What is CRM?<br /><ul><li>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.
CRM is a management approach a model that puts a customer at the core of a company processes and practices.
CRM leverages cutting edge technology integrated strategic planning up-close and personal marketing techniques and Organization development tools to build internal external relationships that increase profit margins and productivity within a company.</li></li></ul><li>CRM Definition<br />CRM is a cross functional process for achieving:<br />A continuing dialogue with customers<br />Across all their contact and access points, with<br />Personalized treatment for the most valuable customers<br />To increase customer retention and the effectiveness of marketing initiatives<br />
CRM Components<br />CRM’s can be broken down into three key components.<br />Front Office Operations (sales, marketing, service etc)<br />Interaction With Customers (email, letters, phone, meetings, fax etc)<br />Enhance Company Relationship with Customer<br />
Need For CRM<br /><ul><li>To meet the changing expectations of customer due to:</li></ul> (a) social and demographic factors.<br /> (b) economic situations.<br /> (c) educational standards.<br /> (d) competitors product<br /> (e) experience.<br /><ul><li>Loyal customers are the source of most profits
A relatively small percentage of customers may generate most of the profits.
Marketing cost and efforts are less for existing customers.
Dissatisfied customers tell others about their experiences.
Slowing the rate of defection grows the customer base.
Reducing costs (e.g. through self-service).</li></li></ul><li>Customer Life Cycle Management<br />Customer Need Assessment and Acquisition<br />Customer development Through Personalization and Customization<br />Customer Retention and Referrals for new Customers<br />CRM<br />Customer Equity Leverage through Cross Selling and Up Selling<br />
Service Quality Gaps<br />Gap 1 : Not knowing what customers expect <br />Gap 2 : Not selecting the right service design standards<br />Gap 3 : Not delivering to Service Standards<br />Gap 4 : Not matching Performance to Promises <br />Gap 5 : Perceived Service and Expected Service<br />
Gap Analysis Grid<br />SATISFACTION<br /> Low High<br />IMPORTANCE<br />Current company strength<br />Unnecessary strengths - possible over skill<br />Attributes that need attention - area where priorities should be focused<br />Low Priority<br />High<br />Low <br />
The Key Stages of CRM<br />Culture<br />State<br />Stage<br />Satisfaction Based<br />Re-active<br />Meet customer needs <br />Respond to complaints<br />Minimal evaluation of customer service levels<br />Performance Based<br />Pro-Active<br />Evaluate customer perception<br />Identify customer retention factors<br />Very Pro-Active<br />Commitment Based<br />Evaluate multiple customer needs<br />Continuous inbound/outbound flow and feedback<br />Continuous improvement<br />
Electronic Customer Relationship Management<br />Latest paradigm in the world of CRM<br />
NEED OF e-CRM<br /><ul><li>Due to the introduction of new technology
To satisfy the customers at global level.</li></ul>(Sometimes customer itself prefer to do online purchasing.)<br /><ul><li>Basically e-CRM is concerned with attracting & keeping economically valuable customers & eliminating less profitable ones.</li></li></ul><li>Difference Between CRM And e-CRM<br />
Sales and Marketing are reluctant to adopt new automated CRM system.</li></li></ul><li>e-CRM Implementation Steps <br />
Categorizing Customers<br />*You have no choice but to handle them very carefully.<br />Will consume energy.<br />#Think of innovate ways of getting them on your side, but the cost of acquisition must be controlled<br />*Cultivate relationship. <br />Spend energy<br />Go out of your way<br /># Think of strategies to move them away from competition<br />Will consume disproportionately high energy<br />High<br />* Focus on short term profitability<br />Spend minimum energy to meet your objectives<br /># Don’t pursue<br />Use opportunity as it comes<br />Short term acquisition should not affect<br />Long term image<br />Strategic Importance to your business Plan<br />* Very cautious decision needed<br />Re-examine business plan & strategy. Evaluate that your loss does not become nightmare for you<br /># Needs in-depth strategic review as acquisition alone and dissatisfaction later could be more harmful<br />Low<br />Low<br />High<br />Profitability Potential<br />* Existing Customer# Potential Customers<br />
Economics Of Customer Retention<br />“Winning back a lost customer can cost up to 50-100 times as much as keeping a current one satisfied.”<br /> Rob Yanker, Partner, McKinsey & Company<br />Understanding your customer is key to retention…..<br />
“We need to roll this out across the enterprise ASAP”
“CRM systems are intuitive…. Users will only need some initial hand holding.”</li></li></ul><li>CRM: Not A Panacea<br /><ul><li>Not feasible for every market and customers
customers don’t want to be committed to every brand/relationship
Not feasible for low-involvement, habitual purchasing in B2B or B2C
Some markets/customers may have low “personalization potential”.
Shopping agents used by consumers undercut the idea of relp’s.
The organizational capability to produce a seamless/personalized experience is more difficult to master than a transactional approach.
Lower tier customers may become disaffected when they find out service is differentiated.</li></li></ul><li>References<br />Websites:<br /> - ephany.com<br /> - google.com<br /> - peoplesoft.com<br /> - bwiwatch.com <br />