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The true business of every company is to make

and keep customers

Peter Drucker, 1954

Customer Relationship Management is the

practice of identifying attracting and retaining

the most valuable customers to sustain

profitable growth

* * *

CRM

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Customer Relationship Management

is the process of making and keeping

customers and maximizing their

profitability, behaviors and

satisfaction.

CRM

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CUSTOMER

A Customer is the most important visitor on our

premises. He is not dependent on us. We are

dependent on him. He is not an interruption in our

work. He is the purpose of it. He is not an outsider on

our premises. He is part of it. We are not doing a

favour by serving him. He is doing us a favour by

giving an opportunity to do so. A customer is not a

person to argue with. No one ever won an argument

with a customer.

Somebody said it in early 40s Can you guess ?

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There is only one boss: thecustomer. He can fire

everybody in the company,from the Chairman on down,simply by spending his money

somewhere else.Sam Walton

Founder, Wal Mart

THE CUSTOMER

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Customer is not King

Customer is a Dictator

Customer is an Extremist

TODAYS CUSTOMER AN EXTREME

VIEW

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Prospects

Enquiries

Repeat

customers

Partners

AdvocatesClientsFirst-time

customers

Inactive or

ex-customerSource: Marketing ManagementPhilip Kotler

Maintaining Relationship : The key

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Other Reasons for the birth of CRM

It costs ten times more to sell to a new customerthan to sell to an existing one.

A typical dissatisfied customer will tell 8 to 10

people about his or her bad experience. The odds of selling to a new customer are 15

percent, whereas the odds of selling to an existingcustomer are 50 percent.

Eighty percent of complaining customers will dobusiness with the company again if it quickly takes

care of the problem.

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CUSTOMER HAS THE KEY

Study by TravelStudy by Travelllers Insuranceers Insurance

45% of customers switchingsuppliers cite customer service

issues as the reason for theswitch.

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Make it easy for customers to do

business with you

Customer relationship count

CRM Mantras

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Relationship

Which products of yours does this customer have ?What is the total value of this customer relationship ?

If he calls up at the call center, would the agent know the

entire relationship ?

Can he talk about all your different products in the samecall ?

Do you know that it is in his best interest to buy product

X from you now, without his telling you ?

Can you gather intelligence from each one of his

transactions ?

Need to understand entire relationship !

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Is this a different way of business ?

Old waySell products

Conduct product research : What we sell ?

Have product sales and profitability targets

Have product specialist groupsIntroduce new offerings every few years / months

Know the customer through personal contact

Constantly search for new customer acquisition

Think products, think transactions !

(Contd.)

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Identify the Most valuable Customers

(MVCs)

Mark them on to a special club (Club

Premire in Jet Airways, The Inner

circle Taj)

Train all customer contact employees

to take special care of them

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Reward loyalty

Frequent flyer program

Discount coupons, gifts

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Measure service quality and

customer satisfaction

Get individual feed-back from

customers

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WinWin

CustomersCustomersKnowKnow

CustomersCustomers

Customers Experience Is Your

Brand

Customer

Satisfaction

Product

Satisfaction

Process

Satisfaction= +

KeepKeep

CustomersCustomers

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THANK YOU

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Any question?