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Customer complaints are the schoolbooks from which we learn. Unknown
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Page 1: CUSTOMER RELATIONSHIP MGMT

Customer complaints are the schoolbooks from which we learn.Unknown

Page 2: CUSTOMER RELATIONSHIP MGMT

The customer is the most important person on our premises. He is not dependent on us we are dependent on him. He is not interruption to our work he is the purpose of it .He is not an outsider to our business he is a part of it. We are not doing favour by serving him. He is doing a favour by giving an opportunity to do so.

-Mahatma Gandhi

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Customer Relationship Management“Process of creating and maintaining

relationships with business customers or consumers”

“A holistic process of identifying, attracting, differentiating, and retaining customers”

“Integrating the firm’s value chain to create enhanced customer value at every step”

“An integrated cross-functional focus on improving customer retention and profitability for the company.”

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Be everywhere, do everything, and never fail to astonish the customer.Macy's Motto

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Customer Relationship ManagementBottom-line:

The use of information-enabled systems for enhancing individual customer relationship to ensure long-term customer loyalty and retention

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Changing Business Scenario - Need for CRM

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Common sense if of paramount importance in business and customer service.Unknown

Page 6: CUSTOMER RELATIONSHIP MGMT

Why CRM?It costs six times more to sell to new customer than

to sell to an existing one.A typical dissatisfied customer will tell 8-10 peopleBy increasing the customer retention rate by 5%,

profits could increase by by 85%Odds of selling to new customers = 15%, as

compared to those for existing customers (50%)70% of the complaining customers will remain loyal

if problem is solved90% of companies do not have the sales and service

integration to support e-commerce

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Customer service is awareness of needs, problems, fears and aspirations.Unknown

Page 7: CUSTOMER RELATIONSHIP MGMT

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Marketing Selling ServicingCustomer Management Process Threads

BroadcastBroadcast

MailMail

Field PersonnelField Personnel

Agents/DistributorsAgents/Distributors

Call CenterCall Center

RetailRetail

InternetInternet

Back Office Process/Systems

Cus

tom

er In

tera

ctio

n C

hann

els

Are we making the right level and type of marketing, sales, and service investments in each of our customer segments?

Customer RelationshipCustomer Relationship

StrategiesStrategies

Are we taking a holistic approach to our customers across processes and channels?

Customer RelationshipCustomer Relationship

StructureStructure

Have we implemented best practices and technology in process/channel?

Customer RelationshipCustomer Relationship

PerformancePerformance

ScopeScope DepthDepth

Importance of CRM

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Operational CRM

Analytical CRM

Collaborative CRM

Customer

Aspects of CRM

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Page 9: CUSTOMER RELATIONSHIP MGMT

CRM Principles• Customer AcquisitionCustomer Acquisition

Gain the greatest number of new “Best”

customers as early in their “lifespan” as

possible.

• Customer RetentionCustomer Retention

Retain and expand your business and Retain and expand your business and

relationships with your customers through up relationships with your customers through up

selling, cross selling and servicingselling, cross selling and servicing..

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CRM Principles (Contd..)• Customer Loyalty

Offer programs to ensure that your customers Offer programs to ensure that your customers happily buy what you offer only from you.happily buy what you offer only from you.

• Cost Reduction

Reduce costs related to marketing, sales, Reduce costs related to marketing, sales, customer service and support.customer service and support.

• Improve ProductivityImprove Productivity

• Enhance your e-business strategiesEnhance your e-business strategies..

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Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong.Donald Porter V.P., British Airways

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Deployment and Support

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e-Business

Sales Process Automation

Call Centres

EnablingTechnologies

DataWarehousing

MetaData

Data Cleansing

OLAP

EIS

DataCapture

ExternalDatabases

MarketResearch

Customer Touch Point Integration

People

Organization

KnowledgeManagement

Statistical Modeling

Data Mining

Customer Profitability

Segmentation

The building blocks of CRM are the things that need to be in place for an effective Customer Relationship management program

The building blocks of CRM are the things that need to be in place for an effective Customer Relationship management program

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Benefits of CRM Increases customer acquisition

Decreases cost and internal issues.

Increases revenue and hence profitability.

Increases effectiveness.

Increases morale of the employees. Increases creativity and hence makes a path for innovation.

Increases customer satisfaction

Decreases errors and time loss.

Decreases customer’s complaints.

Increases customer loyalty

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Customers are an investment. Maximize your return.PeopleSoft Ad

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Benefits of CRM

www.a2zmba.com Burak Goraglu

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Ways to avoid CRM Pitfalls

• CRM software should mould to company’s best practices, rather than forcing to use the best practices of the CRM vendor.

• CRM vendor only provides 20 percent of the total CRM solution, organizations should examine how easy or difficult it will be to integrate the product into organizations new systems.

• It should be kept in mind any CRM project that takes more than 90 days to implement, runs the risk of failure.

• CRM technology is useless if the employees are unwilling or untrained to use CRM product. Hence organization should gain internal support by communicating the benefits of CRM and provide relevant training.

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Areas of CRM Activity

Sales Force Automation (SFA)Sales Force Automation (SFA)

Customer Service and Support (CSS)Customer Service and Support (CSS)

Help DeskHelp Desk

Field ServiceField Service

Marketing AutomationMarketing Automation

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Do what you do so well that they will want to see it again and bring their friends.Walt Disney

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eCRM eCRM is the customer–facing internet portion of CRM.

eCRM - to interact with the business through their preferred communication channel and it allows the business to offset expensive customer service agent with technology.

- high customer satisfaction and reduced cost through improved efficiency.

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Good leaders must first become good servants.Robert Greenleaf

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Some CRM Vendors &Products

Applix (iCRM)Siebel (Siebel 7)Oracle (CRM 11i)PeopleSoft (PeopleSoft 8.4 CRM)Firstwave (eCRM 7.0)Talisma (Talisma CRM)Commence (Commence RM)Microsoft (Microsoft CRM)

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In the world of Internet Customer Service, it's important to remember your competitor is only one mouse click away.Doug Warner

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Tata Motors India’s largest integrated automaker with market share approaching 60 % in Commercial vehicles and 20% in passenger car market is known well for technology strategies.

Facing international competition TATA MOTORS took up the challenges by focusing on CUSTOMERS

Tata Motors realized that Globalization has changed the business environment in the organization.

CRM - ENGINEERING / AUTO SECTOR CRM IMPLEMENTATION TATA MOTORS

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Many Business challenges needed solution to stay Competitive “

Business challenges Include1. Need for a Standardized world class Business

process2. Need for Centralized Customer Data Base3. Better and improved communications with 1600

dealers / stockist4. Better and faster response for customer request

5. Better feedback on product quality6. Effective training of employees7. More effective measurement of marketing

campaign program8. Improved throughput in customer services 9. Better Cost management in Sales and

administration

CRM - ENGINEERING / AUTO SECTOR CASE STUDY OF TATA MOTORS

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TATA MOTORS deployed Siebel CRM applications throughout Tata Motors organization to overcome above challenges

Siebel Automotive, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. Was deployed throughout TATA MOTORS

CRM - ENGINEERING / AUTO SECTOR IMPLEMENTATION AT TATA MOTORS

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Deploying Solution in Three Phases Tata Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward.

Phase 1

Phase 2

Phase 3

CRM - ENGINEERING / AUTO SECTOR CASE STUDY OF TATA MOTORS

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ConclusionCompanies that are not improving their

relationships with customers are gambling with the future of their businesses.

Focus on adding value to customers, not efficiency or control-oriented imitations.

If it weren’t for the Internet, there wouldn’t be CRM as we know it today.

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There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.Sam Walton

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References 1.CRM-EMERGING TOOLS AND APPLICATIONS

Editors: Jagdish N Sheth ,Atur pavatiyar,G Shainesh

2.CRM- THE NEW FACE OF MARKETING ICFAI 3.CRM – AT THE SPEED OF LIGHT Paul Greenberg

4.CUSTOMER RELATIONSHIP MANAGEMENT Kristin Aderson Carol Kerr 5.SECRETS OF CRM James G. Bwnes

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References

6. CRM - Graham Robert Phelps

7. CRM – R.K Sugandhi

8. CRM - Burak Gorakglu

9. www.crm2day.com

10. www.crmadvocate.com 11. www.sourcio.com 12. www.gartnerg2.com 13. www.eweek.com 14. www.youtube.com 15. www.talisma.com 16. www.businesslink.gov.uk.com 17. www.daffodildb.com

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