Introduction To CRM

SHEETAL WAGHMARE
M.TECH (Computer Science & Data Processing)
IIT KHARAGPUR
EMAIL-ID: shitu2iitkgp@gmail.com
sheetalw3@gmail.com

What is CRM?
• CRM, or Customer Relationship Management, is a
company-wide business strategy designed to
reduce costs and increase profitability by
solidifying customer loyalty.
• True CRM brings together information from all
data sources within an organization (and where
appropriate, from outside the organization) to give
one, holistic view of each customer in real time.
SHEETAL WAGHMARE IIT KHARAGPUR

• CRM is an IT enhanced value process, which
identifies, develops, integrates and focuses the
various competencies of the firm to the „voice‟ of
the customer in order to deliver long-term superior
customer value, at a profit to well identified
existing and potential customer.
Contd..

A customer (also known as a client, buyer or
purchaser) is the recipient of a good, service,
product, idea obtained from a seller, vendor or
supplier for a monetary or other valuable
consideration.
Who is customer?

Need of
CRM
CRM is not just a technology,
but rather a comprehensive
approach to an organization‟s
philosophy in dealing with its
customer.
Customer Relationship management is the
strongest and the most efficient approach
in maintaining and creating relationships
with customers.
CRM is not only pure business but
also ideate strong personal bonding
within people. Development of this
type of bonding drives the business to
new levels of success.

Imagine a system in place where the lines of
communication and information requests are
somewhat scrambled.
Management
does not have
real time
performance
information
Each area has
their own
system, tracking
and keeping
records on
different
software
Customer
Service does not
have marketing
information for
cross sell
opportunities.
Sales does not
have easy access
to client records
and customer
calls, old system
doesn't tie into
account, so don't
know past order

A CRM system has one central system where all the
information is collected and stored in one location

• Everyone is connected into one system
• People have the information they need to do their jobs
• Sales and Customer Service have a deeper knowledge of the
customers.
• Data duplication is eliminated
• Data security is strongly enhanced
• Providing promotions, services and products that are exactly
what your customers are looking for
• Offering better customer service
• Cross selling products more effectively and quickly
• Helping sales staff close deals faster
• Retaining existing customers and discovering new ones

“Customer Relationship Management is a comprehensive approach for
creating, maintaining and expanding customer relationships”

Technology Consideration of CRM

Steps Before Implementing CRM
Business
Objectives
Program
Initiatives
Departmental Plans
Technology

Stages of Technology Implementation
Functional CRM
Departmental CRM
Partial CRM
Full CRM

Gather data
Analyze the data
Formulation Strategy
Action
Customer Intelligence

CRM Technology Components
CRM
Engine
Front Office Solution
Enterprise Application Integration

Customer Life Cycle

Customer Life Time Value

Customer Life Time Value Calculation
• Say the average customer buys for 2 years, then
stops for at least 1 year. Therefore, we define
the LifeTime of a customer as 2years. Over
years, the average customer makes 16
purchases
 16* 2000 Profit per unit = 32000 LTV of the
average customer

Justify
Cost of retaining old customer is
always less than generating new
customer

Customer Life Cycle Management
 Personalization
 Customization
 Cross selling
 Up selling
This is a special form of the product which will be
prepared according to the personnel requirement
because of this personalized attention, the
customer retention process will become very easy
This improves the product quality according to
the expectations of the customer. This will change
the standard product into the specialized solution
for an individual to improve the customer
satisfaction

• The E-CRM or electronic customer relationship
marketing concept is derived from e-commerce.
• It also uses net environment i.e., intranet, extranet and internet.
Electronic CRM concerns all forms of managing relationships
with customers making use of information technology (IT)
• E-CRM expands the traditional CRM techniques by integrating
new electronic channels such as Web, wireless and voice
technologies and combines it with e-business applications into
the overall enterprise CRM strategy.
E-CRM

• The CRM offerings remains channel centric
not customer centric.
• Customers want to interact with businesses
when and where it is convenient for them.
Need of E-CRM

Acquisition: Increasing the number of customers
Retention: Increasing the amount of time that customer stays
Increased Profitability
Objective
Customer
acquisition
Customer
retention
Customer value
migration
Cross-selling
Frame Work of E-CRM

• eCRM implies capabilities like self service knowledge bases, automated email response,
personalization of web content, online product bundling and pricing.
• ECRM gives Internet users the ability to interact with the business through their preferred
communication channel.
• It also allows business to offset expensive customer service agents with technology.
• E-CRM puts much emphasis on the customer satisfaction and reduced cost through
improved efficiency.
• E-CRM use customer data for personalization, cross-selling and up-selling.
• Sales Force Automation(SFA )and Enterprise Marketing Automation(EMA) is integrated
in the Ecrm.
Features of E-CRM

Features of E-CRM
Enables a personalized relationship with customers
• Offers integrated customer information from all
departments into one centralized knowledge base
• Has a totally integrated, customer-centric approach
• Employs e-business technologies to extend customer
service and offers a variety of solutions tailored to
your specific needs

E-Electronic
Channel
E-Enterprise
E-Empowerment
E-Economics
E-
Evaluation
E-
External
Informati
on

They make the companies closer to
the customer
They provide the best interaction
between marketing, sales, service
and support
They reduce & eliminate the
disconnection between customer
and company relationship
They both improve upon reality
and perception of personalization
Mail, telephone or in person or the
common customer touch points

Difference Between in CRM & E-CRM
Man Power
Data
Pooling
Customer
Touch Points
Priority of
Goals
Process
Strategy
Nature of
Transaction
Emotional
Dealings
System Focus

Components of E-CRM
• E-CRM Assessment
• E-CRM strategy alignment
If you can‟t measure it, you can‟t understand it.
If you can‟t understand it you can‟t control it
If you can‟t control it, you can‟t improve it.

E-CRM Architecture
Customer Analytic Software
Data Mining Software
Campaign Management Software
Business Simulation
Real Time Decision Engine
•campaign management software
allows marketers to listen, learn
and engage with individuals
across channels and take them
from new customer to loyal
customer.
•Every customer interaction
generates data. Data which helps
to understand a customer as an
individual and reveal clues about
how best to engage them.

Architecture of PeopleSoft CRM
• The strength of PeopleSoft architecture is approach for integration
using the concept of available enterprise integration points (EIPs).
• The idea of EIP is central to all Internet architecture.
• They are open, standard pieces of reusable code that provide the
developers with preprogrammed means to communicate with internal
systems and other PeopleSoft systems.
• In Sap‟s world, they are called Business Application Programmers
Interface [BAPI].
• PeopleSoft provides these EIPs through their Open Integration
Framework.
• OIF is a multi-featured framework that provides foundation for
various interactions between systems.

OIF
Application Messaging
Business Interlink
Component Interface API
People Code Java
File layout object & application engine
EDI(Electronic Data Interchange) Manager
Open Query
Back-end code
Business Interlinks architecture provides a plug-in
framework for PeopleSoft applications to invoke third-party
APIs over the internet. Different vendors support different
methods for invoking their APIs—including object
technologies such as CORBA; programming language-
specific interfaces for C or C++; or interfaces based on
HTTP and XML. The Business Interlinks framework
provides a consistent framework for application developers
to invoke external applications across this wide variety of
technologies.
The components are easily recognizable interfaces in the
business world such as a sales order, invoice etc. The
interface is the ability of architecture to recognize the
document in other party‟s form and pass PeopleSoft data to
that form. It can be done through the same languages and
protocols as business interlink and CORBA
Common Object Request Brooker Architecture is a standard
defined by object management group (OMG) the enables
software components written in multiple computer languages
to work together

CRM Projects are divided into four phases:
• Phase I : Sales module customizations : It means the product catalogs, the
sales process embedding, the account and contact databases, and the sales
pipeline management.
• Phase II : Marketing module customizations : These are no different in
technical process from Sales module customizations. They are merely
different in what needs to be customized.
• Phase III : Integration with external applications : This is an analysis of the
existing information technology infrastructure and the network
functionality. This work identifies the integration points between the legacy
systems, the CRM application, and the possible installation and
customization of other new non-CRM applications and systems.
• Phase IV : Reporting integration : Reporting is a vital function for the
businesses that are scattered the office. The customization of those reports
and their generation are critical to corporate success.

1. Explain the components of e-CRM.
2. Describe the steps to be followed before implementing
CRM.
3. Explain the six E‟s associated with e-CRM in business
organization.
4. Explain the four phases of any CRM project.
5. Compare CRM and e-CRM.
6. Explain the role of IT staff and integration experts as
team members for implementing CRM.
7. Describe the customer life cycle with an example.
8. Explain the need of e-CRM with an example.
9. Difference between cross-selling and up-selling.

Introduction To CRM

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