SadiahAhmad, profile picture
Uploaded bySadiahAhmad
PDF, PPTX129 views

CRM.pdf

The document discusses various definitions and perspectives on customer relationship management (CRM) from industry experts. It defines CRM as a business strategy to select and manage customers to optimize long-term value through effective marketing, sales, and service processes supported by technology and a customer-centric culture. The document also discusses key CRM concepts like processes, strategies for building relationships, customer acquisition, interaction, retention, attrition, loyalty and lifetime value.

Embed presentation

Download as PDF, PPTX
Definitions Craig Conway,President and CEO,PeopleSoft Every time a customer approaches your business, they arrive with an expectation. It may be a service need,or a new product interest, but in every case they have an expectation that accompanies their interest in your business.What happens next will form a experience that will shape their behaviour. A good experience will increase their loyalty or it may accelerate their tendency to purchase. A bad experience may transfer their business to your competitor.The ability to recognize this process and to actively manage it becomes the basis for Customer Relationship Management.
Scott Fletcher, President and COO, Epipeline At its core, CRM is an enterprise-wide mindset, mantra,and set of business processes and policies that are designed to acquire,retain,and service customers.Broadly speaking,CRM includes the customer facing business processes of marketing, sales and customer service. CRM is not a technology. Technology is a CRM enabler.Innovative and proactive companies, adopt customer centric business processes and leveraging technology these companies better serve their customers by providing better product and delivering personalized services.
Brent Frei, President& CEO, Onyx Software It is a comprehensive set of processes and technologies for managing the relationship with potential and current customers and business partners across marketing, sales and service regardless of the communication channel. The goal of service is to optimize customer and partner satisfaction, revenue and business efficiency by building the strongest possible relationship at an organizational level. Successful CRM requires a holistic approach to every relationship with the entire organization sharing and contributing to that view.
Ronni T Marshak, Senior vice president, Patricia Seybold Group Establishing and managing customer relationships is first and foremost a strategic endeavour, not a technology category, Just as a company establishes goals, strategies and plans and objectives, it has to determine how customer relationships will be better served at each level. Technology fits only at the tactical level. Every company’s game plan constitutes the G-SPOT
Goals Strategies Plans Objectives Tactics Profitability Establish long-term customer relationships Invest in CRM Technologies Achieve 60% Customer retention Implement 24/7 call center CRM CRM CR M CR M The CRM G-SPOT
Definition • Customer Relationship Management is a business strategy to select and manage customers to optimize long-term value.CRM requires a customer-centric business philosophy and culture to support effective marketing,sales and service processes.CRM applications can enable effective Customer Relationship Management, provided that enterprise has the right leadership, strategy and culture.
Business Intelligence vs. CRM • Display customers who visit one of the video store of XYZ co. • Display a list of customers who have lodged a complaint for the past 30 days. • Once a month for the next six months send direct mails solicitation to customers who are most likely to rent the next months feature. • Contact all high value customers who have lodged a complaint.
BI/ CRM (contd) • Analyze the top five most popular office supplies and compare approved vendors’ prices to prices of other potential suppliers. • Identify the top five purchased office supplies and trial run an automated Web Request For Quote System for limited quantities to check price improvement.
Strategies for Building Relationships People People includes both the internal customers as well as external customers. Commitment to any programme can only be garnered through acceptance of the inherent merits.CRM as a philosophy should be accepted by all the employees. Second group of people that is the external customers should also be made aware of the company’s commitment to their welfare through integrated marketing.
Processes It involves a logical sequence of activity, right from the need identification of potential customers to need fulfillment. Need fulfillment includes the correct translation of customers desires into tangible benefits, experiences, etc. All these activities require synchronized processes and zero communication gaps. Efficient processes bridge the gap between expectation and performance
Product As a product is available in the market, it has to be upgraded continuously to match the changing needs of the customers. Companies should not over promise and under deliver,as customers become disenchanted with the company. Many companies loose out on their customers because they fail to live up to expectations created by themselves.
Organization Organizations should be active entities and should be highly proactive to changes in the environment. The responsive and learning nature of the organization must build confidence in the minds of the customers. The organization of the organization should also be fault-free, so that slips between the cups and lips are minimal.
Concentration On Competitors Isolated companies are standalone entities, and have an ostrich tendency. An organization must focus constant attention on the competitors’ performance, their strategies and style of operation and compare it with their own performance. The organization should be in a position to ascertain the actions of the competitors, and should have a backup strategy to counter the offensive.
Customer analysis Customers here means present customers and potential customers. Analysis should encompass the current consumption pattern of these customers, their behaviour,etc. This would indicate why a customer behaves in a particular way, what would be the retention tactics, loyalty parameters etc.,
Cost analysis Focus of the organization should be on the cost of production, cost of providing the service, avenues of cost reduction, etc., The whole objective of the organization should be to deliver value for the money taken from the competitors. Even if the company is charging extra than the competitors, the customers should be aware of the extra benefits that they are getting for the extra money given.
Environmental Analysis The whole environment will give an idea about the change in social, cultural,political and technological scenario. Accordingly the needs ands preference of the customers will change. Customers up to a certain point of time would concentrate on life maintenance needs and then to life changing need sand then to life enhancing needs.
Gatherin g Info, Storing Info Processi ng Data Service/ Support SFA Marketing Automation Customer Company Gather Customer Data Analyze Data Formulate strategy based on analysis Taking action Customer Behaviour Customer Experience Interaction With Company CRM Processes
Customer Acquisition Considerations 1 Focused Approach: Companies have to understand their target markets and also their psychographics. ▪Knowers: This set of people just know about the product without any specific attitude towards the product ▪Preferrers: People who know about the product and have specific preferences also. ▪Indifferent: ▪Rejecters: These people mentally reject the organizations offerings and are far away from the acquisition process.
2 Providing a win-win situation: Offerings should be so designed as to be advantageous for both the parties. Customer acquisition is facilitated in such a scenario as customers believe that they are getting value for money. 3 Attempt to minimize FUD(Fear Uncertainty Doubts) The organization must effectively plan to minimize FUD that might occur in the mindsets of the customers, during the course of acquisition. 4 Projection Of Benefits and not Products:
Process Of Acquisition It involves the following stages •Enquiry: The prospective buyer undertakes a detailed enquiry with regard to different aspects pertaining to the organization, product, nature of transaction, etc., •Interaction: After storing the information, the prospect interacts with the organization and obtains additional information, and clarifies already gathered information •Exchange:The terms of exchange, mode of delivery and other things related to exchange are sorted here. •Co-ordination: Co-ordination means the discussions are converted into order, through synch-marketing. •Adoption: The acquisition process is complete with adoption of the product or service by the prospect, who becomes a customer.
Influences On Acquisition •Type Of Buying: There are two different types of buying-rational and emotional. The former is a systematic and logical while the latter is based solely on impulse. In rational buying customer would logically graduate from one stage to the other while in emotional it may not be the case. •Type Of Product: Different categories of consumer products and industrial products will have different acquisition behaviour. •Type Of Customers: If the customer is an individual his/her behaviour will be different from an organization. Also affecting the acquisition will be the fact whether the acquisition is for first time or not.
Influences On Acquisition • Economic Environment:The operations of the competing forces, supply and demand conditions, purchasing power etc.,will affect the process. • Contextual Operations:The context of operation refers to the prospect’s previous experience, urgency, specific benefit expected etc.,
Customer Interaction Management(CIM)
Routes to CIM Online Routes •Interactive website •E-mails •Web Communities •Chat Rooms Offline routes •Telephones •Fax •Face to Face Interaction •Mails, etc. Outsourcing
Customer Retention
Customer Retention is the process of keeping customers in the customer inventory for an unending period by meeting the needs and exceeding the expectations of those customers. It is the approach of converting a casual customer into a committed loyal customer. In today’s competitive environment, the focus of the company is more on customer retention than on customer acquisition. What is Customer Retention?
Why is Customer retention preferred? • Customer by chance • Customer by occasion • Customer by choice • Customer by repetition • Customer by loyalty
Contd. Conversion of a transactional relationship to a relationship tied up with emotion and commitment will help the organization in the following ways • An asset • An ambassador • An experience shaper • A knowledge provider • A resource provider • A partner • A spokesperson
Acquisition/Retention • Focus is on acquiring relationship • Demographic, psycho graphic profile of the customers are important. • Customer is driven by offer and incentives. • Focus is on nurturing relationship • In addition past and present transactional profiles become important. • In addition type and extent of relationship maintained is focused on.
Acquisition Dissatisfaction Satisfaction Retention Attrition Defection Reacquisition Loyalty Stages Of Retention in The Customer Life Cycle
Sequences In The Retention Process • Exploring: customers are explored on the basis of parameters like value given to the company in terms of frequency of purchase, profit margin, etc., • Evaluating: Detailed analysis of explored customers is done. Purchase history is an important parameter. • Establishing Strategies: Appropriate strategies are formulated according to the customer type. • Examining Feedback: Result of implemented strategies are monitored periodically.
Customer Attrition Attrition is the process of gradually weaving down.This is the stage where the customer begins to question his continued patronage with the product or service, or the provider of the goods or service. Attrition if not arrested leads to defection.Attrition signals must be carefully monitored.
Attrition Signals • Increase in the number of complaints. • Decrease in the frequency of contacts. • Decrease in personal visits. • Decrease in enquiries • Decrease in the volume of business. • Increase in the perceptual differences between customers and organization on various issues. • Decrease in the number of active buyers.
Customer Lifecycle Marketing Attention Capturing Selling & Value Creation Maintaing & Sustaining Reach Acquisition Conversion Retention Mass Mktg Strategies Segment Based Strategies Loyalty Programmes CLC Phases Marketing Strategies Objectives of mktg Strategies
Customer Loyalty
Relationship Through Loyalty Understanding Brand: Brand plays a key role towards attracting and retaining sustainable relationship with customers.Brand represents the combination of tangible and intangible attributes of a customer looking for satisfying his core as well as augmented needs.Brand is an identification that reveals what attributes are embodied in it. These are the attributes with which the customer will identify himself with.
Process Of Brand Choice:The process will take the following sequence. Total Brands Awareness Brands Considered Brands Choice Brands Decided Brands
Customer Loyalty and The Types:Customer loyalty may fall into several type that includes •Loyalty towards brands •Loyalty towards stores •Loyalty towards organization •Loyalty towards sales persons and •Loyalty towards any other related aspect in the process of sales and consumption.
Customer Lifetime Value • It is also written as CLTV or LTV and is defined as the present value of all net payments during the complete life of the customer with the organization. • Customer relationships are considered to be investments and acquiring a customer is like acquiring a new asset, which will generate future revenue.
Contd., • Therefore to evaluate CLV all the future revenues and costs need to be assessed. • CLV is the present value of all future purchases by the customer minus the costs to be incurred by the company. • It is calculated by assessing all future purchases and then discounting these figures to bring to the present value.
Application of CLV • Allocation of Resources: allocating resources to a particular customer or segment of customer, the organization can be in a better position to target the customer, which will be profitable in the long run. • Customer selection: If the expected cash flows from the relationship with the customer have a present value of 1000 INR, then the company should not spend more than INR 1000 to acquire the customer.
Contd., • Segmentation: customer profiling based on CLV can help in categorizing and offering different marketing and service initiatives. E.g., different facilities for HNI customers. • Customer Equity: It is the total of the discounted cash flows in future from customers and future customers within a certain planning period. CE= ∑CLV
Contd., • Merger and Acquisition: strategic decisions based on the CLV can be far more accurate as it represents the future scenario. • Marketing Campaigns: it would focus the marketing campaigns, as it would address questions like Which customer acquisition campaign deserves more or less money? How much should the company spend to acquire or retain a customer? Etc
Recurring revenues(+) Recurring Cost(-) Net Margin Discounted Net margin Probability of retention Expected Cumulative Margin(+) Acquisition Cost(-) Lifetime Value
Calculating CLV • Ex1 the cost of acquisition of a customer is Rs 2500 and it cost Rs 500 per year to retain that customer. The revenue from the customer is Rs 100 in the first yr, Rs 1500 in 2nd and thereafter it is Rs 200 every year. If the discount rate is 15% compute lifetime value of a customer considering the life of the customer to be 5 yrs.
Year Customer Revenue (B) Retention Cost(C) Net Cash Flow(B-C) Discounted Cash flow Computation of CLV
Case B A DTH service provider tracks customers who use its service facility. The initial cost of provisioning the service is Rs 5000/- and revenue coming in is Rs 8,000/- in the first year, Rs 4500/- in the second year margins, Rs 5,000/- third year margins and Rs 5,200/- in the fourth year. Assume the discount rate is 20%. The probability of retention of the customer during these four years is 0.9, 0.8, 0.6 and 0.3 respectively. If the cost of provisioning the service is Rs 1000, 1200, 1300 and 1400 during these four years, calculate the CLV.
Year Customer Revenue Retention Cost Net Cash Flow Discounted Cash Flow Probabili ty of retention Expected DCF A B C D=(B-C) E F G=E X F Computation of CLV
Process Of Brand Loyalty Brand Awareness Brand Familiarity Brand Recognition Brand Image Formation Brand Conviction Brand Selection Brand Loyalty Brand non-recognition Brand Rejection
Loyal Customer Ladder A customer reaches the status of loyal customer by passing through a series of stages, which are as follows; Customer By Loyalty Customer By Influence Customer By Repetition Customer By Choice Customer By Occasion Customer By Chance
Strategies to prevent defection and recover lapsed customer Total Knowledge about Customer Behaviour; The organization should have complete knowledge about the behaviour patterns, migration patterns of target customers. Interactive Communication System; The system of communication should be transparent, and interactive. Special Promotion Campaign; Whenever the signals of customer defection is noticed, it is essential to formulate special promotions to attract the likely defectors and potential customers.
Developing Barriers to Exit; The organization should carefully evolve barriers to exit like ✔Emotional appeal ✔Lifetime utility ✔Social relationship ✔Concessional Price schemes ✔Innovative Approach ✔Reducing Risk ✔Holistic Approach ✔Commitment
Customer Win Back Approach; The organization should introduce reward based programmes, rewarding employees who are actively involved in customer win back programs. Developing Bondage With Customers; The bondage should be developed using professionalism as a tool, so that the customer is linked to the organization in view of the professional expertise and service that the organization will provide. Improvement of value delivery system; Value Delivery System consists of the entire process right from the time the customer has expressed a need for the product, to the time the customer has received the service.
Benchmarking Of Services; In an attempt to win back customers, organization can benchmark its practices against the best practices available in the industry. Continuous Improvement; The organization should continuously improve its status in terms of quality, trust, credibility, capability, confidence, and communication.
Value Orientation Frame( Richard Whilseley, Diana Hasson) Low Need Of Info High Low High Nee d for rela tion ship Relationship Oriented Partnership Oriented Transaction Oriented Information Oriented
Transaction Oriented The focus of the company is profit and not long term relationships. This can be seen in the case of convenience goods
Loyalty management • It is a tool for rewarding customer engagements leading to long term relationships and improved profits. • It is highly effective in preventing customer churn in today’s competitive environment. • Since we are in the information age, access to information has resulted in customer’s becoming more demanding and less loyal.
Contd., • The customer doesn’t think twice in shifting to other brands resulting in a new breed of customers called the “brand-swingers” • These category of customers give preference to only one aspect i.e., more value.
Customer Loyalty • The term is used to describe the post-purchase behaviour of customers, whether they go for repeat purchase of the same brand/ service offered by an orgn over a period of time. • The objective is not only repurchase but a positive word of mouth and a strong bond between customer and product.
Fig:Graduation of customer organization relationship Customer Prospect Client Support Advocate Partner
CLC Customer Profiling Customer Experiences & Expectations Fig: Ideology of Loyalty Mgmt
Customers Touch Points Customer Database Customer Profiling Selected Customer Segments Integration with CRM Solution Loyalty Program Data Capturing Interactions Data Analysis Fig: Architecture Of Loyalty Management
Types Of loyalty Programs • Appreciations: • Rewards • Partnership • Rebate • Affinity
Stages In CRM Implementation How to juggle the act?
INFRASTRUCTURAL Provides common data,content&other infrastructural services, Includes back office applications, OPERATIONAL Creates customer profile repository to be shared across mktg.sales&service functions ANALTYTICAL Cust data analyzed on the basis of internal&external data COLLABO RATIVE
Stages Of CRM • Operational • Analytical • Collaborative
Operational It is the first stage of CRM . This stage is transaction related. Here the customer interfaces with the company through different media call centres, internets etc., The customer gets the required information about the co. and the co. gets the required information about the customer. CRM applications are in internationally outsourced call centers and also in companies that have high number of customer interaction, e.g., mobile services, banking, etc.,
Operational(CONTD.) Global companies like GE, GM, Ford etc., have already implemented CRM. In India companies like BPCL,Asian Paints,ICICI Bank have implemented CRM and have been able to increase their revenue and profits with high level of customer satisfaction.
• Customer Service Management • Managing Campaigns • Enterprise Marketing Automation • Sales Force Automation • Sales Management system
Analytical CRM It is a super set customer database with internal & external data analyzed to create segmentation, develop marketing programmes and campaigns and measure tactics.For e.g., Sudarshan chemicals, a chemical supplier to companies like Asian Paints, focuses on analyzing customer data and sales information, for providing customized products to Asian Paints.
Collaborative CRM It focuses on realizing the capabilities and potential in the environment and along with the customers implementing marketing programmes and strategies.The main focus is on B2B transaction. E.g., Maruti Udyog has a collaborative CRM with its ancillary makers. Marico industries has a functional collaboration with Parachute and Saffola brands respectively
Components Of Operational CRM Sales Force Automation: Customer Service and Support Enterprise Marketing Automation
Sales Force Automation SFA automates some of the companies critical sales sales force management functions.For e.g., lead account management, contact mgmt, quote mgmt., forecasting, sales administration, keeping track of customer preferences, buying habits and demographics as well as sales staff performance. SFA tools are designed to improve field sales. Key infrastructural requirements of SFA are mobile synchronization and integrated product configuration. Software available includes Leads360 e-automation, etc.,
Customer Service and Support(CSS) CSS automates some service request complaints, product returns and information requests. Traditional internet help desk and traditional inbound call centers support for customer inquiries are now evolved into customer interaction centers using multiple channels like web, phone,fax, face to face,etc., Key infrastructural requirements for CSS includes computer telephone integration, which provides high volume processing capability and reliability.
Operational CRM (contd.) •Integrated CRM software is also called front office solutions because they deal directly with the customer. Many call centers use CRM software to store all their customer details. When the customer calls all the information can be retrieved •CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For e.g. checking of bank account using WAP phone
Enterprise Marketing Automation EMA provides information about the business environment including competitors industry trends and macro environment variables. It is the execution side of campaign and lead mgmt. The intent of EMA application is to improve marketing campaign efficiencies. Functions include demographic analysis and variable segmentation and predictive modeling occur on the analytical side

More Related Content

PPT
Concept of Customer Relationship Management (CRM) fINAL PPT.ppt
byetebarkhmichale
 
DOC
CRM
byitsvineeth209
 
PPT
Iaa crm presentation final
byRohitbopte111
 
PPT
CRM
byFaraz Shahid
 
PPT
Iaa Crm Presentation Final
byRam Srivastava
 
DOC
An Insight Into e-CRM
byguest87f145
 
PPTX
Customer Relationship Management
byMishaalhk
 
PPTX
CRM Week 1 ddfdfdfdfff July 2023[762].pptx
byDrAffendyAbuHassim
 
Concept of Customer Relationship Management (CRM) fINAL PPT.ppt
byetebarkhmichale
 
CRM
byitsvineeth209
 
Iaa crm presentation final
byRohitbopte111
 
CRM
byFaraz Shahid
 
Iaa Crm Presentation Final
byRam Srivastava
 
An Insight Into e-CRM
byguest87f145
 
Customer Relationship Management
byMishaalhk
 
CRM Week 1 ddfdfdfdfff July 2023[762].pptx
byDrAffendyAbuHassim
 

Similar to CRM.pdf

PPT
Mba ii ewis u iv crm
byRai University
 
PPT
New Customer Acquisition Presentation[1]
byMichael Lowenstein
 
PPT
Session 1 & 2 introduction & evolution
byDelwin Arikatt
 
PPTX
Customer relationship management
byMohit Yadav
 
PPT
Customer Relationship Management (Crm) By Ravinder Tulsiani
byRavinder Tulsiani
 
PPT
Customer relationship management
byDimple ..
 
PPT
Crm 27 Aug08[1]
bydimplenift
 
PPTX
2.1 Relationship Marketing - Operational and analytic CRM 2016 short
byAx - Amicucci Formazione
 
PPTX
2.1 relationship marketing operational and analytic crm 2016 short
bySilvio Filippi
 
PPTX
Customer Relationship Management (CRM): Theory and Practice
byJ. Todd Bennett
 
DOCX
- 1 - Ivey Business Journal NovemberDecember 2002No one
bySilvaGraf83
 
DOCX
- 1 - Ivey Business Journal NovemberDecember 2002No one
byRayleneAndre399
 
PPT
CUSTOMER RELATIONSHIP MANAGEMENTation Final.ppt
byACCLBNDEGREEHOD
 
PPTX
Crm cycle
byhemchandmba14
 
PPTX
Crm Final
bytanmay919
 
DOCX
Customer Relationship Management, Teaching notes, BBA, MBA, PGDBM, Integrated...
bySyed Valiullah Bakhtiyari
 
PPTX
15789718-Customer-Relationship-Management-Ppt.pptx
byhuyminh802
 
PPTX
Customer relationship Management o
byAmiya Sahoo
 
PPT
Lec i sait_crm
byVimal Seth
 
PPT
Module ii
byDr Ruchika Jeswal
 
Mba ii ewis u iv crm
byRai University
 
New Customer Acquisition Presentation[1]
byMichael Lowenstein
 
Session 1 & 2 introduction & evolution
byDelwin Arikatt
 
Customer relationship management
byMohit Yadav
 
Customer Relationship Management (Crm) By Ravinder Tulsiani
byRavinder Tulsiani
 
Customer relationship management
byDimple ..
 
Crm 27 Aug08[1]
bydimplenift
 
2.1 Relationship Marketing - Operational and analytic CRM 2016 short
byAx - Amicucci Formazione
 
2.1 relationship marketing operational and analytic crm 2016 short
bySilvio Filippi
 
Customer Relationship Management (CRM): Theory and Practice
byJ. Todd Bennett
 
- 1 - Ivey Business Journal NovemberDecember 2002No one
bySilvaGraf83
 
- 1 - Ivey Business Journal NovemberDecember 2002No one
byRayleneAndre399
 
CUSTOMER RELATIONSHIP MANAGEMENTation Final.ppt
byACCLBNDEGREEHOD
 
Crm cycle
byhemchandmba14
 
Crm Final
bytanmay919
 
Customer Relationship Management, Teaching notes, BBA, MBA, PGDBM, Integrated...
bySyed Valiullah Bakhtiyari
 
15789718-Customer-Relationship-Management-Ppt.pptx
byhuyminh802
 
Customer relationship Management o
byAmiya Sahoo
 
Lec i sait_crm
byVimal Seth
 
Module ii
byDr Ruchika Jeswal
 

More from SadiahAhmad

PDF
Unigraf - We can fabricate everything...
bySadiahAhmad
 
PPTX
Advertising Strategies of HUL
bySadiahAhmad
 
PDF
CRM handbook .pdf
bySadiahAhmad
 
PDF
Assignment On Email Marketing and Affiliate Marketing.pdf
bySadiahAhmad
 
PPTX
Impact of Artificial Intelligence on Marketing.pptx
bySadiahAhmad
 
PPTX
How to win friends and influence people .pptx
bySadiahAhmad
 
PPTX
Legal Aspects of Business.pptx
bySadiahAhmad
 
PPT
Legal_Aspects_of_Business.ppt
bySadiahAhmad
 
PDF
Sales_&_Distribution_Management.pdf
bySadiahAhmad
 
PDF
ZARA.pdf
bySadiahAhmad
 
PPTX
Flipkart
bySadiahAhmad
 
PDF
Impact of Artificial Intelligence on Marketing
bySadiahAhmad
 
PPTX
Brand Decisions
bySadiahAhmad
 
PDF
Manager's Interview : An assignment in Principles of Management.
bySadiahAhmad
 
DOCX
Motivation in Organization Behaviour pdf
bySadiahAhmad
 
PDF
Effect of online reviews on consumer purchase behaviour
bySadiahAhmad
 
PPTX
Human Resource Planning
bySadiahAhmad
 
PDF
Digital Marketing - Summer Internship report 2019
bySadiahAhmad
 
PPTX
Motivation in Organization Behaviour
bySadiahAhmad
 
PPTX
Business Etiquettes and Communication Practices in AUSTRALIA.
bySadiahAhmad
 
Unigraf - We can fabricate everything...
bySadiahAhmad
 
Advertising Strategies of HUL
bySadiahAhmad
 
CRM handbook .pdf
bySadiahAhmad
 
Assignment On Email Marketing and Affiliate Marketing.pdf
bySadiahAhmad
 
Impact of Artificial Intelligence on Marketing.pptx
bySadiahAhmad
 
How to win friends and influence people .pptx
bySadiahAhmad
 
Legal Aspects of Business.pptx
bySadiahAhmad
 
Legal_Aspects_of_Business.ppt
bySadiahAhmad
 
Sales_&_Distribution_Management.pdf
bySadiahAhmad
 
ZARA.pdf
bySadiahAhmad
 
Flipkart
bySadiahAhmad
 
Impact of Artificial Intelligence on Marketing
bySadiahAhmad
 
Brand Decisions
bySadiahAhmad
 
Manager's Interview : An assignment in Principles of Management.
bySadiahAhmad
 
Motivation in Organization Behaviour pdf
bySadiahAhmad
 
Effect of online reviews on consumer purchase behaviour
bySadiahAhmad
 
Human Resource Planning
bySadiahAhmad
 
Digital Marketing - Summer Internship report 2019
bySadiahAhmad
 
Motivation in Organization Behaviour
bySadiahAhmad
 
Business Etiquettes and Communication Practices in AUSTRALIA.
bySadiahAhmad
 

Recently uploaded

PPTX
Quotation description in Odoo 19 Website
byCeline George
 
PDF
Approaches and Methods in Political Science -EVOLUTION OF POLITICAL THOUGHT -...
byDr Raja Mohammed T
 
PDF
Major Agro Climatic Zones of India_fundamental of horticulture.pdf
bybisensharad
 
PDF
Political Science and its relations with other allied Social Sciences
byDr Raja Mohammed T
 
PDF
Plant propagation_Macro & Micro_Horticulture.pdf
bybisensharad
 
PDF
Keratometer /ppt/pdf/notespdf/kerato.pdf
byAnmol Singh
 
PDF
Fundamental of Horticulture _HORTICULTURAL PLANT CLASSIFICATION.pdf
bybisensharad
 
PPTX
Morphology of Eukaryotic Chromosome Genetics.pptx
byLayba Saifi
 
PPTX
An Detailed Overview of Menus in Odoo 18
byCeline George
 
PDF
Graphics Graphics Graphics Graphics Graphics
byaidanattema
 
PDF
Chola Temple Architecture - Brihadishwar temple Tanjore, Brihadishwar templeG...
byPrachiSontakke5
 
PDF
An alumnus of the Swiss Management Center (SMC) University, Kwame Simpe Ofori...
bynservice241
 
PDF
Herniation Syndromes - Neuro Imaging Master Series
bySean M. Fox
 
PPTX
Heterochromatin & Euchromatin Genetics.pptx
byLayba Saifi
 
PPTX
Health Care Agencies & Hospital .pptx.Slideshare
byPompi Begum
 
PPTX
West Hatch Ski Trip - Wagrain 2026 - Induction Meeting 2
byWestHatch
 
PDF
Conducting Systematic Literature Search.pdf
bySystematic Reviews Network (SRN)
 
PPTX
Types_of_Volcanoes_Presentation.pptx Science 8 Matatag
byNekoChan623496
 
PPTX
UNIT 4 – CLINICAL ENZYMOLOGY.pptx.......
byAkanksha Kotangale
 
PPTX
unit 1 Introduction and Theoretical Foundations of educational technology.pptx
byKavitha Krishnan
 
Quotation description in Odoo 19 Website
byCeline George
 
Approaches and Methods in Political Science -EVOLUTION OF POLITICAL THOUGHT -...
byDr Raja Mohammed T
 
Major Agro Climatic Zones of India_fundamental of horticulture.pdf
bybisensharad
 
Political Science and its relations with other allied Social Sciences
byDr Raja Mohammed T
 
Plant propagation_Macro & Micro_Horticulture.pdf
bybisensharad
 
Keratometer /ppt/pdf/notespdf/kerato.pdf
byAnmol Singh
 
Fundamental of Horticulture _HORTICULTURAL PLANT CLASSIFICATION.pdf
bybisensharad
 
Morphology of Eukaryotic Chromosome Genetics.pptx
byLayba Saifi
 
An Detailed Overview of Menus in Odoo 18
byCeline George
 
Graphics Graphics Graphics Graphics Graphics
byaidanattema
 
Chola Temple Architecture - Brihadishwar temple Tanjore, Brihadishwar templeG...
byPrachiSontakke5
 
An alumnus of the Swiss Management Center (SMC) University, Kwame Simpe Ofori...
bynservice241
 
Herniation Syndromes - Neuro Imaging Master Series
bySean M. Fox
 
Heterochromatin & Euchromatin Genetics.pptx
byLayba Saifi
 
Health Care Agencies & Hospital .pptx.Slideshare
byPompi Begum
 
West Hatch Ski Trip - Wagrain 2026 - Induction Meeting 2
byWestHatch
 
Conducting Systematic Literature Search.pdf
bySystematic Reviews Network (SRN)
 
Types_of_Volcanoes_Presentation.pptx Science 8 Matatag
byNekoChan623496
 
UNIT 4 – CLINICAL ENZYMOLOGY.pptx.......
byAkanksha Kotangale
 
unit 1 Introduction and Theoretical Foundations of educational technology.pptx
byKavitha Krishnan
 

CRM.pdf

  • 1.
    Definitions Craig Conway,President andCEO,PeopleSoft Every time a customer approaches your business, they arrive with an expectation. It may be a service need,or a new product interest, but in every case they have an expectation that accompanies their interest in your business.What happens next will form a experience that will shape their behaviour. A good experience will increase their loyalty or it may accelerate their tendency to purchase. A bad experience may transfer their business to your competitor.The ability to recognize this process and to actively manage it becomes the basis for Customer Relationship Management.
  • 2.
    Scott Fletcher, Presidentand COO, Epipeline At its core, CRM is an enterprise-wide mindset, mantra,and set of business processes and policies that are designed to acquire,retain,and service customers.Broadly speaking,CRM includes the customer facing business processes of marketing, sales and customer service. CRM is not a technology. Technology is a CRM enabler.Innovative and proactive companies, adopt customer centric business processes and leveraging technology these companies better serve their customers by providing better product and delivering personalized services.
  • 3.
    Brent Frei, President&CEO, Onyx Software It is a comprehensive set of processes and technologies for managing the relationship with potential and current customers and business partners across marketing, sales and service regardless of the communication channel. The goal of service is to optimize customer and partner satisfaction, revenue and business efficiency by building the strongest possible relationship at an organizational level. Successful CRM requires a holistic approach to every relationship with the entire organization sharing and contributing to that view.
  • 4.
    Ronni T Marshak,Senior vice president, Patricia Seybold Group Establishing and managing customer relationships is first and foremost a strategic endeavour, not a technology category, Just as a company establishes goals, strategies and plans and objectives, it has to determine how customer relationships will be better served at each level. Technology fits only at the tactical level. Every company’s game plan constitutes the G-SPOT
  • 5.
    Goals Strategies PlansObjectives Tactics Profitability Establish long-term customer relationships Invest in CRM Technologies Achieve 60% Customer retention Implement 24/7 call center CRM CRM CR M CR M The CRM G-SPOT
  • 6.
    Definition • Customer RelationshipManagement is a business strategy to select and manage customers to optimize long-term value.CRM requires a customer-centric business philosophy and culture to support effective marketing,sales and service processes.CRM applications can enable effective Customer Relationship Management, provided that enterprise has the right leadership, strategy and culture.
  • 7.
    Business Intelligence vs.CRM • Display customers who visit one of the video store of XYZ co. • Display a list of customers who have lodged a complaint for the past 30 days. • Once a month for the next six months send direct mails solicitation to customers who are most likely to rent the next months feature. • Contact all high value customers who have lodged a complaint.
  • 8.
    BI/ CRM (contd) •Analyze the top five most popular office supplies and compare approved vendors’ prices to prices of other potential suppliers. • Identify the top five purchased office supplies and trial run an automated Web Request For Quote System for limited quantities to check price improvement.
  • 9.
    Strategies for BuildingRelationships People People includes both the internal customers as well as external customers. Commitment to any programme can only be garnered through acceptance of the inherent merits.CRM as a philosophy should be accepted by all the employees. Second group of people that is the external customers should also be made aware of the company’s commitment to their welfare through integrated marketing.
  • 10.
    Processes It involves alogical sequence of activity, right from the need identification of potential customers to need fulfillment. Need fulfillment includes the correct translation of customers desires into tangible benefits, experiences, etc. All these activities require synchronized processes and zero communication gaps. Efficient processes bridge the gap between expectation and performance
  • 11.
    Product As a productis available in the market, it has to be upgraded continuously to match the changing needs of the customers. Companies should not over promise and under deliver,as customers become disenchanted with the company. Many companies loose out on their customers because they fail to live up to expectations created by themselves.
  • 12.
    Organization Organizations should beactive entities and should be highly proactive to changes in the environment. The responsive and learning nature of the organization must build confidence in the minds of the customers. The organization of the organization should also be fault-free, so that slips between the cups and lips are minimal.
  • 13.
    Concentration On Competitors Isolatedcompanies are standalone entities, and have an ostrich tendency. An organization must focus constant attention on the competitors’ performance, their strategies and style of operation and compare it with their own performance. The organization should be in a position to ascertain the actions of the competitors, and should have a backup strategy to counter the offensive.
  • 14.
    Customer analysis Customers heremeans present customers and potential customers. Analysis should encompass the current consumption pattern of these customers, their behaviour,etc. This would indicate why a customer behaves in a particular way, what would be the retention tactics, loyalty parameters etc.,
  • 15.
    Cost analysis Focus ofthe organization should be on the cost of production, cost of providing the service, avenues of cost reduction, etc., The whole objective of the organization should be to deliver value for the money taken from the competitors. Even if the company is charging extra than the competitors, the customers should be aware of the extra benefits that they are getting for the extra money given.
  • 16.
    Environmental Analysis The wholeenvironment will give an idea about the change in social, cultural,political and technological scenario. Accordingly the needs ands preference of the customers will change. Customers up to a certain point of time would concentrate on life maintenance needs and then to life changing need sand then to life enhancing needs.
  • 17.
  • 18.
    Customer Acquisition Considerations 1 FocusedApproach: Companies have to understand their target markets and also their psychographics. ▪Knowers: This set of people just know about the product without any specific attitude towards the product ▪Preferrers: People who know about the product and have specific preferences also. ▪Indifferent: ▪Rejecters: These people mentally reject the organizations offerings and are far away from the acquisition process.
  • 19.
    2 Providing awin-win situation: Offerings should be so designed as to be advantageous for both the parties. Customer acquisition is facilitated in such a scenario as customers believe that they are getting value for money. 3 Attempt to minimize FUD(Fear Uncertainty Doubts) The organization must effectively plan to minimize FUD that might occur in the mindsets of the customers, during the course of acquisition. 4 Projection Of Benefits and not Products:
  • 20.
    Process Of Acquisition Itinvolves the following stages •Enquiry: The prospective buyer undertakes a detailed enquiry with regard to different aspects pertaining to the organization, product, nature of transaction, etc., •Interaction: After storing the information, the prospect interacts with the organization and obtains additional information, and clarifies already gathered information •Exchange:The terms of exchange, mode of delivery and other things related to exchange are sorted here. •Co-ordination: Co-ordination means the discussions are converted into order, through synch-marketing. •Adoption: The acquisition process is complete with adoption of the product or service by the prospect, who becomes a customer.
  • 21.
    Influences On Acquisition •TypeOf Buying: There are two different types of buying-rational and emotional. The former is a systematic and logical while the latter is based solely on impulse. In rational buying customer would logically graduate from one stage to the other while in emotional it may not be the case. •Type Of Product: Different categories of consumer products and industrial products will have different acquisition behaviour. •Type Of Customers: If the customer is an individual his/her behaviour will be different from an organization. Also affecting the acquisition will be the fact whether the acquisition is for first time or not.
  • 22.
    Influences On Acquisition •Economic Environment:The operations of the competing forces, supply and demand conditions, purchasing power etc.,will affect the process. • Contextual Operations:The context of operation refers to the prospect’s previous experience, urgency, specific benefit expected etc.,
  • 23.
  • 24.
    Routes to CIM Online Routes •Interactive website •E-mails •Web Communities •ChatRooms Offline routes •Telephones •Fax •Face to Face Interaction •Mails, etc. Outsourcing
  • 25.
  • 26.
    Customer Retention isthe process of keeping customers in the customer inventory for an unending period by meeting the needs and exceeding the expectations of those customers. It is the approach of converting a casual customer into a committed loyal customer. In today’s competitive environment, the focus of the company is more on customer retention than on customer acquisition. What is Customer Retention?
  • 27.
    Why is Customerretention preferred? • Customer by chance • Customer by occasion • Customer by choice • Customer by repetition • Customer by loyalty
  • 28.
    Contd. Conversion of atransactional relationship to a relationship tied up with emotion and commitment will help the organization in the following ways • An asset • An ambassador • An experience shaper • A knowledge provider • A resource provider • A partner • A spokesperson
  • 29.
    Acquisition/Retention • Focus ison acquiring relationship • Demographic, psycho graphic profile of the customers are important. • Customer is driven by offer and incentives. • Focus is on nurturing relationship • In addition past and present transactional profiles become important. • In addition type and extent of relationship maintained is focused on.
  • 30.
  • 31.
    Sequences In TheRetention Process • Exploring: customers are explored on the basis of parameters like value given to the company in terms of frequency of purchase, profit margin, etc., • Evaluating: Detailed analysis of explored customers is done. Purchase history is an important parameter. • Establishing Strategies: Appropriate strategies are formulated according to the customer type. • Examining Feedback: Result of implemented strategies are monitored periodically.
  • 32.
    Customer Attrition Attrition isthe process of gradually weaving down.This is the stage where the customer begins to question his continued patronage with the product or service, or the provider of the goods or service. Attrition if not arrested leads to defection.Attrition signals must be carefully monitored.
  • 33.
    Attrition Signals • Increasein the number of complaints. • Decrease in the frequency of contacts. • Decrease in personal visits. • Decrease in enquiries • Decrease in the volume of business. • Increase in the perceptual differences between customers and organization on various issues. • Decrease in the number of active buyers.
  • 34.
    Customer Lifecycle Marketing Attention Capturing Selling& Value Creation Maintaing & Sustaining Reach Acquisition Conversion Retention Mass Mktg Strategies Segment Based Strategies Loyalty Programmes CLC Phases Marketing Strategies Objectives of mktg Strategies
  • 35.
  • 36.
    Relationship Through Loyalty UnderstandingBrand: Brand plays a key role towards attracting and retaining sustainable relationship with customers.Brand represents the combination of tangible and intangible attributes of a customer looking for satisfying his core as well as augmented needs.Brand is an identification that reveals what attributes are embodied in it. These are the attributes with which the customer will identify himself with.
  • 37.
    Process Of BrandChoice:The process will take the following sequence. Total Brands Awareness Brands Considered Brands Choice Brands Decided Brands
  • 38.
    Customer Loyalty andThe Types:Customer loyalty may fall into several type that includes •Loyalty towards brands •Loyalty towards stores •Loyalty towards organization •Loyalty towards sales persons and •Loyalty towards any other related aspect in the process of sales and consumption.
  • 39.
    Customer Lifetime Value •It is also written as CLTV or LTV and is defined as the present value of all net payments during the complete life of the customer with the organization. • Customer relationships are considered to be investments and acquiring a customer is like acquiring a new asset, which will generate future revenue.
  • 40.
    Contd., • Therefore toevaluate CLV all the future revenues and costs need to be assessed. • CLV is the present value of all future purchases by the customer minus the costs to be incurred by the company. • It is calculated by assessing all future purchases and then discounting these figures to bring to the present value.
  • 41.
    Application of CLV •Allocation of Resources: allocating resources to a particular customer or segment of customer, the organization can be in a better position to target the customer, which will be profitable in the long run. • Customer selection: If the expected cash flows from the relationship with the customer have a present value of 1000 INR, then the company should not spend more than INR 1000 to acquire the customer.
  • 42.
    Contd., • Segmentation: customerprofiling based on CLV can help in categorizing and offering different marketing and service initiatives. E.g., different facilities for HNI customers. • Customer Equity: It is the total of the discounted cash flows in future from customers and future customers within a certain planning period. CE= ∑CLV
  • 43.
    Contd., • Merger andAcquisition: strategic decisions based on the CLV can be far more accurate as it represents the future scenario. • Marketing Campaigns: it would focus the marketing campaigns, as it would address questions like Which customer acquisition campaign deserves more or less money? How much should the company spend to acquire or retain a customer? Etc
  • 44.
  • 45.
    Calculating CLV • Ex1the cost of acquisition of a customer is Rs 2500 and it cost Rs 500 per year to retain that customer. The revenue from the customer is Rs 100 in the first yr, Rs 1500 in 2nd and thereafter it is Rs 200 every year. If the discount rate is 15% compute lifetime value of a customer considering the life of the customer to be 5 yrs.
  • 46.
    Year Customer Revenue (B) Retention Cost(C) NetCash Flow(B-C) Discounted Cash flow Computation of CLV
  • 47.
    Case B A DTHservice provider tracks customers who use its service facility. The initial cost of provisioning the service is Rs 5000/- and revenue coming in is Rs 8,000/- in the first year, Rs 4500/- in the second year margins, Rs 5,000/- third year margins and Rs 5,200/- in the fourth year. Assume the discount rate is 20%. The probability of retention of the customer during these four years is 0.9, 0.8, 0.6 and 0.3 respectively. If the cost of provisioning the service is Rs 1000, 1200, 1300 and 1400 during these four years, calculate the CLV.
  • 48.
    Year Customer Revenue Retention Cost Net Cash Flow Discounted CashFlow Probabili ty of retention Expected DCF A B C D=(B-C) E F G=E X F Computation of CLV
  • 49.
    Process Of BrandLoyalty Brand Awareness Brand Familiarity Brand Recognition Brand Image Formation Brand Conviction Brand Selection Brand Loyalty Brand non-recognition Brand Rejection
  • 50.
    Loyal Customer Ladder Acustomer reaches the status of loyal customer by passing through a series of stages, which are as follows; Customer By Loyalty Customer By Influence Customer By Repetition Customer By Choice Customer By Occasion Customer By Chance
  • 51.
    Strategies to preventdefection and recover lapsed customer Total Knowledge about Customer Behaviour; The organization should have complete knowledge about the behaviour patterns, migration patterns of target customers. Interactive Communication System; The system of communication should be transparent, and interactive. Special Promotion Campaign; Whenever the signals of customer defection is noticed, it is essential to formulate special promotions to attract the likely defectors and potential customers.
  • 52.
    Developing Barriers toExit; The organization should carefully evolve barriers to exit like ✔Emotional appeal ✔Lifetime utility ✔Social relationship ✔Concessional Price schemes ✔Innovative Approach ✔Reducing Risk ✔Holistic Approach ✔Commitment
  • 53.
    Customer Win BackApproach; The organization should introduce reward based programmes, rewarding employees who are actively involved in customer win back programs. Developing Bondage With Customers; The bondage should be developed using professionalism as a tool, so that the customer is linked to the organization in view of the professional expertise and service that the organization will provide. Improvement of value delivery system; Value Delivery System consists of the entire process right from the time the customer has expressed a need for the product, to the time the customer has received the service.
  • 54.
    Benchmarking Of Services;In an attempt to win back customers, organization can benchmark its practices against the best practices available in the industry. Continuous Improvement; The organization should continuously improve its status in terms of quality, trust, credibility, capability, confidence, and communication.
  • 55.
    Value Orientation Frame(Richard Whilseley, Diana Hasson) Low Need Of Info High Low High Nee d for rela tion ship Relationship Oriented Partnership Oriented Transaction Oriented Information Oriented
  • 56.
    Transaction Oriented The focusof the company is profit and not long term relationships. This can be seen in the case of convenience goods
  • 57.
    Loyalty management • Itis a tool for rewarding customer engagements leading to long term relationships and improved profits. • It is highly effective in preventing customer churn in today’s competitive environment. • Since we are in the information age, access to information has resulted in customer’s becoming more demanding and less loyal.
  • 58.
    Contd., • The customerdoesn’t think twice in shifting to other brands resulting in a new breed of customers called the “brand-swingers” • These category of customers give preference to only one aspect i.e., more value.
  • 59.
    Customer Loyalty • Theterm is used to describe the post-purchase behaviour of customers, whether they go for repeat purchase of the same brand/ service offered by an orgn over a period of time. • The objective is not only repurchase but a positive word of mouth and a strong bond between customer and product.
  • 60.
    Fig:Graduation of customerorganization relationship Customer Prospect Client Support Advocate Partner
  • 61.
  • 62.
  • 63.
    Types Of loyaltyPrograms • Appreciations: • Rewards • Partnership • Rebate • Affinity
  • 64.
    Stages In CRMImplementation How to juggle the act?
  • 65.
    INFRASTRUCTURAL Provides common data,content&otherinfrastructural services, Includes back office applications, OPERATIONAL Creates customer profile repository to be shared across mktg.sales&service functions ANALTYTICAL Cust data analyzed on the basis of internal&external data COLLABO RATIVE
  • 66.
    Stages Of CRM •Operational • Analytical • Collaborative
  • 67.
    Operational It is thefirst stage of CRM . This stage is transaction related. Here the customer interfaces with the company through different media call centres, internets etc., The customer gets the required information about the co. and the co. gets the required information about the customer. CRM applications are in internationally outsourced call centers and also in companies that have high number of customer interaction, e.g., mobile services, banking, etc.,
  • 68.
    Operational(CONTD.) Global companies likeGE, GM, Ford etc., have already implemented CRM. In India companies like BPCL,Asian Paints,ICICI Bank have implemented CRM and have been able to increase their revenue and profits with high level of customer satisfaction.
  • 69.
    • Customer ServiceManagement • Managing Campaigns • Enterprise Marketing Automation • Sales Force Automation • Sales Management system
  • 70.
    Analytical CRM It isa super set customer database with internal & external data analyzed to create segmentation, develop marketing programmes and campaigns and measure tactics.For e.g., Sudarshan chemicals, a chemical supplier to companies like Asian Paints, focuses on analyzing customer data and sales information, for providing customized products to Asian Paints.
  • 71.
    Collaborative CRM It focuseson realizing the capabilities and potential in the environment and along with the customers implementing marketing programmes and strategies.The main focus is on B2B transaction. E.g., Maruti Udyog has a collaborative CRM with its ancillary makers. Marico industries has a functional collaboration with Parachute and Saffola brands respectively
  • 72.
    Components Of Operational CRM SalesForce Automation: Customer Service and Support Enterprise Marketing Automation
  • 73.
    Sales Force Automation SFAautomates some of the companies critical sales sales force management functions.For e.g., lead account management, contact mgmt, quote mgmt., forecasting, sales administration, keeping track of customer preferences, buying habits and demographics as well as sales staff performance. SFA tools are designed to improve field sales. Key infrastructural requirements of SFA are mobile synchronization and integrated product configuration. Software available includes Leads360 e-automation, etc.,
  • 74.
    Customer Service and Support(CSS) CSSautomates some service request complaints, product returns and information requests. Traditional internet help desk and traditional inbound call centers support for customer inquiries are now evolved into customer interaction centers using multiple channels like web, phone,fax, face to face,etc., Key infrastructural requirements for CSS includes computer telephone integration, which provides high volume processing capability and reliability.
  • 75.
    Operational CRM (contd.) •IntegratedCRM software is also called front office solutions because they deal directly with the customer. Many call centers use CRM software to store all their customer details. When the customer calls all the information can be retrieved •CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For e.g. checking of bank account using WAP phone
  • 76.
    Enterprise Marketing Automation EMAprovides information about the business environment including competitors industry trends and macro environment variables. It is the execution side of campaign and lead mgmt. The intent of EMA application is to improve marketing campaign efficiencies. Functions include demographic analysis and variable segmentation and predictive modeling occur on the analytical side