Crm Final


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Crm Final

  1. 1.
  2. 2. Group members<br />
  3. 3. CRM<br />3<br /><ul><li>Customer Relationship Management
  4. 4. Term applied to processes implemented by a company to handle its contact with its customers
  5. 5. It is process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them.
  6. 6. set of methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.
  7. 7. CRM is a software-based approach to handling customer relationships</li></li></ul><li>Components of CRM<br />
  8. 8. Contact and Account Management<br />Relevant data for customer profile is captured with the help of software. <br />Necessary information is captured from prospective customers.<br />CRM system stores data in common customer database. <br />The database integrates customer account information and present it in desirable format to the company. <br />This database can be accessed on Internet, intranet and on other network links. <br />The data is used for sales, marketing, services and other applications.<br />The contact management software contains various modules of databases, displays, charts, workflow programs.<br />
  9. 9. Sales<br />Sales process management follows a customized sales methodology with specific sales policies and procedures.<br />Sales activities include - Product information, product configuration, sales prospectus, sales quote generation. <br />CRM also provide the history of customer account so that the sales call can be scheduled accordingly.<br />
  10. 10. Marketing and Fulfillment<br />CRM helps the professionals in product marketing, target marketing, relationship marketing and campaign management.<br /> By analyzing customer and business value of direct marketing can be estimated.<br />CRM also helps in customer retention, behavior prediction, channel optimization, personalization.<br />Customer response and requests can be quickly scheduled and hence sales contacts.<br />
  11. 11. Customer Service and Support<br />CRM system provides service representatives with adequate software tools and access to customer database. It also helps to create, assign and manage the service requests by customers.<br />Call center software is designed to route customer calls to respective attendants as per the skills and authority to handle special cases.<br />Help desk software is developed to help customer service representative to help customers who face problems with product or service to resolve it.<br />Web-based Self Service means help customer to access personalized information at company website.<br />
  12. 12. Retention and Loyalty programs<br />The primary objective of CRM is to enhance and optimize customer retention and loyalty.<br />CRM systems are also useful in determining most loyal and profitable customers and reward. <br />CRM analytical software includes determining tools and analytical marketing software whereas CRM databases consists of customer data ware house and CRM data marts.<br />
  13. 13. Phases of CRM<br />
  14. 14. Acquisition :<br />techniques used to form relationships with new customers to achieve an online sale. <br />For achieving this special CRM software tools and databases are used.<br />The main purpose of this CRM function is to make aware the customer about the superior product by a distinguished company.<br />
  15. 15. Enhance<br /> to keep customer satisfied and happy to offering superior service from specialists.<br />The profitability of the business is increased by CRM sales for a automation and direct marketing.<br />The customer experience the convenience of one stop shopping at reasonable prices.<br />
  16. 16. Retention <br />Customer retention refers to the actions an organization takes to retain existing customers i.e. the techniques to maintain relationships with existing customer.<br />The customer retention has two distinct goals.<br /> 1. To retain customers of the organizations (repeat customers).<br /> 2. To keep customers using online channel (repeat visits).<br />
  17. 17. Implementation of CRM<br />
  18. 18. Customer relationship management (CRM) solution is best treated as a six-stage process<br />Stage six: Enhancing the customer experience<br />Stage five: Marketing more effectively<br />Stage four: Analysing Customer behaviour <br />Stage three: Accessing information<br />Stage two: Storing information<br />Stage one: Collecting information<br />
  19. 19. Example: DELL<br />
  20. 20. TYPES OF CRM<br />There are following types of CRM<br />1.OPERATIONAL CRM<br />2. SFA<br />3.Analytical CRM<br />4.COLLABORATIVE CRM<br />5.GEOGRAPHIC CRM<br />
  21. 21. OPERATIONAL CRM<br />Operational CRM processes customer data for a variety of purposes:<br />&apos;Managing Campaigns&apos; <br />Enterprise Marketing Automation <br />Sales Force Automation <br />Sales Management System <br />
  22. 22. SALES FORCE AUTOMATION<br />Sales Force Automation automates sales force-related activities such as:<br />Activity Management: Scheduling sales calls or mailings <br />Tracking responses <br />Generating reports <br />Opportunity Management and Assessment <br />Account Management and Target Account Selling<br />
  23. 23. ANALYTICAL CRM<br />Analytical CRM analyzes customer data for a variety of purposes:<br />Designing and executing targeted marketing campaigns <br />Designing and executing campaigns, e.g. customer acquisition, cross-selling, up-selling <br />Analysing customer behavior in order to make decisions relating to products and services (e.g. pricing, product development) <br />Management information system (e.g. financial forecasting and customer profitability analysis) <br />Analytical CRM generally makes heavy use of data mining.<br />
  24. 24. COLLABORATIVE CRM<br />Collaborative CRM covers aspects of a company&apos;s dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. Staff members from different departments can share information collected when interacting with customers. For example, feedback received by customer support agents can provide other staff members with information on the services and features requested by customers. Collaborative CRM&apos;s ultimate goal is to use information collected by all departments to improve the quality of services provided by the company.<br />
  25. 25. Geographic CRM<br />Geographic CRM (GCRM) combines geographic information system and traditional CRM. Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer visits.<br />
  26. 26. Related aspects<br /><ul><li>Many inter-related aspects
  27. 27. Front office operation
  28. 28. Back office operations
  29. 29. Business relationships
  30. 30. Analysis </li></ul>23<br />
  31. 31. Aspect 1 – Front office<br /><ul><li>Direct interaction with customers
  32. 32. Face to face meetings
  33. 33. Phone calls
  34. 34. E-mail
  35. 35. Online services etc</li></ul>24<br />
  36. 36. Aspect 2 – Back office<br /><ul><li>Operations that ultimately affect the activities of the front office
  37. 37. Billing
  38. 38. Maintenance
  39. 39. Planning
  40. 40. Marketing
  41. 41. Advertising
  42. 42. Finance
  43. 43. Manufacturing</li></ul>25<br />
  44. 44. Aspect 3 - Business relationships<br /><ul><li>Interaction with other companies and partners
  45. 45. Suppliers/vendors
  46. 46. Retail outlets/distributors
  47. 47. Industry networks </li></ul>26<br />
  48. 48. Aspect 4 - Analysis<br /><ul><li>Key CRM data can be analyzed in order to plan
  49. 49. Target-marketing campaigns
  50. 50. Conceive business strategies
  51. 51. Judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability)</li></ul>27<br />
  52. 52. Elements of CRM<br />
  53. 53. Three key elements<br /><ul><li>1. Validation
  54. 54. 2. Discovery
  55. 55. 3. Action</li></ul>29<br />
  56. 56. 1. Validation<br /><ul><li>Correct data
  57. 57. Ensuring that the data of the customers is correct
  58. 58. Example:-Mobile number</li></ul>30<br />
  59. 59. 2. Discovery<br /><ul><li>Use of data mining techniques
  60. 60. To find relationships that you did not know existed
  61. 61. Data mining is an important enabler for CRM
  62. 62. Helps in the process of understanding a customer by providing the necessary information
  63. 63. Facilitates decision-making.</li></ul>31<br />
  64. 64. 3. Action<br /><ul><li>Right communication
  65. 65. Right messages communication
  66. 66. This is done with a Campaign Management tool that can automatically select the right targets and the right messages via the right channels
  67. 67. The responses are then fed back into the Validation process for evaluation and refinement</li></ul>32<br />
  68. 68. What is the status of CRM adoption in India?<br />Indian companies were slow in adopting CRM. One of the major reasons for this has been a lack of proper understanding of CRM as a concept and how it could benefit an organization. In the past, CRM was identified with call centers. However, this has changed in recent times with a better understanding of the various components of CRM and increased awareness levels of how it can drive efficiencies across the board.<br />
  70. 70.
  71. 71. What are the reasons for service sectors being early adopters of CRM?<br /><ul><li>Increased competition in the sector meant that organisations had to think of more innovative ways to acquire and retain customers. This sector has seen more investments in IT infrastructure which is an enabler for applications.
  72. 72. Though back-end systems are always important for smooth functioning of systems, for the service sector it is also important to have a user-friendly interface. Many companies in this sector have adopted CRM before investing in ERP. Verticals in the services sector include retail and commercial banks, brokerages, insurance, mutual funds, IT services, BPO, hospitality, travel, media and logistics.</li></li></ul><li>CUSTOMER RELATIONSHIP MANAGEMENT<br />CRM is the strategic use of information, process, technology, and people to manage customer’s relationship with your company (marketing, sales, services and support ) across the whole customer life cycle.<br />Although our definition of CRM is broad and complex but its goal is simple<br />To maximize the value of your company’s customer asset. <br />including<br /><ul><li>Customer loyalty
  73. 73. Company’s revenue
  74. 74. Company’s profit </li></li></ul><li>THE CUSTOMER LIFE CYCLE<br />Upgrade/<br />retire<br />Aware<br />investigation<br />Maintain<br />Consider<br />Use<br />Evaluate/<br />Choose<br />Purchase<br />Learn<br />Setup<br />Install<br />Order<br />
  75. 75. CUSTOMER LIFE CYCLE<br />The customer life cycle is total time that a customer is engaged with your company from the customer’s experience and viewpoint.<br /> There is high level of cycle that is consistent for customers, no matter the product or services and no matter how much how much the customer spend on each stage; <br />1. Consider: Customer becomes aware of need and investigates alternative solution.<br />2.Purchase: Customer evaluates and chooses the best alternatives and place an order.<br />3. Set up: Customer install the product and learn how to use it.<br />4. Use: Customer operates and maintain the product and finally makes the decision to retire it or upgrade, which starts the cycle all over again. <br />
  76. 76. Building Customer Relationships1:1 <br /><ul><li>A major shift in marketing thought:
  77. 77. from mass marketing to individualized marketing
  78. 78. From focus on acquiring lots of new customers to retaining and building more business with fewer loyal high-value customers
  79. 79. Goal: build long-term relationship, 1:1
  80. 80. A firms ability to build and maintain relationships with customers, suppliers, and partners may be more important than the firms land, property, and financial assets.
  81. 81. The key: Treat customers like friends</li></li></ul><li>Relationship Marketing<br />“Establishing, maintaining, enhancing, commercializing customer relationships through promise fulfillment”<br />Building long-term profitable relationships with mutual benefit<br />Tool: promise fulfillment =&gt; customer satisfaction<br />Domino’s Pizza ads claim 30 minute delivery of pizza’s.<br />
  82. 82. Pizza example <br /><ul><li>Subconscious Expectations
  83. 83. Pizza with specified toppings
  84. 84. Take 10 minutes
  85. 85. Come in a packed box
  86. 86. Remain warm till you reach home
  87. 87. Charges – standard and acceptable price
  88. 88. Pizza will taste reasonably good
  89. 89. You will come back is all the above are met</li></li></ul><li>Pizza example <br /><ul><li>If you go regularly
  90. 90. Rapport with employees
  91. 91. You forgive if they mess up with one or two expectations
  92. 92. Degree of confidence determines tolerance
  93. 93. If using first time, and even one expectation is not met
  94. 94. You will never go again</li></li></ul><li>Pizza example <br />Exceeded expectations<br />Deliver on all expectations<br />Give you a garlic bread FREE !<br />You will tell everyone about it<br />
  95. 95. CRM Processes and Systems<br />
  96. 96. Processes & Systems<br />46<br />
  97. 97. Processes & Systems<br /><ul><li>Important
  98. 98. Business starts with the acquisition of customers
  99. 99. However, any successful CRM initiative is highly dependent on a solid understanding of customers</li></ul>47<br />
  100. 100. 1. Understand & differentiate<br /><ul><li>Understand
  101. 101. Demographics, purchase patterns & channels
  102. 102. Segmentation to identify logical unique groups
  103. 103. Primary research to capture needs and attitudes
  104. 104. Customer valuation to understand profitability
  105. 105. Differentiate
  106. 106. Based on the value customers are expected to deliver</li></ul>48<br />
  107. 107. 2. Develop & Customize<br /><ul><li>Develop
  108. 108. Products, services, channels and media can be customized based on the needs of quantitative customer segments
  109. 109. Customize
  110. 110. Based on the potential value delivered by customer segment</li></ul>49<br />
  111. 111. 3. Interact & Deliver<br /><ul><li>Interact
  112. 112. Not just through marketing, sales and media
  113. 113. Distribution, shipping, customer service & online
  114. 114. Deliver
  115. 115. Delivering value is a cornerstone
  116. 116. Factors including quality, convenience, speed, ease of use, responsiveness and service excellence</li></ul>50<br />
  117. 117. 4. Acquire & Retain<br /><ul><li>Acquire
  118. 118. Learning about customers makes it easy to identify those producing the greatest value
  119. 119. Retain
  120. 120. Maintain interaction;
  121. 121. Deliver on value
  122. 122. Customers change as they move through differing life stages
  123. 123. Modify the service</li></ul>51<br />
  124. 124. eCRM<br /><ul><li> eCRM provides to companies a means to conduct interactive, personalised and relevant communication with customers across both electronic and traditional channels.
  125. 125. It utilises a complete view of the customer to make decisions about messaging, offers, and channel</li></ul> delivery.<br />eCRM v/s CRM: The Differences<br />Being able to take care of your customer via the Internet, or, customers being able to take care of<br /> themselves online: That’s the difference between CRM and eCRM.<br />
  126. 126. The Need to Adopt eCRM<br />Companies need to take firm initiatives on the eCRM frontier to Optimize the value of interactive relationship.<br />Enable the business to extend its personalized messaging to the Web and e-mail.<br />Co-ordinate marketing activities across all customer channels.<br />Leverage customer information for more effective eMarketing and eBusiness.<br />Focus business on improving customer relationship and earning a greater share of each customer’s business through consistent measurement, assessment and “actionable” customer contact strategies.<br />
  127. 127. Benefits of CRM<br />
  128. 128. CRM : Benefits<br />Excellent customer service is about being aware of customer needs and reacting to them effectively.<br />CRM helps you to understand, anticipate and respond to your customers&apos; needs in a consistent way, right across organization.<br />CRM will help your business if you view it as a set of tools that let you do more for, and get more from, your customer. <br />Keeps all your customer information in one place.<br />Know and understand your customers.<br />Know your best revenue opportunities.<br />Spot the best sales campaigns.<br />
  129. 129. Advantages Of CRM<br />Using CRM, a business can : <br />Provide better customer service <br />Increase customer revenues <br />Discover new customers <br />Help sales staff close deals faster <br />Make call centers more efficient <br />Simplify marketing and sales processes <br />
  130. 130. Challenges of CRM<br />Problems of collecting and coordinating substantial data can lead to privacy problems.<br />Firms still need to be sensitive to customer wishes about unsolicited contacts. Customer privacy request needs to be a part of CRM.<br />Privacy and data security<br /> One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider the desire for customer privacy and data security, as well as the legislative and cultural norms. Some customers prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties.<br />
  131. 131. CONCLUSION<br />