customer relation management in service sector, the profitability segmentation of customers in service marketing, service marketing, the types of customers in various segmentation,

1. CUSTOMER
RELATIONSHIP
MANAGEMENT
SUBMITTED TO: SUBMITTED
BY:
RAMNEEK MAM SAKSHA
5810

2. CONTENT
• Definition and meaning
• Components
• Types of CRM
• Objectives and benefits
• Customer Profitability Segmentation
• Phases of CRM

3. DEFINITIO
N
◦ As per Francis Buttle, World’s first professor of
CRM,
‘It is the core business strategy that integrates
internal processes and functions, and external
networks, to create and deliver value to a target
customer at profit. It is grounded on high quality
customer data and information technology.’

4. MEANING
Customer Relationship Management (or CRM) is a
phrase that describes how your business interacts
with your customers.
Most people think of CRM as a system to capture
information about your customers. However, that is
only part of the picture.
CRM involves using technology to gather the
intelligence you need to provide improved support
and services to your customers. CRM is also about
what you do with that information to better meet the
needs of your existing customers and identify new
customers, resulting in higher profits for you.

5. COMPONENTS
OR
INGREDIENTS
◦ INGREDIENTS THAT SHOULD WORK TOGETHER
TO FORM A CRM SYSTEM

6. OBJECTIVES OF CRM
Improve
customer
satisfaction
Expand the
customer base
Enhance
business sales
Improving
workforce
productivity

7. PHASES OF CRM
ACQUIRE
ENHANCE
RETAIN
TRUST
VALUE

8. TYPES
OF CRM
STRATEGIC
CRM
OPERATIONAL CRM
ANALYTICAL CRM
COLLABRATIVE CRM

9. WHAT IS
MEANT
BY
THESE
TYPES?

10. COMPREHENSIVE
VIEW

11. STRATEGIC CRM
◦ In contrast to Product Centric CRM (where the business assumes
customer requirements and focuses on developing the product
that may sometimes lead to over-engineering), here the business
constantly keeps learning about the customer requirements and
adapting to them.
◦ These businesses know the buying behavior of the customer that
happy customers buy more frequently than rest of the customers.
If any business is not considering this type of CRM, then it risks
losing the market share to those businesses, which excel at
strategic CRM.

12. OPERATIONAL CRM
◦ SFA- Works with all stages in the sales cycle, from initially
entering contact information to converting a prospective client
into an actual client. implements Sales promotion analysis,
automates the tracking of a client's account history for repeated
sales or future sales and coordinates sales, marketing, call centers,
and retail outlets.
◦ MA- CRM tools with marketing automation capabilities can
automate repeated tasks, for example, sending out automated
marketing emails at certain times to customers, or posting
marketing information on social media. The goal with marketing
automation is to turn a sales lead into a full customer. CRM
systems today also work on customer engagement through social
media.
◦ SA- Part of the CRM system that focuses on direct customer
service technology. Through service automation, customers are
supported through multiple channels such as phone, email,
knowledge bases, ticketing portals, FAQs, and more. For e.g.
, Microsoft's Dynamics CRM Software tracks call times, call
resolution and more in order to improve the efficiency of
customer service within a business.

13. ANALYTICAL CRM
◦ Analytical CRM is based on capturing, interpreting, segregating, storing,
modifying, processing, and reporting customer-related data. It also contains
internal business-wide data such as Sales Data (products, volume, purchasing
history), Finance Data (purchase history, credit score) and Marketing Data
(response to campaign figures, customer loyalty schemes data). Base CRM is
an example of analytical CRM. It provides detailed analytics and customized
reports.

14. COLLABRATIVE CRM
◦ The third primary aim of CRM systems is to
incorporate external stakeholders such as
suppliers, vendors, and distributors, and share
customer information across organizations
◦ Collaborative CRM enables smooth
communication and transactions among
businesses.
◦ Though traditional ways such as air mail,
telephone, and fax are used in communication,
◦ Collaborative CRM employs new
communication systems such as chat rooms, web
forums, Voice over Internet Protocol (VoIP), and
Electronic Data Interchange (EDI).

15. CUSTOMER
PROFITABILITY
SEGMENTATION

16. RATIONALE
◦ Essentially the idea is that not all customers are equally profitable, and
determining the profitability of different market segments can help the
firm to decide where to invest its limited resources to build loyalty with
high lifetime value customers. Similarly, this type of segmentation can
be used to determine levels of service provided—more profitable
segments are typically given more personal or customized service.
◦ The difficult part for firms is to be confident in the numbers (costs and
potential revenues) used to determine segment profitability, and to
decide whether to focus on short- or long-term profitability.

17. CUSTOMER’S VIEW
◦ From the customer’s point of view, profitability segmentation, while
logical, may not seem fair. Customers may resent receiving a lower
level of service (e.g., automated) than they had previously received,
knowing that others are still getting customized and personal service .
This is particularly true if they perceive that they are receiving less
service than before, or if they are being asked to pay for service they
previously received for free.

18. WHAT IS PROFITABILITY
SEGMENTATION
RELATIONSHIP
REVENUE
RELATIONSHIP
COST
CUSTOMER
RELATIONSHIP
PROFITABILITY

19. EXPLAINATION

20. IDENTIFYING PROFITABLE
CUSTOMERS
◦ THE CONCEPT
OF LIFE TIME
VALUE

21. IDENTIFYING PROFITABLE
CUSTOMERS

23. THANK YOU