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Name of Institution

Amity Business School

Product marketing Direct Marketing Target Marketing

Relationship Marketing

MASS MARKET RELATIONSHIP

MARKETING SEGMENTATION MARKETING

ONE TO ONE MARKETING

CUSTOMER RELATIONSHIP MANAGEMENT


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Name of Institution


Customer Relationship Management

(CRM)

CRM is the strategic use ofinformation, processes,

technology and people to manage the customers

relationship with your company ( Marketing, Sales,

Services and Support) across the whole customer life

cycle.

CRM is the process ofstoring and analyzing the vast

amounts of data produced by sales calls, customer-

service centers and actual purchases, supposedly

yielding greater insight into customer behavior. CRM also

allows businesses to treat different types of customersdifferently in some cases, for instance, by responding

more slowly to those who spend less or charging more to

those who require more expensive handholding.

Wall Street Journal, 21 May2006.


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Name of Institution


Process of creating and maintaining relationships withProcess of creating and maintaining relationships with

business customers or consumers.business customers or consumers.

A holistic process of identifying, attracting,A holistic process of identifying, attracting,

differentiating, and retaining customers.differentiating, and retaining customers.

Integrating the firms value chain to create enhancedIntegrating the firms value chain to create enhanced

customer value at every step.customer value at every step.

An integrated crossAn integrated cross--functional focus on improvingfunctional focus on improving

customer retention and profitability for the company.customer retention and profitability for the company.

More definition of CRM


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Name of Institution


Online insurance company view on CRM:

Motivating customers to initiate revenue generating contacts with us.

A catalog retailer on CRM :

Increasing the likelihood of the right response by a customer segment.

A mid market financial institutions view on CRM:

We want to attract customers both old and new through more personalized

communications.


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Name of Institution


CRM , the term often referred tomarketing. This is because CRM can be

considered from a number of perspectives.

Information Technology (IT) perspective

The Customer Life Cycle (CLC) perspective

Business Strategy perspective


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Name of InstitutionAmity Business School

Business Strategy and CRM


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Three key phases:

Customer Acquisition

Customer Retention

Customer Extension

Three contextual factors:

Marketing Orientation. Value Creation.

Innovative IT.


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Information Technology (IT) perspective CRM is more than just software. For the

purposes of this introduction - Information

Technology (IT) and CRM have three keyelements,

Customer Touch Points,

Applications, and

Data Stores.


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The Customer Life Cycle (CLC)perspective

The Customer Life Cycle (CLC) has obvious

similarities with the Product Life Cycle (PLC).

CLC focuses upon the creation of and delivery of

lifetime value to the customer.

CLC is a summary of the key stages in a

customer's relationship with an organization.


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Objectives of CRM

Identification of potential customers.

Understanding of customer needs, Both current and latent.

Differentiating profitable from unprofitable customers and

segments.

Decreasing attrition by increasing value and satisfaction.

Increasing usage of current products and services.

Increasing referrals.

Winning back lost customers.

Moving customers up the relationship hierarchy from strangers

to acquaintances to friends to partners.

Integrating marketing and sales efforts throughout the various

channels used by the company.


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GOALS OF CRM

DIFFERENTIATING CUSTOMER All the customers are not equal, recognize and reward the best

customer. For this the CRM needs to understand.

Sensitivity, tastes, preference and personalities.

Life style and age

Culture background and education Physical and psychological characteristics.

DIFFERENTIATING OFFERING A CRM solution needs to differentiate between low value

customer and a high value customer.

High Value customer requiring high value customer offerings. Low Value customer with potential to become high value in

near future.

High Value customer requiring high value service.


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KEEPING EXISTING CUSTOMER

Grading customer from satisfied to very dissatisfied shall help theorganization in always improving its customer satisfaction level andscores. As satisfaction level of each improves so shall the customerretention with the organization.

Attempts to own the lion share of customer spending and/or shareof mind in a particular product category

Building brand equity, maintaining vigilant customer contact, keepingcurrent with the market trends is critical

5% points increase in customer retention=20-125% increase inprofit

CUSTOMER LIFE TIME VALUE

By identifying life stage and life event trigger the points by customer,marketers can maximize share of purchase potential. Refers to the net present value of the potential revenue stream for

any particular customer over a # of years Starts with current purchase activity then extrapolates to include

potential additions from cross-selling, upgrades, total ownership, etc.


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Name of InstitutionAmity Business SchoolGoal of CRM

Increased Customer Loyalty = Increased Profits

Integrated and personalized interaction

that increases value to customers

Data Enabled processes

Integrated Customer Knowledge

Customer Transaction Data Silos


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Lifetime Value (LTV) Refers to the net present value of the potential revenue

stream for any particular customer over a # of years

Starts with current purchase activity then extrapolates toinclude potential additions from cross-selling, upgrades,total ownership, etc.

Customer Ownership Attempts to own the lionshare of customer spending

and/or share of mind in a particular product category

Building brand equity, maintaining vigilant customer

contact, keeping current with the market trends is critical 5% points increase in customer retention=20-125% increase

in profit


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THE CRM VALUE CHAIN

Customer data Customer information Customer Knowledge

Customer wisdom


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CRM BUSINESS CYCLE

8. Retain

valuable

customers.

7. Acquirecustomers

and

prospective

customers.

6. Deliver

increased

value to thecustomer.

5. Interactwith

customers

and

prospective

customers.

4. Customize

by customersegment.

3. Develop

product

services

Channels to

meet

customers

needs.

2. Differentiate

based on

customer needs,

characteristics

and behavior.

1. Understand

customers

needs

CRM


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Customer Life Cycle

The total time that the customer is engaged with your company from the

customers experience and view point.

Consider Purchase Set up Use

Customer AssetLoyal customers continue to buy more as they perceive value in the relationship.

Customer Information: It is a tangible company asset that can be inventoried and

managed. Critical element for building loyalty.

Customer Value: It is calculated on the basis of purchases made by an

individual.

CRM Concepts


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Information

Technology

Process

People

Componentsof CRM


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The components

of CRM

1.Information: Information is the raw material of

CRM. These types of information are useful to

CRM.

Identification Data

-Marketing Data

2.Process: Customer centered processes are

the product of CRM. Some examples are:-Customer Touch points


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3.Technology: Technology is the machinery thatenables CRM to work.

-Software Products

-Networking-Databases

4.People:People are the power supply of CRM.

-Training and education

-Measurements and rewards


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Customer Touch points

Touch points are the means (media) that we use tointeract with our customers.

1. Mail

2. Toll-free-Number

3. Phone / fax4. Event

5. Internet

6. Kiosks

7. Broadcast

8. E-Mail

9. Personal


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Common myths about CRM

1. CRM is the solution that will solve all our customer problems,

its all the software tools that make it easier for a customer to

do business with us.

2. CRM is the internet.

3. CRM is just the latest name for Direct Marketing.4. CRM means recognizing a customer wherever he interacts

with our company, a 360 degree view of the customer.

5. CRM means scoring and measuring customer value.

6. CRM is sales rep productivity tools.


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Name of InstitutionAmity Business SchoolTypes of CRM

Operational CRM

Analytical CRM

Collaborative CRM


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Name of InstitutionAmity Business SchoolCRM Architecture


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Name of InstitutionAmity Business SchoolOperational CRM

The operational application of CRM enables effective interaction withcustomers. For this purpose various tools are used.

Operational CRM provides support to Front Office" business processes,

including sales, marketing and service.

Each interaction with a customer is generally added to a customer's

Contact history, and staff can retrieve information on customers from the

Database when necessary.

These contact management tools aim to reduce costs by improved

Process efficiency and use of media based communication channels.

These are also aimed to provide customers with a consistent interface

Across all communication channels.

Banks are an exemplary implementation of CRM as customer contact

management.

Channel management tools aim to understand how customer interactswith the company. It aims to deliver products and services across

multiple channels in effective, efficient, and consistent manner.


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Name of InstitutionAmity Business SchoolAnalytical CRM

The data collected in operational management is analyzed to segment

customers. The valuable information thus obtained is used to satisfycustomers. Analytical CRM is composed of:

Pattern discovery component

Product and customer analysis component

Multitude component

Sorting and customer fractionation component

Customer value evaluation component

Analytical solutions provided for most companies are integrated view ofcustomer across all channels and applications, campaign performanceanalysis, customer profitability analysis, cross-selling and up selling. Theanalytical solutions help answer questions like:

Who are their best customers?Whom they are likely to loose?

How to retain them?

How to attract new customers?

How to improve profitability of customers?


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Analytical CRM analyzes customer data for a variety of purposes:

Design and execution of targeted marketing campaigns to optimize

marketing effectiveness.

Design and execution of specific customer campaigns, including

customer acquisition, cross-selling, up-selling, retention.

Analysis of customer behavior to aid product and service decision

making (e.g. pricing, new product development etc.)

Management decisions, e.g. financial forecasting and customer

profitability analysis

Prediction of the probability of customer defection (churn analysis)

Analytical CRM generally makes heavy use of data mining..


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Collaborative

CRMThe various departments of company like the sales, technicalsupport, and marketing, share the information they collectabout customers. The objective is to improve the quality ofcustomer service and increase customer loyalty.

It allows the company to synchronize and manage efficient,productive interaction with customers, prospects, partners, andinternal associates across all communication channels. Thecustomers' viewpoint is taken care of at every transaction levelthus enabling better service to the customer. CollaborativeCRM also reduces web service costs by enabling webcollaboration.

Collaborative CRM covers the direct interaction withcustomers, for a variety of different purposes, includingfeedback and issue-reporting. Interaction can be through avariety of channels, such as web pages, email, automatedphone (Automated Voice Response AVR) or SMS.

The objectives of collaborative CRM can be broad, includingcost reduction and service improvements


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Integrated CRM Architecture


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Name of InstitutionAmity Business SchoolTECHNOLOGICAL ARCHITECTURE


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Case Study-Right Number

The Say Cello not Hello promotional scheme for cello

thermoware which ran in Mumbai in the week beginning

14, seems to be one of those crazy ideas that make

great marketing sense.

The brain child of ad agency Situations, the schemeinvolved trained teams of callers ringing up 33,000

randomly chosen Mumbai telephone numbers. If the

person who picked up the phone at the other end

sideCello instead of Hello he or she became eligible

for a a free cello Thermaware water jug worth Rs.111information about the scheme had been disseminated

widely through a highly visible ad campaign using press

also banners, stickers and leaflets.


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Says anjan Chatterjee, Managing Director of situations, theidea was born in a hotel lounge in Bangalore. We were toying

around with a headline that had proved rather popular :Say

hello to Cello.Suddenly it struck us:why not call people at

random all over Bangalore and tell them to say Cello instead

of Hello?. First tried out in Bangalore the scheme was a bigsuccess, achieving its aim of creating top of mind awareness

of the product.

Chatterjee claims that in Mumbai the scheme took the city s

residents by storm. According to him the message on thetelephone answering machines in house had been changed

for the week to cello, just in case the call came through when

no one was around. Over the week the schemes leased

prizes were delivered to more than 3800 winners.As the ad

for these schemes says:Idea accha Hai.

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