CRM stands for customer relationship management. It is a comprehensive strategy and process to acquire, retain, and partner with selective customers to create value for both the company and customer. CRM uses tools like software and technologies to automate and improve business processes related to managing customer relationships in areas like sales, marketing, customer service, and support. There are three main types of CRM technologies: operational CRM, which provides support for front office functions; analytical CRM, which analyzes captured customer data; and collaborative CRM, which facilitates interaction and communication between the customer and company channels.

1. Department of MBA
IMS Engineering College,
Ghaziabad
Marketing Management – II
UNIT 5
(Part 2)
Customer Relationship Management

2. CRM – Meaning
• CRM stands for customer relationship
management
• In recent years, several factor have contributed to
rapid development of direct interaction between
producers and customers. The purpose of CRM is
mutual value creation on the part of producer and
customer.
• CRM is a tool that can help organizations to
profitable meet the needs of the customer for
lifetime better that its competitors

3. CRM – Meaning
• CRM enables a company to capture a
consolidated customer view through multi-
channel interaction in a data warehouse solution
• Sophisticated analytical techniques are then
applied to this information to better understand
and predict consumer behaviour
• CRM can be used to strategically implement
acquired customer knowledge in every area of the
company, from the highest management to the
employees who come in direct contact with the
customers.

4. CRM – Meaning
• CRM software applications facilitate the
coordination of multiple business functions
(such as sales, marketing, customer services,
and support) and also coordinate multiple
channels of communication with the customer
face to face, call centres and the Web – so that
organizations can accommodate their
customers’ preferred channels of interaction.

5. CRM – Definition
• CRM (Customer Relationship Management) is a
comprehensive strategy and process of acquiring,
retaining and partnering with selective customers
to create superior value for the company and the
customer.
• CRM is a discipline as well as a set of discrete
software and technologies which focuses on
automating and improving the business process
associated with managing customer relationships
in the areas of sales, marketing, customer services
and support.

6. Relationship Marketing
• Relationship Marketing is defined as ‘an
integrated effort to identify, maintain and build up
a network of individual consumers and to
continuously strengthen the network for mutual
benefits of both the sides, through interactive,
individualized and value added contacts over a
long period of time’
• Relationship marketing can also be defined as
‘marketing oriented towards strong lasting
relationships with individual consumers’

7. Characteristics of Relationship
Marketing
• The following are the characteristics of
relationship marketing:
Concern
Trust and Commitment
Service

8. Factors for successful
Relationship Marketing
• Listen to customers
• Be Honest in transactions
• Don’t try to sell something that the customer
does not need
• Be helpful towards your customers
• Be communicative, be in touch with your
customers, best way is to use emails
• Focus on solving problems of customers

9. Relationship Marketing Vs
CRM
• While relationship marketing is a sales and
marketing concept, CRM refers to the tools used
to carry out the concept.
• Relationship marketing is implemented as a
strategy and includes activities such as identifying
long-term sales and retention goals, public
relations, marketing and advertising campaigns.
CRM includes the operational tasks that support
the relationship marketing strategy. Activities
may include gathering data about the customers,
then organizing and analyzing it to create target
customer profiles.

10. Relationship Marketing Vs
CRM
• CRM data is also effective in finding
opportunities to create special offers to reward
long-time customers for their loyalty, further
building the relationship.
• CRM is an enabler of Relationship
Management in any organization. Hence CRM
is the foundation of Relationship Management

11. Types of
Relationship Management
• Generally, companies have to understand their
customers better, not just to listen to their
requirements but also to anticipate those (Fox,
1997)
• There are following types of CRM
technologies:
Operational CRM
Analytical CRM
Collaborative CRM

12. Operational CRM
• This is an ERP like segment of CRM
• Typical functions include – customer service,
order management, invoice and billings, sales &
marketing automation
• It provides support to ‘front office’ business
operations such as sales, marketing and service
• Each interaction with the customer is added to the
contact history and staff can retrieve information
on customers from the database when necessary
• Customers can contact any department/section of
the company without having to tell their history of
interaction with the company

13. Analytical CRM
• Analytical CRM is the capture, storage,
extraction, processing, interpretation and
recording customer data to the user.
• Analytical CRM can capture customer’s data
from multiple sources and then use numerous
algorithms to analyze and interpret the data as
needed
• It generally makes heavy use of data mining
• Customer’s data is analyzed for –
Targeted/specific marketing campaigns, analysis
of consumer behaviour for pricing, aid in taking
management decisions such as forecasting etc

14. Collaborative CRM
• It is a communication center, coordination
network that provides neutral paths to customers
and its suppliers
• Collaborative CRM could mean a Partnership
Relationship Management (PRM) application or a
customer interaction center
• Collaborative CRM includes – Website, Email,
Call facility etc
• It provides a point of interaction between the
customer and the channel.

15. Components / Elements
of CRM
CRM COMPONENTS
Enterprise Application
Integration
Front office
solutions
CRM ENGINE
The data of the customer
is captured and stored
here, it is the data
repository (e.g. Name,
Contact info, addresses,
purchase history etc).
This creates a unified
view of customer info.
This includes unified
applications that run
above the data warehouse,
this can be related to
sales, marketing, service,
customer interaction etc.
It provides info to
employees for decisions
These connect one type
of CRM with another
type of CRM in an
organization. The work
like connectors and
bridges

16. The CRM Process
Gather Data
(Various sources,
touch points,
parameters, data to be
stored in a single
repository )
Analyze Data
(Analyze for patterns,
do detailed analysis,
take samples)
Formulate Strategy
(Deriving conclusions
from the analysis,
preparation of
Models, Data
segmentation will be
done)
Implement Strategy
(Actions will be taken
based on the
strategies planned,
monitoring will be
done over the results)

17. Significance of CRM
• Customer relationship management is an
integrated approach that manages a company’s
interactions with the existing and future
customers.
• It helps to identify, acquire and maintain
customers for successful growth of the business.
• It enables business organizations to plan &
coordinate to reach across different departments
and channels.
• A CRM model use smart technology for
organizing, automating, synchronizing sales,
customer service, marketing, and technical
support.

18. Significance of CRM
• CRM is a faster way to handle complaints, requests
from the customers
• CRM helps in Scheduling and managing follow-up
sales and conduct periodical calls for assessing the
customer satisfaction rates & their repurchase
probabilities.
• customer relationship management leads to great
customer services which directly give benefits to the
customers and convince then for giving repeat business.
All this helps in improving the business profitability
that improves the return-on-investment graph.