Customer relationship management ppt,

1. By:-
Chinmay Mahajan
CUSTOMER RELATIONSHIP
MANAGEMENT
(CRM)

2. WHAT IS CRM?
• The approach of identifying, establishing, maintaining, and enhancing
lasting relationships with customers.”
• CRM “is a business strategy that aims to understand, anticipate and
manage the needs of an organisation’s current and potential
customers”.(know,target,sell,service)
• CRM is a shift from traditional marketing as it focuses on the retention
of customers in addition to the acquisition of new customers

3. 3
CUSTOMER RELATİONSHİP
MANAGEMENT (CRM)
Traditional Marketing CRM
Goal: Expand customer base, increase
market share by mass marketing
Goal: Establish a profitable, long-term,
one-to-one relationship with customers;
understanding their needs, preferences,
expectations
Product oriented view Customer oriented view
Mass marketing / mass production Mass customization, one-to-one marketing
Transactional relationship Relational approach

5. DEFINITION OF CRM
“CRM is concerned with the creation, development and
enhancement of individualised customer relationships
with carefully targeted customers and customer groups
resulting in maximizing their total customer life-time
value”

6. THE PURPOSE OF CRM
• “The focus [of CRM] is on creating value for the customer
and the company over the longer term”
• When customers value the customer service that they
receive from suppliers, they are less likely to look to
alternative suppliers for their needs
• CRM enables organisations to gain ‘competitive
advantage’ over competitors that supply similar products
or services

7. CONTINUED…
 Builds a database that describes the customers and the
relationship they hold with the company.
 Database: a collection of information that is organized in a way that
allows it to be easily accessed, managed and updated.
 Provides enough detail so that the company can offer the client the
product/service that matches their need the best.
 May contain information about their past purchases, who is
involved with the account and a summary of all conversations.

8. HISTORY OF CRM…
• Dawn of CRM- Emerged in 1980 and the earlier version was called Database
Marketing.
• Rise of CRM- 1990’s saw great improvement in terms of CRM. Companies began to
see benefits of offering perks to the customers.
• Fully Developed CRM- Latest version used in today’s organizations.

9. BENEFITS OF CRM
• Companies Sales Soars High
• Customer Knowledge
• Customization
• Excellent Customer Service

10. LIMITATIONS
• Time Consuming Job
• Costly to implement.
• ERP is a must to get the best out of CRM.
• Customer Satisfaction is subjective.
• Requires Multi Factor Indicators.

11. WHY DID CRM DEVELOP?
CRM developed for a number of reasons:
• The 1980’s onwards saw rapid shifts in business that
changed customer power.
• Supply exceeded demands for most products
• Sellers had little pricing power
• The only protection available to suppliers of goods and
services was in their relationships with customers

12. WHY IS CRM IMPORTANT?
• “Today’s businesses compete with multi-product
offerings created and delivered by networks, alliances
and partnerships of many kinds. Both retaining
customers and building relationships with other value-
adding allies is critical to corporate performance”
• “The adoption of C.R.M. is being fuelled by a
recognition that long-term relationships with
customers are one of the most important assets of an
organisation”

13. COMPONENTS OF CRM SYSTEM

Operational CRM
Operational CRM provides automated support to “front office” business process. Each
interaction with customer is added to customer’s history and staff can retrieve information of
customers.

Analytical CRM
Analytical CRM analysis data in an attempt to identify means to enhance a company’s relationship
with clients.

14. CONTINUED….
Collaborative CRM
Collaborative CRM focuses on interaction with customers (personal interaction, letter, fax,phone,
internet, e-mail, etc..).

15. WHAT DOES CRM INVOLVE?
CRM involves the following :
• Organisations must become customer focused
• Organisations must be prepared to adapt so that it take
customer needs into account and delivers them
• Market research must be undertaken to assess customer
needs and satisfaction

16. “STRATEGICALLY SIGNIFICANT CUSTOMERS”
• “Customer relationship management focuses on
strategically significant markets. Not all customers
are equally important” .
• Therefore, relationships should be built with
customers that are likely to provide value for
services
• Building relationships with customers that will
provide little value could result in a loss of time,
staff and financial resources

17. MARKERS OF STRATEGICALLY SIGNIFICANT
CUSTOMERS
• Strategically significant customers need to satisfy at least one of
three conditions :
1. Customers with high life-time values i.e. customers that will
repeatedly use the service in the long-term
2. Customers who serve as benchmarks for other customers
3. Customers who inspire change in the supplier

18. INFORMATION TECHNOLOGY AND CRM
• Technology plays a pivotal role in CRM .
• Technological approaches involving the use of databases, data
mining and one-to-one marketing can assist organisations to increase
customer value and their own profitability.
• This type of technology can be used to keep a record of customers
names and contact details in addition to their history of buying
products or using services.
• This information can be used to target customers in a personalised
way and offer them services to meet their specific needs.
• This personalised communication provides value for the customer and
increases customers loyalty to the provider.

19. FACE-TO-FACE CRM
• CRM can also be carried out in face-to-face interactions without the
use of technology.
• Staff members often remember the names and favourite
services/products of regular customers and use this information to
create a personalised service for them.
• For example, in a hospital library you will know the name of staff that
come in often and probably remember the area that they work in.
• However, face-to-face CRM could prove less useful when
organisations have a large number of customers as it would be more
difficult to remember details about each of them.

20. CONTINUED…
• maximisation of opportunities (eg. increased services, referrals,
etc.)
• increased access to a source of market and competitor information
• highlighting poor operational processes
• long term profitability and sustainability

21. TECHNICAL FUNCTIONALITY
 Scalability: CRM may be used on a large scale while also being
able to be reliably contracted/expanded to whatever scale is
necessary. So the data is flexible and won’t distort when adjusted.
 Multiple communication channels: the ability to interface with users
via many different devices (phone, WAP, internet etc.) Basically,
you can get what you want, when you want wherever you are.

22. MAIN POINTS TO TAKE HOME…
 Know your customer!
 CRM can lead to greater customer service → greater profitability!!
 Remember that it is not enough to be nice to your customer – you
must learn from them.

23. THANK YOU !!!