Dr. Diya Guha Roy: CRM: Session 1

CRM: SESSION 1
Dr. Diya Guha Roy

Goa Institute of Management
Reference
Books
• Customer Relationship Management . Concepts & Technologies by Francis
Buttle
• Customer Relationship Management: Emerging Concepts, Tools and
Applications by Sheth, Parvatiyar, And Shainesh
• Capturing & Keeping Customers in Internet . Real Time CRM. By Paul Greenberg
• Managing Customer Relationships . A strategic Framework by Don Peppers and
Martha Rogers
Definitions!
• Relationship Marketing (RM) is the origin of Customer
Relationship Management (CRM)
• Harker (1999) defines RM as “An organization engaged in
proactively creating, developing and maintaining committed,
interactive and profitable exchanges with selected customers
[partners] overtime is engaged in relationship marketing”.
Definitions!
• Gummesson (2002) : “marketing based on relationships,

networks and interaction, recognizing that marketing is
embedded in the total management of the networks of the
selling organization, the market and society. It is directed to
long term win-win relationships with individual customers,
and value is jointly created between the parties involved”.
More on CRM definitions!!!!
• The Knowledge Capital Group defines CRM as a subset of

something they call as an ENTERPRISE RELATIONSHIP
MANAGEMENT (ERM). It involves customers, suppliers,
partners, as well as the employees. In this context ERM
includes “sphere of expertise” or “channel of execution”.
More on CRM definitions!!!!
• According to Winer (2001), the ultimate goal of CRM is

to “transform these [customer] relationships into
greater profitability by increasing repeat purchase
rates and reducing customer acquisition costs”.
What is • Customer facing system at the basic level
CRM ? • A way to Fulfilment of

– customer expectation,
Why CRM? – experiences that shape their behaviour,
– loyalty to purchase again.
• The process to actively manage these is the

basis of CRM.
A bit of HISTORY!
• CRM was first developed in the middle of 1990s in Information Technology (IT).
• There are defensive reasons and offensive reasons that motivate an organization to
adopt CRM.
• The defensive reasons refer to an organization's fears of losing customers and
revenues due to the successful CRM adoption among competitors.
• The offensive reasons refer to the desire to improve the profitability by reducing
costs and increasing revenues through improving customer satisfaction and loyalty.
WHY CRM? THE FUNDAMENTAL
• Because of the decreasing of customer loyalty in different

industries, CRM started emerging as a response for this
decreasing where, the implementation of CRM is very
fundamental for increasing customer loyalty.
Why CRM? RM?
• The main concern or focus of both RM and CRM is the

longitudinal individual relationships between buyer and seller
that will achieve benefits for both of them.
• Among the differences between RM and CRM is that RM is
relatively strategic in nature while, CRM is relatively more
tactical in nature.
Why CRM? RM?
• In addition, RM focuses on bonding, empathy, reciprocity,

and trust. So, it is considered as relatively more emotional
and behavioural.
• In contrast, CRM focuses on the management efforts for
attracting, maintaining, and enhancing customer relationships
so, it is considered as relatively more managerial.
SFA : Sales Force
Automation
BUYER SUPPLIER
SUPPLIER COMPANY BUYER
UPSTREAM  DOWNSTREAM
• Although there are several similarities in our findings, buyers and
suppliers clearly show different patterns in their approach to
achieving performance.
• The most successful buyers tend to focus on the "hard", tangible
approach (business network information, via transaction specific
investments and joint action to financial performance)
• The most successful suppliers tend to focus on the
"soft" elements - business network information to
foster trust and via norms of flexibility to tangible
(financial) and intangible (perceived satisfaction)
performance
Strategic
CRM :
Customer • Product Oriented
Centric • Production Oriented
• Sales Oriented
• Customer or Market Oriented
OPERATIONAL • Marketing Automation (MA)
CRM • Sales Force Automation (SFA)
• Service Automation (SA)
• One facet of operational CRM is the
possibility of integrating with the
OPERATIONAL financial and human resources
CRM functions of the enterprise resource
planning (ERP) applications such as
PeopleSoft and SAP. With this
integration, end-to-end functionality
from lead management to Order
tracking can be implemented.
OPERATIONAL
CRM
Analytical CRM
• Analytical CRM is concerned with :
• capturing,
• storing,
• extracting ,
• integrating,
• processing,
• interpreting,
• distributing,
• Using
• and reporting
• customer related data to enhance both customer and company value.
Analytical CRM
• Customer data:
• purchase history,
• payment history,
• credit score,
• campaign response,
• loyalty scheme data,
• service data,
• geodemographic data,
• lifestyle data
Collaborative CRM
• Collaborative CRM describes the strategic and tactical alignment
of normally separate enterprises in supply chain for the more
profitable identification, attraction, retention, and development
of customers.
• Collaborative CRM uses technologies with CRM to communicate
and transact across organizational boundaries.
• Partner Relationship Management (PRM): manages the
distribution of funds, plan and control promotions, and measure
outcomes.
OPERATION
DIMENSION
COLLABORATION
DIMENSION

Dr. Diya Guha Roy: CRM: Session 1

Uploaded by

Copyright:

Available Formats

Dr. Diya Guha Roy: CRM: Session 1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Dr. Diya Guha Roy: CRM: Session 1

Uploaded by

Copyright:

Available Formats

CRM: SESSION 1

Dr. Diya Guha Roy

• Gummesson (2002) : “marketing based on relationships,

• The Knowledge Capital Group defines CRM as a subset of

• According to Winer (2001), the ultimate goal of CRM is

CRM ? • A way to Fulfilment of

• The process to actively manage these is the

• Because of the decreasing of customer loyalty in different

• The main concern or focus of both RM and CRM is the

• In addition, RM focuses on bonding, empathy, reciprocity,

SUPPLIER COMPANY BUYER

You might also like