Presented by: Kiran Majumdar Shaw Group

8/14/2019 Presented by: Kiran Majumdar Shaw Group

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CRM

Presented By:

Kiran Majumdar Shaw Group





CRM Objectives

Customer Ownership

Attempts to “own” the lionshare of customer spending and/or “share of

mind” in a particular product categoryBuilding brand equity, maintaining

vigilant customer contact, keepingcurrent with the market trends is critical

5% points increase in customer

retention=20-25% increase in profit



Determinants of CRM

Value:

Ø The ability of a selling organisation to satisfy theneeds of the customer at a comparatively lower costor higher benefit than that offered by competitorsand measured in monetary, temporal, functional and

psychological terms.

TRUST:

Ø Make sure that the customer is always told the truth(must be honest);

Ø Meet their commitments;Ø Provide superior after sales support;

Ø Understand customer needs and problems;

Ø Have a passionate interest in establishing and retaininga long- term relationship (e.g., have long-term

perspective).



Functions of Customer RelationshipManagement

Direct functions (are the basic requirements of acompany that are necessary to survive in thecompetitive marketplace)

Ø Profit;Ø Volume; and

Ø Safeguard

Indirect functions (are the actions necessary toconvince the customer to participate in variousmarketing activities).

Ø Innovation:Ø Market;Ø Scout: andØ Access.



The role of salespeople asrelationship builders and promoters

Salespeople by:

Ø identifying potential customers and their needs;

Øapproaching key decision makers in the buyingfirm;

Ønegotiating and advancing dialogue and mutualtrust;

Ø coordinating the cooperation between thecustomers and their company;

Øencouraging the inter-organisational learningprocess;

Ø contributing to constructive resolution of existingconflicts; and

Ø leading the customer relationship developmentteam

Øare the individuals in any organisation who actboth as relationship builders and as



Models of Customer RelationshipManagement



CRM as Business Strategy





Developing the relationship

Select an appropriate offering;

Customise the relationship;

Link the solutions with the customer’s needs;

Discuss customer concerns;

Summarize the solution to confirm benefits;and

Secure commitment



Enhancing the relationship

Assess customer satisfaction;

Take action to ensure satisfaction;

Maintain open, two-way communication; and

Work to add value and enhance mutualopportunities.



Managing Customer Relationships

Qualifying prospects for relationship building

Opportunities

for adding value

Potential profitability of customer

High

Low

Low High

Use a non

customized

approach

Seek better

opportunitieselsewhere

Build a strong

and lasting

relationship

Focus on

loyalty-buildingprogram



Relationship networks

The ultimate outcome of a successful CRM

strategy is the creation of a unique companyasset known as a relationship network.

A relationship network consists of the companyand its major customers with whom thecompany has established long and enduringbusiness relationships.

The additional aspects of a global salesperson’s job are to:

ØManage customer value;ØAct as customer advocate; andØEnhance customer loyalty and build a “health” andØprofitable network of relationships.



CONCLUSION

CRM is a new business philosophy based on trustand value;The core function of CRM is the valuecreation process;

Customer relationships develop over time;

The role of global salespeople in the process isthat of both relationship builders andrelationship promoters; and

The basic premise of CRM is to offer superior valueto

customers in an effort to turn prospects intocustomers, customers into loyal customers, and

loyal customers into partners.



Documents

Presented by: Kiran Majumdar Shaw Group