3. Meaning of CRM
Customer relationship
management (CRM) is an approach
of managing a company’s interaction
with current & future customers.
The CRM approach tries to analyze
data about customers' history with a
company, in order to
better improve business relationships
with customers,
specifically focusing on retaining3 Prepared by: Ms. Himani R.
4. Continued
One important aspect of the CRM approach
is the systems of CRM that compile
information from
a range of different channels,
including a company’s website,
telephone,
email,
live chat,
marketing materials,
social media, and more.
Through the CRM approach and the
systems used to facilitate CRM, businesses
learn more about their target audiences
and how to best cater to their needs.
4 Prepared by: Ms. Himani R.
5. Definition
“A management philosophy according to which
a company’s goals can be best achieved
through identification and satisfaction of the
customers’ stated and unstated needs and
wants.”
CRM is a computerized system for identifying,
targeting, acquiring and retaining the best mix of
customers.
5 Prepared by: Ms. Himani R.
7. Why CRM developed?
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.
The focus of CRM is on creating value for the
customer and the company over the longer term.
When customers value the service that they
receive from suppliers, they are less likely to look
to alternative suppliers for their needs.
CRM enables organizations to gain ‘competitive
advantage’ over competitors that supply similar
7 Prepared by: Ms. Himani R.
8. Types of CRM
Analytical CRM is designed to analyze deeply
the customer’s information and data.
Collaborative CRM deals with
synchronization and integration of customer
interaction and channels of communications
like phone, email, fax, web etc.
Operational CRM is mainly focused on
automation, improvement and enhancement of
business processes which are based on
customer-facing or customer supporting.
Geographic CRM Geographic data can be
analyzed to provide a snapshot of potential8 Prepared by: Ms. Himani R.
9. Benefits of CRM
Reduced costs, because the right things are
being done (ie., effective and efficient operation)
Increased customer satisfaction, because they
are getting exactly what they want (ie. meeting
and exceeding expectations)
Ensuring that the focus of the organization is
external
Growth in numbers of customers
Maximization 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.9 Prepared by: Ms. Himani R.
10. Limitations of CRM
Costs associated with CRM programs
Investment in people and technology
Evaluation of CRM programs not
possible
Ethical implications such as customer
discrimination and privacy issues
Consumes a lot of time, money and
effort
10 Prepared by: Ms. Himani R.
