Presentation on Chapter 14: Customer Relationship Management (Based on the study of E-Marketing) It is based on the Chapter: 14 Customer Relationship Management from E-Marketing book by Strauss, Ansary & Frost 4th edition. It includes Background of CRM, CRM, CRM Benefits, CRM Building Blocks, CRM Strategy, CRM Technology & CRM Metrics in perspective of E-Marketing...

1. Welcome
To
Our Presentation

2. We Are
“Elegant (VI)”

3. Group Profile
No. Name Roll Designation
1 Anjuman Ara 215 Member
2 Md. Abdur Rakib 375 Member
3 Chowdhury Omor Faruque 377 Leader
4 Md. Al Amin 419 Member
5 Rumana 427 Member
6 Md. Moben Ahmed 526 Member

4. Md. Moben Ahmed
ID No: 526

5. Customer Relationship
Management

6. Definition of CRM
• CRM (customer relationship management)
is an information industry term for
methodologies, software, and usually
Internet capabilities that help an enterprise
manage customer relationships in an
organized way

7. Continued…

8. Continued…
• According to Margarat Rouse “ CRM is the abbreviation
for customer relationship management”. It entails all aspects
of interaction that a company has with its customer, whether
it is sales or service-related. CRM is often thought of as a
business strategy that enables businesses to:
o Understand the customer
o Retain customers through better customer experience
o Attract new customer
o Win new clients and contracts
o Increase profitably
o Decrease customer management costs

9. Continued…
• Run Campaigns • Assign Leads
• Generate Leads • Qualify Leads
• Form a Database • Convert Leads
• Track Opportunities
Marketing Sales
Support Orders
• Manage Cases • Deliver Products
• Conduct Trainings • Produce Invoices
• provide Service
• Develop Knowledge Base

10. Md. Abdur Rakib
ID No: 375

11. Benefits of CRM
Ease of
Use
Fast & Ease of
Flexible Anywhere
Deploymen
t Sage Access
CRM
Ease of
Business
Customizat
Integration
ion

12. Continued…
1. Save Time:
A CRM automates a lot of the usual time-
devouring tasks, giving salespeople more time
to do what they are actually paid to do:
namely, sell to prospects. More time spent in
2. Look Professional:
Which do you think looks better to a prospect:
a salesperson who keeps all their information in
a computer database and can pull up vital
details immediately

13. Continued…
3. Save Money:
Sure, the more impressively arrayed CRMs can
cost a lot of money. But if you don't need quite
that much technology working for you
4. Convenient:
If the whole sales team is using the same CRM,
then it's easy to share that information as needed.
Most CRMs allow you to develop templates for
phone scripts

14. Continued…
5. Secure:
What happens when the nightly cleaning crew accidentally
throws out someone's Post-It archive? With a CRM,
information is usually stored either in a central database or
in the CRM provider's system. At the very least each
salesperson can back up copies of their individual
databases to another computer.
6. Faster Lead Generation:
A good CRM can help immensely with lead generation.
For instance, many CRMs can integrate with website and
social media campaigns, sending leads from these sources

15. Other Benefits
o Faster Lead Generation
o Simplified Goal-Setting
o Centralization and Sharing of Data
o Higher Customer Satisfaction
o Improved Marketing Efforts
o More Profit
o CRM brings together existing applications
o Customer Knowledge Reveals Potential for Development
o Communicative measures depend on customer value
o Increasing Customer Retention Reduces Long-Term Costs

16. Rumana
ID No: 427

17. CRM Building Blocks
1. CRM Vision
2.CRM Strategy
3.Valued Customer Experience 4. Organizational Collaboration
5. CRM Processes
6. CRM Information
7. CRM Technology
8.CRM Metrics

18. CRM Vision
Create strong leadership
Create a corporate personality
Create a model customer experience
Communicate the guiding principles for a
customer-centric enterprise
Establish a supportive corporate culture

19. Continued…
 Guarding Customer
Privacy
 TRUST e

20. CRM Strategy
oIdentify the best customers, and the worst .
oDistribute value differently to different customers
oCompete on scope
oFocus on strategic capabilities
o Win through customer-centric innovation
o Measure customer performance
o Unlearn and relearn
o Redefine the focus
o The new competition

21. Continued…
Relationship Level
Level Primary Potential Main Element Web
Bond Sustained of Marketing example
Competitive Mix
Advantage
One Financial Low Price www.cdnow.co
m
Two Social Medium Personal www.palmpilot.
Build communicatio com
Relationship n
Three Structural High Service My.yahoo.com
Delivery

22. Md. Al Amin
ID No: 419

23. Continued…
Relationship Intensity
High
Intensity
Advocacy Tell others about the brand
Community Communicate with each other
Connection Communicate between company
Identity Display the brand proudly
Awareness Is on the list of possibility

24. Valued Customer Experience
 Attentiveness
 Recognition
 Personalization
 Consideration
 Appreciation
 Delight

25. Building Organizational Collaboration
• Step 1: Connect to the real world
• Step 2: Understand how work gets done
• Step 3: Design a collaborative organization
• Step 4: Help managers drive collaboration
• Step 5: Empower staff
• Step 6: Align support systems
• Step 7: Develop a culture of collaborative
entrepreneurship

26. Chowdhury Omor
Faruque
ID No: 377

27. CRM Process
CRM involves an understanding of the customer care life
cycle, as in this figure: Figure: Customer care lifecycle
Target
Partners
Acquire
Internet Transact Extranet
Service
Retain
Grow
Customer

28. Continued…
Main activities of CRM process involves:
1. Identifying Customers
2. Differentiating the customers
3. Interaction
Identify
Interaction Customize
Differentiate

29. CRM Information
Information is the lubricant of CRM. The more information a firm has,
the better value it can provide to each customer and prospect in terms
of more accurate, timely and offerings. many firms entice customers to
provide additional information over time. For example, Orbit.com first
request a sample e-mail address from those want information about
discount offers and subsequently asks about vacations preferences so
as to provide more relevant e-mailings.
Now a customer can telephone the customer service representative
to discuss a products purchased in brick and mortal stores last week,
and refer to sent e-mail sent yesterday, because the data is still in the
database under one customer records. This is known as 360-degree
customer view, or one view across the channels.

30. CRM Information
Patricia Seabold identified eight critical success factors for building
successful e-business relationships with customers. These factors
are:
1. Target the right customers
2. Own the customers total experience
3. Streamline business process that impact the customer
4. Provide 360 degree view of customer relationship
5. Foster community
6. Help customers do their jobs
7. Deliver personalized service
8. Let customer help themselves

31. Anjuman Ara
ID No: 215

32. CRM Technology
 Incoming toll-free numbers, electronic kiosks, FAX-on-demand,
voice mail, and automated telephone routing are examples of
technology that assist in moving customers through the life
cycle.
 Cookies, Web site logs, bar code scanners help to collect
information about consumer behavior and characteristics. These
information allow to develop marketing mixes that better meet
individual needs.
 Important tools that aid firms in customizing products to groups
of customers or individuals include:
1. “Push” strategies that reside on the company’s Web and e-
mail servers, and
2. “Pull” strategies that are initiated by Internet users.

33. Continued…
Company-Side Tools(Push) Client-Side Tools(Pull)
Cookies Agents
Web log analysis Experiential marketing
Data mining Individualized Web portals
Real-time profiling Wireless data services
Collaborative filtering Web forms
Outgoing e-mail FAX-on-demand
Chats and Bulletin Boards Incoming e-mail
iPOS terminals

34. Company-Side Tools(Push)
Company-Side Description
Tools(Push)
Cookies small files written to the user’s hard drive after visiting a Web site.
Web log analysis Every time a user accesses a Web site, the visit is recorded in the
Web server’s log file.
Data mining the extraction of hidden predictive information in large databases
through statistical analysis.
Real-time profiling special software tracks a user’s movements through a Web site,
then compiles and reports on the data at a moment’s notice.
Collaborating gathers opinions of like-minded users and returns those opinions
filtering to the individual in real-time.
Outgoing e-mail Marketers use e-mail databases to build relationships by keeping
in touch with useful and timely information. E-mail can be sent to
individuals or sent en masse using list.
Chats & Bulletin listen to users and build community by providing a space for user
board conversation on the Web site
iPOS terminals located on a retailer’s counter, and used to capture data and
present targeted communication.

35. Client-Side Tools(Pull)
Client-Side Tools(Pull) Description
Agents perform functions on behalf of the user.
Experiential marketing gets the consumer involved in the product to create a
memorable experience, offline or online.
Individualized Web Personalized Web pages users easily configure at Web
portals sites
Wireless data services portals send data to customer cell phones, pagers, &
PDAs.
Web forms form on a Web page that has designated places for the
user to type information for submission.
FAX-on-demand customers telephone a firm, listen to an automated voice
menu, and select options to request a FAX be sent .
Incoming e-mail E-mail queries, complaints, or compliments initiated by
customers or prospects comprise incoming e-mail

36. CRM Metrics
 Metrics are used to assess the Internet’s value in
delivering CRM performance
 especially the contribution of each CRM tactic to ROI,
cost savings, revenues, and customer satisfaction.
 All e-marketing performance measures assess specific
tactics from different perspectives, the choice of the
metrics depend on the firm’s goals and strategies.

37. CRM Metrics By Customer Life Cycle Stage
Target
 Recency, frequency, monetary analysis (RFM)—identifies high value customers.
 Share of customer spending: proportion of revenues from high-value customers as compared to low-
value customers.
Acquire
 New customer acquisition cost (CAC).
 Number of new customers referred from partner sites.
 Campaign response—click throughs, conversions, and more.
 Rate of customer recovery—proportion of customers who drop away that firm can lure using offers.
Transact
 Prospect conversion rate—percent of visitors to site that buy.
 Customer cross sell rate from online to offline, and reverse.
 Services sold to partners.
 Sales of a firm’s products on partner Web sites.
 Average order value (AOV)—dollar sales divided by the number of orders for any given period.
 Referral revenue—dollars in sales from customers referred to the firm by current customers
 Sales leads from Internet to closure ratio

38. Continued…
Service
 Customer satisfaction ratings over time (see Cisco opening story).
 Time to answer incoming e-mail from customers.
 Number of complaints.
Retain
 Customer attrition rate—proportion who don’t repurchase in a set time period.
 Percentage of customer retention—proportion of customers who repeat purchase.
Grow
 Lifetime value: Net present value of the revenue stream for any particular customer over a
number of years.
 AOV over time—increase or decrease.
 Average annual sales growth for repeat customers over time.
 Loyalty program effectiveness—sales increase over time.
 Number of low value customer moved to high value.

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