Unit-i[1] Crm Updated

8/8/2019 Unit-i[1] Crm Updated

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2.Employees : They are the set of people who execute the CRM design . They include

those right from the front line staff who actually executes to the top management who

designs the CRM.

3.Suppliers : They are the part of the system who provide input to a companys value

chain.

4.Partners: They are the creators of additional value for the customers.

CRM Technology CRM is disciplined business strategy. CRM technology is

the driver of the strategy.

Technology, in the form of networked collaboration, communication,

knowledge management and automated electronic processes can enable

different groups within the company to work seamlessly as one unit to fulfill

the CRM vision. The accepted definition of CRM technology is generally accepted to apply to

"front office" processes.

CRM technology mandates that all interactions between the customer and the

company are recorded and stored in a central information database, which

can be shared with anyone in the company who contributes to processing the

customer's transaction.

CRM technology fulfils the vision of CRM are through the streamlining of processes and the acquisition of information to form knowledge about the

customer.

Types of CRM Technology or Various levels of CRM

Operational CRM

Analytical CRM

Collaborative CRM

Operational CRM generally refers to products and services that allow an

organization to take care of their customers. Operational level of the customer

relationship management deals with the front line interaction with the customers.

It could through call centres, worldwide webs, direct emails or call, or direct

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sales. It is more focused on the front office business processes. Like, sales,

marketing and customer care. A client database is settled usually, where each

interaction with customer is added up, so that customers could easily interact

with different people in the organization, without mentioning their personal

information over again. Customer satisfaction is usually assessed through two

techniques i.e. Customer satisfaction model and SERVQUAL for services

companies.

Analytical CRM Analytical CRM is to capture, storage, extraction,

processing, interpretation, and reporting of customer data to a user. It addresses

the analysis of customer data or data mart or data warehouse for a host of

different purposes. In general it is used to design and execute targeted marketing

campaigns that optimize marketing effectiveness. Analytical CRM takes into

account product and service decision making, pricing and new product

development.

Collaborative CRM is communication with customers and covers direct

interaction with customers including feedback and issue reporting. Interaction

can take place through web pages, email, Automated Voice Response.

Collaborative CRM greatly improves on services offered.

The collaborative CRM reaches across customer touch points.

It is the communication center, the coordination network that providesthe neural paths to the customer and his suppliers.

It could mean a portal, a partner relationship management (PRM)

application, or a customer interaction center (CIC).

It could mean communication channels such as the Web or email, voice

applications, or snail mail.

It could mean channel strategies. In other words, it is any CRM function

that provides a point of interaction between the customer and the channel

itself.

CRM Technology Components

CRM Engine

Front-Office Solutions

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Enterprise Application Integrations (EAIs) for CRM

CRM in the Back Office

CRM Engine

This would be the customer data repository.

The data mart or data warehouse is where all data on the customer is

captured and stored.

This could include basic stuff such as name, address, phone number, and

birth date.

The purpose is a single gathering point for all individual customer

information so that a unified customer view can be created throughout all

company departments that need to know the data stored in this CRM

engine house.

Front-Office Solutions These are the unified applications that run on top of the customer data

warehouse (CDW).

They could be sales force automation, marketing automation, or service

and support and customer interaction applications.

Enterprise Application Integrations (EAIs) for CRM

These sit between the CRM back office and front office. They also sit between the newly installed CRM system and the been-

around-forever enterprise legacy systems.

They also allow CRM-to-CRM communications.

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They are pieces of code and connectors and bridges that as a body

are called EAIs, formerly known as middleware.

EAIs provide the messaging services and data mapping services that

allow one system to communicate with disparate other systems,

regardless of formatting.

CRM in the Back Office

Analytical tool are known as Back Office of the CRM.

Analytics are becoming increasingly integrated from the beginning with

the elements of the CRM.

The analytical algorithms are working in background; they have clear

and distinct visibility (By which we can see for miles and miles) within

the operational applications which are accessing in real time.

Embedded analytics are now part of a few of the multifunctional CRM

applications.

CRM OBJECTIVES

Lifetime Value (LTV)

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Refers to the net present value of the potential revenue stream for any

particular customer over a period of years

Starts with current purchase activity then extrapolates to include potential

additions from cross-selling, upgrades, total ownership, etc.

Customer Ownership

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

in a particular product category

Building brand equity, maintaining vigilant customer contact, keeping current

with the market trends is critical

5% increase in customer retention may increase 20-125% increase in profit

To create a consistent customer experience

The relationship with customer should be thought of as an ongoing conversation

without end.

POTENTIAL BENEFITS OF CRM SYSTEMS TO THE ORGANIZATION

Streamlined sales and marketing processes Higher sales productivity Added cross-selling and up-selling Improved service, loyalty, and retention Making call centers more efficient Higher close rates Better profiling and targeting Reduced expenses

Increased market share Higher overall profitability Marginal costing Provide better customer service Help sales staff close deals faster

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Simplify marketing and sales processes Discover new customers Increase customer revenues

SIGNIFICANCE OF CRM

The American society of Quality and Arthur Anderson consulting Inc ., in their report

published in 1977 , have brought out the following findings about the customers.

1. Customers tell eight friends about a satisfying experience and 20 friendsfor a negative experience.

2. It is easier to influence existing customers to buy 10% more than increase

the customer base by 10%.

3. Eighty percent of successful new product and service ideas come from

existing customers.

4. Repeat customers cost one fifth less than new customers and can

substantially increase profits.CRM is a company wide initiative and is a process to be continued with the

organization. The return on investment of CRM is overestimated in the short run and

underestimated in the long run . But what is sure is that companies do accrue certain

definite advantages of implementation of CRM. The advantages could be as follows.

1. Perpetual stream of revenue: A better served and delighted customer gradually

becomes loyal . Once customer loyalty is built , the customer remains with the

company and proves to be a perpetual source of revenue and profit often

increasing over a period of time.

2. Positive referral creation : A satisfied customer often spreads positive things

about the company to the others. Such positive opinion proves to be more

reliable and authentic than companies propaganda , including advertisements

and consequently brings more customers.

3. Provides premium : A customer satisfied with the service of a particular

company is found to be ready to pay a little premium on the products / servicesand does not want to take risk with anew company.

4. Helps customer retention: One of the biggest advantage of CRM is that

through personal and effective customer care and service, it helps the company

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keep customers for life. Retaining customers with the company helps in many

ways and contributes straightaway to the companys bottom line.

5. Lowers cost of sale : A satisfied customer does not required to be lured

everytime by the company and hence his subsequent acquisition cost to the

company decreases. This helps the company to lower the cost of sales.

6. Helps understanding consumer behaviour: By providing personal service to

its customers, the company understands the consumers and can adapt itself to

the changing environment. This also helps companies to offer a complete set of

personalized solutions to the customers.

7. Provides opportunity to cross-sell and up-sell : A satisfied customer is

expected to come back to the same company for repeat purchases. In case of

any cross-sell and up-sell , he again comes back to the same company and with

no extra expense, the company is able to get him for more products.

8. Reduces marketing time: Through positive referral and opportunities to cross-

sell and up-sell , the customer acquisition becomes easier and consequentlyleads to reduce the marketing time.

9. Channel cost rationalization: An effective CRM provides an opportunity to the

companies to value the the cost of various channels with respect to its

profitability and the customers may be served via a channel that is cost effective

for the company and suitable for the customer

Documents

Unit-i[1] Crm Updated