CRM aims to optimize profitability, revenue and customer satisfaction by recognizing customer value. It has become more complex with increased offerings, competition and compressed marketing cycles. CRM principles include differentiating customers, offerings, retaining customers, maximizing lifetime value and increasing loyalty. Goals are to simplify marketing and sales, improve call center efficiency, provide better service, discover new customers and increase revenue through cross-selling. E-CRM uses internet technologies like email, websites and forums to automate marketing, sales and service processes. The 7 C's of E-CRM are context, content, community, customization, communication, connection and commerce. Marketing applications include permission marketing and customer profiling to break customers into groups sharing goals and characteristics.

1. CRM
Unit 3

2. CRM (Customer Relationship Management)
• It is customer focused business strategy designed to optimize profitability, revenue
and customer satisfaction by recognising the value of customers.
• Proper CRM can become competitive strength of organisation
• It has becomes more complex due to
1. Increase in product offerings
2. Competition
3. Compressed marketing cycle time

3. Principles of CRM
• Differentiating customers
• Differentiating offerings
• Retaining current customers
• Maximizing lifetime value for customers
• Increasing customer loyalty

4. Goals of CRM
• To simplify marketing and sales process
• To make call centers more efficient
• To provide better customer service
• To discover new customers and increase customer revenue
• To cross sell products more effectively

5. Insights of E- CRM
• Electronic customer relationship management (E-CRM) is the application of
Internet-based technologies such as emails, websites, chat rooms, forums and
other channels to achieve CRM objectives.
• It is a well-structured and coordinated process of CRM that automates the
processes in marketing, sales and customer service.

6. 7 C’s of E- CRM
CRMContext
content
Community
Customis
ation Communi
cation
Connection
Commerce

7. Customer Life Cycle

8. Marketing applications of CRM
• Benefits of E- CRM
• Permission Marketing
• Customer Profiling

9. Benefits of E- CRM
• Business Management
• Customer Tracking
• Targeted Marketing
• Integration
• Customer Feedback
• Data Analysis
• Sales Tracking
• Mobility
• Task Management
• Document MAnagement

10. Permission Marketing
• Permission marketing is an approach to selling goods and services in which a
prospect explicitly agrees in advance to receive marketing information.
• Opt-in e-mail, where Internet users sign up in advance for information about
certain product categories, is a good example of permission marketing.
• It is effective because the prospect is more receptive to a message that has been
requested in advance and more cost-efficient because the prospect is already
identified and targeted.
• In a world of information overload, automated telemarketing, and spam, most
people welcome the idea of Permission Marketing.

11. Customer Profiling
• Customer profiling is a way to create a portrait of customers to help in make
design decisions concerning the service.
• Customers are broken down into groups of customers sharing similar goals
and characteristics and each group is given a representative with a photo, a
name, and a description.
• A small group of customer profiles or ‘personas’ are then used to make key
design decisions.