1. Unit - 1
Introduction to
CRM

2. What is CRM
oCRM stands for "Customer Relationship Management."
CRM is a business strategy directed to understand,
anticipate and respond to the needs of an enterprise's
current and potential customers in order to grow the
relationship value.
oCustomer relationship management (CRM) consists of
the processes a company uses to track and organize its
contacts with its current and prospective customers.
oCRM are the concepts used by organizations to manage
their relationships with customers. This includes :
• Capturing Leads
• Storage and analysis of the customers,
vendors and partners
• Internal information (organizational)

3. Meaning of CRM
CRM is an enterprise-wide, on-going approach to seeking best
answers to the following questions :-
 How can we identify profitable customers ?
 What types of differentiated services are required to satisfy
their needs ?
 How shall we enhance their loyalty and retain them as long
as possible ?
Basis CRM
Purpose Loyalty Maximization
Focus Lifecycle Management
Evaluation Mind Share (Loyalty)
Customer Info Behavioral Information based on Database
Communication 2 way, Interaction oriented

4. Definition of CRM
Layman Definition of CRM
“ CRM is the process includes
collecting customer data,
analyzing this data to make
decisions which helps to make
new customers and satisfy the
existing ones”.
Buttle Definition of CRM
“CRM is the development and
maintenance of mutually
beneficial long-term relationships
with strategically significant
customers” .

5. Evolution of CRM
Mass Marketing
Target Marketing
CRM

6. MASS MARKETING : Mass marketing (or undifferentiated
marketing) aims to broadcast a message to the largest
number of people possible.
TARGET MARKETING : Target Marketing involves breaking
a market into segments and then concentrating your
marketing efforts on one or a few key segments. It can be
the key to attracting new business and making your small
business’s a success.
CRM :Customer Relationship Management (or CRM) is a
phrase that describes how your business interacts with
your customers. CRM is also about what you do with that
information to better meet the needs of your existing
customers and identify new customers, resulting in higher
profits for you.

7. Customer Satisfaction
 Customer Satisfaction is a
measure of HOW products and
services supplied by a company
meet or surpass customer
expectation.
 Customer Expectation is the
needs, wants, and preconceived
ideas of a customer about a
product or service.
 If customer expectations are met,
then customer satisfaction
results.
 Customer Satisfaction is….
Getting what you want by giving
others what they want.

9. Customer Loyalty
 Customer Loyalty is likelihood of
previous customers to continue to buy from a specific
organization. Great attention is given to marketing and
customer service to retain current customers by
increasing their customer loyalty. Organizations employ
loyalty programs which reward customers for repeat
business.
 Customer Loyalty includes :
o Attracting the right customer
o Encouraging customers to buy, buy often, buy in higher
quantities and bring you even more customers
o Providing excellent customer service
 Customer loyalty, “describes the tendency of a
customer to choose one business or product over
another for a particular need.”

12. Customer Experience
 Customer experience is an integral part of customer
relationship management (CRM), and it is important to
businesses because customers who have a positive
experience are more likely to become repeat customers and
loyal customers of the business.
 CUSTOMER EXPERIENCE is a Customer’s perception of their
rational, physical, emotional, subconscious, and
psychological interaction with any part of an organization.
This perception affects Customer behaviors and builds
memories, which drive Customer Loyalty and affects the
economic value an organization generates.

14. Paradigm Shift in Marketing
• In 1962, Thomas Kuhn Fathered, defined and
popularized the concept of “ Paradigm Shift”.
• A “paradigm shift” reflects change from one
way of thinking to another. A paradigm shift
takes place when a significant change happens -
usually from one fundamental view to a
different view.
Unfreeze
Change
State
Refreeze
Steps in Paradigm Shift :

15. The new trends in Paradigm
Shift in Marketing :
o From make-and-sell marketing to sense-and-respond
marketing
o From owning assets to owning brands
o From vertical integration to virtual integration
(outsourcing)
o From mass marketing to customized marketing
o From pursuing market-share to pursuing customer
share
oFrom focusing on customer attraction to customer
retention
o From transaction marketing to relationship marketing

16. o From customer acquisition to customer retention and
customer satisfaction
oFrom mediated marketing to direct marketing
o From separated planning of communications to
Integrated marketing communications
o From product-centric marketing to customer-centric
marketing
o From marketing department doing marketing to
everyone in the company doing marketing
o From exploiting suppliers and distributors to partnering
with them

17. Relationship Marketing
 Relationship marketing is a facet of customer
relationship management (CRM) that focuses on
customer loyalty and long-term customer engagement
rather than shorter-term goals like customer acquisition
and individual sales.
 Relationship Marketing is a philosophy of doing
business, a strategic orientation that focuses on keeping
and improving current customers rather than on
acquiring new customer.
 RM marks a significant paradigm shift in marketing, a
movement from thinking solely in terms of competition
and conflict toward thinking in terms of mutual
interdependence and cooperation.
 Relationship Marketing is a strategy designed to foster
customer loyalty, interaction and long-term
engagement.

19. Four Steps in Relationship
Marketing
Attract Build Develop Manage
Objectives:-
Activities :-
Idenify targets
Initate awareness
Conferences
Speeches
Mailing
Build confidence Become
sparring partner
Cement
Relationship
Personal letters
Meeting to discuss
issues
Identify problems
Hypothesis
solution
Broaden base of
contacts
Build colleagues into
relationship

21. 10 Critical Players in RM
1. Supplier
2. Distributors
3. End Users
4. Employees
5. Financial Firms
6. Government
7. Media
8. Allies
9. Competitors
10. General Public

22. E-CRM ( Electronic CRM )
 ECRM is the customer focused management of the
whole eBusiness relationship with each customer, in
order to measure, create and increase income and
reduce costs for each customer & segment and thus to
generate greater positive lifetime value.
 Put simply, eCRM means CRM-database access via the
Web. It means Intranet access for internal users,
Extranet access for business partners and customers
and of course, Internet access for the market at large.
 ECRM is the process of maximizing sales to the existing
customer, encouraging continuous relationships
through the use of digital communications technologies
such as operational databases, Personalized Web
Messages, Customer Service, Email and Social Media
Marketing.

23. Electronic CRM (eCRM)
 E-CRM expands the traditional
CRM techniques by integrating
new electronic channels, such as
WEB, Wireless, and Voice
technologies and combines its
with e-business applications into
the overall enterprise CRM
strategy.
 Traditional CRM + Internet =
E-CRM

24. Why eCRM ?
 Due to the introduction of new
technology
 Due to globalization
 Changing customer attitudes and
expectations
 To gain competitive advantage
 To measure, create and increase income
for the business
 To reduce costs

25. Goals of eCRM
• Reduce
- Costs of marketing
• Improve
- Accuracy and relevancy of recommendations
- Customer satisfaction
• Increase
- Conversion rate i.e. Turn browsers into buyers
- Customer retention and frequency
- Order size
- Customer response
- Profitability

26. Difference between CRM &
eCRM
 CRM uses phone, Fax and Retail store for
contacting customers while eCRM uses
Wireless, PDA technology, Internet and email.
 The design of CRM system is related to job
products and functions while the design of
eCRM system is related to customer needs.
 The maintenance of CRM is very expensive
while the maintenance of eCRM is less
expensive and requires only less time.

27. Significance of CRM
o Foresee customer needs
o Details of a customer
o Grouping customers
o Acquiring new customers
o Cost effective
o Handy details
o Customer Satisfaction
o Customer Loyalty

28. Benefits of CRM
o Reduces costs, because the right things are being done.
o Increased customer satisfaction, because they are
getting exactly what they want.
o Ensuring that the focus of the organization is external.
o Growth in numbers of customers.
o Maximization of opportunities.
o Increased access to a source of market and competitor
information.
o Highlighting poor operational processes.
o Long term profitability and sustainability.
o Loyal customers will buy more and are willing to pay
premium prices.

29. Thank You
