Customer Relationship Management

1. AMITY SCHOOL OF BUSINESS
AMITY SCHOOL OF
BUSINESS
Customer Relationship Management
Module II
By
Dr Ruchika Jeswal

2. CRM Process
• CRM process is defined as any group of
action that is instrumental in the
achievement of the output of an operation
system, in accordance with a specified
measure of effectiveness.
• The final objective is to originate a
powerful new tool for customer retention.
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3. Objectives of CRM Process
The main objective of CRM process is to originate
a powerful new tool for customer retention.
•To simplify marketing and sales process.
•To make call centres more efficient.
•To provide better customer service.
•To discover new customers and increase
customer revenue.
•To cross sell products more effectively.
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4. Benefits of CRM Process
• Ability to retain loyal and profitable
customers and channels for rapid growth
of the business project.
• Acquiring the right customers, based on
known characteristics, which drives growth
and increased profit margins.
• Increasing individual customer margins,
while offering the right products at the right
time.
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5. A closed loop CRM process
• Gathering information- gathering information about customers from
sources both internal and external to organization.
• Perform data aggregation- It is here that the data is merged and
compressed into a complete view of the customer. A large customer
data repository is produced.
• Create “exploration warehouses”- These are extracts of the
customer data needed to support specific analyses, such as
customer profitability and predictive modelling. Exploration
warehouses are the engines for analytical applications that support
identification of opportunities and developing strategies.
• Execution of strategies- Execute these strategies by developing and
launching marketing campaigns across targeted segments of
customers. Campaign execution inevitably results in an interaction
with customers.
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6. • Finally, once a customer interaction takes place
and the customer responds, capture the
response and “recycle” it to use in the on-going
learning, analysis, and refinement process.
• Each time the process loop is completed, more
is learned about the needs and wants of
customers. Marketing improves as
understanding of customers is enhanced and
the ability to anticipate their needs increases.
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7. CRM Processes
• They can be broadly divided into FIVE
categories:
• The Strategy Development process
• The value creation process
• The multichannel Process
• The information Management process
• The performance assessment process
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8. • The Strategy Development process- This process
requires a dual focus on the organization’s business
strategy and its customer strategy.
• The value creation process- The 3 key elements of
are(a) determining what value the company can provide
to its customers.(b) determining what value the company
can receive from its customers;© by successfully
managing this value exchange that involves a process of
co-creation, maximizing the lifetime value of desirable
customer segment.
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9. • The multichannel Process- the most important processes
in CRM, because it takes the outputs of the business
strategy and value creation processes and translates
them into value-adding activities with customers.
• The information Management process- It is concerned
with the collection, collation and use of customer data
and information from all customer contact points to
generate customer insight and appropriate marketing
response.
• The performance assessment process- it covers the
essential task of ensuring that the organization’s
strategic aims in terms of CRM are being delivered. To
an appropriate and acceptable standard.
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10. Process selection Procedure
• Process planning is the intermediate stage between project kick off
and implementation.
• It Creatively translates business innovation, structural
transformation and value measures into CRM investment priorities.
• This determines how the service will be produced
– Major technological changes
• Does technology exist or not?
• Are there competing technologies between which we should choose?
• Should the technology be developed in the country itself?
• Should innovations be licensed from foreign countries?
– Minor technological changes
• Evaluating alternative for cost and consistency of the desired product
– Specific component choice
• What type of hardware is to be used?
• How effectively should we use technology?
– Process flow choice
• How CRM product will move through the system.

11. Four C’s of CRM process(fig)
• Correlate- A series of transaction and interaction that make up a
dialogue between customer/ channel/ end user and an organization.
This is the data that is collected from all contact points and
communications with outside points of contact.
• Combine- The mapping and management of interaction points
between a customer/ channel. End user and organization.
• Cognize- The insight gained through capture and analysis of
detailed information is to create continuous learning from the data
warehouse and knowledge base that is created, interrogated and
analyzed.
• Connect- The application of insight to create relevant interaction or
communication with consumers, customers, channels, suppliers and
partners that build relationships.
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12. Four C’s of CRM Process
• These four activities help to achieve the
extended CRM process.
• The basic structure of the CRM organization
should align around the key communication
process. Inorder to recognize the right customer,
relate the right offer, and schedule the
interaction of the offer at the right time, with the
connection across the right channel. People will
have to share a process and activate their skills
to complete the activities and tasks required for
success.
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14. The CRM Cycle Process
• Assessment Phase- It develops a model of the
behaviour of target customers, using a combination of in-
house data and external demographic, psychographic
and other data.
• Planning Phase- During this phase, marketing decides
how best to approach the customers defined in the
assessment stage by designing marketing campaigns
and strategies.
• Execution Phase- The organization puts all this
knowledge to work, using all the touchpoints available.
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15. eCRM
• It is a real designation, but it isn’t a revolutionary new
system or set of processes; eCRMis CRM online.
• It implies an additional means of communication and
level of interaction with the customer where there is a
real difference in the technology and its architecture,
which allows for ease of self-service to the customer.
• How to build an eCRMsolution:
- Define its business objectives?
- Assess its current “sophistication” along with the
eCRMcontinuum in terms of process and technology and
- Define business processes and changes needed to
support its goals.
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17. Why the Move to Online CRM
• The use of the Internet as a main business passage is an eCRM.
• As the world population becomes increasingly comfortable using the
Internet securely, it is increasingly likely that most of the standard
business transactions, which are done on the phone or even in
person, will be done via the Internet.
• eCRMis the customer facing Internet portion of CRM.It includes
services like self-service knowledge bases, automated e-mail
response, personalization of web content, online product bundling
and pricing.
• eCRMgives Internet users the ability to carry on users with the
business through their preferred communication channels.
• It also allows the business to offset expensive customer service
agents to value its ability to improve customer satisfaction and
reduce costs through improved efficiency.
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18. • However, an eCRMstrategy deployed alone can also
backfire and this actually may result in decreased
customer satisfaction.
• If the customer interactions through electronic channels
are not effortlessly integrated with those taking place
through traditional channels, the customer is likely to
become frustrated.
• Therefore, it’s imperative that eCRMbe installed in
conjunction with traditional CRM and that the two
function together.
• Or the results of eCRMmay prove to be disastrous.
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19. The Need to Adopt eCRM
• Optimize the value of inter-active relationships.
• Enable business to extend its personalized messaging to
the web and e-mail.
• Coordinate marketing initiatives across all customer
channels.
• Leverage customer information for more effective
eMarketing and eBusiness.
• Focus business on improving customer relationships,
and earning a greater share of each customer’s business
through consistent measurement, assessment and
actionable customer-contact strategies.
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20. Basic requirements of eCRM
• Electronic channels
• Enterprise
• Empowerment
• Economics
• Assessment
• Outside information
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21. Three Dimensions in eCRM
• Acquisition getting(increasing number of
new customers)
• Expansion(increasing profitability by
encouraging customers to purchase more
products and services.)
• Retention (increasing the amount of time
customers stay as customers)
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22. KEY eCRMfeatures
• An eCRMsolution must possess certain
key characteristics:
• Focussed on process
• Driven by data warehouse
• Focussed on a multi-channel view of customer behaviour
• Based on consistent metrics to assess customer actions across
channels.
• Built to accommodate the new market dynamics that place the
customer in control.
• Structured to identify a customer’s profitability or profit potential and
determine effective investment allocation decisions accordingly.
• Scalable to meet growth and performance needs.
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23. mCRM
• Mobile customer relationship management (mobile
CRM) is a type of customer relationship management
application designed to be executed, operated and
accessed through mobile platforms.
• Mobile CRM enables organizations to add, edit and
manage their interaction and relationships with current or
prospective customers through mobile applications on
handheld mobile devices, PDAs and tablet PCs.
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24. • Mobile CRM is typically designed for users such as sales or
marketing personnel who often require remote access to the
organization’s core CRM application. Mobile CRM can be an
extension of the in-house deployed CRM, accessed using a thin
client application over a secure VPN connection, or a cloud CRM
accessed through a mobile Web browser.
Depending on the vendor/developer, mobile CRM may provide the
same functionality and services as a desktop or typical CRM without
the need for prior installation besides a thin client mobile application
for accessing the organization’s primary CRM server.
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25. Customer Touch Points

26. Modules in CRM
• CRM applications are a convergence of
functional components, advanced technologies
and channels.
• Functional components include
– Sales applications
– Marketing automation
– Customer service and support applications
• Channels include
– Web
– Call centers
– Phones
– Mobile devices

27. Functional Components
• Sales application
– Thrust of SFA is automating the fundamental activities of sales
professionals, both internally and in the field
• Scheduling
• Account management
• Compensation
• Opportunity and pipeline management
• Sales forecasting
• Proposal generation and management
• Pricing
• Territory assignment and management
• Expense reporting
• Marketing application
– These application complement the SFA application and provide
certain capabilities unique to marketing
• Web based/traditional marketing campaign planning, execution and
analysis
• Collateral generation and marketing materials management
• List generation and management
• Budgeting and forecasting
• Lead tracking, distribution and management

28. • Customer Service and Support Applications: Have
gained a major importance for effective customer retention and in
many cases profitability depends on providing superior service.
These applications are typically deployed through call centre
environment or over the web for self-service, and allow
organizations for support the unique requirements for their
customers with greater speed, accuracy and efficiency. Common
applications include : Customer Care
-Incident, defect, and order tracking
-Field service
- Problem and solution database
-Repair scheduling and dispatching
- Service agreements and contracts
- Service request management
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29. END 29
• Assignment :
• Study the CRM activities of Vodafone, a leading mobile service
operator of India, and note down the advantages and the benefits
the company had seen in the markets because of its superior CRM
practices.
• Study the following industries of India and give a presentation in the
class about the CRM activities of FIVE companies in a particular
industry:
 Insurance
 Banking Industry
 Hospitals
 Hotels
 Automobiles
 Airlines