The document discusses customer relationship management (CRM), defining it as a strategy to optimize profitability, revenue, and customer satisfaction by organizing around customer segments and implementing customer-centric processes. It notes that the goals of CRM include increasing customer acquisition and retention while decreasing customer issues and churn. The document also outlines some of the tools and benefits of CRM, as well as potential drawbacks, for organizations.

1. Amit Surana 118
Hrishikesh Baruah 119
Shashanka Yerabaty 120

2.  A strategy to optimise profitability, revenue and customer
satisfaction by organizing around customer segments,
fostering customer-satisfying behaviours and implementing
customer-centric processes.
- Gartner
 Aimed at maximizing their total customer life-time value, in
addition to acquiring newer ones.

3.  When customers value the customer service that they
receive from suppliers, they are less likely to look to
alternative suppliers for their needs.
 CRM enables organisations to gain ‘competitive advantage’
over competitors that supply similar products or services.

4. • Core business and its future evolution.
• Type of CRM appropriate for our business.
• IT infrastructure – present & required.
• Selection of vendors and partners.

5. GOALS
INCREASE DECREASE
INTERNAL Revenue Costs
Profitability Time
Knowledge Errors
Efficiency Employee Defection
Effectiveness
Product Innovation
Customer Focus.
EXTERNAL Customer Acquisition Customer Issues
Customer Relationships Complaints
Interaction Attrition
Feedback Churn Dissatisfaction
Service Satisfaction
Loyalty
Evangelism

6.  In the cellular business, it costs five times more to acquire a
customer. It is the same in every business. Retaining this
customer is the critical first step for success.
(Harsh Goenka, Chairman, RPG Enterprises, India)
 The average new customer spends $24.50 at a given web site in
the first 3 months as a shopper. The average repeat customer
spends $52.50 every 3 months.
 Most companies lose 50% of their customers in 5 years
(Harvard University)

7.  Customer Acquisition
 Customer Retention
 Customer Loyalty
 Customer Evangelism
 Cost Reduction
 Improve Productivity

8.  Customer relationship should be built with customers that
are likely to provide value for services.
 Not all customers are equally important
 Building relationships with customers that will provide little
value could result in a loss of time, staff and financial
resources

9. Increased
customer
relationship.
Target
specific
customers
Repository of
all the data.
Use of
databases,
data mining..

10.  Phone calls, emails, mobile phone text messages, or WAP
services can be used to reach to the customers.
 Illustration: When tickets are purchased online via
Makemytrip.com, the website retains the customers details and
their purchase history. The website regularly send emails to
previous customers to inform them of similar upcoming events
or special discounts. This helps to ensure that customers will
continue to purchase tickets from Makemytrip.com in the future.

11. CRM software- “Front office” solutions
Many call centres use CRM software to store all of their
customer's details. When a customer calls, the system can be
used to retrieve and store information relevant to the
customer. By serving the customer quickly and efficiently, and
also keeping all information on a customer in one place, a
company aims to make cost savings, and also encourage new
customers.

12.  Staff members often remember the names and favourite
services/products of regular customers and use this
information to create a personalised service for them.
 For example, in a hospital library you will know the name of
nurses that come in often and probably remember the area
that they work in.
 However, face-to-face CRM could prove less useful when
organisations have a large number of customers as it would be
more difficult to remember details about each of them.

13. Benefits Drawbacks
 Effective & efficient.  Difficult to work with
 Increased customer  Costly
satisfaction.  Requires additional work
inputting data.
 Growth in numbers of  Requires continuous
customers maintenance, information
 Increased access to a updating
source of market and  Difficult to integrate with
competitor information. other MIS
 Long term profitability and
sustainability

14. Queries ???