This document discusses key concepts in customer relationship management (CRM), including the importance of retaining customers, the difference between transactional and relationship marketing, and how technology can enable CRM. It emphasizes that the success of CRM depends on both technology and the personal touch in customer service. The goal of CRM is to turn prospects into advocates by minimizing defection rates and building a base of loyal customers over time. Effective CRM requires understanding what customers value in order to develop strategies to enhance customer relationships and loyalty.
Service marketing- customer relationship managementsksbatish
customer relation management in service sector, the profitability segmentation of customers in service marketing, service marketing, the types of customers in various segmentation,
CRM is a competitive strategy and process of acquiring, reacting and partnering with selective customers to create superior value for the company and the customer.
Early in 2008 under the leadership of Barbara Canning Brown, Toys R Us began to shift customer marketing to becoming more customer centric and more integrated across marketing touchpoints. The real kickoff for this effort was in the August 2008 monthly CRM meeting where goals and objectives were reviewed against the general business goals set by Eleanor Hong and Greg Ahern.
Service marketing- customer relationship managementsksbatish
customer relation management in service sector, the profitability segmentation of customers in service marketing, service marketing, the types of customers in various segmentation,
CRM is a competitive strategy and process of acquiring, reacting and partnering with selective customers to create superior value for the company and the customer.
Early in 2008 under the leadership of Barbara Canning Brown, Toys R Us began to shift customer marketing to becoming more customer centric and more integrated across marketing touchpoints. The real kickoff for this effort was in the August 2008 monthly CRM meeting where goals and objectives were reviewed against the general business goals set by Eleanor Hong and Greg Ahern.
Implementation of CRM systems do not lead to sustained performance advantage since it is usually treated as a pure technology implementation. This paper (as published in Indian Management) highlights that this is in fact a Strategy, and shows how frameworks like MACE can be adopted to look at managerial aspects and bring about change to achieve CRM success.
Presentation to masters degree classes in finance and economics at Trinity College Dublin. This presentation deals with central banking, financial crises and leadership and values in financial services.
This presentation provides insight into how to forecast and calculate customer lifetime value (CLV). Here a startup applied a scientific approach to maximise customer retention and minimise churn. The outputs of the analytics were built into the system and business processes driving the success of the company and helping it to win the customer service of the year award, and to achieve a successful exit through acquisition.
Metrics How To: Ratio of Customer Lifetime Value to Customer Acquisition CostFiresnap, Inc.
A marketing metrics tutorial. How to determine your Ratio of Customer Lifetime Value to Customer Acquisition Cost (LTV:CAC).
Original Article Found Here: https://www.linkedin.com/pulse/how-calculate-ratio-customer-lifetime-value-acquisition-dustin-hall/
Customer Care ... CRM ... Customer Experience -- What's the Difference?ClearAction
All organizations can reach higher potential by carefully managing all of the dimensions of customer knowledge, customer well-being, and customer profitability. Make sure CEM is integrated in your strategies and culture. See http://ClearActionCX.com
The Future of CRM: Aligning Sales and Support Around the Customer JourneyTeckstco
CRM/Analytics thought leader Ryan McGuire looks at the future of CRM as one where the customer journey is aligned from sales to support, and how your organization can take steps toward making this transformation. Enterprise two-way messaging platform provider Teckst discusses enterprise use cases and learnings from past implementations.
This is a presentation based on customer relationship management, which is now-a-days a very important issue for every company as well for the customers. For capturing more and more customers satisfyingly, every firm need to get into this CRM.
Similar to 24.crm – customer relationship management (20)
2. Learning Outcomes
Concept of customer value
Limitations of CRM
Role of Technology in CRM
Importance of Retaining customers
Difference between Transaction & Relation
Transaction – a one time activity
Relation – several transactions lead to a relation
Transactional marketing – acquiring new customers
Relationship marketing – retaining existing customers
3. Relationship Marketing
Attracting
Developing
Retaining customer relationships
Creation of customers who enjoy service, feel valued and who
will be loyal.
Create win-win situations.
BENEFITS OF CRM > COST INVOLVED (money + time + effort
involved)
Revenue for Supplier > Financial cost of attracting the customer
+ establishing relationships + executing each transaction.
4. CRM
Relationship – Long Term
Value Proposition to Customer
Short term – benefits, discounts, preferred booking
Long term – benefits in the long run example –
frequent flyer
Technology Enablers ( ATM, Phone banking, Online booking, Account
balances on mobiles).
For a customer, Value = (Perceived benefits in dealing with you –
Perceived costs in dealing with you.)
5. CRM
Success of CRM is not dependent on technology alone.
Why ?
Lack of personal touch in services that are backed by
technology (Phone banking vis-à-vis a personal visit to the
branch).
Customer Loyalty defines CRM.
For a new firm, customer acquisition is important
For established companies, customer retention is
important.
6. Defectors
Customers who go to competitors
Price as a reason for defection – Cell Phone, Airlines
Product as a reason – Aspiration to have a superior product (may be
a perception) examples – Internet connection of BSNL, Airtel, MTS.
Service is bad – Hotels, Couriers, Restaurants
Market Defectors – Customers may move from one city to another
or one locality to another so they will prefer the nearest available
service.
Technology defectors – Mobile Phone, Computers, Laptop, MP3
Players, IPOD players.
Social defectors – under peer pressure, family influence causes
defection.
7. Solutions to handle defectors
• Talk to customers – exit interview
• Find out reasons for defection
• Use a survey to identify strong points
• Benchmark against competition –intelligence gathering,
market surveys
• Dealing with change (Change management) is important.
9. Customer value
• Predicting customer value is complex –
unpredictable
• Credit has to be given for customer
referrals
• Generally customer value is computed
over a period of time (5 to 7 years)
• Loyalty demands a value
11. Ladder of Loyalty
ADVOCATE
SUPPORTER
CLIENT
CUSTOM
ER
PROSPE
CT
Emphasis on
developing &
enhancing
relationships
Emphasis
on new
customers
Customer
Retention
Customer
acquisition
12. Objectives of CRM
• Turn prospects to advocates
• Minimize defection rates by corrective and preventive
actions
• Build a large number of loyal customers over time.
• Maintain balance in the relationship – neither too close nor
too distant
• Cross selling : banks selling insurance policies under the
Bank assurance scheme.
13. Implementing CRM
Front line staff , performance important.
Provide customers with “moments of truth” during the service
encounters
Employees must feel part of the CRM process
Clear objectives
Staff empowerment – To take decisions
Understand the variable and intangible nature of service
customers
Product(Service) Innovations to augment service e.g. Surprise
Gifts at Planet M, On-board auctions within a flight
14. Implementing CRM (cont’d)
• Regular communication with customers
• Tangible benefits to reward loyalty
– Loyalty cards, Membership cards : Max,
Pantaloon(Green Card), Reliance Retail
– Treating unsolicited customer feedback with
respect and responding to it.
15. Success of CRM
Setting tough standards
Training
Make the customer feel important
Communicate reasons for failure instead of not
communicating at all
Giving importance to every encounter as though the entire
business depended on it
Constructive approach/ response even to the most
aggressive customer complaints
16. Why are some companies better at
CRM as compared to others
• Market driven approach
• Customer focus
• Deliver better value to customer
• Microsoft was the first international company to
exploit CRM – selling office suite and further
upgrades to an individual : they also had
differential pricing for corporate and individual
purchases.
17. CRM strategy
An effective CRM strategy starts with segmentation based
on what different groups value and what will make them
loyal.
Develop a blueprint to understand what a particular
segment seeks from a relationship with your company
Implement CRM
Measure and monitor the goal
18. Research by Coyles & Gokey
• Emotional loyalists are important
• Deliberators if influenced can yield rich
rewards
• Communicating benefits to customers
• Dealing with even a small level of
dissatisfaction is vital
19. Lifetime value in a CRM
Lifetime value = value of all future
revenues from a customer, based on their
current and future product holding.
Value is difference between revenue and
costs.
LTV – Life time Value
LTV= Total Revenues – Fixed Cost –
Variable Cost
Revenue = total of all orders placed
Costing – activity based costing/
accounting
20. LTV calculations
• Retain existing customers
• Find more customers who match the
profile of the most profitable customers
• Calculate which products/ product-service
combinations contribute most to profit
• LTV based on assumptions, Review
assumptions periodically.
21. Data Mining
• Profile the customer behavior to model the future
• Gives an indication of the propensity to buy for any given
market segment
• Examples – HDFC Phone banking, Customer ID – data
warehousing solution – all transactions of customer can be
viewed at the click of a button
• Warehouse pulls information from different transaction
systems and customer interface channels and centralises it in
a single database. This helps the bank in finding out the
profitability of a customer.
22. Quiz
• Segmentation of customers in CRM
relates to what dimensions of customers.
23. • Neither practical nor profitable to meet all
customer expectations
• Companies try to identify segments (tiers
of customers) – that differ in current and/or
a future profitability of a firm.
• This approach tracks costs and revenues
for segments of customers.
• Thus segmentation in CRM refers to
profitability of customers.