Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Customer Relationship Management
(CRM)
Compiled By:
Jas Singh Bhasin
• Introduction
• Timeline of CRM
• Determinants of CRM
• Stages of CRM
• Functions of CRM
• Managing Customer Relationship...
What is Customer Relationship Management (CRM)?
• It is a model for managing a company’s interactions with current and
future customers. It involves using technology to o...
 1980s: Database marketing emerges.
 1980s: Database helped larger organizations rather then
small who only got survey t...
Determinants of CRM
Trust
• The willingness to rely on the ability, integrity, and motivation of
• one company to serve th...
Determinants of CRM
In addition to trust and value, salespeople must:
• Understand customer needs and problems;
• Meet the...
Stages of CRM
• The Pre-relationship Stage
The event that triggers a buyer to seek a new business partner.
• The Early Sta...
Direct functions (are the basic requirements of a company that are necessary to
survive in the competitive marketplace)
• ...
Functions of CRM
Management Decision
Process
Customer sensitivity
•Diversity
•Information
•Differentiated
offering
Value C...
18.11
Managing Customer Relationships
The salesperson must be involved in the following activities in order to initiate, d...
18.12
Managing Customer Relationships
Initiating the relationship
• Engage in strategic prospecting and qualifying;
• Gath...
18.13
Managing Customer Relationships
Developing the relationship
• Select an appropriate offering;
• Customise the relati...
Managing Customer Relationships
Enhancing the relationship
• Assess customer satisfaction;
• Take action to ensure satisfa...
• Companies that create satisfied and loyal customers, have more repeat
business, lower customer-acquisition costs and str...
18.16
Benefits of CRM
Top CRM Players
Company Product name
1. Microsoft Microsoft Dynamics CRM 3.0
2. Sage Software SalesLogix CRM
3. SAP Americ...
Case Study : Mercedes’s CRM
Challenges faced by Mercedes before implementing CRM:
• Autonomous Dealers:
Mercedes-Benz was ...
Case Study : Mercedes’s CRM
• Uncoordinated communication received from dealerships:
Mercedes-Benz customers received comm...
Case Study : Mercedes’s CRM
Solutions adopted by Mercedes:
• Adopting New Distribution Model:
They re-organized the market...
Case Study : Mercedes’s CRM
• Better Relationship between customer and salesperson :
Instead of a salesman owning a custom...
THANK YOU!
Upcoming SlideShare
Loading in …5
×

Customer Relationship Management [CRM]

2,226 views

Published on

Customer Relationship Management or CRM is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service and technical support.

It is a new business philosophy based on trust and value

It provides selling organisations with the platform to obtain a competitive advantage by embracing customer needs and building value-driven long-term relationships.

Published in: Leadership & Management

Customer Relationship Management [CRM]

  1. 1. Customer Relationship Management (CRM) Compiled By: Jas Singh Bhasin
  2. 2. • Introduction • Timeline of CRM • Determinants of CRM • Stages of CRM • Functions of CRM • Managing Customer Relationship • Benefits of CRM • Case Study : Mercedes-Benz Learning Objectives
  3. 3. What is Customer Relationship Management (CRM)?
  4. 4. • It is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service and technical support. • It is a new business philosophy based on trust and value • It provides selling organisations with the platform to obtain a competitive advantage by embracing customer needs and building value-driven long-term relationships. Customer Relationship Management
  5. 5.  1980s: Database marketing emerges.  1980s: Database helped larger organizations rather then small who only got survey type info.  1990s: CRM appears as a two-way communication device.  1990s: CRM leads to programs such as frequent flyer miles and bonus points on credit cards.  2000s: Internet has helped expand from stagnant database and allows off-site information storage.  2000s: Used most frequently in financial services, high tech corporations Timeline of CRM
  6. 6. Determinants of CRM Trust • The willingness to rely on the ability, integrity, and motivation of • one company to serve the needs of the other company as agreed • upon implicitly and explicitly. Value • The ability of a selling organisation to satisfy the needs of the • customer at a comparatively lower cost or higher benefit than • that offered by competitors and measured in monetary, • temporal, functional and psychological terms.
  7. 7. Determinants of CRM In addition to trust and value, salespeople must: • Understand customer needs and problems; • Meet their commitments; • Make sure that the customer is always told the truth (must be honest); • Have a passionate interest in establishing and retaining a long-term relationship.
  8. 8. Stages of CRM • The Pre-relationship Stage The event that triggers a buyer to seek a new business partner. • The Early Stage Experience is accumulated between the buyer and seller although a great degree of uncertainty and distance exists. • The Development Stage Increased levels of transactions lead to a higher degree of commitment and the distance is reduced to a social exchange. • The Long-term Stage Characterised by the companies’ mutual importance to each other. • The Final Stage The interaction between the companies becomes institutionalized.
  9. 9. Direct functions (are the basic requirements of a company that are necessary to survive in the competitive marketplace) • Profit; • Volume; and • Safeguard Indirect functions (are the actions necessary to convince the customer to participate in various marketing activities). • Innovation: • Market; and • Access. Functions of CRM
  10. 10. Functions of CRM Management Decision Process Customer sensitivity •Diversity •Information •Differentiated offering Value Creation Process Technology Delivery Process •R&D •Technology integration •Efficiency Product Delivery Process •Concept to launch •Manufacturing process Customer Delivery Process •Supply chain •Distribution •Infomediation (distribution of information) Value-based Strategies •Pricing •Communication
  11. 11. 18.11 Managing Customer Relationships The salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.
  12. 12. 18.12 Managing Customer Relationships Initiating the relationship • Engage in strategic prospecting and qualifying; • Gather and study pre-call information; • Identify buying influences; • Plan the initial sales call; • Demonstrate an understanding of the customer’s needs; • Identify opportunities to build a relationship; and • Illustrate the value of a relationship with the customer
  13. 13. 18.13 Managing Customer Relationships Developing the relationship • Select an appropriate offering; • Customise the relationship; • Link the solutions with the customer’s needs; • Discuss customer concerns; • Summarize the solution to confirm benefits; and • Secure commitment.
  14. 14. Managing Customer Relationships Enhancing the relationship • Assess customer satisfaction; • Take action to ensure satisfaction; • Maintain open, two-way communication; and • Work to add value and enhance mutual opportunities.
  15. 15. • Companies that create satisfied and loyal customers, have more repeat business, lower customer-acquisition costs and stronger brand value which results in better financial performance. Benefits of CRM
  16. 16. 18.16 Benefits of CRM
  17. 17. Top CRM Players Company Product name 1. Microsoft Microsoft Dynamics CRM 3.0 2. Sage Software SalesLogix CRM 3. SAP America Inc. SAP Business One CRM 4. Parature Inc. Parature 5. Entellium Entellium CRM 6. Pivotal corp. Pivotal CRM 7. Maximizer Software Maximizer Enterprise CRM 8. Netsuite Inc. NetSuite CRM+ 9. Oncontact Software Oncontact V 10. ADAPT Software Applications ADAPT crm 11. Exact Software North America e-Synergy
  18. 18. Case Study : Mercedes’s CRM Challenges faced by Mercedes before implementing CRM: • Autonomous Dealers: Mercedes-Benz was sold in the UK through a franchised network of some 138 dealerships. All dealers managed their own relationships including customer research, data base management, acquisition and retention processes. • Low Quality of Service: Although the technical quality of the product was highly regarded, customers complained that the service that they received was not of the same high standard. This translated into declining customer satisfaction and increased defection. • Communication-Delivery Inconsistency: Customers reported that there was an inconsistency between the communication that they received and the service that was delivered. • Inadequate Enquiry System: Enquiries from the customer went directly to the dealerships and were handled through their internal processes. These were sometimes inadequate.
  19. 19. Case Study : Mercedes’s CRM • Uncoordinated communication received from dealerships: Mercedes-Benz customers received communication from different dealerships that was not always coordinated. Such communication may not match customer needs at a particular point in time in their purchase cycle and may result in conflicting or duplicated messages. • Isolated Database: Each dealership operated its own database. The information in this database could be out of date, inaccurate and missing important information. • Salesperson’s Attitude: Salespeople did not always appreciate that it was essential to record correct and complete customer information if effective contact was going to be sustained. • Inconsistent Customer Record: Mercedes-Benz buyers are even harder to track than the average person. Because of their high incomes, lifestyles and career paths, they tend to be promoted and transferred more often and have the means to buy new houses frequently.
  20. 20. Case Study : Mercedes’s CRM Solutions adopted by Mercedes: • Adopting New Distribution Model: They re-organized the market into thirty five new, larger geographical areas and invited a number of existing dealerships to enter into new retailer agreements. This entailed these dealerships taking over responsibility for the retail sales and service of Mercedes in specific geographic territories or ‘market areas’ (MAs). • Project Management Team was Established : The project management team set about identifying the key CRM processes and determining how each process would be implemented throughout the new retail structure. • Benchmark Mercedes-Benz : This research suggested that there were several areas where greater value could be delivered to the customer during both the sales process as well as during the ownership experience. • New Retail Agreements started working : Under the new retail agreements entered into by the MAs, it gained closer control of the valuable Mercedes-Benz brand.
  21. 21. Case Study : Mercedes’s CRM • Better Relationship between customer and salesperson : Instead of a salesman owning a customer, each relationship was carefully managed centrally through the new CRM marketing team set up within each MA. Each communication channel was carefully integrated so that the customer received relevant messages by an appropriate channel at various critical points during the ownership cycle. • Measurement of Customer Satisfaction and Customer Loyalty: One MA was chosen to test out processes and to confirm the benefits. These results could be broadcast through the dealer network to encourage others. • Introduction of Critical Customer Processes: Prospect Management, Complaint Management, Feedback Management, etc. • Result: The MA could justify the significant expenditure on CRM systems and processes by the impressive financial returns as well as improvements in critical customer measures.
  22. 22. THANK YOU!

×