Customer Relationship ManagementCourse Handout- Week 6

Shainesh GProfessor of Marketing Indian Institute of Management Bangalore

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Components of a CRM Solution

Technology, including digital, plays a key role in enabling CRM implementation. Three important components of any comprehensive CRM solution-

Campaign management

Sales force automation

Customer service and support

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© Shainesh G

Components of a CRM Solution

Campaigns are usually conducted-

On the launch of a new product

On the re-launch of an existing product

To strengthen the brand image

For a specific occasion

When new versions of an existing product are launched

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Components of a CRM Solution

SFA enables the sales team to become more effective & efficient, by conveying the right information to the prospects and customers in the very first interaction.

SFA offers the following functionalities-

Interface with the campaign management module

Guide prospects to the right sales representatives

Contact management

Account management

Territory management

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Components of a CRM Solution

The interactions between a company and customer is very crucial after the customer has purchased the product. Efficient after-sales service is one way firms can retain customers.

CSS helps enhance customer loyalty.

It helps organizations automate the customer service cycle.

Digital technologies and analytics are increasing the self-service capabilities of CSS.

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CRM Implementation Roadmap

CRM requires integrating the front- end customer facing functions with the back-end systems. CRM strategy should involve the top management and all customer facing functional areas.

The CRM implementation roadmap, has the following steps :

Formation

Management and governance

Performance measurement

Evaluation and evolution

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CRM Implementation Roadmap

The formation stage consists of the following steps

Scenario analysis

Purpose

Programs

Partners

While the formation stage focusses on the strategic part, the management and governance stage focusses more on the implementation part

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CRM Implementation Roadmap

The focus of the third stage is on performance.

The final stage of the CRM implementation roadmap focusses on improvements and enhancements. Improvements are determined by your performance metrics

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Operational Issues in Implementing CRM

When firms decide to implement a technology solution for CRM, they will have to take decisions broadly related to

Product

Vendor

Systems Integrator

Ability to handle the three customer facing functions, namely marketing, sales, and customer service, very well.

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Operational Issues in Implementing CRM

Product and the vendor related decisions go hand-in-hand. A vendor is generally evaluated for CRM expertise

Most product vendors today have tie-ups with systems integrators to be the preferred systems integrator.

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Budgeting for Attraction Vs Retention

The emphasis of traditional marketing was on attraction rather than retention

Relationship marketing focuses on customer retention

However, attracting new customers is equally important to balance customer churn

In a growing industry, customer attraction as well as retention are equally important

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Issues to be Considered Before Allocating Resources

Nature of industry

Growth rate of industry

Position of firm in the industry

Uniqueness of a firm’s service

Readiness of a firm

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