Customer relationship management


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Customer relationship management

  2. 2. DEFINITION Customer relationship management is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, market ng, customer service, and technical support.
  3. 3. FUNCTIONAL AREA CRM is concerned with the creation, development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value
  4. 4. CRM STRATEGIES- PRIORITIES  Acquire the right customer.  Craft the right value proposition.  Institute the best processes.  Motivate employees.  Learn to retain customers.
  5. 5. #1 - ACQUIRING THE RIGHT CUSTOMER Account selection demands a clear understanding of: 1. 2. 3. 4. 5. Seller’s resources Customer’s needs Cost of serving various groups of customers Potential profit opportunities How customers define value and how to meet those expectations
  6. 6. WHAT DO CUSTOMERS VALUE? Some demand low price  Some demand customer service  Some demand quick delivery   The question is: “Can the seller deliver it profitably?”  Many sellers try to meet all their customer’s needs, and may do so, but fail to do it profitably.
  7. 7. #2 – CRAFTING THE RIGHT VALUE PROPOSITION  A value proposition encompasses the products, services, ideas and solutions that a business marketer presents to the prospect/customer that is designed to solve the customers’ problems.  They can be generic or customized.
  8. 8. #3 - INSTITUTE BEST PRACTICES  The sales force plays a key role in establishing and growing a customer from a transactional account to a collaborative partnership.  They can do this by aligning and deploying technical and service support units to match with their customers’ units.  Technical groups can consist of research, logistics and customer service units.  Through careful management and screening, transactional accounts can progress to partnerships.
  9. 9. BEST PRACTICES FOLLOW-UP  1. 2. 3. In addition to using best practices, successful organizations (like IBM) employ follow-up techniques such as: Assigning a client representative to take ownership of the relationship. Assigning a Project Owner who completes the project or solves project problems. Developing an in-process feedback and measurement system.
  10. 10. #5 - RETAINING CUSTOMERS Retain customers by: Providing superior value (more than expected) to ensure high satisfaction.  Nurturing trust.  Developing mutual commitment.  If possible, helping customers grow their business. 
  11. 11. HOW TO PURSUE GROWTH FROM EXISTING CUSTOMERS Identify and cultivate customers that offer the most growth potential by: 1.Estimating current percent “share of wallet” 2.Pursuing opportunities to increase share 3.Projecting and enhancing customer profitability
  12. 12. EXPENDITURE ON CRM Company 2012 2012 Market Revenue Share (%) 2011 2011-2012 Revenue Growth (%) SAP Oracle Microsoft IBM Others Total 2,525.6 2,327.1 2,015.2 1,135.3 649.1 9,437.7 18,090.0 2,004.6 2,325.1 1,870.0 900.9 465.6 8,513.7 16,079.9 14.0 12.9 11.1 6.3 3.6 52.1 100.0 26.0 0.1 7.8 26.0 39.4 10.7 12.5 CRM Software Spending by Vendor, Total Software Revenue Worldwide, 2012 (Millions of Dollars) Source: Gartner (April 2013)
  13. 13. CRM IN RURAL AREA it is worth mentioning for rural marketing that “sentiments of customers are more important than economical utility of the products.” this serves as the guiding principle for seller of rural market. Customer relationship management can increase through following factors.  Packaging  Local language and local celebrity  Distribution customisation  Packaging customisation 
  14. 14. FACTORS INCREASING CRM IN RURAL AREA  Packaging : as packaging is important communication tool for rural market, companies must use prominent logo symbols and logo colors to ensure that illiterate consumer able to recognize the product. By creating a bond with customer through package, companies are able to establish a relationship that encourages repeat purchases.
  15. 15. FACTORS CONTINUED  Local language and local celebrity: the models would wear the clothes properly and would use local language to increase the relationship between product and rural customer. This actually shows that products are affordable and can be easily available for them
  16. 16. FACTORS CONTINUED Packaging customization Two of the most important element of package designed for rural india include size and visual communication. That’s why sachet market is introduced in rural area which make the product affordable to Indian rural customer.
  17. 17. FACTORS CONTINUED  Distribution customization: a variety of innovation have been takes place in customizing the distribution for rural market. For transportation of goods the regular store keeper hire auto rickshaws, bullock carts and even boats in south india
  18. 18. FACTORS CONTINUED  Leveraging rural marketing : Retailing is final phase of distribution channel. A study on buying behaviour of rural customers indicate that the rural retailer influence 35% of purchase decision. So it critically influence the rural market area and rural india
  19. 19. TYPES OF CRM  Marketing CRM systems for marketing track and measure campaigns over multiple channels, such as email, search, social media, telephone and direct mail. These systems track clicks, responses, leads and deals.
  20. 20. TYPES  Customer service and support CRM systems can be used to create, assign and manage requests made by customers, such as call center software which helps direct customers to agents. CRM software can also be used to identify and reward loyal customers over a period of time.
  21. 21. TYPES  Appointments CRM systems can automatically suggest suitable appointment times to customers via e-mail or the web. These can then be synchronized with the representative or agent's calendar.
  22. 22. TYPES  Small business For small businesses a CRM system may simply consist of a contact manager system which integrates emails, documents, jobs, faxes, and scheduling for individual accounts. CRM systems available for specific markets (legal, finance) frequently focus on event management and relationship tracking as opposed to financial return on investment (ROI).
  23. 23. TYPES  Social media CRM often makes use of social media to build up customer relationships. Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook to track and communicate with customers sharing their opinions and experiences with a company, products and services.Trends identified through social media allow businesses to make more accurate decisions on which products to supply.
  24. 24. ADVANTAGES OF CRM Revenue and profitablity inhancement  Cost saving and reduction  Organizational impact  Gain customer loyality  Increase in Productivity  Enhanced customer service  Leads to departmental integration 
  25. 25. DISADVANTAGES OF CRM Expensive implentation  Needs additional management to maintain.  Mistaken tool choice make CRM more complicated  Reasentment by employes towards change due to CRM practices  Major problem of learning curve due to implementation of CRM 
  26. 26. FACTS REGARDING CRM  “70% of CRM initiative fail” Source: Cap Gemini Earnst and Young  “90% of enterprises cannot show a positive return on CRM.” Source: META group  “75% of CRM initiatives fails to substantially impact the customer experience.” Source: Gartener
  27. 27. REFERENCES Customer relationship management: concepts and cases   anagement  JISC CRM handbook 