Crm

CUSTOMER RELATIONSHIP MANAGEMENT

CUSTOMER

•“Customer is always right”•“The customer comes first”•“Customer=Valued assets”•“ It costs 6X more to sell to a new customer then to sell to an existing”•“One dissatisfied customer will tell 8-10 others”•“Increasing 5% customer retention, profit will increase by 85%”•“50 % chance to sell to existing customer, while one 15% chance to sell new customer”•“If complaints are handled properly, there is 70% of customer will do the business with company”

CUSTOMER LOYALTY

“Customer Loyalty” a deeply held commitment to RE-BUY or to RE-PATRONIZE a preferred product or service consistently in the future, despite situation influences and marketing efforts having the potential to cause switching behavior.”

WHAT IS CRM

Managing Customer relationship involves 2 objectives

1.To Provide org. the complete view of every customer at every touch point and across all channel,

2. To Provide customer with the single, complete view of the company and its extended channel.

Customer

Relationship Management

CUSTOMER RELATIONSHIP MANAGEMENT

1. CRM integrates several functions and also brings together processes, technology and people.

2. CRM is good understanding of the customers3. An approach which effectively MANAGES THE CUSTOMER

RELATIONSHIPS.4. An integrated and automated processes of SALES,MARKETING

and SERVICE STRATEGY.3. IT DEFINITION METHODOLOGIES, SOFTWARE AND USUALLY INTERNET

CAPABILITIES that help an organization to manage customer relation in an organized manner.

CRM provide family of modules or tools that enables the business and its employee to deliver fast, convenient, dependable and consisting services to the customer.

Leading vendors of CRM: Siebel system, Oracle, people soft, SAP AG

EXPLANATION OF CRMCreate a Database

Analysis

Customer Selection

Customer Targeting

Relationship Marketing

Privacy Issues

Metrics

CRM Framework

Main concept of CRM:

MANAGING VALUABLE CUSTOMER IN A LONG-TERM VIEW

Company should focuses on VALUE OF CUSTOMER, instead of short-term profit

Key Point to Succeed

CRM - PHASES

Acquire Enhance Retain

CustomerLifeCycle

Direct Marketing

Proactive serviceCross/Up-Sell

Sales Force Automation

Customer Support

CRM Functional Solution

Collaborative service

Shared Customer data

Partner Company Customer

CRM Integrated Solution

MAJOR APPLICATIONS - CRM

PR0SPECT OF

CUSTOMER

Sales: Cross-Sell

Up-Sell

Marketing &

Fulfillments

Customer

Service &

support

Retention & Loyalty program

Con

tact

&

Ac

coun

t M

gnt. Fax

E-mail

WebTelephon

e

CRM – SALES

CROSS-SELLING

Customer of one product or service might also be interested in purchasing the related product or services.

Ex: Insurance

UP-SELLING

Selling a new or existing customer a better product then they are currently being using or seeking by proving product information, configuration.

CRM – MARKETING AND FULFILLMENT

Marketing fulfillment :

CRM system helps marketing professionals to accomplish Direct Marketing Campaign by automating tasks like; targeted marketing,

CRM S/W helps marketing professionals to capture the customer database, analyze the database and dig out information which is beneficial to the company.

CRM – CONTACT AND ACCOUNT MANAGEMNT

CRM S/W helps sales marketing and service professionals to capture the database and track the reverent data and plan the contact with prospect customer, company and business.

Information can be captured from all kiosks or touch points like telephone, mail, web, fax, personal information, retails store.

CRM – CUSTOMER SERVICE SUPPORT

CRM S/W provides Customer Service tools to access the customer database.Customer service manager will assign and manage the request for service by customer.

Ex: Call center: & Help desks to assists, suggests or resolve the problem of the customer with product or service by the product

PORTAL BASED - CRM

Provides all users with the tools and information that fits their individual roles and preferences.

Empowers all employees to respond to customer demand more quickly and become truly customer-faced.

Provides the capability to instantly access, link and use all internal and external customer information.

SOCIAL- CRM

Uses social media services, technique and technology to engage the customer.

Empowers all employees to optimize the power of social interactions to get closer to the customer.

Use of social networking site, Facebook, Twitter,

FUNCTIONS OF CRM

“Listen to your customer to create mutually beneficial relationship”

OPERATIONAL - CRM

• Goal of Operational CRM is to provide electronic support for the "front office" business processes, which include all customer contact (eg. sales, marketing and service).

• Aims to deliver customer-centric business processes and operations.

• Enables a 360-degree view of each customer

• Delivers personalised and efficient marketing, sales, and service

OPERATIONAL - CRM

OPERATIONAL CRMERP

Oder mgmt

SCMOrder promo

CSS

Sales Forceautomation

Marketing automation

Service automation

Mobile sales

Field service

BACK OFFICE

FRONT OFFICE

MOBILE OFFICE

COMPONENTS OF OPERATIONAL - CRM

Marketing Automation

Bring right mix of company’s product in front of each customer at the right time.

Sales forceAutomation

Collaborative tool that enables critical sales force and SF management functions like: contact mgnt, quote mgnt, forecasting, customer preferences.

OPERATIONAL - CRM

Enterprise marketing automation (EMA) 

Customer service and support (CSS)

Servicing existing customer base through problem resolution system, CSS automates :

service requests Complaints product returns information requests

EMA provides information about the business including : Competitors : industry trends

ANALYTICAL - CRM

ANALYTICAL - CRM

To develop insight into customers’ needs.To determine what other products and services you can sell to your customers in order to increase the Average Revenue Per User (customer) ARPU.Profitability analysisPersonalisationAnalysis of customer behaviorPrediction of the probability of customer defection (churn analysis)

ANALYTICAL - CRM

DATA WAREHOUSIN

G

PRODUCT DATA MART

CUSTOMERDATAMART

CUSTOMERDATA MGMT

Application Marketing campaign

ANALYTICAL - CRM

DATA WAREHOUSIN

G

A process of assembling data from all over the company.Providing data to the company at the right time.Transforming data into consistent state so that it can be useful for decision making.

DATA MINING

The process of extracting and presenting data for actionable decision and to solve the business problems.

COLLABORATIVE - CRM

Collaborative CRM's ultimate goal is to use information collected from all departments to improve the quality of customer service

This requires a clear contact management strategy which enables everyone in an organisation to see who is talking to who.

COLLABORATIVE - CRM

VOICECONFERENCING WEBINAR E-MAIL

WEB STOREFRONT

DIRECTINTERACTION

CUST

ITRECTION

BUSINESS PROCESS WITH CUSTOMER FOCUS

1. Consistent, dependable, convenient interaction with

customer.2. Create new delivery channel3. Capture and analyze large amount of customer

data.4. Overall attempt to produce a unique/different

business experience for the customer.5. CRM is all about change process and therefore change management.6. What is the company’s experience in-change?7. Does it have a successful record.

CRM STRATEGIESCUSTOMER ACQUISITION : Build the relationship with customer profiling, search, buying pattern, comm.

CUSTOMER RETENTION : 1:1 comm., updating, analysis, improving customer satisfaction

LOYALTY : Re-buy, Re-patronize. Increase, search, capture.

EVANGELISM : Holistic approach to retain the customer. Brand promoters &Sales promoters.

COST REDUCTION : lower inventory, speedier delivery, marketing cost reduction.

CAN A ORGANIZATION PERSUE ALL 5 OBJECTIVES ????? EXTREAMLY DEFICULT

E-CRM

1. The objective of CRM and E-CRM are same 2. “E-CRM, Managing customer relationships

electronically, primarily through the internet, by organization is popularly known as E-CRM.”

3. E-CRM uses electronic medium like internet, wireless application protocol (WAP).

4. Factors to use E-CRM: high cost of acquiring new customer, Cut-throat competition globalization time saving of the customer personalized online relationships with

customer high customer churn rate given birth

to E-CRM4. Ways to personalize online relation with customer: E-Mail Help

desk software5. Opportunities to learn about their customer and offer them

highest level of services.