The document discusses customer relationship management (CRM). It notes that traditional marketing approaches are no longer effective and companies are now focusing more on relationship marketing and customer retention. CRM can help companies retain customers, enable cross-selling opportunities, and introduce new products. There are three main types of CRM: operational, analytical, and collaborative. Operational CRM involves direct customer interactions while analytical CRM uses data to identify opportunities and optimize customer behavior. Implementing an effective CRM strategy provides many benefits but also poses some challenges for companies.

1. CRRM
UNIT –I
Introduction :- Till now majority of marketers focused on traditional mode of
marketing.
• Due to which they acquire few customers by targeting limited segment.
• They use tools & techniques developed for mass marketing in industrial era.
• But in present competitive era this proving to be highly ineffective.
PRESENT
APPROCHES
Relationship
Customer retention Cross selling
marketing
• Relationship marketing is emerging as the core marketing activites.
• On an average, business spend six times more to acquire new customers than to keep
them.
• As a result of which companies payinh more attention to their relationship with
exisiting customer.
• Facing the competitive threat such as a new entrants pricing pressure ,technology
along with related cost organization realizing that traditional marketing model no
longer effective

2. BENEFITS OF CRM:
• Help to retain customer.
• RM creates intelligent opportunities for cross selling.
• Opens up the possibility of rapid introduction of new brands & product.
• Organization must be able to customize their product offering, optimize price,
integrated products.
• Service & deliver the service as promised & demanded by customer base.
We can categories the benefits generally in following :
BENEFITS
Revenues
Strategic impact.
Cost Saving Enhacement
• Increased sales result from spending more times with customers, which results
from spending less time chasing (i.e. Productivity, improvement)
• Win rates improves since companies can with draw from unlikely orbad deals
realier on in the sales process.
• Increased margins resulting from knowing customers better providing a value sale.
• Improved customer satisfaction ratings.

3. CRM Challenges:
• CRM is long term approaches that have to be adopted at strategic level.
• Communicating customers at right time.
• Breaking competitor’s relationship with customers.
TYPES OF CRM
COLLABORATIVE
OPERATIONAL ANALTICAL
CRM
CRM CRM
OPRATIONAL CRM: This the process in which involve the areas where direct
customers contact is possible. Purpose of operational
CRM is to provide transaction level data about
individuals ,product & provide support for customer
facing processes.
E.g Direct mail, phone interaction
EXAMPLES OF
OPERATIONAL CRM
Sales force Customer service
automation automation

4. Sales automation :- Account management
Opportunity management
Contact management
Activities Management
Price & product list configuration
Sales incentive plans
Sales forcing & reporting
Customer Service Automation: Service request.
Customer complaints.
Customer interaction center (CIC) is critical component of operational CRM .
Sales force Automation also known as “Technology Enable Selling”(TES).This
includes:
• Accurate business forecast
• Generating customize presentations & proposals.
• Personalized communication.
It also handle the entire sales pipline from lead generation to closure activities.
CALL CENTER SYSTEM provide extensive customer service by enabling customers to
recive any information
Answering quires
Buying products
Receiving product identifying opportunities of cross selling.
Order Manangment : This include quote generation
Campaigns
• Service request
• Ordering Products
Invoicing or billing- This includes multiple order billing & pricing functionalities
Marketing Automation: Enables comparing develop & refine strategies, gain insights into
buying behavior, revenues & profitability using marketing analytics.
Analytical CRM : Analytical CRM is the synthesis & interpretation of operational
data to identify opportunity , optimize customer behavior needed
to implement intelligent personalization.

5. Analytics involve the capture, storage , extraction processing ,interpretation & reporting
of customer data.
COMPARISON BETWEEN OPERTAIONAL CRM & ANALYTICAL CRM:
• Data gathered at operational sides is analyses at analytical CRM to improve
business performance management.
• Data at operation CRM level gathered so diligently & analysis at analytical CRM
level provide insight includes
DATA WAREHOUSING: It is system of storing & delivering massive quantities of
data aids in analysis & decision making
• Classify data
• Co ordination
• Identify relationships between information gathered.
DATA MARTS:-These are subjects specific data warehousing
• Marketing automation
• Campaign management
• Database marketing
Optimizes profitability revenue & customer satisfaction analysis
• To know buying pattern
• Identification of most profitable customer/products/services
• Customer
• Competition
• Customer categories
• Cross selling of products
• Fraud analysis
ANALYTICAL CRM FUNCTIONS:
• Create a comprehensive customer knowledge base while ensuring
privacy.
• Capturing all relevant customer information from different sources,
channels ,touch points.

6. • Data guarded with utmost care so that customer right to privacy is never
compromised in any way.
• Customer behavior : This expressed through customer preference ,
priorities & activates
Customer value: This expressed in terms of customer profitability’s,
potential.
Customer portfolio: learn understanding of composition of customer
portfolio.
Optimizing cross selling Opportunities
Integrate customer value into strategies enterprise management to improve
share holder value.