The document discusses the evolution and significance of Customer Relationship Management (CRM) in a competitive market driven by technology and globalization. It emphasizes the transition from a transactional model to a relationship model focused on long-term customer satisfaction and retention, highlighting how effective CRM can enhance customer lifetime value and overall profitability. The conclusion underscores that CRM not only improves customer service and satisfaction but also serves as a crucial strategy for maintaining competitive advantage.

1. CUSTOMER RELATIONSHIP
MANAGEMENT

2. TOPIC
 Introduction
 Definitions
 Comprehensive Domain of CRM
 Process
 Model
 Emerging Trends in CRM
 Conclusion

3. INTRODUCTION
 Advance technology and globalization has lead to
competition so fierce never before.
 Due to this intense competitive environment has shown a
paradigm shift from transaction model to the
relationship model where the focus is on long term
customer satisfaction rather than short term profit
acquiring by the business.
 So, keeping your existing customer satisfied and
maximizing Customer Lifetime Value (CLV) have
significant importance than acquiring new customer.

4. Cont…………
 In marketing, customer lifetime value (CLV),
lifetime customer value (LCV), or lifetime value
(LTV) is the net present value of the cash flows
attributed to the relationship with a customer.
 The use of customer lifetime value as a marketing
metric tends to place greater emphasis on
customer service and long-term customer
satisfaction, rather than on maximizing short-term
sales.
 The concept of CLV helps the marketer to analyze the
cost of acquiring , servicing and retaining a certain set
of customer in the market

6. Cont……….
 According to Bain and Company, “ a 5% improvement in
customer retention rates will yield between 25 to 100%
increase in profit across a wide range of industries.”
 The last thing company can afford to lose any of their
customer.
 So CRM gained importance and came in existence.
 Berry (1983) formally introduced the term customer
relationship management.
 Several ideas of relationship marketing had emerged much
earlier.
 In marketing literature the term Customer Relationship
Management and Relationship Marketing used interchangeably
.

7. Cont…………..
 Customer Relationship Management (CRM) emerged as the
database management of existing customer to provide them
better personalized and customized services to enhance
customer satisfaction.
 Advances in IT and Information system have been a catalyst
for development of CRM system.

8. Definition
 CRM is to identify, establish, maintain, enhance
and when necessary also to terminate
relationship with the customers and
stakeholder, at a profit, so that objective of both
parties are met and that this is done by mutual
exchange and fulfillment of promise.
- Tapan K. Pande (2002-2003)
CRM can be defined as managerial efforts to
manage business interactions with customers by
combining business processes and
technologies that seek to understand a
company’s customers.

9. Definition
 The core concept of CRM is that value creation
between the firm and the customer is related in
such a way that an increase in customer value leads
to an increase in firm value.
-Mithas, Krishnan, & Fornell and Payne
and Frow(2005)
 CRM stress on cross-functional integration of
organizational assets (processes, people,
operations) with customers' interests via technology.
-Payne and Frow (2005)

10. Comprehensive Domain of
CRM
 The word management is synonymous to Optimization.
 The basic insight received from above is the outcome of
critical literature review is that CRM does not mere
meant for having healthy and cordial relationship but also
takes in account the terminating the relationship with non
profitable customers since it is a part of management
ultimately (cost reduction) and not mere relationship as
considered in case of Public Relations (one of the
elements Communication Mix ) .
 The objective of any company is to have profitable CRM
and for that they continuously attempt to improve on the
elements as well as the process.

11. PROCESS
 Consteantinous J Stfanou, in his paper classified
CRM in three categories from process point of
view:
1. I . CRM with out using IT
2. II CRM with IT
3. III CRM with Automated IT

12. PROCESS
( I ) The
elements of
Process
( II ) Methods used
for executing the
Process

13. ( I ) The elements of Process
Generic process
 1.Vision
 2. Mission
 3. Goals
 4.Strategies
 5. Inputs for CRM programmes
 6. Implementation Programmes
 7. Review and Control

14. ( II ) Methods used for executing
the Process
Site Customization, Alternative channels, Local
search engine, Membership, Mailing list, Site tour,
Site map, Chat, Electronic bulletin board, Links,
FAQs, Affinity program, Request for catalog,
Ability to track order status, Speed of download
page, Member benefits, Introduction for first-time
users, Customization possibilities, Product
information online, Problem solving, Complaining
ability, Loyalty/ Frequency Program, Blogs and
Forums.

15.  The key factors in respective methods are
( a ) Personalized
( b ) Customized
( c ) Technology Aided
(d ) Complaint Management

16.  The key factors for this is three pillars of
successful CRM are
1. Operational Excellence
2. Interaction Excellence
3. Decision Excellence

17. Conceptual Framework
CUSTOMER
KNOWLEDGE
SOURCES
Supply Chain
Partner
Firms
Customers
E-CRM
- Personalized
-Customized
-Technology Aided
-Complaint Management
TRUST
Factors effect
Perceived Value
Experience
Customer Satisfaction
Subjective Dissonance
COMMITMENT
LONG TERM
RELATIONSHIP
CUSTOMER LOYALTY
REDUCE COST
Customer Retention Cost Support Cost
INCREASE REVENUE
Repeart Purchase
Positive word of mouth
ENHANCE PROFITIBILITY

18. Conclusion
 Focus on relationship model than transactional model.
 Aligned with advanced technology.
 Good Company Web Information
 Customer Knowledge management.
 Churn Management (appropriate collection, treatment
and analysis of customers data)
 Rewarding different Customers differently
 Terminate relation with non profit customers
 It helps to take customer view in return of few crucial
question rather than just company’s own
assumptions.
 Complaint Management

19. Cont………. (Conclusion)
 Improve customer service
 Enable to deliver Superior customer value
 Enhancing Customer Lifetime Value
 Reduction in Cognitive Dissonance
 Rich Experience
 Build Trust and commitment
 Maintain and increase customer satisfaction and
loyalty.
 Reduce supporting cost and marketing costs.

20. Cont………. (Conclusion)
 Customer retention (Accorging to Brain and company, “ a
5% improvement in customer retention rates will yield
between 25 to 100% increase in profit across a wide range
of industries” so, the last thing company can afford to lose
any of their customer)
 CRM builds and sustains competitive advantage
 Helps in cross selling and up selling
 Increase Profitability through proper management of
relationship with various customers.
Thus, CRM is perceived as win-
win proposition.

21. THANK
YOU