CRM involves collecting customer data to understand customers and enhance their value. It has several key aspects: 1) Acquire and retain customers by delivering value, maintaining interactions, and adapting to customer changes. 2) Understand customers through analysis and interactions to identify valuable segments and their needs. 3) Develop products, services, and channels based on customer segments to customize offerings. 4) Interact and deliver value across all parts of the organization based on customer information and needs.

1. CRM CYCLE P.N.Sandeep MBA 2ndYear 1225110332

2. What Is CRM Customer Relationship Management (CRM) is the process of collecting and analyzing a firm’s information regarding customer interactions in order to enhance the customers’ values to the firm. It involves using technology to organize, automate, and synchronize business . Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy.

5. Those are the customers and customer segments that we want to clone in our prospecting and acquisition efforts. And, because we continue to learn about what is valuable to each segment, we'll be much more likely to score a "win" with the right channel, right media, right product, right offer, right timing and most relevant message.

6. Successful customer retention is based very simply on the organization's ability to constantly deliver on three principles:

7. Maintain interaction; never stop listening.

8. Continue to deliver on the customer's definition of value.

10. Segmentation to identify logical unique groups of customers that tend to look alike and behave in a similar fashion.

11. Identification of actionable segments is a practical place to start.

12. Customer valuation to understand profitability, as well as lifetime value or long-term potential.

13. Analysis and research alone, however, are insufficient. To create and foster a relationship, we have to act on what we learn about customers.

14. Customers need to see that we are differentiating our service and communications based both on what we've learned independently and on what they've told us.

16. In a customer-focused world, product and channel development have to follow the customer's lead.

17. Organizations are increasingly developing products and services, and even new channels, based on customer needs and service expectations.

18. Most organizations today are not able to cost-effectively customize products for individual customers.

19. However, products, services, channels and media can be customized based on the needs of quantitative customer segments.

21. Customers interact in many different ways with many different areas of the organization including distribution and shipping, customer service and online. To foster relationships, organizations need to insure that:

22. All areas of the organization have easy access to relevant, actionable customer information.

23. All areas are trained how to use customer information to tailor interactions based on both customer needs and potential customer value.

24. With access to information and appropriate training, organizations will be prepared to steadily increase the value they deliver to customers.

25. Delivering value is a cornerstone of the relationship. And remember, value is not just based on the price of the product or the discounts offered.