Crm

UNIT V
Customer Relationship Management
By Dr. Dhobale J V
Associate Professor
School of Engineering & Technology
RNB Global University, Bikaner
RNB Global University, Bikaner. 1Course Code - 11010700

Objectives
 The Business Focus.
 Contact and Account Management.
 Implementing CRM Systems- Sales, Marketing
& Fulfillment.
 Customer Service and Support.
 Retention and Loyalty Programs.
 Phases of CRM.
 Benefits and Challenges of CRM.
 CRM Failures.
2RNB Global University, Bikaner.Course Code - 11010700

CRM - Introduction
 There can be multiple definitions of CRM from
different perspectives:
 From the viewpoint of the Management, CRM
can be defined as an organized approach of
developing, managing, and maintaining a
profitable relationship with customers.
 By equating the term with technology, the IT
organizations define CRM as a software that
assists marketing, merchandising, selling, and
smooth service operations of a business.

CRM - Introduction
 As per Franics Buttle, World’s first professor of
CRM, it is the core business strategy that
integrates internal processes and functions,
and external networks, to create and deliver
value to a target customer at profit. It is
grounded on high quality customer data and
information technology.

CRM - Perspective

CRM - Perspective
 Analytics – Analytics is the process of
studying, handling, and representing data in
various graphical formats such as charts,
tables, trends, etc., in order to observe market
trends.
 Business Reporting – Business Reporting
includes accurate reports of sales, customer
care, and marketing.

CRM - Perspective
 Customer Service – Customer Service
involves collecting and sending the following
customer-related information to the concerned
department:
 Personal information such as name, address, age,
etc.
 Previous purchase patterns.
 Requirements and preferences.
 Complaints and suggestions.

CRM - Perspective
 Human Resource Management – Human
Resource Management involves employing
and placing the most eligible human resource
at a required place in the business.
 Lead Management – Lead Management
involves keeping a track of the sales leads and
distribution, managing the campaigns,
designing customized forms, finalizing the
mailing lists, and studying the purchase
patterns of the customers.

CRM - Perspective
 Marketing – Marketing involves forming and
implementing sales strategies by studying
existing and potential customers in order to
sell the product.
 Sales Force Automation – Sales Force
Automation includes forecasting, recording
sales, processing, and keeping a track of the
potential interactions .

CRM - Perspective
 Workflow Automation – Workflow Automation
involves streamlining and scheduling various
processes that run in parallel. It reduces costs
and time, and prevents assigning the same
task to multiple employees.

CRM - Types

CRM Software Buying Considerations
 A business needs to consider the following
points while selecting a CRM software:
1. Business strategy and processes – It helps to
automate a customer management strategy.
Hence before selecting a CRM software, a
business should be clear with its strategies
and desired processes.

2. Business requirements – CRM systems
range from domain specialty solutions that
focus on solving a specific area such as sales
force automation, marketing automation,
services automation, partner management,
etc., to complete enterprise management
solutions.
3. Customer base – The size of the customer
base a business is required to handle.

4. Size of business – Small businesses require
tools that are easy to learn and can handle a
wide range of the most common tasks. Large
businesses opt for applications that handle
more complex tasks and thousands of users.
5. Budget – A business needs to set a budget
prior vendor selection. The budget allocated
for CRM varies according to the degree of
customization required.
6. .

6. Context – The context in which a business is
functioning, e.g., B2B or B2C, determines
which CRM the business should go for.
7. Sales channels – The sales channels a
business is employing: Direct sale, channel
sale such as distributors, or Direct to
customers via retail. They matter while
selecting the most suitable CRM software.

8. System integration – All the interfaces the
business needs and the CRM vendor can
support without requiring too much custom
services effort.
9. Strength of partners: The partners must be
able to provide a business with additional
support, or help to implement the CRM
successfully.

CRM Implementation
 Steps to a successful CRM Implementation:
1. Identify why you need a CRM and what you
expect from it.
2. Find a suitable CRM vendor for your
organization
3. Develop a budget.

CRM Implementation
4. Identify which departments and staff will
handle the process and train them
accordingly.
5. Draw a blueprint on how you need to
progress with the CRM
6. Ensure equal participation from business and
IT.

Phases of Customer Development

Customer Retention & Loyalty
 As the existing customers drive current
business profitability, retaining them is vital
for any business.
 Customer retention is the process of
maintaining continuous trading relationship in
long term.
 It can be achieved by the following strategies:

1. Negative Strategies: The clauses of penalty,
switching costs, and high exit costs make the
customers feel trapped with the business. If
the business enforces such strategies, it risks
the reputation by customers’ negative word-
of-mouth.
2. Positive Strategies: They help increasing
customer delight by understanding customer
requirements, meeting them, and providing
little more beyond their expectation.
Customers are delighted to do business with
you when their perception is more than their22RNB Global University, Bikaner.Course Code - 11010700

 Adding perceived value, ideally without
increasing product or service prices.
 Conducting loyalty schemes by rewarding the
high spending customers.
 Organizing sales promotion where a business
offers discounts on future purchases, cash
back on spending above a specific amount,
gifts, scratch coupons, etc.

 A business should retain the following
customers:
 The ones satisfied with the product or service.
 The ones who can suggest product innovation.
 The ones who are value to the business and are
capable of contributing to business profit.

CRM Tools for Customer Retention
1. Campaign Management Software that tracks
the up-selling and cross-selling campaigns
and their effectiveness in terms of profit
margins.
2. Data Mining helps in preparing customized
offers by referring to the stored transaction
history of customers and suggesting
probability of what customer might buy.

4. Event-based Marketing helps to send offers
to the customers when an important event is
triggered. For example, a bank sends its
customer the interest rates on fixed deposit
on opening a savings account with a bank.
5. Market Optimizing Software enables
marketers to manage their campaigns across
various customer segments, handle budget
constraints, track various costs, etc.

6. Channel Integration helps to manage working
of various communication channels
harmoniously to avoid creating and sending
different customized offer for the same
product and customer.

CRM Customer Support
 Customer support is a range of customer
services to assist customers in making cost
effective and correct use of a product.
 It includes assistance in planning, installation,
training, troubleshooting, maintenance,
upgrading, and disposal of a product.

CRM Customer Support
 Range of services:
1. Build customer satisfaction and loyalty.
2. Manage work more efficiently.
3. Automate service processes.
4. Resolve issues quickly and with precision.
5. Integrate with existing technologies.

CRM Phases (Process)

Benefits and Challenges of CRM.
 Customer satisfaction is the key to success in
any business.
 In order for a business to consistently maintain
success, it needs to satisfy its customers by
providing high quality products or services at
the right price.
 That’s why businesses need to constantly
interact with customers in order to understand
their true needs.

Benefits and Challenges of CRM.

Key Challenges in CRM Implementation
1. Defining Clear Objectives.
2. Appointing a Core CRM Team.
3. Defining the Processes.
4. Managing the Application.
5. Finding the Right Partner

CRM Failures Reasons
1. Lack of change management.
2. Lack of executive leadership.
3. Shortcuts mentality.
4. Unstructured relationship.
5. Failure to operate the CRM program.

Review
 The Business Focus.
 Contact and Account Management.
 Implementing CRM Systems- Sales, Marketing
& Fulfillment.
 Customer Service and Support.
 Retention and Loyalty Programs.
 Phases of CRM.
 Benefits and Challenges of CRM.
 CRM Failures.

Thank You!
RNB Global University, Bikaner. 36Course Code - 11010700

Crm

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