What is CRM , Definition of CRM? Components of CRM , Benefits of CRM to Customers & Management,References

1. CRM - an OpeRatiOnal
tOOl fOR CustOMeR
CentRiC aCtiOns : Case
study in seRviCe seCtOR
By
Ganesh Mondkar
HPGD/OC15/1781

2. SYPNOSIS
• What is CRM?
• Definition of CRM
• Why is CRM important?
• Components of CRM
• Why did CRM develop ?
• Benefits of CRM-
1. To Customers.
2. To Management.
• Strategically significant customers.
• CRM Applications
• Face to Face CRM
• Implementing CRM
• References

3. WHAT IS CRM?
• CRM has been defined in a variety of different ways. For
some, CRM is a way to identify, acquire, and retain
customers. For others, it is a way of automating the front-
office functions of sales, marketing, and customer service. For
some vendors, whatever their current product may be, that is
CRM.(1)
• CRM “is a business strategy that aims to understand,
anticipate and manage the needs of an organisation’s current
and potential customers” (2)
• CRM is a shift from traditional marketing as it focuses on the
retention of customers in addition to the acquisition of new
customers .(3)

4. DEFINATION OF CRM?
• “CRM is a technology-enabled business strategy
whereby companies leverage increased customer
knowledge to build profitable relationships, based
on optimizing value delivered to and realized from
their customers.
• “CRM is the strategic use of information,
processes, technology and people to manage the
customer’s relationship with the organization
(marketing, sales, services and support) across the
whole customer life cycle. – Kincaid (2003)

5. WHY IS CRM IMPORTANT?
• “The adoption of C.R.M. is being fuelled by a
recognition that long-term relationships with people
are one of the most important assets of an
organisation” .
• CRM focuses on strategic impact rather than
operational impact. Benefits are generally long term
rather than immediate (future increased profit rather
than immediate cost reduction). This doesn’t mean that
one shouldn’t focus on the cost-benefit aspect. It means
that one needs to understand where the benefits will
really occur and set realistic expectations.

6. • CRM includes all the functions that directly touch the
customer throughout his entire lifetime with the
organization. It touches multiple organizations and
crosses boundaries. Functions usually included in a
CRM effort are marketing, sales, customer services,
and product support (whether internal or through a
channel partner, whether on or off the web).
• CRM is a total discipline. To understand CRM, one
must consider it as having the same components as
any manufacturing business. CRM is a total discipline.
To understand CRM, one must consider it as having
the same components as any manufacturing
business.

7. COMPONENTS OF CRM
COMPONENTS DISCRIPTION
Information
Information is the raw material of CRM. Below types of
information are useful to CRM:
1.Identification Data: Name/address/phone data collected from
customers to complete a business transaction .
2.Marketing data: Descriptions/traits/preferences collected
from customers during a transaction (either by asking questions
or tracking behaviour) .
3.List data: Names/addresses collected by a third party.
4.Overlay data: Customer profile data collected by a third party.
Process 1. All current/future processes that directly touch the
customer.
2. Integrating and rationalizing processes from customers point
of view.
3. Touch points, or means by which we interact with
customers, such as phone, e-mail, etc.

8. Contd …
Technology
Technology is the machinery that enables
CRM to work. These are examples of
technologies that CRM may find useful:
1.Software products (process automation
tools, analysis tools, website development,
and management tools).
2.Networking and integrating applications and
databases .
3.Security features, such as encryption tools
and firewalls .
People
People are the lifeblood of CRM. The energy
source must be set to the right “setting” for the
entire system to work. People are “reset”
through various change management tools and
support mechanisms, such as:
1.Training and education.
2.New tools
3.Measurements and rewards

9. WHY DID CRM DEVELOP?

10. Contd …
 CRM developed for number of reasons;
1. The 1980’s- Saw rapid shifts in business that changed customer
power.
2. The 1990’s- Companies started giving back to customers not
only in terms of improved service ,but in incentives ,gifts & other
perks for customer loyalty.
3. Early 2000’s- CRM became a way to continuously update
understanding of customer needs and behaviour. The internet
provided new possibilities and CRM took off as providers bagan
moving towards internet solutions.
4. Today - Utilized even today by most companies relying on 2
distinct features Customers & technology.

11. BENEFITS OF CRM TO CUSTOMERS
• More attention to customer needs and customer
requirements.
• Better service by focusing on the value created for
customers.
• Personal attention at the right time through better
use of customer data.
• A positive customer experience through better
service and clear expectation management.

12. BENEFITS OF CRM TO MANAGEMENT
• Enhanced attention to customers by clear
prioritization.
• Better understanding of the activities and business
units create value.
• Timely updating through structured management
information.
• Efficient and effective structuring of customer
interaction processes.
• More overview and insight into customer interaction
processes through targeted reports, surveys and
analysis.

13. STRATEGICALLY SIGNIFICANT CUSTOMERS
 Customer relationship management focuses on
strategically significant markets. Not all customers are
equally important.
 Therefore, relationships should be built with customers
that are likely to provide value for services.
 Building relationships with customers that will provide
little value could result in a loss of time, staff and
financial resources.

14. CRM APPLICATIONS

15. Contd …
 Sales: Accurate, timely revenue forecasts help sales close more deals,
increase profitability for the company and support expenses with
revenue growth.
 Customer Service: With Customer Service and Support solutions, the
organization can track and resolve customer questions, issues and
technical support inquiries for an outstanding customer experience.
 Social Media: The integration of social media with customer
relationship management (CRM) strategies – is the next frontier for
organizations that want to optimize the power of social interactions
to get closer to customers.
 Integration: CRM success requires the seamless integration of every
aspect of business that touches the customer—including people,
process, and technology— revolutionized by the Internet.

16. FACE TO FACE CRM
• CRM can also be carried out in face-to-face interactions
without the use of technology.
• Staff members often remember the names and
favourite services/products of regular customers and
use this information to create a personalised service for
them.
• However, face-to-face CRM could prove less useful
when organisations have a large number of customers
as it would be more difficult to remember details about
each of them.

17. IMPLEMENTING CRM
• With new technology being constantly added to the
marketing world, new businesses are finding themselves
in need of CRM implementation.
• It is important that CRM implementation start with
careful planning, which includes having a strategy for
CRM implementation, setting up a team for CRM
implementation, and creating a schedule to follow for
CRM implementation.
• Also an important part of planning for CRM
implementation is analyzing what kind of CRM you
already have in place, identifying company needs, and
deciding on training and support for the CRM
implementation.

18. REFERENCES
• Dyche Jill (2006): The CRM Handbook, Pearson
Education, Delhi. (E-book online)
• BCGsystems.com: The Evolution of CRM. (online)
• Rai Alok Kumar (2012): Customer Relationship
Management. (E-book online)
• www.managementstudyguide.com (online)
• “Effective Customer Relationship Management through
e-CRM” – Daminni Grover. (E-book online)