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Crm defined


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Crm defined

  1. 1. Customer Relationship Management
  2. 2. CRM is… <ul><li>a comprehensive business model for increasing revenues and profits by focusing on customers. </li></ul><ul><li>both an overarching business philosophy and a process tool to facilitate a truly customer-driven enterprise. </li></ul>
  3. 3. CRM is… <ul><li>“… a journey of strategic, process, organizational and technical change whereby a company seeks to better manage its enterprise around customer behaviors. This entails acquiring knowledge about customers and deploying this information at each touchpoint to attain increased revenue and operational efficiencies.” </li></ul><ul><ul><ul><ul><ul><li>PriceWaterhouse Coopers </li></ul></ul></ul></ul></ul>
  4. 4. Customer-Centric Cultures Include… <ul><li>Adopting a partnership business model with mutually shared risks and rewards </li></ul><ul><li>Defining selling as customer business consultation </li></ul><ul><li>Formalizing customer analysis processes and agreements </li></ul><ul><li>Being proactive in educating customers about value chain and cost reduction opportunities </li></ul><ul><li>Focusing on continuous improvement principles stressing customer satisfaction </li></ul>
  5. 5. Objectives of CRM <ul><li>Customer Retention - retain loyal and profitable customers and channels </li></ul><ul><li>Customer Acquisition - acquire customer based on known characteristics which drive growth and increase margins </li></ul><ul><li>Customer Profitability - increase individual customer margins by offering the right product at the right time </li></ul>
  6. 6. Advantages of CRM <ul><li>Reduces advertising costs </li></ul><ul><li>Increases awareness of customer needs </li></ul><ul><li>Tracks the effectiveness of promotional campaigns </li></ul><ul><li>Allows competition for customers based on service, not prices </li></ul><ul><li>Prevents overspending on low-value clients and under spending on high-value ones </li></ul><ul><li>Speeds the time it takes to develop and market a product </li></ul><ul><li>Improves use of the customer channel </li></ul>
  7. 7. The CRM Process Cycle
  8. 8. 10 Critical Questions in CRM <ul><li>Customers </li></ul><ul><ul><li>Who are our customers? </li></ul></ul><ul><ul><li>What do our customers want and expect? </li></ul></ul><ul><ul><li>What is the value potential of our customers? </li></ul></ul><ul><li>The Relationship </li></ul><ul><ul><li>What kind of relationship do we want to build? </li></ul></ul><ul><ul><li>How do we foster exchange? </li></ul></ul><ul><ul><li>How do we work together and share control? </li></ul></ul><ul><li>Managerial Decision Making </li></ul><ul><ul><li>Who are we? </li></ul></ul><ul><ul><li>How do we organize to move value closer to our customers? </li></ul></ul><ul><ul><li>How do we measure and manage our performance? </li></ul></ul><ul><ul><li>How do we increase our capacity for change? </li></ul></ul>