Unit 1

04/08/2023

Prof. Sunitha Ratnakaram 1

INTRODUCTION TO CRM

UNIT1

04/08/2023Prof. Sunitha Ratnakaram

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Emerging trends in marketing Innovative marketing styles

Green Cause Buzz Mobile Network Sports Social media Paid search ads Permission Marketing


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Emerging issues

It’s not about product it’s about social behavior It’s not about a cheaper product or your idea. Try to

change customer behavior. It’s not about better coffee – it’s about the place I am not looking for a ¼” drill bit – I need to make a hole It’s not about the sound – it’s about how it makes me feel It’s about my space It’s about my video It’s about my opinion It’s about the experience It’s about your choices, places, and time

Examples Apple, Starbucks, MySpace, Harley-Davidson


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Old paradigm

Value creator

4P’s


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New paradigm

Value creator

4P’s

Customer

Product

Brand


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Relevance of WoM


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Few Marketing Trends for 2011

Marketing Trend #1: Increased use of digital media and a decrease in television, radio, and print media.

Marketing Trend #2: Increased use of quality, targeted content (textual and video) that tells a company's story well and engages the prospective customer.

Marketing Trend #3: Increased use of e-mail to reach out to prospects and customers more frequently at a very low cost.


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Continued…..

Marketing Trend #4: Increased use of blogs, social networking, and other social media to create dialog and relationships with prospects and customers.

Marketing Trend #5: Increased use of search engine marketing (SEM) techniques, such as pay-per-click and other trackable paid marketing techniques.

Marketing Trend #6: Increased use of online webinars and decreased use of large trade shows.

Marketing Trend #7: Increased use of outsourced marketing functions to experienced professionals


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CRM Marketing initiatives

Cross selling and up-selling Customer retention Behavior prediction Customer profitability and value

modeling Channel optimization Personalization Event based marketing


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Definition

The automation of horizontally integrated business processes involving front office customer contact points (marketing, sales, service and support) via multiple, interconnected delivery channels.

Metagroep The infrastructure that enables the

description of and increase in customer value, and the correct means by which to motivate valuable customers to remain loyal – indeed, to buy again.


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Few concepts

The cost of acquiring customers From customer acquisition to customer

loyalty …. To optimizing the customer

experience


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Few more

PRM (Partner RM) SRM (Supplier Relationship

Management) mCRM (mobile CRM) xCRM (other letters preceding CRM)


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General properties of relationships, networks and interaction

Collaboration – suppliers, customers, competitors and govt. agencies

Longevity Commitment, dependency and importance Trust, risk and uncertainty Power Frequency, regularity and intensity Adaptation Attraction


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Elements of CRM

The four cornerstones of CRM Customer knowledge Relationship strategy Communication The individual value proposition


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Customer knowledge

Who is the customer? Customer profile

What they purchased? How they want to be communicated?

Current and correct data bases Objective is to help customer better,

timely and with appropriate solutions


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Relationship strategy

Tell and listen more than you sell Have broader and deeper interest in the

right customers Completion of transaction is not the end

of relationship Trust and commitment must grow


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Communication

Each customer feels that their communication experience was basic with supplier Repetition of information Strict procedures which become obstacle in

problem solving even for simple problems Generally conversations are not spontaneous

Communication problem becomes obvious in multichannel communication system. E.g. A customer using mobile, internet, customer

care and personal interaction for completing a transaction


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The individual value proposition Know individual customer Develop a relationship with him/her Carry on dialogue Do not avoid individual proposition to each customer Firm may work on producing standard modules on

large scale but assembling in flexible way Customized propositions increases complexity, as

firm never likes to loose economies of scale But sometimes this may not give results

E.g. A retailer’s complex route planning for delivery vans


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How to make it effective?

Grow in all aspects step by step All are equally important One should not move ahead of others

Expected yield will not materialize This may make top mgt. feel contrary of

CRM and they may withdrew from implementation


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CRM Capabilities for sales, marketing and service

CRM Capabilities for sales In personal selling process

Prospecting Pre approach Approach Presentation Handling objections Closing Follow up

In general selling Create customized solutions Create unique feel for the customer


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CRM Capabilities for marketing

Need recognition New product development Marketing communications Segmentation, Targeting and Positioning


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CRM capabilities for services After sales services Customer grievance handling Training customers on new products &

periodic monitoring


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Satisfy customers, shareholders, and deliver a measurable ROI

Customers Personalized solutions Effective grievance handling Services Improved service quality Reduction of customer stress Increased value for money Customer empowerment

Share holders Increased EPS due to increase in customer

loyalty, cross selling and up selling


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Deliver a measurable ROI

ROI could be tracked with customers and groups of customers to rework on relations if required Case of Royal Bank of Canada

It’s CRM journey began 6 years ago CRM is no longer a program for them but “It is the core strategy” Goal is to make each relationship profitable Before CRM revenues were growing at 10% and profits 10 – 15% annually After implementation of CRM revenue growth touched 15%, and profit growth

near 25% For them CRM is a journey Every new investment is subject to the company’s standard, capital allocation

procedures Micro measurements like deposit rates, credit limits, direct mail response

rates are closely watched Every new initiative is tested using a test group and control group before

launching “Top of the house” metrics like revenue growth, profit growth, cost control

etc. also are keenly focused on. If you are to succeed with CRM see it as strategy not as a tool.


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Front and Back office

Tasks in CRM systems Primary task – consists in supporting or

performing the activities involved in customer contact processes E.g. exchange of information, placement of orders,

invoicing, payment and provision of service etc. Secondary task – is related to facilitating the

primary task E.g. providing customer information and

management information A variety of sub systems work for the

completion of the said tasks


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Characteristics of front office and back office

Front office Customer data must be easily retrieved and

modified E.g. within seconds insight may be gained

into who the person is on the other end of the telephone line

Back office Which products customer has bought

earlier Due to it’s difficulty a middleware also

works to coordinate front office and back office.


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Front office

The sales force automation or the sales information system that supports sales person or account manager during face-to-face contact

The partner management system which is geared towards providing support to intermediaries in the joint approach to the end user market

The call or contact centre, where incoming and out going traffic by telephone, fax and the Internet takes place

The website The kiosks (points of information)


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Middleware

The data warehouse or data mart, in which data originating from different sources are compiled to obtain a clear and better customer profile

The campaign management system that produces the analysis, planning, execution and management of marketing communication campaigns

The content management system which ensures that data from different sources may be published through different channels using a consistent design.


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Back office

This usually involves the legacy systems which are generally older and have a longer life span.

These systems are designed for the management of transactions or products E.g. separate systems where different insurances

like health, motor and life insurances are maintained by companies

Here batch processing of large quantities of similar orders only is intended

Not suitable for real time processing of a large quantity of varied small orders


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CRM process

CRM process is defined as any group of action that is instrumental in the achievement of the output of an operating system, in accordance with a specified measure of effectiveness.


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CRM process


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Benefits

Ability to retain loyal and profitable customers and channels for rapid growth of the business project

Acquiring the right customers, based on known characteristics, which drives growth and increased profit margins

Increasing individual customer margins, while offering the right products at the right time.


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Identify the goals of CRM

Increase in Customer Service Increasing Efficiency Aiding the Marketing Department

Questions to ask while establishing CRM goals: What are your main goals/objectives? Who is your audience? What is the best way to achieve CRM goals? How will you accomplish your CRM goals? How will you measure success?


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Benefits of identifying goals of CRM

Establishing clear CRM goals is vital to any organization.

After a clear view of this has been obtained going ahead with the CRM implementation will be infinitely easier and will result in reduced costs, efforts, time and no wastage of organization resources.

Overall success is possible as the end objective is clearly defined and can be worked towards easily with employee cooperation.


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Customer-centric business strategy and CRM process

CRM is a business strategy, so it’s more than a functional strategy.

It affects organization as a whole Marketing IT Service Logistics Finance Production and development HRM etc.


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Continued….

The CRM strategy will have to provide direction to each department or employee that maintains contact with customers

Customer-oriented approach of employees and managers should improve

In practice, when it comes to CRM, many companies focus on increasing efficiency and reliability Self – service grants to customers like, tax filing, IRCTC,

other travel and tourism bookings For these services to be more efficient perfect definition

and control of all activities involved is required.


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Continued …..

Focusing only on operational excellence would not make CRM as a strategic approach

Goal of CRM is the development of long-term, mutually profitable customer-supplier relationships, where customer is given central position

CRM’s goal as business strategy is to increase ‘customer intimacy’

Unit 1

Business

sunitha ratnakaram

marketing trends

crm marketing initiativescross

increased use of quality

increased use of blogs

increased use of email

increased use of digital

customer loyalty