CRM Comprehensive

7/29/2019 CRM Comprehensive

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CUSTOMER RELATIONSHIP

MANAGEMENT (CRM)


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CUSTOMER RELATIONSHIP

MANAGEMENT(CRM)

It is built on the simple and basic

principle that relationships lead toCommitment and trust and hence

create a widerZone of tolerance

leading to Customer Satisfaction andLoyalty.


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Views of what is CRM?

1.It is database marketingemphasizing

the promotional aspects of marketing

linked to data base efforts.


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2. CRM focuses on one to one

relationship with customers that

integrates data base knowledge with

long term customer retentionprogramme, as a growth strategy.


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3.CRM is an integrated effort effort to

identify ,maintain and build upnetwork with individual customers

and to continuously strengthen the

network for the mutual benefit ofboth sides,through interactive ,

individualized and value added

contacts over a longer period of time..


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4. The focus of CRM is on cooperative

and collaborative relationship

between the firm and its

customers,which is long termoriented ratehr than short term

oriented.


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5. CRM aims at customer selectivity

as all customers are not equallyprofitable for the company toestablish relationships with.

Hence. CRM is a comprehensive

strategy and process of acquir ing ,

retain ing and partner ing w ith

select ive cus tomers to createsuper ior value for the custom er and

the company.


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Big p ic ture

CRM is a business strategy to select

and manage the most valuable

customer relationships.


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Emergence of CRM

Increased cost of acquiring new

customers

Possibility of increased sales and

profit from existing customers.

Increased competition


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Growing de-intermediation process

in many industries due to the adventof sophisticated computer and

telecommunication technology that

allow producers to directly interactwith end users.


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.

Emergence of effective data base

management systems.

Popularity of TQM which required

very closer and meaningful

interactions with customers (andsuppliers).


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JIT and MRP had also underlined the

importance of closer relationshipswith customers (and suppliers)

Growth of Services

Expectations can be managed better

in an environment of relationships.


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AREAS OF FOCUS Sales

Customer service

Marketing research

IT/Marketing automation


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ROLE OF FUNCTIONS IN CRM

1. SALES

provide information on customer and

data regarding revenue, profit, cost,

order size and order frequency etc.

Direct and indirect personal

interactions with customers.


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2. CUSTOMER SERVICE

Customer service standardsmanagement

Complaint handling

Designing customer loyaltyprogramme

3. MARKETING RESEARCH study and collect , analyze and

interpret data from customer

Study competitors


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4. IT/ MARKETING AUTOMATION

Decide on hardware and software for

data collection, storage and analysis.

Decide on equipment and technology

for customer communication and

continuous interactions.


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3 COMPONENTS/PHASES OF CRM

OPERATIONAL

ANALYTICAL

COLLABORATIVE


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PHASES OF CRM- issues in

implementation

A. Operational System

Process Standards of delivery

Structure- People- own or

outsourced, large or small orthrough Call centres etc.


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B. Analytical System Data base management system

1. Data warehousing

2. Data mining3. Data analysis.

Technology&equipments


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C. Collaborative System

Customer Selection- for relationship

based on CPA and LTV (alsoCatego r ize the abov eon the basis of Present benefi ts and Future potent ia l

benefi ts-Inves t, Re-eng ineer, Nu rtu re, and Sack.)

Channel decision- Personal, telephone,mail,

e-mail/Web, Voice mail, AutomaticComplaint handling devise etc.

Contact programmes- When (date,month,stage) what( memberships,discounts, new facilities, add-ons,

invitations, freebies etc)


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BUILDING A CRM SYSTEM

1. CUSTOMER RELATIONSHIP FORMATIONPROCESSES

2. RELATIONSHIP MANAGEMENTAND

GOVERNANCE

3. RELATIONAL PERFORMANCEEVALUATION

4.RELATIONSHIP ENHANCEMENTPROCESS


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1. CRM FORMATION PROCESS

(A.) Decide on CRM Purpose.

Objective could be - financial, marketing,

strategic or operational.It could be

increase profits

increase satisfaction lower distribution costs

streamlining order processing


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decreasing customer acquisition

costs

balance sales/demand

retaining customers

improve marketing efficiencies

saves time_______


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(B) Select parties for establishing

relationshipa. Identifying the the characteristics ofpresent customers

b. Customer Portfolio

c. Categorize the above into (on the basis ofPresent benefits and Future potentialBenefits.

d. Identifying customers with whomrelationships or contacts have to be

established.


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CRM programmes

Decide onValue proposi t ionto be

offered.

(1). For mass market feel proud as owner

(2). One -to -one marketing- individual

account based programmes. Eg. Improved

after sales

(3). business to business problem

solution, easy and quick availability etc.


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2. RELATIONSHIP MANAGEMENT ANDGOVERNANCE

Decision issuesRole specification

team structure

process alignmentCommunication methods

Stages of contact.

Employee motivationMonitoring procedures.


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3.RELATIONAL PERFORMANCE

EVALUATION

A balanced sco recard consisting of

any, many or all of the below could

be developed for assessment ofeffectiveness of relationship

programme

distribution costs time saved

sales


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profit

Market share

Brand equity

customer satisfaction


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4. RELATIONSHIP ENHANCEMENTPROCESS

Based on Fresh criteria and evaluation of LTV.

New competition

New technologyNew channels

New contact programmes

New processNew People & Capability


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STEPS IN CRM IMPLEMENTATION

1.Map the front stage process -see it is

interactive.

2.Map the - back stage process see it

is interactive.

3.Develop a customer friendly/oriented

Customer Service Manual/standard.


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4.Profile the present customers.

5. Customer Portfolio Analysis-

.Establish criteria for selecting

relationship customers.

6.Decide on Customer catego rybased

on Life time Value (LTV) calculation.

7. Decide on Value Proposition.


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8.Decide on data base mgmt

Technology/systems.

Data collection/receiving technology

(formal data collection, enquiries,

Data warehousing-

Data mining

Data analysis


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9. Establish Complaint handlingsystem with the help of the above.

10. Decide channels to communicateto customers.

11. Decide on contact programmes andstages of contact.

12. Relationship satisfaction study.

13. Establish loyalty programmes.


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Some CRM solutions providers :

Siebel, Vantive, Clarify, SAP, Oracle,People soft, Servicesoft, Onyx,

Goldmine, Saleslogix,

iSeva,Oracle.Some CRM Packages: My SAP, Sales

force automation,Customer data

integration, Data analysis, e-CRM etc.End.

Documents

CRM Comprehensive