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ustomer
elationship
anagement
2Overview :
1 : What is a CRM ?
2 : Importance of CRM
3 : Why did CRM develop ?
4 : What does CRM involves ?
5 : CRM models
6 : Phases of CRM
7 : Information technology and CRM
8 : Benefits of CRM
31. Definition of CRM
• Customer relationship management is a company-wide business strategy
designed to optimize profitability, revenue, and customer satisfaction by
focusing on highly defined and precise customer groups.
• Overall, the methodologies and tools that help businesses manage
customer relationships in an organized way
2. Importance of CRM
» The focus [of CRM] is on creating value for the
customer and the company over the longer
term.
» When customers value the customer service
that they receive from suppliers, they are less
likely to look to alternative suppliers for their
needs.
4
5
» CRM enables organizations to gain ‘competitive
advantage’ over competitors that supply similar
products or services
» The adoption of C.R.M. is being fuelled by a
acknowledgement that long-term relationships with
customers are one of the most important assets of
an organisation .
» The 1980’s onwards saw
rapid shifts in business that
changed customer power.
3. Why did CRM develop ?
» Sellers had little pricing
power.
» The only protection
available to suppliers of
goods and services was in
their relationships with
customers .
6
4: What does CRM involve ? 7
CRM involves the
following
Organizations must
become customer
focused
Organizations must be
prepared to adapt so that
it take customer needs
into account and delivers
them
Market research must be
undertaken to assess
customer needs and
satisfaction
5. CRM models : 8
A company should clarify the type of relationship it wants to
establish with each Customer Segment. Relationships can range
from personal to automated. Customer relationships may be
driven by the following motivations:
• Customer acquisition
• Customer retention
• Boosting sales (upselling)
9
We can distinguish between several categories of Customer Relationships, which may co-exist
in a company’s relationship with a particular Customer Segment:
Personal
assistance
Dedicated
personal
assistance
Self-
service
Automated
services
Co-
creation
6. Phases of CRM 10
Mass
marketing
Target
marketing
Relationship
marketing
Customer
relationship
marketing
7. Information technology and CRM 11
• Technological approaches involving the use of databases, data mining
and one-to-one marketing can assist organizations to increase customer
value and their own profitability
• This type of technology can be used to keep a record of customers names
and contact details in addition to their history of buying products or using
services
• This information can be used to target customers in a personalized way
and offer them services to meet their specific needs
• This personalized communication provides value for the customer and
increases customers loyalty to the provider
Examples : 12
Phone calls, emails,
mobile phone text
messages, or WAP
services
Cookies
Loyalty cards
CRM software : 13
8. Benefits of CRM : 14
» reduced costs, because the right things are being done.
» increased customer satisfaction, because they are getting exactly what
they want.
» ensuring that the focus of the organisation is external.
» growth in numbers of customers.
» maximization of opportunities .
» increased access to a source of market and competitor information.
» highlighting poor operational processes.
» long term profitability and sustainability.
15
16
• No CRM system in place
• Receiving e-mailed
monthly reports in
Microsoft Word
documents
• Information was not
consistent
• Data was not up to date
or fully accurate
• Enterprise class Customer
Relationship Management
software for a low monthly
subscription per user
• Salesforce.com eliminates
the need to buy, install or
maintain hardware, software
or networks
• Boost Customer
Responsiveness and Speed
to Market
• Salesforce.com's multi-
language facility means that
different people in different
countries can view the same
customer report in their own
language and currency
17

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CRM Overview: Benefits and Models Explained

  • 2. 2Overview : 1 : What is a CRM ? 2 : Importance of CRM 3 : Why did CRM develop ? 4 : What does CRM involves ? 5 : CRM models 6 : Phases of CRM 7 : Information technology and CRM 8 : Benefits of CRM
  • 3. 31. Definition of CRM • Customer relationship management is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. • Overall, the methodologies and tools that help businesses manage customer relationships in an organized way
  • 4. 2. Importance of CRM » The focus [of CRM] is on creating value for the customer and the company over the longer term. » When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs. 4
  • 5. 5 » CRM enables organizations to gain ‘competitive advantage’ over competitors that supply similar products or services » The adoption of C.R.M. is being fuelled by a acknowledgement that long-term relationships with customers are one of the most important assets of an organisation .
  • 6. » The 1980’s onwards saw rapid shifts in business that changed customer power. 3. Why did CRM develop ? » Sellers had little pricing power. » The only protection available to suppliers of goods and services was in their relationships with customers . 6
  • 7. 4: What does CRM involve ? 7 CRM involves the following Organizations must become customer focused Organizations must be prepared to adapt so that it take customer needs into account and delivers them Market research must be undertaken to assess customer needs and satisfaction
  • 8. 5. CRM models : 8 A company should clarify the type of relationship it wants to establish with each Customer Segment. Relationships can range from personal to automated. Customer relationships may be driven by the following motivations: • Customer acquisition • Customer retention • Boosting sales (upselling)
  • 9. 9 We can distinguish between several categories of Customer Relationships, which may co-exist in a company’s relationship with a particular Customer Segment: Personal assistance Dedicated personal assistance Self- service Automated services Co- creation
  • 10. 6. Phases of CRM 10 Mass marketing Target marketing Relationship marketing Customer relationship marketing
  • 11. 7. Information technology and CRM 11 • Technological approaches involving the use of databases, data mining and one-to-one marketing can assist organizations to increase customer value and their own profitability • This type of technology can be used to keep a record of customers names and contact details in addition to their history of buying products or using services • This information can be used to target customers in a personalized way and offer them services to meet their specific needs • This personalized communication provides value for the customer and increases customers loyalty to the provider
  • 12. Examples : 12 Phone calls, emails, mobile phone text messages, or WAP services Cookies Loyalty cards
  • 14. 8. Benefits of CRM : 14 » reduced costs, because the right things are being done. » increased customer satisfaction, because they are getting exactly what they want. » ensuring that the focus of the organisation is external. » growth in numbers of customers. » maximization of opportunities . » increased access to a source of market and competitor information. » highlighting poor operational processes. » long term profitability and sustainability.
  • 15. 15
  • 16. 16 • No CRM system in place • Receiving e-mailed monthly reports in Microsoft Word documents • Information was not consistent • Data was not up to date or fully accurate • Enterprise class Customer Relationship Management software for a low monthly subscription per user • Salesforce.com eliminates the need to buy, install or maintain hardware, software or networks • Boost Customer Responsiveness and Speed to Market • Salesforce.com's multi- language facility means that different people in different countries can view the same customer report in their own language and currency
  • 17. 17