync a limited number of orders between the
two systems. To ensure quick turnaround time the only alternative you have is to add more resources to
sync data between the two systems. This way, your business is always limited by the number of orders
you can sync between the systems which is not an ideal situation.
Integration will not only automate this process but will also reduce the turnaround time (because the
orders are synchronized immediately) without errors that are common in manual data transfers. Order
sync will help make your business scalable, will enable you to expand to new markets, minimize order
aging, improve customer satisfaction, reduce errors and costs.
5 4Tier Price and Volume Price Discount: E-commerce and ERP systems handle this by defining
different tier and volume price discounts and associating a price corresponding to that. Say a customer
places an order. Now, if the tier price and volume price information is not available in the ERP system,
the order total will be less than what the ERP system expects as because the order was placed at a price
defined by the price rule applicable. This will then lead to inconsistency in the accounting books which
can then further lead to compliance issues. E-commerce and ERP integration bridges this gap by
synchronizing tier prices and corresponding updates between the two systems. Tier price information
sync helps you personalize the customer experience by offering them special prices, maintaining
accounting consistency and reducing compliance issues.
6 Delivery Synchronization: Delivery is an important part of the order fulfillment process and keeping
customers informed about the order and shipment status play an important role in improving customer
experience. For example, the customer places an order in your e-commerce store and gets an expected
delivery time/date. Now, in case if the customer does not receive any updates on the order or shipment
status then the customer will get restless. The overall customer experience in this case, even if you
deliver the best product in the best condition at the best possible price will not be very great. Through
data sync, Shipping information sync will help build trust and confidence, improve customer
experience and satisfaction, increase productivity etc.
7 Invoice Synchronization: All transactions affect payments/accounts receivable which performs the
main function of the financial status of business operations.For example, after placing an order and
delivery, the invoice information is manually synced back to the e-commerce system. Not allowing e-
commerce and ERP system talk to each other is not an option. Manual sync is an error prone process.
Imagine what would happen if the during the manual data transfer from e-commerce to ERP the
payment information is wrongly entered into the ERP system.
Moreover, because the payment was captured in the e-commerce system, the invoice will have to be synced
back to the e-commerce system to capture the payment. Now doing all this manually is not an efficient
process and must be automated. Invoices/Payments sync ensure consistency in the accounting books,
reduces the operating cycle, improves customer experience and many more.
Both CRM and ERP are geared towards the same goal: increasing company profitability. However,
designers/programmers of the two systems have different approaches to achieving this goal. ERP is
primarily aimed at cost reduction and business process optimization. On the other hand, CRM approaches
profitability from the point of increasing sales and maintaining customer relations.2 It is well known that
the costs of selling products and services to new customers are up to six times higher than is the case with
the existing customers. There is room for improvement and development of relations with customers at all
levels, from the sales force to the executives, which leads to higher sales volumes, consumer and brand
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loyalty and a higher level of satisfaction of customers, i.e. to lower operative costs of dealing with the
consumers.
Flexibility and Performance of Data synchronization
 High-performance synchronization requires powerful database capabilities and performance,
currently available only in databases such as Microsoft SQL Server or Oracle.
 Each user or office can also be given only the slice of information that is relevant to their work.
Partitioning the data reduces the bandwidth required to synchronize databases across a network. You
can also use partitioning to increase data security by limiting access without requiring all data to be
stored in a single secure location
 The synchronization engine must be database independent to allow different database systems to
reside on remote and host systems
Reporting Tools: Reporting is the creation of customized onscreen or printed views that provide the
viewer/reader with information specifically in the form they want and with the content they want.Lack of
or poor reporting can lead to bad strategic or tactical decisions, redundant work efforts, and missed
opportunities.
.…. …..
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Unit
EEnntteerrpprriissee MMaarrkkeettiinngg AAuuttoommaattiioonn
2. 1 INTRODUCTION:
Companies market themselves. In small companies, the level of marketing that goes on can be as
simple as a printed brochure and a website. Even the smallest companies are creating static websites that
operate as online brochures for their wares.
As companies grow in size, companies use direct mail, email, promotions, interactive voice
response, newsletter, contests, events and other customer “touch points” (point of interaction of a
customer with a company is called as touch point) to market their products.
Indirect marketing campaigns, such as advertising in the print media or TV and radio, reach
traditional mass markets. This is followed by branding. Companies work with agencies to establish more
recognition through public relations, media, and advertising and this effort is called as branding.
Companies also run marketing campaigns to increase their sales in a defined time period. Sometimes the
results of such campaigns has not been very encouraging and the return on investment for any of the
traditional marketing campaign is not clear because
 The data collection is sketchy
 The turnaround (i.e. effect)is slow
 Much of the analysis and the follow-on marketing campaign modifications are temporary.
If there is a method to track all marketing campaign efforts then the company will be able to make a
more focused attempt in convincing customers. This is possible through EMA-also known as e-marketing.
It uses Web-based applications and the Internet to improve the effectiveness of traditional marketing. It
creates new methods of marketing and campaign management using the web and information technology to
craft finely tuned successful efforts.
Enterprise Marketing Automation (EMA) is part of customer relationship management module. It
can also be independent software installed by the company. The main function of the enterprise marketing
automation module is to run different marketing programs in the organization. EMA module also helps the
given organization develop a business plan. An enterprise feeds from the customer data which is
maintained by the company. Therefore, the module helps the company to maintain, manage and filter
customer-related information.
When a company decides to start a marketing campaign for a particular product then the EMA tool
provides the company a short list of customer who could be interested in the product. This filtration of
customer is done based on customer segmentation.
Enterprise Marketing Automation (EMA): Components of EMA, marketing campaign, campaign
planning and management, business analytic tools, EMA components (promotions, events loyalty
and retention programs), response management.
Call Center: Customer interaction, the functionality, technological implementation, ACD
(Automatic Call Distribution), IVR (Interactive Voice Response), CTI (Computer Telephony
Integration), web enabling the call center, automated intelligent call routing, logging &
monitoring.
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Customer Segmentation
Customer segmentation is an important parameter to consider when designing marketing campaigns.
Customer segmentation technique splits the customer on various parameters. If the marketing campaign
satisfies those customer parameters, then, enterprise marketing automation tool will provide their list.
Parameters considered for customer segmentation are as follows:
 Homogeneity within a particular customer segment.
 Heterogeneity across different industry and customer segment.
 Customer should respond in an identical manner to a particular marketing campaign.
 Customer should be reachable through the marketing campaign.
 Organization should be able to create a marketing strategy for the group.
Features of EMA
 EMA is the Technology of end-to-end marketing. EMA is related with the last generation of the
business ecosystem’s.
 The new evaluation of the customer ecosystem is the EMM (Enterprise Marketing Management).
 EMA tools also provides continues relationship across multiple channels like the web, email, efax,
telephone.
 EMA helps in planning, executing, & analyzing the campaigns in the real time.
 EMA was the CRM related marketing tool. EMA was the creation of personalized marketing efforts
that not only engaged the customer or prospect, but also engaged the entire enterprise in the effort
and provide a single view of the activity to any department or segment of the company.
 EMA provides information about the business including –Competitors and industry trends. EMA
utilises Data Mining and OLAP Technologies.
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Types of CRM
Types of CRM
I. Operational CRM - refers to services that provide support for various ‘front office’ business processes
in helping organization to take care of their customers. Focus on customers’ value is important for a
successful operational CRM strategy. Different customers have to be treated differently so information on
variables like customers’ ranking, actual value and potential value is of strategic value.
Operational CRM is mainly focused on automation, improvement and enhancement of business
processes which are based on customer-facing or customer supporting. The main importance of a CRM
system lies on how the selling, marketing and service oriented processes are automated, and for which
operational CRM systems are embedded with following major automation applications:
1. Marketing automation- is basically focused on automating marketing processes. In marketing,
campaign management involves marketers to use customer specific information to determine, evaluate and
develop communications that are targeted to customers in individual as well as multilevel or multichannel
environment. Campaigns developed to communicate customers individually are easy and involves unique
and direct communications.
2. Sales-force Automation- A CRM system is not only used to deal with the existing customers but is
also useful in acquiring new customers. The process first starts with identifying a customer and maintaining
all the corresponding details into the CRM system. This process can be distributed into many stages which
includes generation of lead and then qualifying those leads as prospects. The Sales and Field
representatives then try getting business out of these customers by sophistically following up with them
and converting them into a winning deal. Automation of selling process is efficiently handled by Sales-
force automation which automates all the methodologies or sales cycle and above described process
sophisticatedly.
3. Service Automation- Service automation deals with managing organization’s service. The actual
interactions with customers such as contact, direct sales, direct mail, call centers, data aggregation systems,
web sites and blogs etc. are examples of operational CRM. Each interaction with a customer can be
collected to the client database generally known as ‘customer’s history’ and the information can later be
used wherever necessary.
II. Analytical CRM - supports organizational back-office operations and analysis. It deals with all the
operations and processes that do not directly deal with customers. Hence, there is a key difference
between operational CRM and Analytical CRM. Unlike from operational CRM, where automation of
marketing, sales-force and services are done by direct interaction with customers and determining
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customer’s needs, analytical CRM is designed to analyze deeply the customer’s information and data and
disclose the essential convention and intension of behavior of customers on which capitalization can be
done by the organization.
Primary goal of analytical CRM is to develop, support and enhance the work and decision making
capability of an organization by determining strong patterns and predictions in customer data and
information which are gathered from different operational CRM systems..
Analytical CRM is a solid and consistent platform which provides analytical applications to help
predict, scale and optimize customer relations. Advantages of implementing and using an analytical CRM
are described below.
 Leads in making more profitable customer base by providing high value services.
 Helps in retaining profitable customers through sophisticated analysis and making new customers
that are clones of best of the customers.
 Helps in addressing individual customer’s needs and efficiently improving the relationships with
new and existing customers.
 Improves customer satisfaction and loyalty.
The power of CRM provides a lot of managerial opportunities to the organization. It implements the
customer information in an intelligent way and creates views on customer values, spending, affinity and
segmentation. Analysis is done in every aspect of business as described below:
1. Customer Analytics- This is the base analytic used to analyze customer knowledge base. It
provides a better view of customer behavior and by modeling, assessing customer values and
assessing customer’s portfolio or profiles and creates an exact understanding of all the customers.
2. Marketing Analytics- This helps discovering new market opportunities and seeks their potential
values. It also helps in managing marketing strategies and scale and plan marketing performance at
district, regional and national levels. Marketing analytics also focus on campaign management and
planning, product analysis and branding.
3. Sales Analytics- provides essential environment to plan, simulate and predict sales volumes and
profits by constantly analyzing organizational sales behavior.
4. Service Analytics- Analytical CRM has major role in enhancing the services which answering all
the questions regarding customer satisfaction, quality and cost of products, complaint management
etc. It even helps in improving and optimizing the services by sophistically analyzing the service
revenue and cost.
5. Channel Analytics- This type of analysis helps to determine the customer behavior on channel
preferences, like web channel, personal interaction, telephone channel etc. This information is
efficiently integrated in customers’ knowledge base so that they can be contacted accordingly.
The essential results produced by Analytical CRM system could diversely help the organization to tackle
customers’ based on values. It also helps in determining which customer is best to invest in, which can be
treated at an average level and which should not be invested in.
III. Collaborative CRM
Collaborative CRM deals with synchronization and integration of customer interaction and
channels of communications like phone, email, fax, web etc. with the intent of referencing the customers a
consistent and systematic way. The idea is not only enhancing the interactions but also to increase and
improve customer retention and liberty.
Collaborative CRM entangles various departments of organization like sales, marketing, finance
and service and shares the customer information among them to highlight better understanding of
customers. For example, the information of preferred products could be shared with marketing department
CUSTOMER RELATIONSHIP MANAGEMENT Unit 3
SNIT B-School 28
so that analysis can be performed in this aspect to provide preferred products to customers. The
information regarding varied cost or price of a particular product in market defined by customers can be
delivered to finance department so that strategies could be created to match the product cost with similar
products in market and after analysis bring an affordable and efficient product in market.
Collaborative CRM can be broadly identified by two aspects:
1. Interaction Management- This management process deals with designing the communication or
interaction channel process within an organization which is specific to customer interaction and finally
enhancing the extent of communication between both the parties. The communication channel depends
on the customers’ preference on how they require the interaction to be dealt with. Customers prefer to be:
contacted via phone and email; live online meeting or web meeting; face-to-face interaction with agents;
etc. Depending on these channels of interaction it is very important for organization to fulfill these needs
of customers and gather information from them and implementing it into the CRM before interacting to
enhance the interaction power.
2. Channel Management- After analyzing and implementing the interaction medium it’s important to
enhance the power of channels through which the customers are interacted. By using latest technological
aspects for improving channel interaction could help to contact customers in an efficient way and gather
information from them to help organization to understand the customers. Hence it is important for an
organization to clearly arrange the channel responsibilities and duties.
This CRM solution brings customers, process and strategies and data together so that organizations
could serve and retain customers more efficiently.
EMA COMPONENTS
EMA is the technology of end-to-end marketing and its core component is campaign management.
The “e” component of campaign management is the provision of a single view of the customer to the entire
enterprise and those with responsibility for that customer, which are all available with a browser. Most e-
marketing toolsets, like those of Siebel or Unica, are focused on a suite of products that provide the
following:
 Information about customer - his preferred choice of communication (e-mail or phone, etc) which
will be useful for planning and executing a campaign.
 Extraction of the useful information
 Campaign planning based on the data analysis.
 Campaign launch
 Campaign monitoring tools that handle lead generation.
 Response management
 Workflow so that there is a uniform customer view across the enterprise.
There are about five components of EMA. They are as follows:
1. Promotions: Web- based or web integrated marketing provides the same marketing goodies that
customers have always been interested in: promotions, contests, cross-selling of products, up-selling of the
products and discount coupons. These are the activities undertaken by organization to increase their sales.
Promotions can be categorized as cross selling or up selling. In cross selling, customers are offered similar
products to one they have already bought. The aim of cross selling is to satisfy all the customer
requirements. In up selling customer are offered expensive product as well as an upgrade to the existing
products. Up selling is more profitable, and it is in top up of existing sale.
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2. Event Based Marketing: This involves registering customers for seminar and in case web cast via
the Internet. Companies look forward to sponsoring events and include their products as part of the
marketing event. Various vendors have developed strong EMA event-management tools capturing
customer information through event registration and online interaction.
3. Loyalty and Retention Programs: Loyalty is defined as continued commitment of a customer to a
particular product, brand or organization. Customer tends to maintain their loyalty if companies provide
value to them and/or it is much expensive to change product brand or organization. EMA application build
in the small, personalized touches that creates loyalty and retain customers. For example:
 Birthday greetings.
 Holiday and Special occasion reminder
 Delivery of the gift ideas
 Welcome programs
 Points based programs
4. Partner and Channel Management: It is a marketing campaign organization joins hands to
promote their and partner’s products. This could also be referred to as joint promotion. Partner relationship
management (PRM) are embedded into many EMA applications. PRM includes features that incorporate
targeted, joint marketing programs to promote both business and partners. That is, It is a marketing
campaign organization joins hands to promote their and partner’s products. This could also be referred to
as joint promotion.
5. Response Management: Response management is the whole process in response gathering,
analysis and refinement of the response. This gives flexibility in marketing campaigns based upon the
initial reaction from the customer. It is a response management in real time.
The complete response management features include banner ads, direct mail, print ads, email, web site link,
surveys, event registration results, internet registration, and online survey results.
Companies constantly monitor customers' sentiments in an automated manner via all relevant
communication channels, and also they would like to recognize complaints as early as possible and
react swiftly and adequately in order to increase customer loyalty and create cross-selling-potentials
in the process. Support has to be given to the administrators during customer communication –for
professional response management.
Today, excellent customer service is a key driver of competitive advantage within many industries.
An important aspect in this regard is the early recognition of individual as well as general customer
sentiments and the corresponding response. A swift and adequate reaction to complaints increases
customer loyalty significantly and additionally creates cross-selling potentials in the process. On
another note, complaints or a generally decreasing customer satisfaction can be used as a valuable
indicator of internal quality issues.
An efficient Response Management system will allow the clients to address issues such as - which
marketing activities generate the most favourable response, which marketing activities resulted in the
maximum ROI, which prospects are most likely to turn into sales. As a marketing tool, Response
Management allows you to handle potential sales leads, with the right information on your prospects.
At End To End, company manage potential customer calls, whether in response to clients' advertisements,
to follow up on leads. They organise event registrations and/or feedback collation and ensure that every
response to our clients' brand is dealt with professionally. The value of this qualified information to be
passed on to the sales teams. The representatives efficiently handle potential client calls, and channelize
questions and requests in the right direction.
CUSTOMER RELATIONSHIP MANAGEMENT Unit 3
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Companies work with their clients to develop and customize Response Management programs, using
multiple channels:
 Voice
 Email
 SMS
 Social media
 Website
 Toll free numbers
 Interactive Voice Response (IVR)
Use End To End's Response Management services to get qualified data on prospects and to understand
and segment markets. End To End Marketing Solution authors, conceptualises, develops, manages, and
monitors world-class responsive marketing campaigns based on deep domain insights and strategies that
set up for obvious success.
The response gathering was completed after campaign was completed.
 Using the internet as a tool that works in real time, what is now called “Closed–loop feedback” that
is integrated into the e-marketing.
 “Closed–loop feedback” is the nucleus of the Internet based response management.
Traditional Response management
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EMA Used in following Applications
 Campaign planning and Management
 Events
 Promotion
 Loyalty and retention programs, etc
CAMPAIGN PLANNING & MANAGEMENT
1) E-marketing’s great strength is campaign management – the creation of personalized marketing
efforts that not only engage the customer or prospect, but also engage the entire enterprise in the
effort to provide a single view of the activity to any department or segment of the company.
2) The campaign management features of the technology are end-to-end. They plan and monitor all
activity including:
(a) Identification of the prospect
(b) Generation of the lead
(c) Prospect and customer information capture
(d) Lead qualification
(e) Distribution of leads to appropriate segments
(f) Campaign planning
(g) Campaign execution (promotions, events planning)
(h) Response management
(i) Refinement-changes in campaign
(j) Channel Management (joint marketing campaigns)
3) The difference between EMA campaign methods and traditional marketing methods lies in the use
of Internet.
4) EMA uses the internet to capture, extract, and analyze information about each customer and each
market segment.
5) It gives you the design tools to plan, execute, monitor, and refine your marketing campaigns to the
level of the individual within the market segment.
6) EMA tools also provide a consistent, continuous representation of a value proposition across
multiple channels.
7) The fields, call center, the Web, the internal departments all see a single view of the customer due
to the tight integration between the front office – the customer-facing part of the enterprise – and
the back office which controls functions such as human resources and finances.
8) EMA workflow allows all parties to see exactly what they are permitted to see in all marketing
campaigns as they evolve.
9) No one is left out of the loop, and no department is slighted in the process. So mistakes are
minimized.
CUSTOMER RELATIONSHIP MANAGEMENT Unit 3
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Other components of EMA
1) Campaign Management
Campaign management encompasses the mass of campaigns that are planned and executed through
different channels so that a continuous marketing communication flow is created. Sometimes these
campaigns are devised in the morning and executed that every afternoon.
By continuously measuring the effect of every contact “customer touch point” and making
adjustments, the dialogue may be continually refined. This puts the organization in a better position to
market its goods and services and develop relationship with the
right customers. The goal of campaign management is to
interact with prospects and customers at the right movement,
with the rights offerings and the right message communicated
through the right channels.
Significance and use of campaign management
Campaign management and campaign planning play a
central role in marketing, your customers should be sent the
right information adapted to their needs, in the right
communications style and via the right communications channel at the right time. Your customers'
Figure: A campaign created with EMA tools
campaign created with EMA tools
CUSTOMER RELATIONSHIP MANAGEMENT Unit 3
SNIT B-School 33
requirements are the focus of your campaign process. Consequently, campaign management plays a central
role in Customer Relationship Management (CRM). The campaign process consists of three central phases:
planning, management and analysis.
2) Customer Service and Support:
Customer service is the service or care that a consumer receives before, during and after a purchase.
It’s one of the factors that come in to play when a consumer is determining buying value, the other is the
quality of the product or service that is being offered. Consumers often must encounter an experience to not
only be a satisfied customer, but a loyal customer.
Customer service is a part of that experience. Top notch service will create loyalty and a returning
customer, which is what we all must strive for. Excellent customer service is vital to businesses today.
Greet them in a friendly manner, whether that be via telephone, email or in person. Let them know
you are there to help and that you will take care of them, not only before the sale but after as well. After all,
in a thriving business customers are not optional it’s a requirement for businesses to survive.
3) Contact and Call Centre Operations:
A contact centre, also known as customer interaction centre is a central point of any organization
from which all customer contacts are managed. Through contact centres, valuable information about
company are routed to appropriate people, contacts to be tracked and data to be gathered. It is generally a
part of company’s customer relationship management (CRM). Today, customers contact companies by
calling, emailing, chatting online, visiting websites, faxing, and even instant messaging.
Call centre worker at a very small workstation/booth, using Call Web Internet-based survey
software, “most companies use statistics from their call center products to track their CSR (customer
service representative) performance, evaluating their performance and compensating them according to the
volume of calls they support.
Campaign Management Softwares
1. HubSpot Marketing
HubSpot Marketing is an advanced system that brings all of your marketing efforts together, and helps
your team grow traffic and increase conversions. You can use its drag-and-drop
functionality to design and modify beautiful websites without asking your IT
team for assistance, and make sure all pages are responsive regardless of the
device used by your visitors.
2. SharpSpring
SharpSpring is a powerful email marketing platform that works
flawlessly with most third-party apps and existing systems. It is targeted
primarily at small and medium-size businesses, offering a wide array of
features to make sure that users get all the online marketing
functionalities that they need.
3. Wrike
Wrike Campaign Management Software is a solution that helps marketing teams plan and execute
campaigns diligently in a timely manner. Whether you’re launching a new product or announcing an
event, Wrike is a tool you can use to plan, execute, track and analyze your
marketing campaigns. It supports you in reaching your target audience in various
channels including email, social media, print materials, and surveys, while focusing
on a consistent message, topic or idea.
CUSTOMER RELATIONSHIP MANAGEMENT Unit 3
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4. CASA
CASA is a modern retail marketing and customer engagement software
created to help retailers improve their revenues, drive greater consumer
loyalty, and grow their business through thorough customer behavior
analysis, effective customer segmentation, and personalized marketing
campaigns.
5. HasOffers
HasOffers is a performance marketing app for creating your own mobile and/or desktop ad network. It
supports advertisers, agencies, and networks needing a customizable product to
manage their direct publisher relationships. HasOffers enables customers to
manage publishers, creatives, and campaigns, generate invoices, calculate payouts
and more at a detailed level in real time.
6. bpm’online marketing
bpm’online marketing is a powerful performer of the company’s process-driven suite, designed to
serve marketing specialists looking to master the skill of demand generation.
It leverages a multichannel marketing platform to orchestrate customer
journeys and accelerate lead-to-revenue.
7. Zoho Campaigns
Zoho Campaigns is an email marketing software for small to midsized business
to automate entire marketing process - from managing your email campaigns to
maintaining your mailing lists. Thanks to the integration with Zoho CRM you
will have the right info when you need it. Engage with your customers anywhere
with social campaigns on Facebook, Twitter and LinkedIn.
8. Adobe Campaign
Adobe Campaign provides the only enterprise marketing software
specifically designed to manage, automate and optimize programs across
traditional and emerging channels including direct mail, email and
mobile.
BUSINESS ANALYTIC TOOLS
Customer Touch points are either active or interactive nodes of customer communication. They are
areas of customer interaction that are considered central to the success of any marketing effort. Business
analytic tools help in making these interactions more meaningful and effective.
Example: Siebel e-marketing provides extensive pre-built market, customer, product, and geographical
analysis which will allow a company to better manage it’s customer interaction. Good analytic tools have
following characteristics:
1) Good analytic software can not only reduce the cost of customer acquisition via targeted and
segmented results, but also can identify those customers who are potentially going to take their
business to your competitors.
2) These tools have to be scalable since the tools often shift through millions of customer transactions
of varying sorts.
3) They have to be rich so they can provide measurements and customization of the metrics used for
measurement.
CUSTOMER RELATIONSHIP MANAGEMENT Unit 3
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4) They have to be supported with clear and distinct reporting tools that provide you with the
information you need to utilize the data it creates in a readable, understandable format.
5) They also have to be fast, since they are dealing with millions of transactions from multiple sources
in the course of Internet time.
6) The tools interpret in-depth profiles of customers who are accessing websites, responding to emails,
answering direct mail campaigns and accessing what is called “customer touch points”.
7) EMA analysis provides in-depth profiling information on customer preferences, buying behaviour,
revenue, profitability and purchasing frequency.
Successful analytic tools give companies, the view of data that lets them interpret, identify and
capitalize on emerging trends in key markets and focus their marketing and sales efforts on the high
yielding market segments. The final result is personalized customer information.
2.2 CALL CENTER
Call centre is a centralized office used for the purpose of receiving or transmitting a large volume of
requests by telephone. A Contact Centre, also known as Customer Interaction Centre (CIC) is a central
point of any organization from which all customer contacts are managed. Through contact centers valuable
information about company are routed to appropriate people, contacts to be tracked and data to be gathered.
A call center is operated by a company to administer incoming product support or information
inquiries from consumers. Outgoing calls for telemarketing, clientele, and debt collection are also made. In
addition to a call center, collective handling of letters, faxes, and e-mails at one location is known as a
contact center.
A call center is often operated through an extensive open workspace for call center agents, with
work stations that include a computer for each agent, a telephone set/headset connected to a telecom
switch, and one or more supervisor stations. It can be independently operated or networked with additional
centers, often linked to a corporate computer network, including mainframes, microcomputers and LANs.
Increasingly, the voice and data pathways into the center are linked through a set of new technologies
called computer telephony integration (CTI).
Most of the major businesses use call centers to interact with their customers. Examples include
utility companies, mail order catalogue firms, and customer support for computer hardware and software.
Some businesses even service internal functions through call centers. Examples of this include help desks
and sales support.
Call Centers use a wide variety of different technologies to allow them to manage the large volumes
of work that need to be managed by the call center. These technologies ensure that agents are kept as
productive as possible, and that calls are queued and processed as quickly as possible, resulting in good
levels of services.
CALL INTERACTION CENTER (CIC) TECHNOLOGY
 CIC Technology is a complex technology which will allow the customers to interact with the call
center representatives and help them to get the proper solutions. It involves telephone and other
communication channels like Email, Internet, etc.
 Due to the addition of telephone and other web-enabled technology, the complexity increased
heavily. The access points for the customers are varying widely. So the accumulation of data in a
single point becomes a difficult task for the call centers. But the latest advanced technology and the
softwares also manage the same.
 The technology involves usage of either telephone or Internet connection.
CUSTOMER RELATIONSHIP MANAGEMENT Unit 3
SNIT B-School 36
 The technology is designed to create collaborative environment for the customers and their
representatives (CCR-Customer Communication Representative).
Types of Call Center
1. Inbound call center
2. Outbound call center
3. Web Enabled call center
4. Telemarketing call center
5. Phone call center
1) Inbound call centers: The inbound call centers are those that only receive calls usually on toll free
numbers from the customers. These call centers provide 24 hours service to all customers. The primary
goal of these call centers are to: receive product orders, help customers to find dealer location. Inbound call
centers aid to handle calls coming from outside, mostly through toll free numbers. The services of inbound
call centers are designed to handle catalog orders, and desk queries. They also incorporate customer care
services, predict customer behavior and take action while the customers are still on the line. Inbound call
centers employ teams of live operators, account representatives and program managers.
Inbound call centers offer
 Skilled, professional, customer support and technical service representatives
 Improved market coverage
 Faster ramp-up, launch, and roll-out of new campaigns
 Experience with programs similar to yours
 Rapid response to market conditions
 Account management expertise
 Enhanced reporting capabilities
 Market testing capabilities
2) Outbound call centers: Outbound call centers deals with telemarketing and product promotion.
The success of outbound call centers depends on their extensive experience, technological solutions,
quality assurance programs and commitment to customer service excellence. They ensure maximum results
from direct marketing efforts. The integrated call management systems in outbound call centers
systematically direct calls to consumers and transfer successful connections to a selected marketing
representative (MR).
Services of Outbound Call Centers:
 Market Intelligence
 Database Selling
 Direct Mail Follow-up
 Lead Generation  Qualification  Management
 Seminar Population
 Product Promotion
 Debt Collection
 Information and Literature Fulfillment
 Appointment Scheduling
 Decision Maker Contacts
 Up Sell/Cross Sell Campaigns
 Surveys
 Customer Satisfaction
Handbook on Customer Relationship Management
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Handbook on Customer Relationship Management

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Handbook on Customer Relationship Management

  • 1. A Workbook on CUSTOMER RELATIONSHIP MANAGEMENT SNIT Business School
  • 2. Handbook on CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Published By, Dr. Suma S.R Associate Professor and Head, SNIT B-School, Adoor & Harikrishnan N.R T5 MBA (2017-19), SNIT B-School, Adoor
  • 3. About the Book The book has been designed to serve as an essential insight necessary to understand CRM (Customer Relationship Management) that especially meets the requirements of T5 MBA students of KTU specializing in marketing. Substantive coverage has been given to topics like CRM technology, Sales Force Automations, Enterprise Marketing Automation, implementing CRM, Application Service Provider, Impact of CRM on Marketing Channels and CRM Tools.
  • 4. About the Authors Dr. Suma S.R received her doctoral degree in Marketing from the University of SCSVMV University, Kanchipuram. Currently she is the Associate Professor and Head Of the Department-MBA, SNIT Adoor. As an experienced person of more than ten years, she has contributed and presented papers in various journals and conferences at national and international level. Her teaching interests are in various topics of Marketing and Quantitative Techniques. She published two books on Green Marketing and Business and society. Harikrishnan N. R is a college student who is working towards to become a Marketing Manager and who will be graduating with his MBA in June 2019 from SNIT B- School in Adoor. From there he hopes to be accepted in Infosys in Techno park because his brother is also working there. Harikrishnan N.R has spent many hours oberving various theories and participated in various research programs conducted by the institute. So that he would get a better idea of what he could be looking forward to his future.
  • 5. Dear Dr.Suma and Harikrishnan N.R, Congratulations on getting your book “CUSTOMER RELATION MANAGEMENT” to be published. I believe that you have written an excellent article that will raise lots of eyebrows. I surely assure that this book will give lots of valuable informations to the readers and hopefully they will be benefited. Moreover I feel proud that working together in SREE NARAYANA INSTITUTE OF TECHNOLOGY (SNIT), ADOOR. I wish all the very best for your success & may God the almighty shower his blessings on all your future endeavors. Finally as a Principal of SREE NARAYANA INSTITUTE OF TECHNOLOGY, I applaud your efforts. GOD BLESS YOU. Dr. J. George Chellin Chandran Principal, SNIT Adoor.
  • 6. PREFACE I am delighted to note that Dr. Suma S.R. and Harikrishnan N.R. came out with a learning support system for T5 MBA for the course Customer Relationship Management (CRM). The learning material covers the entire course syllabus and is sure to become a handy tool for inquisitive students. It is the earnest duty of any genuine teacher to make learning exercises happy and pleasant experiences. I expect the efforts of Dr. Suma S.R. and Harikrishnan N.R. will be appreciated as a combination of Pride, Enjoyment and Growth in the domain of intellectual development. The future managers are expected to welcome the effort as a finest tool in the pursuit of knowledge. I wish all success to the team. Prof. (Dr) Keshav Mohan Academic Chairman & Director, SNIT B-School, Adoor
  • 7. UNIT SYLLABUS PAGE NO: I. CRM: CRM technology components, customer life style, customer interaction. Difference between CRM and eCRM, features of eCRM Sales Force Automations (SFA) barriers to successful SFA functionality, technological aspect of SFA, data synchronization, flexibility and performance, reporting tools. 1-23 II. Enterprise Marketing Automation (EMA): Components of EMA, marketing campaign, campaign planning and management, business analytic tools, EMA components (promotions, events loyalty and retention programs), response management. Call Center: Customer interaction, the functionality, technological implementation, ACD (Automatic Call Distribution), IVR (Interactive Voice Response), CTI (Computer Telephony Integration), web enabling the call center, automated intelligent call routing, logging & monitoring. 24-43 III. Implementing CRM : Pre-implementation, kick off meeting, requirements gathering, prototyping and detailed proposal generation, development of customization, Power use beta test and data import, training, roll out and system hand off, ongoing support, system optimization, follow up. 44-55 IV. Introduction to Application Service Provider (ASP) Their role and function, advantages and disadvantages of implementing ASP. Impact of CRM on Marketing Channels: Traditional distribution channel structure supporting customer relationship, emerging channel trends that impact CRM. 56-65 V. CRM Tools: CRM tools – overall modules – lead management – lead to sales life cycle-Communication methodologies–relationship management – complaint handling 66-80
  • 8. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 1 Unit CCRRMM 1. CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Customer Relationship Management is a strategy for managing an organization's relationships and interactions with customers and potential customers. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability. The goal of a CRM system is to improve business relationships. CRM enables a business to deepen its relationships with customers, service users, colleagues, partners and suppliers. CRM is a concept of the mid – 1990’s. CRM requires organizational and business level approaches – which are customer centric – for doing business rather than a simple marketing strategy. CRM involves all of the corporate functions (marketing, manufacturing, customer services, field sales, and field service) required to contact customers directly or indirectly. The term “touch points” is used in CRM to refer to the many ways in which customers and firms interact. Customer Relationship Management is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time. Meaning of CRM Traditional marketing strategies focused on the four Ps (price, product, promotion, and place) to increase market share. The main concern was to increase the volume of transactions between seller and buyer. Volume of transactions is considered a good measure of the performance of marketing strategies and tactics. CRM is a business strategy that goes beyond increasing transaction volume. Its objectives are to increase profitability, revenue, and customer satisfaction. To achieve CRM, a companywide set of tools, technologies, and procedures promote the relationship with the customer to increase sales. CRM consists of three components:  Customer  Relationship, and  Management CRM tries to achieve a ‘single integrated view of customers’ and a ‘customer-centric approach’. CRM: CRM technology components, customer life style, customer interaction. Difference between CRM and eCRM, features of eCRM Sales Force Automations (SFA) barriers to successful SFA functionality, technological aspect of SFA, data synchronization, flexibility and performance, reporting tools.
  • 9. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 2 Fig: Components of CRM Customer: Customer is the only source of the company’s present profit and future growth. It is difficult to distinguish who is the real customer because the buying decision is frequently a collaborative activity among participants of the decision-making process. Information technologies can provide the abilities to distinguish and manage customers. Relationship: The relationship between a company and its customers can be short-term or long-term, continuous or discrete, and repeating or one-time. Even though customers have a positive attitude towards the company and its products, their buying behavior is highly situational. For example, the buying pattern for airline tickets depends on whether a person buys the ticket for their family vacation or a business trip. CRM involves managing this relationship so it is profitable and mutually beneficial. Management: CRM is not an activity only within a marketing department. Rather it involves continuous corporate change in culture and processes. The customer information collected is transformed into corporate knowledge that leads to activities that take advantage of the information and of market opportunities. Definition: “Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer.” - Parvatiyar and Sheth The three parts to CRM – technology, processes and people. Customer relationship management (CRM) is a combination of people, processes and technology that seeks to understand a company's customers. An integrated and holistic approach is needed between these components is required for a successful CRM implementation.
  • 10. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 3 The process component of CRM tries to focus on individual customers. That is , businesses have to shift the direction organisations process from product centric to customer centric. The new marketing approach should consider customers’ needs at the centre of the business. The technology component of CRM should be seen as key in implementing the CRM strategy and to assist with the re-design of the business. Technology collects and analyses data on customer’s patterns interprets customer behaviour and develops predictive models. It ensures timely responses, effective customized communications and delivers customized products and services to individual customers. The people component is the most difficult component which includes the organisational readiness and collaboration with staff, which is essential for a successful CRM implementation. One of the greatest challenges in implementing CRM is aligning people with the new strategies and processes. CRM entails new processes, the value of which the organisation must understand and appreciate, and staff must be involved with the strategy and be motivated to reach the objectives. Advantages of CRM By using CRM methodology, an enterprise can:  Provide better customer service  Enhanced contact management  Increase customer revenues  Discover new customers  Reliable reporting  Cross sell/Up Sell products more effectively (Empowered sales management)  Help sales staff close deals faster  Make call centers more efficient  Simplify marketing and sales processes  Increased customer satisfaction and retention  Boosted marketing ROI  Enriched products and services Evolution of CRM Today, CRM manages business processes, spanning sales, support, and marketing creating effective customer interactions. The purpose of CRM, the functionality is straightforward, and the benefits of successful deployments clearly generate value and profitability for any company. Great CRM solutions need to encourage users to interact with the application as well as be in-tune with the business and IT cost- saving needs. For the up to date CRM to be world class it needs to be revolutionary in market incursion and evolutionary in technological up gradation.
  • 11. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 4 Today the major business focus is towards endowing value addition to the sales cycle, and customer retention rather than constructing a new customer base which is costlier and also an uncertain chase from business perspective. The basic philosophy behind CRM is that a company's relationship with the customer would be the biggest asset in the long run. Before implementing any Customer Relationship Management solution in the organization there are many Question's which need a comprehensive explanation from the users' point of view  What is the added value preposition of the CRM to the organization?  What would be the environment under which the implementation would be done?  How would the synergies be reflecting in the processes of the company? These are mere stencils of the holistic scenario prevalent right now, and are to a great extent a factor which harms the opportunities of long term survival for any CRM vendor. CRM Building Blocks Following are the building blocks for successful CRM projects:  Vision - The board must take leadership in creating a CRM vision for the enterprise. The CRM vision should be used as the guide to the creation of a CRM strategy.  Strategy - The CRM strategy is all about how to build and develop a valuable asset: the customer base. It must set objectives and metrics for attaining that goal. It directs the objectives of other operational strategies and the CRM implementation strategy.  Customer experience - The customer experience must be designed in line with the CRM vision and must be constantly refined, based on actively sought customer feedback.  Organizational collaboration - Changes to organizational structures, processes, metrics, incentives, skills, and even the enterprise culture must be made to deliver the required external customer experience. Ongoing change management will be key.  Process - Successful customer process reengineering should create processes that not only meet customers' expectations and support the customer value proposal, but also provide competitive differentiation and contribute to a designed customer experience.  Information - Successful CRM demands the creation of a customer-information blood supply that flows around the organization, as well as tight integration between operational and analytical systems.
  • 12. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 5  Technology - CRM technologies form a fundamental part of any enterprise's application portfolio and architecture. CRM application needs should be considered as the provision of integrated functionality that supports seamless customer-centric processes across all areas of the enterprise and its partners.  Metrics - Enterprises must set measurable CRM objectives and monitor all levels of CRM indicators to turn customers into assets. Without performance management, a CRM implementation will fail. The above building blocks are part of the strategy framework to help organizations go through the important CRM journey. However, successful implementation and using the CRM solution to benefit the business depends largely on the people (from senior management down) within the organization to truly adopt and embrace it. 1.1 CRM TECHNOLOGY A software application can't completely replace the significance of effective face to face customer service practices; the importance of customer relationship management (CRM) technology is widely accepted in the modern business world. CRM software is designed to allow companies to facilitate effective marketing, sales and data management efforts. Components of Customer Relationship Management There are a number of different components of Customer Relationship Management that are essential to run an organization towards success. Every component is unique in itself and plays a major undeniable role in the process.  Sales Force Automation Sales Force Automation is the most essential components of CRM. This is one such component that is undertaken by the maximum business organizations. It includes forecasting, recording sales processing as well as keeping a track of the potential interactions. It helps to know the revenue generation opportunities better and that makes it very significant. The component also includes analyzing the sales forecasts and the performances by the workforce. To achieve an overall improvement in the development and growth of the industry, numerous components work hand in hand to form sales force automation as a consequent unit. Some of the major elements of the same are Lead Management, Account Management, Opportunity Management, Forecasting, Pipeline Analysis, Contact Management, Activity Management, Email Management and Reporting.  Human Resource Management Human Resource Management involves the effective and correct use of human resource and skills at the specific moment and situation. This requires to be make sure that the skills and intellectual levels of the professionals match the tasks undertaken by them according to their job profiles. It is an essential component not only for the large scale corporations but the medium industries as well. It involves adopting an effective people strategy and studying the skills or the workforce and the growth being generated thereby designing and implementing the strategies needed accordingly with the aim of achieving development.  Lead Management Lead Management refers to keeping the track of the sales leads as well as their distribution. The business that are most benefitted by this component of CRM are sales industries, marketing firms and customer executive centres. It involves an efficient management of the campaigns, designing customized forms, finalizing the mailing lists and several other elements. An extensive study of the purchase patterns
  • 13. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 6 of the customers as well as potential sales leads helps to capture the maximum number of sales leads to improve the sales.  Customer Service Customer Relationship Management emphasizes on collecting customer information and data, their purchase informations and patterns as well as involves providing the collected information to the necessary and concerned departments. This makes customer service an essential component of CRM. Almost all the major departments including the sales department, marketing team and the management personnel are required to take steps to develop their awareness and understanding of the customer needs as well as complaints. This undoubtedly makes the business or the company to deliver quick and perfect solutions and assistance to the customers as well as cater to their needs which increases the dependability and trust of the customers and people on the organization.  Marketing Marketing is one of the most significant components of Customer Relationship Management and it refers to the promotional activities that are adopted by a company in order to promote their products. The marketing could be targeted to a particular group of people as well as to the general crowd. Marketing involves crafting and implementing strategies in order to sell the product. Customer Relationship Management assists in the marketing process by enhancing and improving the effectiveness of the strategies used for marketing and promotion. This is done by making an observation and study of the potential customers. It is a component that brings along various sub-elements or aspects. Some of the major elements of marketing are List Management, Campaign Management, Activity Management, Document Management, Call Management, Mass Emails and Reporting. The use of the aforesaid elements varies from business to business according to its nature and requirements as well as the target crowd.  Workflow Automation A number of processes run simultaneously when it comes to the management and this requires an efficient cost cutting as well as the streamlining of all the processes.The phenomenon of doing so is known as Workflow Automation. It not only reduces the excess expenditure but also prevents the repetition of a particular task by different people by reducing the work and work force that is getting wasted for avoidable jobs. Routing out the paperwork and form filling are some of the elements of the process and it aims at preventing the loss of time and excess effort.  Business Reporting CRM comes with a management of sales, customer care reports and marketing. The customer care reports assist the executives of a company to gain an insight into their daily work management and operations. This enables one to know the precise position of the company at any particular instance. CRM provides the reports on the business and that makes it play a major role here. It is ensured that the reports are accurate as well as precise. Another significant feature is the forecasting and the ability to export the business reports on other systems. In order to make comparisons, one can save historical data as well.  Analytics Analytics is the process of studying and representing the data in order to observe the trends in the market. Creating graphical representations of the data in the form of histograms, charts, figures and diagrams utilizing the current data as well as the one generated in the past is essential to achieve a detailed understanding and study of the trends. Analytics is an extremely significant element of Customer Relationship Management as it allows to make in-depth study of information that is required to calculate the progress in the business.
  • 14. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 7 1.2 CUSTOMER LIFE STYLE Life style A way of living of individuals, families (households), and societies, which they manifest in coping with their physical, psychological, social, and economic environments on a day-to-day basis. Lifestyle is expressed in both work and leisure behavior patterns and (on an individual basis) in activities, attitudes, interests, opinions, values, and allocation of income. It also reflects people's self-image or self-concept; the way they see themselves and believe they are seen by the others. Lifestyle is a composite of motivations, needs, and wants and is influenced by factors such as culture, family, reference groups, and social class. Psychological factors The Lifestyle of individuals has always been of great interest to marketers. They deal with everyday behaviorally oriented facets of people as well as their feelings, attitudes, interests and opinion. A lifestyle marketing perspective recognizes that people sort themselves into groups on the basis of the things they like to do, how they like to spend their leisure time and how they choose to spend their disposable income. The lifestyle concept was introduced by Bell (1958). William Lazer introduced the concept of lifestyle patterns and its relationship to marketing, in 1963. He defined life style pattern as a systems concept. lt refers to a distinctive or characteristic mode of living, in its aggregate and broadest sense, of a whole
  • 15. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 8 society or segment thereof... The aggregate of consumer purchases, and the manner in which they are consumed, reflect a society’s [or] consumer’s lifestyle. Lifestyle is an important concept used in segmenting markets and understanding target customers, which is not provided by the study of demographics alone. Many researchers have focused on identifying the lifestyle of the consumers’ to have better information about them. Demographics alone do not give a complete picture of the consumer, thus hampering the marketer in segmenting the market to its full potential. Bone (1991) indicates that the use of demographic characteristics such as age, income and employment status can be misleading factors while segmenting markets. The use of chronological age as a tool for segmentation is not as closely related to purchase behavior as the psychological age. Though income is highly related to buying behavior, it is generally used in segmenting the market; but it does not take into consideration factors such as activities, interest, health. Social class adds a greater depth to demographics but it has to be supplemented by other information to give a meaningful insight of the individual characteristics. Lifestyle segmentation has been a very useful concept for marketing and advertisement planners. By incorporating psychographics’ information with demographics, the marketer will better understand the wants and needs of the consumers. Psychographics was a term first introduced by Demby(1974) putting together psychology and demographics. Psychographic or Lifestyle refers to consumers’ Activities Interests and Opinion(AIO). More specifically it focuses on what people like to do, what are their areas of interests, and what are the opinion people hold on various matters. Hence lifestyle patterns provide broader views about the consumers. The basic premise of lifestyle research is that the more the marketers know and understand their customers, the more effectively they can communicate to them and serve them. Lifestyle characteristics have a great impact on the purchase behavior. In a consumption environment, a person chooses a product or brand, which seems to possess a maximum possibility of the definition or elaboration of his life style identity. Alternatively, a person makes a choice in a consumption environment in order to define or actualize his life style, identify it through the products or brands chosen. The analysis of consumer life styles (called psychographics) is an important factor in determining how consumers make their purchase decisions. Proprietary psychographic consumer segmentation system that classifies people into eight basic lifestyle groups on the basis of two dimensions: resources and self-orientation. Resource dimension includes education, income, intelligence, health, energy level, and eagerness to purchase resources that, in general, increase from youth to middle age decline afterwards. Self-orientation is divided into three parts (1) Principle oriented: having set views. (2) Status oriented: influenced by other's thinking. (3) Action oriented: seeks activity, adventure, and variety. The eight basic lifestyle groups are (1) Actualizers, (2) Fulfillers, (3) Believers, (4) Achievers, (5) Strivers, (6) Experiencers, (7) Makers, and (8) Strugglers Lifestyle Data Adding consumer lifestyle data takes the market analysis a step further. This data recognizes that the way people live (lifestyle) influences what they purchase as much as where they live (geography) or their age, income, or occupation (demography). Lifestyle data enables you to include people’s interests, opinions, and activities and the effect these have on buying behavior in our analysis. Sample Lifestyle Segment Summary As an example, qualitative information provided by ESRI for its “College Towns” designation includes:
  • 16. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 9  Demographic: Most residents are between the ages of 18 and 34, and live in single-person or shared households. The racial profile is typically similar to the nation as a whole, with three- fourths of college town residents being white.  Socioeconomic: Because many students only work part-time, the median household income ranks near the low end of ESRI’s measurements. Most of the employed residents work in the service industry, holding on-again, off-again campus jobs.  Consumer Behavior: Convenience dictates food choices. With their busy lifestyles, residents in college towns frequently eat out at fast-food restaurants and pizza outlets during the week. Because many college students are new residents to a town, bedding, bath, and cooking products are popular purchases. Music and nightlife venues are extremely popular in college towns. Fig: Customer life time value Figure: Customer lifestyle stages
  • 17. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 10 1.3 CUSTOMER INTERACTION Customers’ demands are increasing with the rapid onset of technological innovation. They have already had great customer experiences with market leaders, and have seen first-hand what great customer experience looks like. One thing they know for certain – a company that makes them feel special is a company they should be investing their hard-earned money in. And, the best way to gain a loyal customer is by having awesome customer interactions and build long-lasting relationships with them. For example, if your customer service representatives are rude to the customer, they will surely be unhappy with your customer service. And, if you suddenly realized your employees are not delighting customers, you should focus your efforts on finding out the reason behind the problem. No one wants to be rude or perform poorly – they are just unable to do so with whatever they have at their disposal. Definition of Customer Interaction This is the most basic form of communication between the company and the customer. Every single interaction is another opportunity for the business to delight customers and retain them. Types of Customers There are four types of customers you are likely to encounter:  Existing Customers: the ones who you already know and are actively serving.  New Customers: the ones who have not yet invested, but are extremely likely to do so .  Past Customers: the ones who have discontinued doing business with you.  Prospective Customers: these are your future customers. Types of Customer Interactions  General Interactions: These are usual interactions with your business. For example, checking your cell phone balance or enquiring about your latest products.  Predictable Interactions: These interactions are predictable and can happen from time to time, thus making them easy to plan for in advance. For example, when an insurance policy holder calls the company for the very first time to enquire about their claims process.  Unpredictable Interactions: These interactions, as the name implies, are unpredictable in nature and can’t be planned in advance. For example, if the company’s website goes down during a transaction or the server presents an error.  Unwanted Interactions: These interactions have the potential to damage a company’s reputable, and thus, are unwanted. An interesting thing to note is that these customers here are highly engaged, so ignoring them is not an option. For example, when a telecom operator charges a customer for a value added service he didn’t opt for. Customer Interaction Life Cycle The Customer Interaction Life Cycle is a pattern of behavior that is used to interact with customers in an interaction. There are 5 stages in the customer interaction lifecycle: 1) Greeting 2) Understanding 3) Agreeing 4) Solving 5) Closing Importance of Customer Interactions Customer service has always been considered a reactive process. Customers contact a company when something goes wrong, and the company solves the customer’s problem. However, it has changed
  • 18. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 11 more to a proactive role with the introduction of social media and other platforms. It is a part of the entire customer experience, not the entire experience itself. Moreover, a customer who receives a bad customer service experience will spread negative word of mouth reviews about the company to his friends and family. According to American Express 2012 Global Customer Service Barometer, Consumers are 2x more likely to share their bad customer service experiences than they are to talk about positive experiences. However, if such an event does occur, interacting with the customer is the best way to identify what is causing the problem and solve it immediately. Skills for Customer Interaction Management There are a few pointers that can help in managing customers effectively:  Be empathetic with your customers and sympathize with them.  Don’t focus on the negative, focus on the positive.  Be Attentive, friendly and listen to what your customers are saying.  Know what you’re dealing with, in terms of the product & technology.  Be patient and calm.  Learn from every single customer you deal with. Definition of Customer Interaction Management (CIM) Customer interaction management is the process followed by companies to interact with its customers. A customer interaction management solution is a software or system that facilitates the interaction between the company and its customers. It is also designed to help managers handle teams much better for maximum efficiency and performance. Customer Interaction Management (CIM) refers to a type of Enterprise Software Application which is responsible for managing the interaction between an organisation and its customers. Normally, a CIM application will be deployed in a contact centre and used by the agents while communicating with clients customers of the organisation. Customer Interaction Management systems handle communication across multiple different channels, such as (but not exclusive to) e- mail, SMS, telephone, Instant Messaging, white mail (scanned documents) and social media. Four basic tasks are required to achieve the basic goals of CRM. 1) Customer Identification - To serve or provide value to the customer, the company must know or identify the customer through marketing channels, transactions, and interactions over time. 2) Customer Differentiation - Each customer has their own lifetime value from the company's point of view and each customer imposes unique demands and requirements for the company. 3) Customer Interaction - Customer demands change over time. From a CRM perspective, the customer’s long-term profitability and relationship to the company is important. Therefore, the company needs to learn about the customer continually. Keeping track of customer behavior and needs is an important task of a CRM program. 4) Customization / Personalization - “Treat each customer uniquely” is the motto of the entire CRM process. Through the personalization process, the company can increase customer loyalty. Jeff Bezos, the CEO of Amazon.com, said, “our vision is that if we have 20 million customers, then we should have 20 million stores”. The automation of personalization is being made feasible by information technologies.
  • 19. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 12 Customer Interaction Cycle 1.4 CRM AND ECRM E-CRM The eCRM or electronic customer relationship management encompasses all the CRM functions with the use of the net environment i.e., intranet, extranet and internet. Electronic CRM concerns all forms of managing relationships with customers making use of information technology (IT). eCRM is enterprises using IT to integrate internal organization resources and external "marketing" strategies to understand and fulfill their customer’s needs. E-CRM expands the traditional CRM techniques by integrating new electronic channels such as Web, wireless and voice technologies and combines it with e-business applications into the overall enterprise CRM strategy As the internet is becoming more and more important in business life, many companies consider it as an opportunity to reduce customer-service costs, tighten customer relationships and most important, further personalize marketing messages and enable mass customization. ECRM is being adopted by companies because it increases customer loyalty and customer retention by improving customer satisfaction, one of the objectives of eCRM. E-loyalty results in long-term profits for online retailers because they incur less costs of recruiting new customers, plus they have an increase in customer retention. Together with the creation of sales force automation (SFA), where electronic methods were used to gather data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of what we know as eCRM today. Today's customers are a fast-moving, demanding crowd. They are looking for products and services that are proven yet innovative. They want information at their fingertips. With the right CRM solutions in place, we can help organizations to build and nurture lasting one-on-one relationships with customers. Thus, it enhances the business efficiencies and profitability. Different levels of eCRM In defining the scope of eCRM, three different levels can be distinguished:  Foundational services - This includes the minimum necessary services such as web site effectiveness and responsiveness as well as order fulfillment.  Customer-centered services - These services include order tracking, product configuration and customization as well as security/trust.
  • 20. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 13  Value-added services - These are extra services such as online auctions and online training and education. Self-services are becoming increasingly important in CRM activities. The rise of the Internet and eCRM has boosted the options for self-service activities. A critical success factor is the integration of such activities into traditional channels. CRM activities are mainly of two different types.  Reactive service is where the customer has a problem and contacts the company.  Proactive service is where the manager has decided not to wait for the customer to contact the firm, but to be aggressive and contact the customer himself in order to establish a dialogue and solve problems. Framework of eCRM E-CRM must address customer optimization along three dimensions  Acquisition (increasing the number of customers)  Expansion (increasing portability by encouraging customer to purchase more products and service)  Retention (increasing the amount of time that customer stays customers) An e-CRM strategy must be able to identify the expansion potential for each customer. A Company should be able to identify the opportunities to cross-sell and up-sell to the same set of customers. An e-CRM solution should also establish a central mechanism to determine which customer should receive which investment at the relationship level. Various stages to evolution of eCRM
  • 21. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 14 Major differences between CRM and eCRM: 1) Customer contacts CRM – Contact with customer made through the retail store, phone, and fax. eCRM – All of the traditional methods are used in addition to Internet, email, wireless, and PDA technologies. 2) System interface CRM – Implements the use of ERP systems, emphasis is on the back-end. eCRM – Geared more toward front end, which interacts with the back-end through use of ERP systems, data warehouses, and data marts. 3) System overhead (client computers) CRM – The client must download various applications to view the web-enabled applications. They would have to be rewritten for different platform. eCRM – Does not have these requirements because the client uses the browser. 4) Customization and personalization of information CRM – Views differ based on the audience, and personalized views are not available. Individual personalization requires program changes. eCRM – Personalized individual views based on purchase history and preferences. Individual has ability to customize view. 5) System focus CRM – System (created for internal use) designed based on job function and products. Web applications designed for a single department or business unit. eCRM – System (created for external use) designed based on customer needs. Web application designed for enterprise-wide use. 6) System maintenance and modification CRM – More time involved in implementation and maintenance is more expensive because the system exists at different locations and on various servers. eCRM – Reduction in time and cost. Implementation and maintenance can take place at one location and on one server. Features of eCRM • e-CRM implies capabilities like self-service knowledge bases, automated email response, personalization of web content, online product bundling and pricing. • e-CRM gives internet users the ability to interact with the business through their preferred communication channel. • It also allows business to offset expensive customer service agents with technology. • e-CRM puts much emphasis on the customer satisfaction and reduced cost through improved efficiency. • e-CRM use customer data for personalization, cross-selling and up-selling. • Sales Force Automation(SFA )and Enterprise Marketing Automation(EMA) is integrated in the eCRM. Upselling and cross selling • Upselling is the practice in which a business tries to persuade customers to purchase a higher-end product, an upgrade, or an additional item in order to make a more profitable sale.
  • 22. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 15 • Eg: a salesperson may influence a customer into purchasing the newest version of an item, rather than the less-expensive current model, by pointing out its additional features. • A similar marketing technique is cross selling, where the salesperson suggests the purchase of additional products for sale. For example, he might say "Would you like some ice cream to go with that cake?”. Both techniques increase profits for businesses, but research has shown that upselling is generally more effective than cross-selling. • Cross-selling and upselling are similar in that they both focus on providing additional value to customers, instead of limiting them to already-encountered products. In both cases, the business objective is to increase order value, inform customers about additional product options they may not already know about. • Upselling and cross-selling are mutually beneficial when done properly, providing maximum value to customers and increasing revenue without the recurring cost of many marketing channels. 6 E’s in e-CRM 1. Electronic channels: New electronic channels such as the web and personalized e-messaging have become the medium for fast, interactive and economic communication, challenging companies to keep pace with this increased velocity. E-CRM thrives on these electronic channels. 2. Enterprise: Through E-CRM a company gains the means to touch and a shape a customer’s experience through sales, services and corner offices whose occupants need to understand and assess customer behavior. 3. Empowerment: E-CRM strategies must be structured to accommodate consumers who now have the power to decide when and how to communicate with the company. Through, which channel, at what frequency? An E-CRM solution must be structured to deliver timely pertinent, valuable information that a customer accepts in exchange of his/her attention. 4. Economics: An E-CRM strategy ideally should concentrate on customer economics, which drive smart asset-allocation decisions, directing efforts at individuals likely to provide the greatest return on customer communication initiatives. 5. Evaluation: Understanding customer economics relies on a company’s ability to attribute customer behavior to market programs, evaluate customer interactions along various customer touch point channel, and compare anticipated ROI against actual returns through customer analytic reporting.
  • 23. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 16 6. External information: The e-CRM solution should be able to gain and leverage information from such sources as third party information networks and web page profiler application. 1.5 SALES FORCE AUTOMATION (SFA) Sales Force Automation is designed to help salesperson acquire & retain customers, reduce administrative time, provide account mgt. & basically make salesperson activities something that earns them & their company money. Sales force automation is a technique of using software to automate the business tasks of sales, including order processing, contact management, information sharing, inventory monitoring and control, order tracking, customer management, sales forecast analysis and employee performance evaluation. Definition: The Sales Force Automation (SFA) refers to the technique wherein the software are used to automate the business tasks such as inventory control system, account management, process management, contact management, customer tracking, sales funnel management, sales forecasting analysis, product knowledge, sales lead tracking system, sales team performance evaluation, etc. The Sales Force Automation software can be customized according to the business needs or can be purchased from the market that suits the business requirements. Some of the software available in the market are:  Salesforce.com  Infusion soft  Microsoft Dynamics CRM  Prophet  Plan Plus offline, etc. SFA purpose 1) Increased revenue  SFA should provide more income in the profit after implementation  If you have an increase 100% in sales revenues but your cost of sales has increase your SFA implementation fails. 2) Reduction in the cost of sales  It is reduction in time engaged in reduction in administrative work or other non-sales related efforts.  It reduces time required by sales people in data entry & sales people coordination. 3) Customer retention due to company  If customers are happy they stay with you  It is relationship with company & particular sales person  SFA provides you the customer view with the help of customer history & communication  SFA provides the intelligence & view to better plan
  • 24. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 17 4) Sales force increasing mobility  They have to do many duties like meeting customers moving through airports etc.  This like making mobility a competitive issue requiring effective mobile tools such as internet & hand set. 5) Easily available customer information with single view  Multiple departments may be interested in viewing status of customer account within each dept. are individual with diff. role e.g. vice president, account manager, sales manager.  SFA provides a universal view of all available data to all dept. at all times. Advantages of Sales Force Automation 1. Increased Productivity 2. Competitive Advantage in terms of cost, revenue, and market share. 3. Timely information regarding the sales. 4. Increased customer satisfaction with the reduced response time. 5. Keeping proper records of the customer that can be tracked down easily. 6. The sales forecast can be done accurately with the help of past sales data. 7. Efficient utilization of scarce resources. 8. Less time required by the sales manager to prepare the daily, quarterly, monthly or annual reports. 9. Optimum utilization of time by the staff members. Disadvantages of Sales Force Automation 1. Data entry is too much time consuming. 2. Difficult to accustom with the software system. 3. With automation, the personal touch is lost. 4. Tedious job of regularly upgrading the system, making the new entries, cleaning the unwanted data entries and maintaining the system as a whole. 5. Sometimes difficult to integrate with company’s other management information systems. 6. The high cost involved in the installation and maintenance of the system. The SFA is the part of the company’s Customer Relationship Management system; that records every stage of the sales process. It is often called ad Customer Relations Management Software. BARRIER TO SUCCESSFUL SFA  The real challenge for SFA is that it must convince the salesperson that it will help them to be more effective personally, do their job better, and help them make more money  It is also critical to roll out quickly to show a return on investment as fast as possible. Sales persons are skeptics and individualists. Because they will always look for excuses not to use any corporate- mandated solution, they must feel part of the process and find that the process has something to offer them, not just the organization.
  • 25. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 18 Functionalities of SFA Software An SFA software can provide the following functionalities – 1) Account management − under this, the salespersons and managers get a complete overview of customer relationship. It includes customer’s personal details, contact, past contacts, past orders delivered, current orders, transactions, etc. 2) Contact management − It refers customers’ contact numbers, Email ID, address, contact preferences, etc., for maintaining contacts by creation, updating, tracking appointments and contacts, etc. 3) Contract management − It helps users to manage contracts with the customers by offering the functions of tracking, monitoring, progressing, and terminating the contracts. 4) Document management − It helps the users maintain product lists, brochures, product specification manuals, price lists, and quotation templates. 5) Event management − It enables to plan the events such as conference, trade show, webinars, seminars, meetings, etc. with customers or other partners. It features event calendar, event reports, etc. 6) Incentives management − the sales managers use this function to appraise and reward the salesperson’s efforts. It can be linked to payroll application for automatic payment. 7) Lead management − It enables the business to create, assign leads to various salespersons for equal task distribution, and track sales leads. 8) Opportunities management − It enables users to create opportunity, administer its progress, and estimate users’ bonus. 9) Order management − Once the customers agree to purchase a product, this facility turns quotation into accurately priced orders. It is composed of price lists and product configurator. 10) Pipeline management − It helps to maintain entire sales cycle right from identification of prospects to order delivery and closure. 11) Product Encyclopedia − It is an electronic encyclopedia of products with their names, model numbers, picture, and specifications. It is made accessible to the customer online. 12) Product Configuration − It enables users or customers to design and price the product by selecting the specifications of their choice. 13) Product Visualization − It enables the users or customers to create a realistic 3D model of the product. It is created by referring to the technical diagrams.
  • 26. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 19 14) Quotation management − It allows the salespersons and managers to create, edit, and deliver customized proposal. 15) Sales prediction − It helps the salespersons and managers to forecast sales figures. Figure: pipe-line management Technological Aspect of SFA SFA packages typically include a Web-ready database, an e-mail package, and customizable template s. A three-tiered architecture is typically used to separate the database, server, and application to reduce programming demands on clients. A module-based design is generally used, to allow users to customize the package to suit their needs. Main technological aspects of SFA are, 1. Big Data: In today’s world, competitive advantage for sales organizations depends largely upon the ability to successfully capture, manage, and analyze massive volumes of customer data that contains insights into customer behaviors and buying habits. Despite this, the average company only analyzes roughly 12% of the data that they have available. This is where “big data” technology comes in. Using big data analytics tools, sales organizations can now manage prospecting, a critical step in the sales process. Traditionally, prospecting (finding and qualifying potential customers with specific needs and wants) has been a time and labor-intensive process. Now, through the use of analytics and customer data models, organizations can not only identify potential customers, but more accurately predict which leads from B2C or B2B lead generation efforts are likely to become clients. This gives the sales team a clearer idea of where to focus their efforts. Analytics also help organizations determine which customers to target, how to use profiles to identify lookalike customers and which buyers are most likely to respond to different messages and offers. In short, big data analytics tools help organizations focus their sales efforts on the most promising and profitable activities and customers. 2. Social Platforms: The explosion of social technology has given rise to a number of social media platforms for attracting and engaging new customers, a vital step in getting a customer into the sales funnel. Social media platforms provide opportunities for companies to “shake hands” with customers, engaging them in conversations about products and services for valuable insights that could lead to a sale. Unlike conventional sales, social media makes it possible to shake millions of hands from across the entire world all at once.
  • 27. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 20 Today’s customers are more connected than ever due to social media platforms. Statistics show that a majority are turning to peer recommendations and reviews on social media as part of their product research—in fact, for the average customer, peer recommendations carry 10 times the weight of recommendations from salespeople. Even more revealing is the fact that most buyers have all but completed their sales journey before ever contacting a seller. Organizations can follow this trail of digital breadcrumbs from prospective buyers on social media, and better target potential customers at just the right point in the decision making process. Customer feedback on social media sites also helps businesses refine and shape their messages and sales tactics to ensure greater success in the future. Social platforms offer a unique advantage for sales teams, and studies suggest that 78% of sales professionals who use social media consistently outsell their peers who don’t. 3. Cloud-based CRM Technology: Customer Relationship Management systems are powerful tools designed to give organizations a holistic view of the customer relationship by integrating marketing, sales, and customer support. While traditional onsite CRM software has their merits, cloud technology takes CRM to a whole new level by freeing up employees from onsite computers and servers. When CRM data is stored in the cloud, it can be accessed directly from anywhere and at anytime. When deployed correctly, a CRM presents a huge advantage for sales employees, as it allows them to get fast and accurate insights on what customers are doing, what they’re drawn to, and when they are mostly likely to buy. Armed with up-to-date, relevant information and the ability to contact customers and prospects while on the go, a sales team becomes more agile, effective, and productive. Thanks to the cloud, organizations can take advantage of software packages that integrate SFA and CRM into a single, cost- effective solution. 4. Mobile technology: The proliferation of mobile devices, such as smart phones and tablets, has changed many aspects of the selling process forever. For customers, the ability to research, evaluate and purchase products and services online using this technology has transformed the buying experience. Marketers and sales teams should take that into account, since research shows 93% of consumers who use their mobile device to research prospective products and services end up making a purchase. 1.6 DATA SYNCHRONIZATION Data synchronization is the process of establishing consistency among data from a source to a target data storage and vice versa and the continuous harmonization of the data over time. It is fundamental to a wide variety of applications, including file synchronization and mobile device synchronization e.g., for PDAs. Data synchronization technologies are designed to synchronize a single set of data between two or more devices, automatically copying changes back and forth. For example, a user's contact list on one mobile device can be synchronized with other mobile devices or computers. DATA SYNCHRONISATION IN CRM  Data synchronization technologies are designed to synchronize a single set of data between two or more devices, automatically copying changes back and forth.
  • 28. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 21  Data synchronization can be local synchronization where the device and computer are side-by-side and data is transferred or remote synchronization when a user is mobile and the data is synchronized over a mobile network 7 Types of Data to Sync Between your ERP and Ecommerce 1) Customer Synchronize process: 2) Products/Items Synchronization 3) Inventory Synchronization 4) Sales Orders Synchronization 5) Tier Price and Volume Price Discount 6) Delivery Synchronization 7) Invoice Synchronization 1. Customer Synchronize process: The main agenda of business is that the data should be properly synchronized. Synchronizing customer information between ERP and E-commerce systems is the first step that will add uniformity in customer experience. For example, a customer who often shops on your e-commerce store calls your customer service team to change its shipping address and the required change is reflected in the ERP system. Any change in customer information in either of the applications (ERP /Ecommerce) will reflect in the other automatically post integration. Customer information sync will help to drive benefits like personalize customer experience; provide self-service customer portals and more. 2 Products/Items Synchronization: A customer visits e-commerce store and places an order. Businesses often maintain all the basic product information in the ERP system. Without this information (product and inventory) the e-commerce store cannot work effectively. For example, You are a retailer where you manage product and inventory information independently in your e-commerce and ERP systems. A customer visits your e-commerce store, explores the store and really likes an item. He/ She visits the product details page and finds that the product is available in the required size and is in stock. He/ She places an order! After few days, the customer receives an email that his/ her order is canceled because that product was out of stock and inventory information was not synced with the ERP system. If this situation happens then there is a very high chance that the customer might never come back and even recommend other customers to not buy from you. With integration and synchronization your E- commerce and ERP systems will always be in sync with each other and you can very easily avoid scenarios like these. 3 Inventory Synchronization: Product and Inventory sync will minimize back orders, improve customer’s shopping experience and make it easy to sell on multiple channels, build trust and confidence with your customers, managing product information, inventory management etc. For example, the inventory information sync can be taken to a different level when the inventory is managed and maintained in multiple warehouse locations. This would then require businesses to maintain the warehouse and inventory information in ERP system and then sync the information back to the e-commerce system. 4 Sales Orders Synchronization: Orders are probably the real reason why most businesses consider e- commerce and ERP integration. There is a lot of synergy between e-commerce and ERP systems as far as orders are concerned – while the orders are accepted in the e-commerce system and the actual
  • 29. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 22 fulfillment happens in the ERP system. Since your e-commerce and ERP systems are not integrated, you manually transfer orders from your e-commerce system to your ERP system for fulfillment. Remember, because of manual data transfer, you can only sync a limited number of orders between the two systems. To ensure quick turnaround time the only alternative you have is to add more resources to sync data between the two systems. This way, your business is always limited by the number of orders you can sync between the systems which is not an ideal situation. Integration will not only automate this process but will also reduce the turnaround time (because the orders are synchronized immediately) without errors that are common in manual data transfers. Order sync will help make your business scalable, will enable you to expand to new markets, minimize order aging, improve customer satisfaction, reduce errors and costs. 5 4Tier Price and Volume Price Discount: E-commerce and ERP systems handle this by defining different tier and volume price discounts and associating a price corresponding to that. Say a customer places an order. Now, if the tier price and volume price information is not available in the ERP system, the order total will be less than what the ERP system expects as because the order was placed at a price defined by the price rule applicable. This will then lead to inconsistency in the accounting books which can then further lead to compliance issues. E-commerce and ERP integration bridges this gap by synchronizing tier prices and corresponding updates between the two systems. Tier price information sync helps you personalize the customer experience by offering them special prices, maintaining accounting consistency and reducing compliance issues. 6 Delivery Synchronization: Delivery is an important part of the order fulfillment process and keeping customers informed about the order and shipment status play an important role in improving customer experience. For example, the customer places an order in your e-commerce store and gets an expected delivery time/date. Now, in case if the customer does not receive any updates on the order or shipment status then the customer will get restless. The overall customer experience in this case, even if you deliver the best product in the best condition at the best possible price will not be very great. Through data sync, Shipping information sync will help build trust and confidence, improve customer experience and satisfaction, increase productivity etc. 7 Invoice Synchronization: All transactions affect payments/accounts receivable which performs the main function of the financial status of business operations.For example, after placing an order and delivery, the invoice information is manually synced back to the e-commerce system. Not allowing e- commerce and ERP system talk to each other is not an option. Manual sync is an error prone process. Imagine what would happen if the during the manual data transfer from e-commerce to ERP the payment information is wrongly entered into the ERP system. Moreover, because the payment was captured in the e-commerce system, the invoice will have to be synced back to the e-commerce system to capture the payment. Now doing all this manually is not an efficient process and must be automated. Invoices/Payments sync ensure consistency in the accounting books, reduces the operating cycle, improves customer experience and many more. Both CRM and ERP are geared towards the same goal: increasing company profitability. However, designers/programmers of the two systems have different approaches to achieving this goal. ERP is primarily aimed at cost reduction and business process optimization. On the other hand, CRM approaches profitability from the point of increasing sales and maintaining customer relations.2 It is well known that the costs of selling products and services to new customers are up to six times higher than is the case with the existing customers. There is room for improvement and development of relations with customers at all levels, from the sales force to the executives, which leads to higher sales volumes, consumer and brand
  • 30. CUSTOMER RELATIONSHIP MANAGEMENT SNIT B-School 23 loyalty and a higher level of satisfaction of customers, i.e. to lower operative costs of dealing with the consumers. Flexibility and Performance of Data synchronization  High-performance synchronization requires powerful database capabilities and performance, currently available only in databases such as Microsoft SQL Server or Oracle.  Each user or office can also be given only the slice of information that is relevant to their work. Partitioning the data reduces the bandwidth required to synchronize databases across a network. You can also use partitioning to increase data security by limiting access without requiring all data to be stored in a single secure location  The synchronization engine must be database independent to allow different database systems to reside on remote and host systems Reporting Tools: Reporting is the creation of customized onscreen or printed views that provide the viewer/reader with information specifically in the form they want and with the content they want.Lack of or poor reporting can lead to bad strategic or tactical decisions, redundant work efforts, and missed opportunities. .…. …..
  • 31. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 24 Unit EEnntteerrpprriissee MMaarrkkeettiinngg AAuuttoommaattiioonn 2. 1 INTRODUCTION: Companies market themselves. In small companies, the level of marketing that goes on can be as simple as a printed brochure and a website. Even the smallest companies are creating static websites that operate as online brochures for their wares. As companies grow in size, companies use direct mail, email, promotions, interactive voice response, newsletter, contests, events and other customer “touch points” (point of interaction of a customer with a company is called as touch point) to market their products. Indirect marketing campaigns, such as advertising in the print media or TV and radio, reach traditional mass markets. This is followed by branding. Companies work with agencies to establish more recognition through public relations, media, and advertising and this effort is called as branding. Companies also run marketing campaigns to increase their sales in a defined time period. Sometimes the results of such campaigns has not been very encouraging and the return on investment for any of the traditional marketing campaign is not clear because  The data collection is sketchy  The turnaround (i.e. effect)is slow  Much of the analysis and the follow-on marketing campaign modifications are temporary. If there is a method to track all marketing campaign efforts then the company will be able to make a more focused attempt in convincing customers. This is possible through EMA-also known as e-marketing. It uses Web-based applications and the Internet to improve the effectiveness of traditional marketing. It creates new methods of marketing and campaign management using the web and information technology to craft finely tuned successful efforts. Enterprise Marketing Automation (EMA) is part of customer relationship management module. It can also be independent software installed by the company. The main function of the enterprise marketing automation module is to run different marketing programs in the organization. EMA module also helps the given organization develop a business plan. An enterprise feeds from the customer data which is maintained by the company. Therefore, the module helps the company to maintain, manage and filter customer-related information. When a company decides to start a marketing campaign for a particular product then the EMA tool provides the company a short list of customer who could be interested in the product. This filtration of customer is done based on customer segmentation. Enterprise Marketing Automation (EMA): Components of EMA, marketing campaign, campaign planning and management, business analytic tools, EMA components (promotions, events loyalty and retention programs), response management. Call Center: Customer interaction, the functionality, technological implementation, ACD (Automatic Call Distribution), IVR (Interactive Voice Response), CTI (Computer Telephony Integration), web enabling the call center, automated intelligent call routing, logging & monitoring.
  • 32. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 25 Customer Segmentation Customer segmentation is an important parameter to consider when designing marketing campaigns. Customer segmentation technique splits the customer on various parameters. If the marketing campaign satisfies those customer parameters, then, enterprise marketing automation tool will provide their list. Parameters considered for customer segmentation are as follows:  Homogeneity within a particular customer segment.  Heterogeneity across different industry and customer segment.  Customer should respond in an identical manner to a particular marketing campaign.  Customer should be reachable through the marketing campaign.  Organization should be able to create a marketing strategy for the group. Features of EMA  EMA is the Technology of end-to-end marketing. EMA is related with the last generation of the business ecosystem’s.  The new evaluation of the customer ecosystem is the EMM (Enterprise Marketing Management).  EMA tools also provides continues relationship across multiple channels like the web, email, efax, telephone.  EMA helps in planning, executing, & analyzing the campaigns in the real time.  EMA was the CRM related marketing tool. EMA was the creation of personalized marketing efforts that not only engaged the customer or prospect, but also engaged the entire enterprise in the effort and provide a single view of the activity to any department or segment of the company.  EMA provides information about the business including –Competitors and industry trends. EMA utilises Data Mining and OLAP Technologies.
  • 33. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 26 Types of CRM Types of CRM I. Operational CRM - refers to services that provide support for various ‘front office’ business processes in helping organization to take care of their customers. Focus on customers’ value is important for a successful operational CRM strategy. Different customers have to be treated differently so information on variables like customers’ ranking, actual value and potential value is of strategic value. Operational CRM is mainly focused on automation, improvement and enhancement of business processes which are based on customer-facing or customer supporting. The main importance of a CRM system lies on how the selling, marketing and service oriented processes are automated, and for which operational CRM systems are embedded with following major automation applications: 1. Marketing automation- is basically focused on automating marketing processes. In marketing, campaign management involves marketers to use customer specific information to determine, evaluate and develop communications that are targeted to customers in individual as well as multilevel or multichannel environment. Campaigns developed to communicate customers individually are easy and involves unique and direct communications. 2. Sales-force Automation- A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. The process first starts with identifying a customer and maintaining all the corresponding details into the CRM system. This process can be distributed into many stages which includes generation of lead and then qualifying those leads as prospects. The Sales and Field representatives then try getting business out of these customers by sophistically following up with them and converting them into a winning deal. Automation of selling process is efficiently handled by Sales- force automation which automates all the methodologies or sales cycle and above described process sophisticatedly. 3. Service Automation- Service automation deals with managing organization’s service. The actual interactions with customers such as contact, direct sales, direct mail, call centers, data aggregation systems, web sites and blogs etc. are examples of operational CRM. Each interaction with a customer can be collected to the client database generally known as ‘customer’s history’ and the information can later be used wherever necessary. II. Analytical CRM - supports organizational back-office operations and analysis. It deals with all the operations and processes that do not directly deal with customers. Hence, there is a key difference between operational CRM and Analytical CRM. Unlike from operational CRM, where automation of marketing, sales-force and services are done by direct interaction with customers and determining
  • 34. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 27 customer’s needs, analytical CRM is designed to analyze deeply the customer’s information and data and disclose the essential convention and intension of behavior of customers on which capitalization can be done by the organization. Primary goal of analytical CRM is to develop, support and enhance the work and decision making capability of an organization by determining strong patterns and predictions in customer data and information which are gathered from different operational CRM systems.. Analytical CRM is a solid and consistent platform which provides analytical applications to help predict, scale and optimize customer relations. Advantages of implementing and using an analytical CRM are described below.  Leads in making more profitable customer base by providing high value services.  Helps in retaining profitable customers through sophisticated analysis and making new customers that are clones of best of the customers.  Helps in addressing individual customer’s needs and efficiently improving the relationships with new and existing customers.  Improves customer satisfaction and loyalty. The power of CRM provides a lot of managerial opportunities to the organization. It implements the customer information in an intelligent way and creates views on customer values, spending, affinity and segmentation. Analysis is done in every aspect of business as described below: 1. Customer Analytics- This is the base analytic used to analyze customer knowledge base. It provides a better view of customer behavior and by modeling, assessing customer values and assessing customer’s portfolio or profiles and creates an exact understanding of all the customers. 2. Marketing Analytics- This helps discovering new market opportunities and seeks their potential values. It also helps in managing marketing strategies and scale and plan marketing performance at district, regional and national levels. Marketing analytics also focus on campaign management and planning, product analysis and branding. 3. Sales Analytics- provides essential environment to plan, simulate and predict sales volumes and profits by constantly analyzing organizational sales behavior. 4. Service Analytics- Analytical CRM has major role in enhancing the services which answering all the questions regarding customer satisfaction, quality and cost of products, complaint management etc. It even helps in improving and optimizing the services by sophistically analyzing the service revenue and cost. 5. Channel Analytics- This type of analysis helps to determine the customer behavior on channel preferences, like web channel, personal interaction, telephone channel etc. This information is efficiently integrated in customers’ knowledge base so that they can be contacted accordingly. The essential results produced by Analytical CRM system could diversely help the organization to tackle customers’ based on values. It also helps in determining which customer is best to invest in, which can be treated at an average level and which should not be invested in. III. Collaborative CRM Collaborative CRM deals with synchronization and integration of customer interaction and channels of communications like phone, email, fax, web etc. with the intent of referencing the customers a consistent and systematic way. The idea is not only enhancing the interactions but also to increase and improve customer retention and liberty. Collaborative CRM entangles various departments of organization like sales, marketing, finance and service and shares the customer information among them to highlight better understanding of customers. For example, the information of preferred products could be shared with marketing department
  • 35. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 28 so that analysis can be performed in this aspect to provide preferred products to customers. The information regarding varied cost or price of a particular product in market defined by customers can be delivered to finance department so that strategies could be created to match the product cost with similar products in market and after analysis bring an affordable and efficient product in market. Collaborative CRM can be broadly identified by two aspects: 1. Interaction Management- This management process deals with designing the communication or interaction channel process within an organization which is specific to customer interaction and finally enhancing the extent of communication between both the parties. The communication channel depends on the customers’ preference on how they require the interaction to be dealt with. Customers prefer to be: contacted via phone and email; live online meeting or web meeting; face-to-face interaction with agents; etc. Depending on these channels of interaction it is very important for organization to fulfill these needs of customers and gather information from them and implementing it into the CRM before interacting to enhance the interaction power. 2. Channel Management- After analyzing and implementing the interaction medium it’s important to enhance the power of channels through which the customers are interacted. By using latest technological aspects for improving channel interaction could help to contact customers in an efficient way and gather information from them to help organization to understand the customers. Hence it is important for an organization to clearly arrange the channel responsibilities and duties. This CRM solution brings customers, process and strategies and data together so that organizations could serve and retain customers more efficiently. EMA COMPONENTS EMA is the technology of end-to-end marketing and its core component is campaign management. The “e” component of campaign management is the provision of a single view of the customer to the entire enterprise and those with responsibility for that customer, which are all available with a browser. Most e- marketing toolsets, like those of Siebel or Unica, are focused on a suite of products that provide the following:  Information about customer - his preferred choice of communication (e-mail or phone, etc) which will be useful for planning and executing a campaign.  Extraction of the useful information  Campaign planning based on the data analysis.  Campaign launch  Campaign monitoring tools that handle lead generation.  Response management  Workflow so that there is a uniform customer view across the enterprise. There are about five components of EMA. They are as follows: 1. Promotions: Web- based or web integrated marketing provides the same marketing goodies that customers have always been interested in: promotions, contests, cross-selling of products, up-selling of the products and discount coupons. These are the activities undertaken by organization to increase their sales. Promotions can be categorized as cross selling or up selling. In cross selling, customers are offered similar products to one they have already bought. The aim of cross selling is to satisfy all the customer requirements. In up selling customer are offered expensive product as well as an upgrade to the existing products. Up selling is more profitable, and it is in top up of existing sale.
  • 36. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 29 2. Event Based Marketing: This involves registering customers for seminar and in case web cast via the Internet. Companies look forward to sponsoring events and include their products as part of the marketing event. Various vendors have developed strong EMA event-management tools capturing customer information through event registration and online interaction. 3. Loyalty and Retention Programs: Loyalty is defined as continued commitment of a customer to a particular product, brand or organization. Customer tends to maintain their loyalty if companies provide value to them and/or it is much expensive to change product brand or organization. EMA application build in the small, personalized touches that creates loyalty and retain customers. For example:  Birthday greetings.  Holiday and Special occasion reminder  Delivery of the gift ideas  Welcome programs  Points based programs 4. Partner and Channel Management: It is a marketing campaign organization joins hands to promote their and partner’s products. This could also be referred to as joint promotion. Partner relationship management (PRM) are embedded into many EMA applications. PRM includes features that incorporate targeted, joint marketing programs to promote both business and partners. That is, It is a marketing campaign organization joins hands to promote their and partner’s products. This could also be referred to as joint promotion. 5. Response Management: Response management is the whole process in response gathering, analysis and refinement of the response. This gives flexibility in marketing campaigns based upon the initial reaction from the customer. It is a response management in real time. The complete response management features include banner ads, direct mail, print ads, email, web site link, surveys, event registration results, internet registration, and online survey results. Companies constantly monitor customers' sentiments in an automated manner via all relevant communication channels, and also they would like to recognize complaints as early as possible and react swiftly and adequately in order to increase customer loyalty and create cross-selling-potentials in the process. Support has to be given to the administrators during customer communication –for professional response management. Today, excellent customer service is a key driver of competitive advantage within many industries. An important aspect in this regard is the early recognition of individual as well as general customer sentiments and the corresponding response. A swift and adequate reaction to complaints increases customer loyalty significantly and additionally creates cross-selling potentials in the process. On another note, complaints or a generally decreasing customer satisfaction can be used as a valuable indicator of internal quality issues. An efficient Response Management system will allow the clients to address issues such as - which marketing activities generate the most favourable response, which marketing activities resulted in the maximum ROI, which prospects are most likely to turn into sales. As a marketing tool, Response Management allows you to handle potential sales leads, with the right information on your prospects. At End To End, company manage potential customer calls, whether in response to clients' advertisements, to follow up on leads. They organise event registrations and/or feedback collation and ensure that every response to our clients' brand is dealt with professionally. The value of this qualified information to be passed on to the sales teams. The representatives efficiently handle potential client calls, and channelize questions and requests in the right direction.
  • 37. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 30 Companies work with their clients to develop and customize Response Management programs, using multiple channels:  Voice  Email  SMS  Social media  Website  Toll free numbers  Interactive Voice Response (IVR) Use End To End's Response Management services to get qualified data on prospects and to understand and segment markets. End To End Marketing Solution authors, conceptualises, develops, manages, and monitors world-class responsive marketing campaigns based on deep domain insights and strategies that set up for obvious success. The response gathering was completed after campaign was completed.  Using the internet as a tool that works in real time, what is now called “Closed–loop feedback” that is integrated into the e-marketing.  “Closed–loop feedback” is the nucleus of the Internet based response management. Traditional Response management
  • 38. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 31 EMA Used in following Applications  Campaign planning and Management  Events  Promotion  Loyalty and retention programs, etc CAMPAIGN PLANNING & MANAGEMENT 1) E-marketing’s great strength is campaign management – the creation of personalized marketing efforts that not only engage the customer or prospect, but also engage the entire enterprise in the effort to provide a single view of the activity to any department or segment of the company. 2) The campaign management features of the technology are end-to-end. They plan and monitor all activity including: (a) Identification of the prospect (b) Generation of the lead (c) Prospect and customer information capture (d) Lead qualification (e) Distribution of leads to appropriate segments (f) Campaign planning (g) Campaign execution (promotions, events planning) (h) Response management (i) Refinement-changes in campaign (j) Channel Management (joint marketing campaigns) 3) The difference between EMA campaign methods and traditional marketing methods lies in the use of Internet. 4) EMA uses the internet to capture, extract, and analyze information about each customer and each market segment. 5) It gives you the design tools to plan, execute, monitor, and refine your marketing campaigns to the level of the individual within the market segment. 6) EMA tools also provide a consistent, continuous representation of a value proposition across multiple channels. 7) The fields, call center, the Web, the internal departments all see a single view of the customer due to the tight integration between the front office – the customer-facing part of the enterprise – and the back office which controls functions such as human resources and finances. 8) EMA workflow allows all parties to see exactly what they are permitted to see in all marketing campaigns as they evolve. 9) No one is left out of the loop, and no department is slighted in the process. So mistakes are minimized.
  • 39. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 32 Other components of EMA 1) Campaign Management Campaign management encompasses the mass of campaigns that are planned and executed through different channels so that a continuous marketing communication flow is created. Sometimes these campaigns are devised in the morning and executed that every afternoon. By continuously measuring the effect of every contact “customer touch point” and making adjustments, the dialogue may be continually refined. This puts the organization in a better position to market its goods and services and develop relationship with the right customers. The goal of campaign management is to interact with prospects and customers at the right movement, with the rights offerings and the right message communicated through the right channels. Significance and use of campaign management Campaign management and campaign planning play a central role in marketing, your customers should be sent the right information adapted to their needs, in the right communications style and via the right communications channel at the right time. Your customers' Figure: A campaign created with EMA tools campaign created with EMA tools
  • 40. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 33 requirements are the focus of your campaign process. Consequently, campaign management plays a central role in Customer Relationship Management (CRM). The campaign process consists of three central phases: planning, management and analysis. 2) Customer Service and Support: Customer service is the service or care that a consumer receives before, during and after a purchase. It’s one of the factors that come in to play when a consumer is determining buying value, the other is the quality of the product or service that is being offered. Consumers often must encounter an experience to not only be a satisfied customer, but a loyal customer. Customer service is a part of that experience. Top notch service will create loyalty and a returning customer, which is what we all must strive for. Excellent customer service is vital to businesses today. Greet them in a friendly manner, whether that be via telephone, email or in person. Let them know you are there to help and that you will take care of them, not only before the sale but after as well. After all, in a thriving business customers are not optional it’s a requirement for businesses to survive. 3) Contact and Call Centre Operations: A contact centre, also known as customer interaction centre is a central point of any organization from which all customer contacts are managed. Through contact centres, valuable information about company are routed to appropriate people, contacts to be tracked and data to be gathered. It is generally a part of company’s customer relationship management (CRM). Today, customers contact companies by calling, emailing, chatting online, visiting websites, faxing, and even instant messaging. Call centre worker at a very small workstation/booth, using Call Web Internet-based survey software, “most companies use statistics from their call center products to track their CSR (customer service representative) performance, evaluating their performance and compensating them according to the volume of calls they support. Campaign Management Softwares 1. HubSpot Marketing HubSpot Marketing is an advanced system that brings all of your marketing efforts together, and helps your team grow traffic and increase conversions. You can use its drag-and-drop functionality to design and modify beautiful websites without asking your IT team for assistance, and make sure all pages are responsive regardless of the device used by your visitors. 2. SharpSpring SharpSpring is a powerful email marketing platform that works flawlessly with most third-party apps and existing systems. It is targeted primarily at small and medium-size businesses, offering a wide array of features to make sure that users get all the online marketing functionalities that they need. 3. Wrike Wrike Campaign Management Software is a solution that helps marketing teams plan and execute campaigns diligently in a timely manner. Whether you’re launching a new product or announcing an event, Wrike is a tool you can use to plan, execute, track and analyze your marketing campaigns. It supports you in reaching your target audience in various channels including email, social media, print materials, and surveys, while focusing on a consistent message, topic or idea.
  • 41. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 34 4. CASA CASA is a modern retail marketing and customer engagement software created to help retailers improve their revenues, drive greater consumer loyalty, and grow their business through thorough customer behavior analysis, effective customer segmentation, and personalized marketing campaigns. 5. HasOffers HasOffers is a performance marketing app for creating your own mobile and/or desktop ad network. It supports advertisers, agencies, and networks needing a customizable product to manage their direct publisher relationships. HasOffers enables customers to manage publishers, creatives, and campaigns, generate invoices, calculate payouts and more at a detailed level in real time. 6. bpm’online marketing bpm’online marketing is a powerful performer of the company’s process-driven suite, designed to serve marketing specialists looking to master the skill of demand generation. It leverages a multichannel marketing platform to orchestrate customer journeys and accelerate lead-to-revenue. 7. Zoho Campaigns Zoho Campaigns is an email marketing software for small to midsized business to automate entire marketing process - from managing your email campaigns to maintaining your mailing lists. Thanks to the integration with Zoho CRM you will have the right info when you need it. Engage with your customers anywhere with social campaigns on Facebook, Twitter and LinkedIn. 8. Adobe Campaign Adobe Campaign provides the only enterprise marketing software specifically designed to manage, automate and optimize programs across traditional and emerging channels including direct mail, email and mobile. BUSINESS ANALYTIC TOOLS Customer Touch points are either active or interactive nodes of customer communication. They are areas of customer interaction that are considered central to the success of any marketing effort. Business analytic tools help in making these interactions more meaningful and effective. Example: Siebel e-marketing provides extensive pre-built market, customer, product, and geographical analysis which will allow a company to better manage it’s customer interaction. Good analytic tools have following characteristics: 1) Good analytic software can not only reduce the cost of customer acquisition via targeted and segmented results, but also can identify those customers who are potentially going to take their business to your competitors. 2) These tools have to be scalable since the tools often shift through millions of customer transactions of varying sorts. 3) They have to be rich so they can provide measurements and customization of the metrics used for measurement.
  • 42. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 35 4) They have to be supported with clear and distinct reporting tools that provide you with the information you need to utilize the data it creates in a readable, understandable format. 5) They also have to be fast, since they are dealing with millions of transactions from multiple sources in the course of Internet time. 6) The tools interpret in-depth profiles of customers who are accessing websites, responding to emails, answering direct mail campaigns and accessing what is called “customer touch points”. 7) EMA analysis provides in-depth profiling information on customer preferences, buying behaviour, revenue, profitability and purchasing frequency. Successful analytic tools give companies, the view of data that lets them interpret, identify and capitalize on emerging trends in key markets and focus their marketing and sales efforts on the high yielding market segments. The final result is personalized customer information. 2.2 CALL CENTER Call centre is a centralized office used for the purpose of receiving or transmitting a large volume of requests by telephone. A Contact Centre, also known as Customer Interaction Centre (CIC) is a central point of any organization from which all customer contacts are managed. Through contact centers valuable information about company are routed to appropriate people, contacts to be tracked and data to be gathered. A call center is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing, clientele, and debt collection are also made. In addition to a call center, collective handling of letters, faxes, and e-mails at one location is known as a contact center. A call center is often operated through an extensive open workspace for call center agents, with work stations that include a computer for each agent, a telephone set/headset connected to a telecom switch, and one or more supervisor stations. It can be independently operated or networked with additional centers, often linked to a corporate computer network, including mainframes, microcomputers and LANs. Increasingly, the voice and data pathways into the center are linked through a set of new technologies called computer telephony integration (CTI). Most of the major businesses use call centers to interact with their customers. Examples include utility companies, mail order catalogue firms, and customer support for computer hardware and software. Some businesses even service internal functions through call centers. Examples of this include help desks and sales support. Call Centers use a wide variety of different technologies to allow them to manage the large volumes of work that need to be managed by the call center. These technologies ensure that agents are kept as productive as possible, and that calls are queued and processed as quickly as possible, resulting in good levels of services. CALL INTERACTION CENTER (CIC) TECHNOLOGY  CIC Technology is a complex technology which will allow the customers to interact with the call center representatives and help them to get the proper solutions. It involves telephone and other communication channels like Email, Internet, etc.  Due to the addition of telephone and other web-enabled technology, the complexity increased heavily. The access points for the customers are varying widely. So the accumulation of data in a single point becomes a difficult task for the call centers. But the latest advanced technology and the softwares also manage the same.  The technology involves usage of either telephone or Internet connection.
  • 43. CUSTOMER RELATIONSHIP MANAGEMENT Unit 3 SNIT B-School 36  The technology is designed to create collaborative environment for the customers and their representatives (CCR-Customer Communication Representative). Types of Call Center 1. Inbound call center 2. Outbound call center 3. Web Enabled call center 4. Telemarketing call center 5. Phone call center 1) Inbound call centers: The inbound call centers are those that only receive calls usually on toll free numbers from the customers. These call centers provide 24 hours service to all customers. The primary goal of these call centers are to: receive product orders, help customers to find dealer location. Inbound call centers aid to handle calls coming from outside, mostly through toll free numbers. The services of inbound call centers are designed to handle catalog orders, and desk queries. They also incorporate customer care services, predict customer behavior and take action while the customers are still on the line. Inbound call centers employ teams of live operators, account representatives and program managers. Inbound call centers offer  Skilled, professional, customer support and technical service representatives  Improved market coverage  Faster ramp-up, launch, and roll-out of new campaigns  Experience with programs similar to yours  Rapid response to market conditions  Account management expertise  Enhanced reporting capabilities  Market testing capabilities 2) Outbound call centers: Outbound call centers deals with telemarketing and product promotion. The success of outbound call centers depends on their extensive experience, technological solutions, quality assurance programs and commitment to customer service excellence. They ensure maximum results from direct marketing efforts. The integrated call management systems in outbound call centers systematically direct calls to consumers and transfer successful connections to a selected marketing representative (MR). Services of Outbound Call Centers:  Market Intelligence  Database Selling  Direct Mail Follow-up  Lead Generation Qualification Management  Seminar Population  Product Promotion  Debt Collection  Information and Literature Fulfillment  Appointment Scheduling  Decision Maker Contacts  Up Sell/Cross Sell Campaigns  Surveys  Customer Satisfaction