CRM refers to Customer Relationship Management, which is a strategy used by companies to optimize value from customer relationships. It involves acquiring, retaining, and partnering with customers to create value for both the company and customer. CRM uses technologies like databases, customer analytics, and customer service to understand customer needs and provide personalized customer experiences across sales, marketing, and service channels. The goal is to improve customer satisfaction, loyalty, and lifetime value.

1. TINKER YOUR GREY
CELLS ON THIS…………………
‘You can please some of the people most of the
time and most of the people some of the time,
but can you please all the people all the time’

2. CRM
“Customer Relationship Management is a strategy
for optimizing the value an enterprise derives
through customer relationships”
“CRM is a comprehensive strategy & process of
acquiring, retaining & partnering with selective
customers to create superior value for the
company & the customer”
“CRM is about acquiring, developing and retaining
customers; achieving profitable growth and
creating economic value in a company’s brand’

3. Customer Life Cycle Management
Customer need assessment
& acquisition
Customer
Customer development
retention & through
referrals for CRM personalization
new &
customers customization
Cross selling & up selling

4. ACURA Model at (American Express)
Acquire
Advocacy
Cross-sell
Retain Up-sell

5. Types of CRM
Operational CRM Collaborative CRM Analytical CRM
Customer

6. Operational CRM Analytical CRM
 Front office involvement  Back office involvement
 Aims at bettering the  Aims at understanding the
customers experience consumer behavior
 Focus on actual customer  Focus on analysis of
customer transactions
interfaces
 Depends on operational
 Helps to gather
CRM for getting input data
information to be used
for analysis
for analytical

7.  Sales Intelligence CRM- is similar to Analytical CRM, but
is intended as a more direct sales tool. Features include
alerts sent to sales staff regarding:
 Cross-selling/Up-selling opportunities
 Customer drift & trend
 Sales performance
 Collaborative CRM covers aspects of a company's dealings
with customers that are handled by various departments
within a company, such as sales, technical support and
marketing. Staff members from different departments
can share information collected when interacting with
customers. For example, feedback received by customer
support agents can provide other staff members with
information on the services and features requested by
customers. Collaborative CRM's ultimate goal is to use
information collected by all departments to improve the
quality of services provided by the company.

8. Jones & Sasser- Classification of customers into
four types according to loyalty and satisfaction
high
S Mercenaries Apostles
A
t
i
s
f
a
c
t
i Defectors Hostages
o
n
low
Low Loyalty High

9.  Apostles
 A loyal customer who is completely satisfied and
keeps returning to the company. They also share
their strong feelings with others
 Mercenaries
 Happy and contended customers who are not loyal
to the company and tend to shop around and
compare. On a lookout for a better opportunity
 Defectors
 Customers who are disappointed in their business
relations with the company and tell everybody
about their bad experience and often leave the
services without informing
 Hostages
 due to certain exit barriers unable to change their
service provider though dissatisfied

10. Types of Customers on the basis of
Profitability and Loyalty
 Butterflies- high profitability and short
term customers
 Strangers- Low profitability and Short
term customers
 Barnacles- Low Profitability but long term
customers
 True Friends- High Profitability and long
term customers

11. Types of Customer Value
Economic Value
Economic Value
Psychological
Psychological
Functional Value
Functional Value
Value
Value

12. Types of Customer Value
 Economic Value- It is the economic benefit a
customer derives from using a product i.e. the
net monetary advantage from using a product
versus its alternatives over the life of a
product. The economic benefit is derived by
comparing the total lifecycle cost of products
not just initial purchase prices

13.  Functional Value- It provides functional
benefit to customers. Here value is provided
by the performance features of a product
like luggage capacity, fuel economy etc
 Psychological Value- The economic and
functional values reflect the tangible
benefits of a product or service whereas
psychological values focuses on intangible
aspects like brand name and its association
with customers

14. Types of Customer Value by Barnes
 Choice based value
 Choices created in how customers
 deal with the company
 how they can pay for their purchases
 how they want them shipped or
 how they receive information
 Employee based value
 Information value
 Association Value- Customers derive value from
being associated with a certain product/service
provider with whom they associate positive attributes
or values

15.  Relationship Value
 Customer Unique Value- This form of
value is created for customers when firms
treat them as individuals like
personalization
 Experience Value
 Product for Price value- This is
characterized by customers who relate
value with price and will switch to the
competition for a lower price
 Access or convenience value

16. The Process of Determining Customer Value
What do target customers value
?
Of all the value dimensions that
target customers want, which are
the most important ?
How well are we doing in
delivering the value that
customers want ?
Are we doing poorly or well on
important value dimensions ?

17. Customer Value Management
 Understand what causes customer
purchase and repurchase behavior
 Predict the future purchase behavior of
customers and potential customers

18. Customer Value Management phases
 Need and value based segmentation
 Value proposition development
 Integrated channel strategy
 Product and service delivery
 Customer service
 Managing customer relationships

19. CRM Value Chain
 Customer portfolio analysis: this involves an analysis
of the actual and potential customer base to identify
which customers you want to serve in the future
 Customer intimacy: you will get to know the identity,
profile, history, requirements, expectations and
preferences of the customers that you have chosen to
serve
 Network development: you will identify, brief and
manage relationships with your company's network
members. The network can include external members
such as suppliers, partners and owners/investors, as
well as one important internal party, employees

20.  Value proposition development: this involves
identifying sources of value for customers and
creating a proposition and experience that meet
their requirements, expectations and preferences
 Manage the customer lifecycle: the customer
lifecycle is the customer's journey from 'suspect'
towards 'advocate status'. Managing the lifecycle
requires attention to both process and structure:

21. CRM Model

22. CRM Process Framework

23. formation Management/Governance Performance
Planning process
PURPOSE
Role specification/
Team Structure
Customer
Value,
PROGRAMS Communication Satisfaction,
Continuity Mktg Retention
Programs
1-TO-1 Mktg
Partnering Employee training /
Programs motivation
Monitoring process
Customer
Evolution

24. The Cog Wheel Process
Designing a CRM Strategy
Process
People
Strategy Technology

25. Stages Of CRM
STAGE STATE CULTURE
Meet customer needs &
respond to complaints.
Satisfaction Reactive Minimal evaluation of
Based customer service
Performance Evaluate customer
perception & identify
Based Proactive customer retention factors
Commitment Evaluate customer needs
& continuous
Based Very Proactive inbound/outbound flow &
feedback

26. Role of CRM in Stages of Sales Cycle
 Pre-purchase Stage
 Purchase Stage
• Easy procedures to purchase
• Provide a complete solution
• Training & Installation

27. Role of CRM in Stages of Sales Cycle
 Usage Stage
• Easy access to after sales service
• Easy availability & trouble shooting
• Engaging customers with updated features
 Repurchase
 Follow up

28. eCRM
 Steps in eCRM
 Setting the objectives of eCRM
 Methodologies for e-Business initiative
 Processes
 Partnerships
 IT service providers
 Content management
 Call Centres
 Supply chain integration
 Knowledge Management
 Evaluating the performance of the eCRM System

29. Analytical Models
 Decile Analysis
 Deciles are grouping customers and ranking them on the basis of
 Purchasing types of products
 How frequently purchasing
 Going for new services
 RFM Model
 Recency, Frequency & Monetary Value
 The RS Matrix
 Recency
 Customer’s sales Rate
Total time since a customers first purchase
______________________________________
The number of times purchased

30. Customer Retention Stages
 Welcome Stage
 Up-selling
 Cross-selling
 Renewal
 Lapsed Customers
 Inactive customers

31. Transactional Marketing Relationship Marketing
 Functional marketing  Cross-functional
marketing
 Focus on a single sale
 Focus on customer
 Orientation on Product
retention
features
 Orientation to customer
values
 Short time scale  Long time scale
 Little emphasis on  High emphasis on
customer service
customer service
 Quality is everyone’s
 Quality is a concern of concern
production

32. The CRM Cycle Process
Assessment Phase
Execution
Phase Planning Phase

33.  The Assessment phase develops a model of the behavior of target
customers, using a combination of in-house data and external
demographic, psychographic, and other data. Here, marketing will
explore a number of questions, including:
 Who are the customers? What are their demographics and
lifestyle?
 Where do they live?
 What are they worth? What is their lifetime value potential?
 What and how do they buy?
 What are their purchasing patterns?
 Is there a model of their profitability or the risk associated
with doing business with them?
 How can they be reached? How have they responded to
promotions in the past and through which channels do they
prefer to be contacted?

34.  During the Planning Phase, marketing decides how best
to approach the customers defined in the assessment
stage by designing marketing campaigns and strategies
 The Execution Phase of the cycle is where an
organization puts all this knowledge to work, using all of
the customer touchpoints available.

35. Framework for building CRM Strategy
The Value Discipline Model
Product The Best Products
Leadership
Operational Customer
Excellence Intimacy
The Best Total
The Best Total Cost
Solution

36. Eight Building Blocks of CRM
 CRM Vision
 CRM strategy
 Valued customer experience
 understand requirements
 monitor expectations
 satisfaction versus competition
 collaboration and feedback
 customer communication
 Organizational collaboration
 culture and structure
 customer understanding
 people skills and competencies
 incentives and compensations
 employee communication
 partners and suppliers

37.  CRM processes: customer life cycle and
knowledge management
 CRM information: data analysis, one view
across channels
 CRM Technology: applications,
infrastructure
 CRM Metrics: value, retention,
satisfaction, loyalty, cost to serve

38. CRM Metrics
 Customer Contact Intensity
 Customer satisfaction and delight
 Customer Profitability
 Customer Penetration
 Customer Loyalty Index

39. True Vs Spurious Loyalty
Strong Attitudinal Behavioral
commitment Loyalty Loyalty
Repeat purchasing
Behavior True Loyalty
True Loyalty
Low Spurious
Spurious
Inertia
commitment Loyalty
Loyalty

40. Advantages of e-CRM
 Lowers the cost
 Adaptability and Availability
 Helps data construction
 Increased customer interaction
 Managing data reservoir
 Lesser response time
 New customer service opportunities
 Reach and service personalization
 Automatic self documentation
 User control

41. Technologies of e-CRM
 Voice Portals
 These allow the users to access the
content on a website through a cell phone.
Commercial voice portals such as BeVocal,
TellMe and Shoptalk provide voice access to
stock quotes, movie listings and daily news
 Web phones
 It is also known as Internet Protocol
telephony. Web phone technology supports
voice communications over the internet

42. Technologies of e-CRM
 BOTs
 Software Robots or BOTs are used to locate
websites. They use plain english to locate
content on the web and are also used as
conversational engines that work in the real
time or through e-mail messages
 Virtual Customer Representative

43. Few CRM Software's
 Siebel
 Oracle
 MySAP CRM
 PeopleSoft
 Clarify

44. Applications of e-CRM
 Customer Interaction Management (CIM)
 It is a technology that makes use of the
valuable customer information contained in
CRM applications and takes customer
relationships to a much more personalized level
 Customer Relationship Portal
 Interactive Relationship Management

45. Customer Loyalty Ladder
Advocate
Advocate
Supporter
Supporter
Customers
Customers
Prospects
Prospects
Suspect
Suspect