my notes on consumer relationship management. hope it clears the concept.

1. CONSUMER
RELATIONSHIP
MANAGEMENT

2. CONTENTS
1. EVOLUTION OF CRM
2. INTRODUCTION
3. NEED FOR CRM AND WHY CRM?
4. CUSTOMER LOYALTY
5. IMPLEMENTATION AND DRAWBACKS OF
CRM
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3. 1. EVOLUTION OF CRM
THEN AND NOW, PHASES...

4. 4
1) Initially there were door-to-door sales
forces to approach the customers
2) Then mass marketing replaced the
intimacy of a direct sales force
3) Later target marketing evolved. The
use of telemarketing and direct mail
4) Latest, is the Customer Relationship
Management System the next step in
evolution. A concept supported by
latest technologies.
EVOLUTION OF CRM:

5. 5
EVOLUTION OF CRM:

6. PHASES IN THE EVOLUTION OF CRM
Three phases in the evolution of CRM include reporting,
analyzing, and predicting
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1. Reporting
technology –
help organizations
identify their
customers across
other applications
2. Analysis
technologies-
help organization
segment their
customers into
categories such
as best and worst
customers
3. Predicting
technologies –
help organizations
make predictions
regarding customer
behaviour such as
which customers are
at risk of leaving

7. 2. INTRODUCTION
definition, info & meaning...

8. “
Customer relationship
management (CRM) is a term that
refers to practices, strategies and
technologies that companies use
to manage and analyze customer
interactions and data throughout
the customer lifecycle, with the
goal of improving customer service
relationships and assisting in
customer retention and driving
sales growth.
~Tim Ehrens
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9. INTRODUCTION OF CRM
CRM is also about what you do with that information to better meet the needs of
your existing customers and identify new customers, resulting in higher profits for
you. With more enterprises putting the customer at the centre of their marketing
strategies, customer relationship marketing remains prominent among
organizations that strive to foster customer loyalty and cultivate brand
ambassadors.
Remember 1 satisfied customer brings 10 new customers with
him where as 1 dissatisfied customer takes away 10
customers along with him.
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10. WHAT IS CONSUMER RELATIONSHIP
MANAGEMENT? (CRM)
 CRM is a Business strategy
 To understand, anticipate and manage current and potential
customers
 Retention of customers in addition to the acquisition of new
customers (maximizing total customer life-time value)
 Customer focused and relationship marketing or Customer
delight
 Market research - To assess customer needs and satisfaction
 Software-based approach to handling customer relationships
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11. 3. WHY CRM?
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IMPORTANCE, NEEDS, BENEFITS, AND MUCH MORE

12. IMPORTANCE OF CRM
 The more opportunities that a customer has to conduct business
with your company the better, and one way of achieving this is by
opening up channels such as direct sales, online sales, franchises,
use of agents, etc. However, the more channels you have, the
greater the need to manage your interaction with your customer
base.
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 Organizations can find their most valuable customers through
“RFM” -
How recently a customer purchased items (Recency)
How frequently a customer purchased items (Frequency)
How much a customer spends on each purchase (Monetary Value)

13. Need for Customer Relationship
Management (CRM)
▪ Customer Relationship Management leads to satisfied
customers and eventually higher business every time.
▪ CRM goes a long way in retaining existing customers.
▪ It ensures customers return back home with a smile.
▪ It also improves the relationship between the
organization and customers. Such activities strengthen
the bond between the sales representatives and
customers.
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14. CRM is about making each and every customer feel like they have a
one-to-one relationship with you. The following are the some benefits
of CRM:
Three ways to increase the profitability of the customer base
1.Acquire more customers
2. Optimize the value of the existing customers
3. Retain the right customers longer
▪ Loyal customers will buy more and are willing to pay premium
prices
20/80 rule – 20% of the customers generate 80% of the revenue
BENEFITS OF CRM
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15. How To Use CRM In A Business?
1. Customer profile
information
• Who are they?
• Are they a business or a
person?
• Where are they located?
• If they are a business, how
big are they?
• Why do they need your
product?
• How long have they been a
customer
2. Customer
buying profile
• How often do they
buy?
• When do they buy?
• Is there a pattern to
their buying habits
(e.g., seasonal)?
• How much do they
buy at one time?
3. Customer
buying preferences
• What do they
buy?
• Do they always
buy the same
thing? •
Why do they buy
it? 15

16. How To Use CRM In A Business?
4. Building Value for You:
By compiling this information and analyzing it,
you can then build a strategy with this
information to:
• Maximize repeat business opportunities by
anticipating your existing customers’ needs
• Identify your best and potential customers
• Identify complementary products you can sell
to your customers;
• Target marketing campaigns/materials and
promotions
5. Building Value for the
Customer:
Other ideas on how you can use this
information to increase your company’s
perceived value to the customer include:
• Develop an e-newsletter with topics that
would be of interest to your customers
• Offer free or discounted complementary
products to your best customers
• Offer a chat room or online forum where
customers can share their experiences with
one another (and with you since you will also
have access to their discussions
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17. CRM enables an organization to:
Provide better customer service.
Make call centres more efficient.
Cross sell products more effectively.
Help sales staff close deals faster.
Simplify marketing and sales processes.
Discover new customers.
Increase customer revenues
BUSINESS BENEFITS OF CRM
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18. 18
- By creating value for your
customers, you will earn
their loyalty. An often-
quoted statistic states that
it takes 10x the money and
effort to attract a new
customer than it does to
retain an existing one

19. Ways to Keep Customers for Life
CUSTOMER ADVISORY
PANEL
Establish a customer
advisory panel. Only by knowing
your customers’ wants and
needs can you successfully
grow your business and be
totally customer-oriented.
BE MULTI-LINGUAL
Speak your customer’s
language. Don’t use jargon they
can’t understand.
REWARD YOUR
CUSTOMERS
Give back to your best
customers. If you run a special
price or product offer for first-
time customers, make sure to
offer a promotion to your
current customer
HAVE A GREAT ATTITUDE
Shower customers with
kindness.
THE EMPLOYEE IMPACT
Treat your employees well. If
they are treated poorly, there is
a good chance they’ll treat your
customers badly.
SEND THANK YOU NOTES
Make sure they are
handwritten and sent promptly.
Peter Drucker attributed much
of his success to the fact that
he sent out 12 thank-you cards
every day.
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20. How To Use CRM for complaint management?
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HOW TO USE CRM TO HANDLE CUSTOMER COMPLAINTS
No one likes getting complaints from customers. But it’s important
to remember that they can be a valuable source of information. If
complaints are handled well, they can be a great opportunity for
companies to improve the quality of their products and customer
service.

21. PROS AND CONS OF CRM
IMPLEMENTATION & DRAWBACKS...

22. PROS AND CONS OF CRM:
CONS
1. Business culture
A lack of commitment or resistance to cultural change from
people within the company can cause major difficulties with
the CRM implementation. Customer relationships may break
down and result in loss of revenue.
2. Poor communication
all the relevant people in your business must know what
information you need and how to use it. Make sure to
communicate integration needs in advance if other teams
need to cooperate on the implementation, eg payroll staff.
3. Lack of leadership
Weak leadership could cause problems for any CRM
implementation plan. Management should lead by example
and push for customer focus on every project. If a proposed
plan isn't right for your customers, don't do it. Task your team
to come up with a better alternative.
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PROS
1. Simplified marketing and targeting
CRM makes a wide range of data available to business
owners and their department heads. This information allows
them to target specific consumers with marketing that is
based on their buying behaviours.
2. Learning Curve
Like most systems, there's a learning curve when it comes to
getting acquainted with a CRM program. Management might
have to bring in training professionals to offer support to their
sales and customer service teams as they learn how to use
the CRM system in their day-to-day interactions with
customers and potential customers.
3. Staff Resistance
By offering interactive training to providing the sales and
customer service teams with real, live case studies that show
the benefits of CRM, business owners and managers can
demonstrate the features of the system and adequately
outline how it will benefit customers, daily work flow,
employees and the business overall.

23. PRESENTATION DESIGN
This presentation uses the following typographies and
websites :
▪ Titles: Barlow Bold
▪ Body copy: Barlow Normal
LINKS:
https:www.maccosmetics.in
https://dsim.in
https://www.scribd.com
https://www.salesforce.com
https://www.timesofmalta.com
https://www.expertmarket.co.uk
https://www.fontsquirrel.com/fonts/barlow 23

24. CREDITS
DONE BY THE STUDENT OF M.N.W.C.
SY.B.M.S:
▪NAHEEDA FATIMA KHAN
(2018)
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THANK YOU!