tybms sem 5

1. Customer relationship management (CRM)
refers to the principles, practices and
guidelines that an organization follows when
interacting with its customers.
Jyostna Jain

2. UNIT 1
 Concept, Evolution of Customer Relationships: Customers as strangers, acquaintances, friends and partners
 Objectives, Benefits of CRM to Customers and Organisations, Customer Profitability Segments, Components of CRM:
Information, Process, Technology and People, Barriers to CRM
 Relationship Marketing and CRM: Relationship Development Strategies: Organizational Pervasive Approach, Managing
Customer Emotions, Brand Building through Relationship Marketing, Service Level Agreements, Relationship Challenges

3. EVOLUTION OF CRM
 The Beginning:About 70 years back, in the 1950s, as businesses grew, memory gave way to Pen, Paper and Pad for collecting,
tracking and storing relevant customer information.
 Database Marketing:In the early and late 1980s, Database Marketing took center stage, which allowed the organizations to
compile customer data and analyze information to develop customized communication for retaining and attracting customers.In
the later part of the decade, PCs took the market by storm which enabled the companies to organize customer data and provide
insight into their behavior.
 Sales Force Automation:In the early ‘90s, customer relationship management gained credence and a boom in the software
development market introduced Sales Force Automation for organizations, which improved the sales processes and increased the
efficiency.
 Customer Relationship Management:And finally, in the year 1995, the term CRM came into being. In the late ‘90s, CRM kept
evolving and the first CRM system was developed and also, for the first time, Software-as-a-Service or SaaS product was
introduced in the CRM industry.

4. Undaunted Striver
Empowered
Trendy
Outgoing
optimistic
Savvy maximizer
Brain hunter
Family oriented
Confident
Practical
Content Streamer
Suspicious
Own values
Price conscious
Secure Traditionalist
Independent
Comfortable
Saver
Categories of customers

5. FEATURES OF CRM
 Customers Needs
 Customer satisfaction
 Customer response
 Customer loyalty
 Customer retention
 Customer complaint
 Customer service

6. BENEFITS OF CRM TO CUSTOMERS
Benefit of better
service
Improved
relationship
Social relationship
Involvement in
process

7. BENEFIT OF CRM TO ORGANISATION
Identification of
potential customers
Increase
profitability
Decrease operating
costs
Increased customer
loyalty
Improved customer
satisfaction

8. DISADVANTAGES OF CRM IN AN ORGANISATION
 Focuses only on customer retention
 Legal and ethical issues
 Discrimination among different group of cutomers

9. TYPES OF CRM
Collaborative
Geographic
Sales intelligence
analytical
operational

10. OBJECTIVES OF CRM
 Providing services and products that are exactly what your customers want
 Offering better customer service
 Retaining existing customers and discovering
 Lower level of operating cost
 Aiding the marketing department

11. FACTORS FOR THE GROWTH OF CRM
 Growth of telecommunication technology
 Online retailing facilities
 Hyper competition
 Total quality management
 Expensive marketing cost
 Globalisation

12. CUSTOMERS BUYING ROLE
 The initiator: The person who suggests buying a product or service
 The influencer: The person whose point of view or advice will influence the buying decision
 The decision maker: The person who will choose which product to buy
 The buyer: The person who will buy the product

13. 7 C’S OF CRM
• Recognizes the customer choices for buying in ways convenient to them
Convenience
• Service and satisfaction wanted by customers
Customer value and benefit
• The real cost that customers will pay
Cost to customer
• Supplying products at right time place and quantity
Computing and category management
• Maintaining strong relationship with customer
Customer care and service
• Culmulative image of a product held by customer
Customer franchise
• Feedback from customers to suppliers
Communication and customer relationships

14. PROCESS OF CRM
1. Crm formation process: in this stage organization identifies class of customers with whom relationship needs to be maintained
in the long run.
2. Relational parties: this involves selection of parties with whom to engage co-operative or collaborative relationship.
3. Crm programs: these programs are meant for different classes of customer which includes:
 one to one marketing
 continuity marketing
 partnering programs
( co-branding and affinity partnering)
4. Performance Evaluation: periodic assessment of results in crm is needed to evaluate if programs are meeting expectations of
customers and sustainable in long run

15. Customer centric
organization
Customer
experience
Customer
value
Customer
lifecycle

16. TOOLS USED IN CRM FOR DATA COLLECTION
Electronic
point of sale
Sales force
automation
Customer
service
helpdesk
Call centres System
integration
kiosks

17. BARRIERS TO CRM
 Wrong implementation
 Lack of commitment
 Quality of data
 Resistance to change
 Unclear objectives
 Work stress

18. Relationship marketing is
about forming long-term
relationships with
customers.
Rather than trying to
encourage a one-time sale,
relationship marketing tries
to foster customer loyalty
by providing exemplary
products and services.
Relationship marketing

19. Difference between Transactional and Relationship marketing
Transactional Marketing
 Focuses on single point of sale
 Emphasize on maximizing individual sales volume
 Recruitment of customers for single sale
 Product oriented
 Short time horizon
 Low contact with customers
Relationship Marketing
 Seeks to establish long term relationship with
customers
 Emphasize on all the stakeholders.
 Customer retention oriented
 Long term horizon
 High contact with customers

20. Framework
for CRM
implementati
on
Strategy
Structure
SkillsStaff
Shared
values

21. WEB-BASED CRM
Web-based CRM is a software solution where there is no hardware or
software located on the customer's premises (on-premise).
The software is hosted on a range of servers in data centres that are
maintained and managed by a third party.
 The application is accessed through a web interface and not loaded on
local PCs or Laptops.

22. ADVANTAGES OF WEB BASED CRM SOFTWARE SOLUTION
 CRM web based software charges on subscription basis is less expensive in the short term
 Easy to start interacting with customers through CRM software
 Gives uses friendly web interfaces and self-service administration tools.
 Easily suitable to accommodate growing business model.

23. BRAND BUILDING THROUGH RELATIONSHIP MARKETING
Brand
loyalty
Brand
awareness
Perceived
quality
Brand
associatio
ns

24. SERVICE LEVEL AGREEMENTS
 A service-level agreement (SLA) defines the level of service you expect from a
vendor, laying out the metrics by which service is measured, as well as remedies or
penalties should agreed-on service levels not be achieved.
 It is a critical component of any technology vendor contract.

25. ELEMENTS OF SLA
 Over all objective: The SLA should set out the overall objectives for the services to be provided. For example, if the purpose of
having an external provider is to improve performance, save costs or provide access to skills and/or technologies which cannot
be provided internally, then the SLA should say so. This will help the customer craft the service levels in order to meet these
objectives and should leave the service provider in no doubt as to what is required and why.
 Description of the Services The SLA should include a detailed description of the services. Each individual service should be
defined i.e. there should be a description of what the service is, where it is to be provided, to whom it is to be provided and when
it is required.
 Performance Standards :, the customer should state the expected standards of performance. This will vary depending on the
service. Often a customer will want performance standards at the highest level. Whilst understandable, in practice this might
prove to be impossible, unnecessary or very expensive to achieve
 Compensation/Service Credits: where the service provider fails to achieve the agreed performance standards, the service
provider will pay or credit the customer an agreed amount which should act as an incentive for improved performance
 Critical Failure Service credits : are useful in getting the service provider to improve its performance, but what happens when
service performance falls well below the expected level? If the SLA only included a service credit regime then, unless the
service provided was so bad as to constitute a material breach of the contract as a whole, the customer could find itself in the