PRESENTED BY: GARIMA SRIVASTAVA KRUTIKA DOSHI MANALI RATHI NAGENDRA GOYAL RISHAV RANJAN

Integrated customer relationshipmanagement for service activities

An internal/external gap model

Purpose

The purpose of this paper is to suggest an integrated framework for designing, Implementing and evaluating a customer relationship marketing (CRM) system in service companies,

It is based on gap analysis.

Introduction

CRM technologies have matured in the last decade,

Their implementation failure rates are high, ranging from 55 to 75 percent

Approximately 70 percent of CRM projects result in either losses or no bottom-line improvement in company performance

Service economy

Intangibility, Inseparability Heterogeneity Perishability

CRM opportunities in Service Industry

CRM is expected to multiply opportunities for delivering information to customers, providing offerings and answers to complains.

CRM is expected to contribute to existing or new relationships.

CRM has the potential to facilitate the customization of the offerings.

CRM is expected to reduce the transaction cost.

CRM Issues

•HAS THE TOP MANAGEMENT INTEGRATED CUSTOMERS’ EXPECTATIONS IN TERMS OF RELATIONSHIPS EARLY IN THE CRM STRATEGY DESIGN?•THROUGH WHICH PROCESS/APPROACH COULD THIS BE DONE?

•HOW DO CUSTOMERS EVALUATE/VALUE THE VARIOUS CRM ACTIONS THAT THE COMPANY

TARGETS TO THEM?•DOES THE CUSTOMER PERCEIVE/RECEIVE THE

EXPECTED RELATIONAL BENEFITS THROUGH HIS/HER INTERACTIONS WITH THE SERVICE

COMPANY?

STRATEGY•ARTICULATING A CLEAR COMPANY’S VISION.•SETTING SPECIFIC MID – LONG-TERM SALES AND PROFITABILITY OBJECTIVES.•MAKING SEGMENTATION AND TARGETING DECISIONS.•DECIDING THE LEVEL OF DESIRED CUSTOMIZATION OF THE OFFER.•MAKING THE ADEQUATE FINANCIAL COMMITMENT.

INTERNAL FACTORS INFLUENCING CRM DESIGN AND IMPLEMENTATION

ORGANIZATIONAL ENVIRONMENT

Effective communication and integration between all internal functions.

Alignment of all related business processes and, if necessary, reengineering of these processes.

Development of customer service consciousness and customer-centric organisation culture.

MULTI-CHANNEL INTEGRATION

1) sales force, including field account management, service, and personal

representation;2) outlets, including retail branches, stores, depots,

and kiosks;3) telephony, including traditional telephone,

facsimile, telex, and call center contact;4) direct marketing, including direct mail, radio, and

traditional television (but excluding e-commerce);5) e-commerce, including e-mail, the internet, and

interactive digita television; and6) m-commerce, including mobile telephony, short

message service and text messaging, wireless application protocol, and 3G

mobile services.

Cont…

Integration and coordination not only of alternative distribution channels but also of all customer touch points.

Development of synergies among these channels, and

Mechanisms of avoidance and resolving conflicts among these channels and customer touch points.

PEOPLE & MANAGEMENT

Training, specialized skills development of employees.

Rewards/incentives policy relative to relationship building and customer retention.

Focus on change management when required (user involvement, communication, and re-training)

Deployment of an internal marketing plan to establish a CRM consciousness , and

The management of the initial CRM implementation project itself.

EXTERNAL CUSTOMER RELATED FACTORS

confidence and security;time savings;convenience;better purchase decision;financial returns;customization; andsocial satisfaction. These are generally grouped into three

categories: Confidence, Social and Special Treatment

Cont.

Common customer related qualitySocial penetration theory

Need of DIE Model-Gap Analysis

Integrated consideration, especially for service companies, calls for a systemic framework.

To deal with this flow of interactions service management has largely adopted a systemic and operational approach.

Thus,to better monitorCRM system implementation by analysing the disparities among its different levels and elements.

Importance of DIE Gap model

Identifying the potential sources of problems, inefficiencies or even failure points of a CRM strategy.

Easy-to-understand and easy-to-use tool for the diagnosis of mismatches among resources and/or inter-related elements of a system.

GAP MODEL.

Gap model

The first gap level refers to differences between customer expectations and CRM strategy formulation.

The second gap level addresses the way organization, technology and management are coordinated and aligned with the strategy defined.

The third gap level refers to the fact that strategy and resources should effectively be transformed into a set of planned actions.

the fourth gap is customer-specific and measures the difference between

customers’ expectations in terms of relationship and their perceptions of company’s CRM policy and actions.

CONCLUSIONS & MANAGERIAL IMPLICATIONS

CRM efficiency and effectiveness are the result of the entire process of designing, managing and evaluating the flow of interactions with clients.

This efficiency should be measure through the relation quality between the customer and the service provider and effectiveness is assessed through loyalty development and sales growth.

CONT…..

View relationship with customer as a value and as a quality driver, so that it will lead managers to consider expectations as a mean to design appropriate interaction flows with customers.

For effective relationship quality management coordination among all organizational, technological and human components of the CRM system is required.

THANK YOU