Check for your self<br />Is CRM “ Old wine in a new bottle” ?<br />3/19/2010<br />1<br />Presentation done by Maxwell Rana...
Marketers give different interpretations to basics in marketing in time to time<br />Is it because marketers cannot find b...
Areas to be Covered<br />Introduction<br />Why has the role of marketing changed?<br />What is CRM?<br />Aims of CRM<br />...
Learning Objective<br />Understand the importance of customers<br />Understand the importance of creating relationship wit...
CRM has been mixed up with many topics<br />By<br />Pissu Pusa<br />3/19/2010<br />5<br />Presentation done by Maxwell Ran...
Some misconceptions about CRM<br />CRM is a marketing database<br />CRM is a marketing process<br />CRM is an IT iussue<br...
The purpose of business is to create and keep customers … to do that, you have to do those things that will make people wa...
Therefore CRM is not a short term tactic but a strategy that should be sustained.<br />Therefore CRM cannot be done in a v...
Technology has given consumers so much of information and power so that they could select and deselect businesses at their...
Introduction<br />More than a century ago, traders practiced personalised and customised marketing<br />Industrial revolut...
Introduction<br />Customers were ignored because traders assumed that their products/services were so good that customers ...
Introduction<br />Recently, customers are back in the forefront<br />Market is again focusing on the needs and wants of cu...
Why has the role of marketing changed?<br />Customers<br />Customers have become increasingly bold & aggressive in their d...
Why has the role of marketing changed……?<br />Globalisation<br />With the formation of trade blocks and free trade zones, ...
Why has the role of marketing changed……?<br />Competition<br />Today it is easy to start business<br />Number of customers...
Why has the role of marketing changed……?<br />Technology<br />Internet, 3G and e-commerce have totally revolutionalised th...
Why has the role of marketing changed…….?<br />Product life cycle<br />Technological advances and consumer shifts in taste...
Why has the role of marketing changed…….?<br />Total Quality Management (TQM)<br />When companies embrace TQM- it became n...
Why has the role of marketing changed………?<br />Economic situation<br />Customers will end up being more cautious withwhat ...
Political situation<br />World political scenario – not very stable.<br />This has made the business environment very vuln...
What is CRM?<br />CRM is a STRATEGY to IDENTIFY AND ATTRACT PROFITABLE CUSTOMERS, and RETAINING THEM BY CREATING EFFICIENT...
CRM<br />It is not a new concept or idea  <br />It was practiced by the corner grocer many decades ago  <br />The only dif...
Aims of CRM<br />Not to maximise the revenue from single transactions <br />It is rather to build a lasting relationship w...
Customer Loyalty / Customer Retention<br />Customer Relationship Management<br />Orgnisation’s Performance<br />Customer S...
Advantages of CRM over traditional mass-media marketing<br />Reduces advertising cost<br />Allows organisations to compete...
Components of CRM<br />Built around the following components: -<br />Focus on CUSTOMER RETENTION instead of on a single sa...
Conclusion<br />The business environment is very competitive today<br />Organisations are using price war, dependent on sa...
So you will see that the old wisdom “ Understanding the  customer well” is presented in a different format together with m...
Upcoming SlideShare
Loading in …5
×

Is CRM old wine in a new bottle

1,605 views

Published on

customer relations

Published in: Business, Travel
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,605
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Is CRM old wine in a new bottle

  1. 1. Check for your self<br />Is CRM “ Old wine in a new bottle” ?<br />3/19/2010<br />1<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  2. 2. Marketers give different interpretations to basics in marketing in time to time<br />Is it because marketers cannot find brand new theories to explain phenomena in market ?<br />Or marketing Gurus are ‘ “Marketers” and they keep on harping on the same thing but giving a different label ?<br />3/19/2010<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />2<br />
  3. 3. Areas to be Covered<br />Introduction<br />Why has the role of marketing changed?<br />What is CRM?<br />Aims of CRM<br />Advantages of CRM over traditional mass-media marketing<br />Components of CRM<br />3/19/2010<br />3<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  4. 4. Learning Objective<br />Understand the importance of customers<br />Understand the importance of creating relationship with customers<br />Understand the benefits of CRM<br />3/19/2010<br />4<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  5. 5. CRM has been mixed up with many topics<br />By<br />Pissu Pusa<br />3/19/2010<br />5<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  6. 6. Some misconceptions about CRM<br />CRM is a marketing database<br />CRM is a marketing process<br />CRM is an IT iussue<br />CRM is about loyalty schemes<br />CRM can be implemented by any company<br />3/19/2010<br />6<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  7. 7. The purpose of business is to create and keep customers … to do that, you have to do those things that will make people want to do business with you.<br />- PETER DRUCKER<br />3/19/2010<br />7<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  8. 8. Therefore CRM is not a short term tactic but a strategy that should be sustained.<br />Therefore CRM cannot be done in a vacuum<br />They co-exist with other business and marketing strategies<br />3/19/2010<br />8<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  9. 9. Technology has given consumers so much of information and power so that they could select and deselect businesses at their will<br />On the other hand, technology has given businesses an opportunity to access, analyse and gain greater customer insight at a lower cost<br />3/19/2010<br />9<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  10. 10. Introduction<br />More than a century ago, traders practiced personalised and customised marketing<br />Industrial revolution changed this <br />Emphasis was on mass production<br />Interactions with the customers was done by middlemen<br />This created transaction oriented marketing<br />3/19/2010<br />10<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  11. 11. Introduction<br />Customers were ignored because traders assumed that their products/services were so good that customers will continuously buy simply on the basis of that<br />The only thing that concerned any trader was his product<br />3/19/2010<br />11<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  12. 12. Introduction<br />Recently, customers are back in the forefront<br />Market is again focusing on the needs and wants of customers<br />The role of marketing has changed from concentrating on the product to customers<br />3/19/2010<br />12<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  13. 13. Why has the role of marketing changed?<br />Customers<br />Customers have become increasingly bold & aggressive in their demands not only for superior quality but also for responsive service<br />Customers want personalised & customised treatment <br />There are many different segment of customers. Thus, it is difficult for organisations to standardise their products & services<br />It has been proven that customer retention is more cost effective than customer acquisition<br />3/19/2010<br />13<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  14. 14. Why has the role of marketing changed……?<br />Globalisation<br />With the formation of trade blocks and free trade zones, markets are now more open because there are no/less trade barriers amongst member states<br />This has attracted a lot of foreign companies and products into local markets<br />Thus, organisations that are customer-centricare able to create a more sustainable competitive advantage in order to remain competitive <br />3/19/2010<br />14<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  15. 15. Why has the role of marketing changed……?<br />Competition<br />Today it is easy to start business<br />Number of customers has not increased as drastically as the number of companies<br />This has intensified competition<br />Thus, to have an edge – organisations create a strong relationship with customers<br />3/19/2010<br />15<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  16. 16. Why has the role of marketing changed……?<br />Technology<br />Internet, 3G and e-commerce have totally revolutionalised the business environment<br />Due to these, it is cheaper and convenient for organisations to build a strong relationship with their customers<br />Those organisations that best utilise this, will end up having an edge over the others <br />3/19/2010<br />16<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  17. 17. Why has the role of marketing changed…….?<br />Product life cycle<br />Technological advances and consumer shifts in tastes have shortened the product of life cycle of many products<br />New products – cost high<br />CRM is one way to lengthen the product life cycle<br />3/19/2010<br />17<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  18. 18. Why has the role of marketing changed…….?<br />Total Quality Management (TQM)<br />When companies embrace TQM- it became necessary to involve suppliers and customers in implementing the programme at all levels of the value chain<br />3/19/2010<br />18<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  19. 19. Why has the role of marketing changed………?<br />Economic situation<br />Customers will end up being more cautious withwhat they buy and spend their money on<br />Thus, customers cannot be taken for granted<br />3/19/2010<br />19<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  20. 20. Political situation<br />World political scenario – not very stable.<br />This has made the business environment very vulnerable<br />Due to this, customers are very careful in their spending<br />Thus, to ensure that customers continuously buy from a particular organisation, that organisation must create a strong relationship with them<br />Why has the role of marketing changed ……?<br />3/19/2010<br />20<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  21. 21. What is CRM?<br />CRM is a STRATEGY to IDENTIFY AND ATTRACT PROFITABLE CUSTOMERS, and RETAINING THEM BY CREATING EFFICIENT RELATIONSHIP marketing in order to guarantee profitable growth<br />3/19/2010<br />21<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  22. 22. CRM<br />It is not a new concept or idea <br />It was practiced by the corner grocer many decades ago <br />The only difference is now this has to be done in a large scale for tens of thousands of customers<br />3/19/2010<br />22<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  23. 23. Aims of CRM<br />Not to maximise the revenue from single transactions <br />It is rather to build a lasting relationship with the customer <br />It is a thorough understanding of the customer value creation process <br />Through this relationship, customer satisfaction, loyalty and retention can be achieved which will inevitable enhance the performance of an organisation<br />3/19/2010<br />23<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  24. 24. Customer Loyalty / Customer Retention<br />Customer Relationship Management<br />Orgnisation’s Performance<br />Customer Satisfaction<br />3/19/2010<br />24<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  25. 25. Advantages of CRM over traditional mass-media marketing<br />Reduces advertising cost<br />Allows organisations to compete for customers based on service, not prices<br />Prevents overspending on low-value clients or under spending on high-value ones<br />3/19/2010<br />25<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  26. 26. Components of CRM<br />Built around the following components: -<br />Focus on CUSTOMER RETENTION instead of on a single sale<br />Emphasis on CUSTOMER VALUE instead of on product features<br />LONG TIMESCALE rather than a short-term perspective<br />High CUSTOMERSERVICE emphasis<br />High CUSTOMER COMMITMENT<br />High CUSTOMER CONTACT<br />3/19/2010<br />26<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  27. 27. Conclusion<br />The business environment is very competitive today<br />Organisations are using price war, dependent on sales and some are even merging in order to survive<br />CRM can be a more effective way to stay competitive<br />3/19/2010<br />27<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />
  28. 28. So you will see that the old wisdom “ Understanding the customer well” is presented in a different format together with modern tools of information technology as CRM. There is no new theory but CRM emphasizes the understanding of customer, the main stake holder in the modern day business. Good Luck<br />3/19/2010<br />28<br />Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka<br />

×