Service marketing- customer relationship management
- 1. CUSTOMER RELATIONSHIP MANAGEMENT SUBMITTED TO: SUBMITTED BY: RAMNEEK MAM SAKSHA 5810
- 2. CONTENT • Definition and meaning • Components • Types of CRM • Objectives and benefits • Customer Profitability Segmentation • Phases of CRM
- 3. DEFINITIO N ◦ As per Francis Buttle, World’s first professor of CRM, ‘It is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to a target customer at profit. It is grounded on high quality customer data and information technology.’
- 4. MEANING Customer Relationship Management (or CRM) is a phrase that describes how your business interacts with your customers. Most people think of CRM as a system to capture information about your customers. However, that is only part of the picture. CRM involves using technology to gather the intelligence you need to provide improved support and services to 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.
- 5. COMPONENTS OR INGREDIENTS ◦ INGREDIENTS THAT SHOULD WORK TOGETHER TO FORM A CRM SYSTEM
- 6. OBJECTIVES OF CRM Improve customer satisfaction Expand the customer base Enhance business sales Improving workforce productivity
- 8. TYPES OF CRM STRATEGIC CRM OPERATIONAL CRM ANALYTICAL CRM COLLABRATIVE CRM
- 11. STRATEGIC CRM ◦ In contrast to Product Centric CRM (where the business assumes customer requirements and focuses on developing the product that may sometimes lead to over-engineering), here the business constantly keeps learning about the customer requirements and adapting to them. ◦ These businesses know the buying behavior of the customer that happy customers buy more frequently than rest of the customers. If any business is not considering this type of CRM, then it risks losing the market share to those businesses, which excel at strategic CRM.
- 12. OPERATIONAL CRM ◦ SFA- Works with all stages in the sales cycle, from initially entering contact information to converting a prospective client into an actual client. implements Sales promotion analysis, automates the tracking of a client's account history for repeated sales or future sales and coordinates sales, marketing, call centers, and retail outlets. ◦ MA- CRM tools with marketing automation capabilities can automate repeated tasks, for example, sending out automated marketing emails at certain times to customers, or posting marketing information on social media. The goal with marketing automation is to turn a sales lead into a full customer. CRM systems today also work on customer engagement through social media. ◦ SA- Part of the CRM system that focuses on direct customer service technology. Through service automation, customers are supported through multiple channels such as phone, email, knowledge bases, ticketing portals, FAQs, and more. For e.g. , Microsoft's Dynamics CRM Software tracks call times, call resolution and more in order to improve the efficiency of customer service within a business.
- 13. ANALYTICAL CRM ◦ Analytical CRM is based on capturing, interpreting, segregating, storing, modifying, processing, and reporting customer-related data. It also contains internal business-wide data such as Sales Data (products, volume, purchasing history), Finance Data (purchase history, credit score) and Marketing Data (response to campaign figures, customer loyalty schemes data). Base CRM is an example of analytical CRM. It provides detailed analytics and customized reports.
- 14. COLLABRATIVE CRM ◦ The third primary aim of CRM systems is to incorporate external stakeholders such as suppliers, vendors, and distributors, and share customer information across organizations ◦ Collaborative CRM enables smooth communication and transactions among businesses. ◦ Though traditional ways such as air mail, telephone, and fax are used in communication, ◦ Collaborative CRM employs new communication systems such as chat rooms, web forums, Voice over Internet Protocol (VoIP), and Electronic Data Interchange (EDI).
- 16. RATIONALE ◦ Essentially the idea is that not all customers are equally profitable, and determining the profitability of different market segments can help the firm to decide where to invest its limited resources to build loyalty with high lifetime value customers. Similarly, this type of segmentation can be used to determine levels of service provided—more profitable segments are typically given more personal or customized service. ◦ The difficult part for firms is to be confident in the numbers (costs and potential revenues) used to determine segment profitability, and to decide whether to focus on short- or long-term profitability.
- 17. CUSTOMER’S VIEW ◦ From the customer’s point of view, profitability segmentation, while logical, may not seem fair. Customers may resent receiving a lower level of service (e.g., automated) than they had previously received, knowing that others are still getting customized and personal service . This is particularly true if they perceive that they are receiving less service than before, or if they are being asked to pay for service they previously received for free.
- 19. EXPLAINATION
- 20. IDENTIFYING PROFITABLE CUSTOMERS ◦ THE CONCEPT OF LIFE TIME VALUE
- 23. THANK YOU