Customer Relationship Management (CRM) is an approach that companies take to manage interactions with current and potential customers. It involves understanding customer needs and preferences at each stage of the customer lifecycle in order to develop long-term and profitable relationships. CRM provides tools for market research, product development, customer segmentation and more to help companies gain a competitive advantage. Effective CRM relies on understanding customer expectations, building partnerships, empowering employees and obtaining customer feedback.

1. CUSTOMER RELATIONSHIP MANAGEMENT
S Rampradeep

2. CRM - Definition
Customer Relationship Management (CRM) is a collective term encompassing all aspects of interaction that a firm has with its customer.
Managing the relationship for the entire customer lifecycle is the central philosophy of CRM. It includes all systems, processes, people and decisions associated with the same.

3. CRM Paradigm
Traditional Marketing
CRM
Expand customer base, increase market share by mass marketing
Establish a profitable, long-term, focus on relationship; custom solutions based on needs, preferences, expectations
Focus on selling the product
Focus on solving customer’s problem
Mass marketing / mass production
Customization and focused marketing
Standardization of customer needs
Customer needs driven solutions
Transactional relationship
Relational approach

4. CRM Advantage
CRM enhances a company’s marketing efforts in the areas of :
Market research
Price planning
Product development
Market assessment
Customer segmentation
Product lifecycle
In short, CRM provides organisations with the platform to obtain a competitive advantage by embracing customer needs and building value-driven long-term relationships.

5. Discover
Explore
Buy
Engage Customer’s Point of View
Loyalty
Win-back
Cross-sell
Retention
Onboarding
Acquisition
Company’s Point of View
Customer Life Stages

6. The Evans and Luskin (1994) model for effective Relationship Marketing
Relationship marketing inputs
•Understanding customer expectations
•Building service partnerships
•Empowering employees
•Total quality management
Relationship marketing outcomes
•Customer Satisfaction
•Customer loyalty
•Quality products
•Increased profitability
Assessment state
•Customer feedback
•Integration
(Evans and Luskin, 1994)
CRM Model

7. The sales personnel are the individuals in any organisation who act both as relationship builders and as relationship promoters and must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.
Developing the relationship
Select an appropriate offering
Link the solutions with the customer’s needs
Discuss customer concerns
Summarize the solution to confirm benefits and secure commitment
Manage customer value
Act as customer advocate
Enhance customer loyalty to build a healthy and profitable network of relationships
Assess customer satisfaction and Take action to ensure satisfaction
Maintain open, two-way communication and work to add value and enhance mutual opportunities
Role of Salesforce in CRM

8. Case Studies
Hewlett-Packard
Previously, HP sent out mass emails to update customers on sales offers, new products, technical support, etc.
After implementing a CRM, these efforts become much more customers specific
85% of customers said they were satisfied with the content of the emails and additional revenue increase by $15M
Marriott International
Collect data on customer preferences and spending
Data shared by all Marriott Hotels nationwide
Once you check in they already know your smoking preference, which floor you prefer, any allergies, complaint history, whether you drink, etc.

9. Summary
CRM a business philosophy based on trust and value.
CRM is first and foremost a business strategy, not merely a software package
The main function of CRM is to create value and building Customer relationship is an on-going process.
The role of global salespeople in the process is that of both relationship builders and relationship promoters.
CRM adds value by turning prospects into customers, customers into loyal customers, and loyal customers into partners.
CRM provides data to improve services or products which further helps in improvising the effectiveness of customer services, cross selling, up selling, deal closure and customer retention.