Customer relationship management

1. Customer
Relationship
Management

2. • Meaning
• CRM is a strategy and business process by means of which
firms acquire,manage and retain customers.It is a customer
centric business strategy with the goal of maximizing
profitability,revenue and customer loyalty.

3. Benefits of CRM to marketers
Improvemen
-t in sales
revenue
Increase in
profits
Reduction in
marketing
cost
Improveme-nt
on
customer
satisfaction
Helps in
identifying
cross selling
opportunities
Increase in
customer
retention
Proper
contact with
target
customer
Helps in
identifying
add on
selling
distribution
Better
understandin
-g of
customers

4. Benefits of CRM to customers
Decreased cost
for customers
Increased
customer
satisfaction
Timely
delivery of
products
Personalizat-ion
and
closeness
Availability of
wide variety of
products

5. Types of CRM
1.
• Operational CRM
2.
• Analytical CRM
3.
• Collaborative CRM

6. Components of CRM
customer
relationship
management

7. COST
GOALS
OF CRM
INCREASE
REVENUE
REDUCE SALES
&
DISTRIBUTION
COSTS
REDUCE
CUSTOMER
SUPPORT
COSTS

8. A. INCREASE REVENUE GROWTH THROUGH
CUSTOMER SATISFACTION
• To increase revenue, retailer must focus on cross
selling and various related products should be kept in
same area so that one may be picked with other.
• To increase revenue, a retailer should create a
attractive atmosphere that customer should visit
again and again.

9. B. REDUCE COST OF SALES & DISTRIBUTION
• Targets advertisement and promotional offers to
regular customers rather than targeting new
customers.
• To manage customer relationships rather than
managing a product.

10. C. MINIMISE CUSTOMER SUPPORT COST
• Make necessary and relevant information available
to answer any query of customer.
• Now-a-days, retailers keep data in customer
database acting as a direct access to customer
history so that cross selling of products can be done.

11. PRINCIPLES OF CRM
KNOW YOUR
TARGET GROUP
PRINCIPAL OF
PERSONALISATION
ACQUIRE AND
RETAIN CUSTOMER
LOYALTY
REWARD THE
LOYAL CUSTOMERS
OFFERS EXCELLENT
SERVICES
DELIVERS HIGH
QUALITY GOODS
AND SERVICES
FREQUENT
CHANGE OF
DISPLAYED GOOD
UNDERSTAND THE
‘‘CUSTOMER FIRST,
PROFIT NEXT’’
CONCEPT

12. CUSTOMER RELATIONSHIP MANAGEMENT
PROCESS

13. A. COLLECTING CUSTOMER DATA
• COLLECTION OF REQUIRED DATABASE OF CUSTOMER
which includes following:
1.Personal details of customers.
2.Purchase pattern.
3.Mode of buying.
4.Response to marketing campaign.
• IDENTIFYING CUSTOMER INFORMATION
1.Ask for information personally from customer.
2.Frequent offering of gift vouchers or shopping cards.
• CONCEPT OF PRIVACY OF CUSTOMER’S INFORMATION

14. B. ANALYZING CUSTOMER DATA AND
IDENTIFYING TARGET CUSTOMERS
TECHNIQUES
OF ANALYSIS
DATA MINING
MARKET
BASKET
ANALYSIS
1.ANALYZING CUSTOMER DATA

15. 2. IDENTIFYING TARGET CUSTOMERS
LIFETIME VALUE(LTV) CUSTOMER PYRAMID RFM analysis

16. b.CUSTOMER PYRAMID
MOST PROFITABLE CUSTOMERS
LEAST PROFITABLE CUSTOMERS

17. c. RFM(Recency, frequency, monetary)
ANALYSIS
1.FIRST TIME CUSTOMERS
2.EARLY REPEAT CUSTOMERS
3.HIGH VALUE CUSTOMERS

18. C.DEVELOPING CRM PROGRAMS
RETAINING HIGH LTV CUSTOMERS
CONVERTING MEDIUM LTV
CUSTOMERS TO HIGH LTV
CUSTOMERS
KEEPING AWAY LOW LTV
CUSTOMERS

19. D. IMPLEMENTING CRM PROGRAMS
PROCESS
DATA
ANALYSIS
CRM
PROCESS PRE
PLANNING
CUSTOMISATION
OF EXISTING
SYSTEM AS PER
CRM
PROPOTYPE
TESTING
QUALITY
ASSURANCE
TESTING
FINAL ACTION
CONTINUOUS
SUPPORT