Customer Relationship Management

A concept or strategy to stay

in touch and solidify relations
with customers and at the
same time reducing cost and
enhancing productivity and
profitability in business
 CRM: An emerging trend
• It can be defined as a business philosophy and set of
strategies, programs and systems that focus on identifying
and building loyalty with a marketer’s profitable customers
• A business strategy that aims to understand, anticipate and
manage the needs of an organisation’s current and
potential customers through ‘one-to-one’ marketing
• CRM is a shift from traditional marketing as it focuses on
the retention of customers in addition to the acquisition of
new customers through an approach of ‘affinity marketing’
• It is a comprehensive approach which provides seamless
integration of every area of business that touches the customer
viz. marketing, sales, customer services and field support
through the integration of People, Process & Technology
 CRM Cycle: A continuous Process
CRM is a continuous process of optimizing
interactions with the customer and
Differentiate
seeking new opportunities to increase
sales
Enforce CRM by the following steps:
 Identify Target Market
 Collect & Store Data
 Open Communication Channels
 Analyse the Sales Data
 Personalise Interaction with Customers
Identify Integration Interact

The CRM Cycle consists of 4 stages (also called as IDIC process)

1. Identify Customer
2. Analyse and differentiate, behaviour-wise
3. Interact to know their individual preferences
4. Customise plan to optimise revenues Customize
 Benefits to Customers
1. Customer service is Improved
2. Personalized or one-to-one service is provided
3. Customer's needs are promptly responded
4. Customer segmentation offers proper identification
5. Customization of marketing can maintain customer
interests
6. Multichannel integration shows the creation of
customer value
7. Time saving in interacting with customers more
frequently
8. Improves customer knowledge
 Benefits to Company
1. Enhanced ability to target profitable customers.
2. Integrated assistance across channels
3. Enhanced sales force efficiency and effectiveness
4. Improved pricing
5. Customized products and services
6. Improved customer service efficiency and
effectiveness
7. Individualized marketing messages also called
campaigns
8. Connect customers and all channels on a single
platform
 Variables under analysis in CRM
Relationship Intelligence, or awareness of the
variety of relationships a customer can have with a
firm, may be assessed in terms of the following
variables
1. Customer’s Needs
2. Customer’s Response
3. Customer Satisfaction
4. Customer Loyalty
5. Customer Retention
6. Customer Complaints
7. Customer Service
 Components of CRM Systems
CRM systems may include some of the following:
• Data warehouse technology, used to aggregate transaction information, to
merge the information with CRM products, and to provide key performance
indicators.
• Opportunity management which helps the company to manage unpredictable
growth and demand, and implement a good forecasting model to integrate sales
history with sales projections.
• CRM systems that track and measure marketing campaigns over multiple
networks, tracking customer analysis by customer clicks and sales.
• CRM software available as Software as a Service (SaaS), (delivered via the
internet and accessed via a web browser instead of being installed on a local
computer by paying a recurring subscription fee to the software vendor)
• For small businesses a system to integrate emails, documents, jobs, faxes, and
scheduling for individual accounts.
• CRM systems for e-Commerce, focused on marketing automation tasks
• Customer-centric relationship management (CCRM) which focuses on customer
preferences through individual, interactive relationships
• Systems for non-profit and membership-based organizations to track the
CRM & CLC
CRM Network
 Customer Database: A wide use in CRM
• An organized collection of comprehensive information about
individual customers is called ‘Customers Database’
• The process of building, maintaining and using this database with
other database is ‘Database Marketing’
• Companies are also capturing information through touch-points to
maintain ‘Data warehouses’ from internal and external sources to
draw the inferences about the customers
• Through ‘Datamining’ marketers extract useful information from the
mass of data to detect trends, segments and individual needs
• Database helps in identifying the prospects, deciding on customer-
wise offers and thus deepening the costumer loyalty
• It helps in avoiding serious customer mistakes
• Big Data will minimize the segmentation and force the marketer to
understand each customer as an individual for customization
Data enabled CRM
 Customer Lifetime Value (CLV)
(Financial Value of a customer)
• Customer Profitability
 CLV Measurement
• Customer-Product Profitability Analysis
 Customer Lifetime Value (CLV)
Calculation of CLV:
1. Calculate average purchase value: in a time period by the number
of purchases (usually one year)
2. Calculate average purchase frequency rate
3. Calculate customer value: by multiplying 1 with 2 above
4. Calculate average customer lifespan: by averaging the number of
years a customer continues
5. Calculate CLV: by multiplying 3 with 4 above
Increasing Customer Lifetime Value:
• Reducing the rate of Customer defection
• Increasing the longevity of the customer relationship
• Enhancing the growth potential of each customer through ‘share-of-
wallet,’ cross-selling and up-selling
• Making low-profit customers more profitable or terminating them
• Focusing disproportionate effort on high-value customers
• Create a reward/ incentive/ coupon program for deepen their loyalty
 Improving CRM within a Firm
Do it at all levels:
• Strategic CRM by development of a customer-centric business culture
• Operational CRM with single customer view, it has 3 components:
 Sales force automation
 Marketing automation
 Service automation
• Analytical CRM to analyse customer data collected through multiple
sources through data mining, correlation, pattern recognition, etc.
• Collaborative CRM to incorporate external stakeholders
Arrange, for the organization, for: Analysing the information, Employee
Training, Application of new technologies, Call Centres, Contact-centre
automation, Social Media and Location-based services
 CRM Systems can also be applied to B2B transactions
CRM Process: to uphold
 A Roadmap to Updating CRM
• Vision: What will CRM look like?
• Culture: A customer-driven sales process
• Journey: A well-documented map of the customer
experience
• Education: Creating training material for internal teams
and any third-parties involved
• Communication: The progress and documentation
sharing
• Leadership: To fix the leader and the responsibilities
• Value: to communicate the benefits
• Technology: To select vendor platform
• Implementation: A documented plan of implementation
• Success: The KPIs to measure the success
 Emerging Trends in CRM
1) Customer Experience: ensuring that you leave them with a
good impression and they are thrilled
2) Automation: sales processes get faster, more accurately, and
more effectively
3) Artificial Intelligence: playing a vital role by offering:
a. Easier data ingestion and retrieval
b. Sentiment analysis capabilities
c. Better data integrity
d. Predictive lead scoring (for evaluating the sales leads)
e. Personalized solutions/recommendations
4) Mobile: a requirement that sales reps may use CRM even
 Emerging Trends in CRM Contd.
5) Social Media: expands the reach by connecting with the
prospects with social campaigns
6) User-friendly: to ensure the use of software by sales staff
and customers quickly and easily
7) Omni-channel: includes continuing the customer lifecycle
in each channel when customer abandons a cart on one
channel
8) Immersive: to put the customers right in the showroom or
in customer’s living room with virtual reality
9) Empowering sales managers/ sales force for better roles
10) Novel CRM trends will give marketing and sales
professionals all the required data inside their inbox
 Conclusion
1) Hyper-personalization
supports true one-to-one
interactions in CRM, and
2) Customer experience is
predicted to become the
top brand differentiator
in the coming days