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Overview of CRM

Dr. Elijah EzenduFIMC, FCIM, FIIAN, FBDI, FAAFM, FCCM, MIMIS, MITD, ACIArb, ACIPM,PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CMC

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Learning Objectives

At the end of the course, participants should beable to do the following:Explain the concepts of CRM

Explain the concepts of eCRMIdentify the difference between CRM andTraditional Marketing

Identify the difference between CRM andDatabase MarketingIdentify the relationship between CRM and

eCRM

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Customer Relationship Management is acomprehensive strategy and process of acquiring, retaining and partnering withselective customers to create superior valuefor the company and the customer.

- Parvatiyar and Sheth

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Customer relationship management is aboutattracting, developing, maintaining andretaining profitable customers over a period of time.

- Massey, Montoya-Weiss & Holcom

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CRM relates to strategy, managing the dual-

creation or value, the intelligent use of dataand technology, the acquisition of customerknowledge and the diffusion of thisknowledge to the appropriate stakeholders,the development of appropriate (long-term)relationships with specific customers and/orcustomer groups and the integration of

processes across the many areas of the firmand across the network of firms thatcollaborate to generate customer value.

- Boulding, Staelin, Ehret and Johnston

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CRM versus Traditional Marketing

Traditional marketing focus on the four Ps (price,product, place and promotion) for increasingmarket share through increase in the volumeof transactions between seller and buyer.While customer relationship managementfocus on using strategies, procedures, toolsand technology for promoting the relationshipbetween the seller and customer so as toincrease sales revenue, profitability andcustomer satisfaction.

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Attributes of Market Exchanges

Attribute Marketing Through 4PsTransactions

Marketing ThroughRelationships, Networks, and

Interactions1. Actors The buyer has a generic need and the

seller has a generic offerThe buyer has a particular need, andthe seller has a unique offer

2. Nature of marketing exchange The products or services arestandardized

The products or services arecustomized

3. Interaction between actors The interaction between actors arecharacterized in terms of, for example,power, conflict and control

The interaction between actors arecharacterized in terms of, for example,trust, commitment and cooperation

4. Duration of marketing exchange The duration of marketing exchange isindependent and discrete

The duration of marketing exchange ison-going

5. Structural attributes of market

place

The structural attributes of market

place is characterized as an anonymousand efficient market

The structural attributes of market

place is characterized in terms of numerous networks to a networkapproach

6. Marketing approach The marketing approach is the 4Ps orthe marketing mix

The marketing approach is marketingthrough relationships, networks andinteractions

Source: Lindgreen and Antioco, Customer Relationship Management

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Components of CRM

CRM

Customer

Relationship

Management

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Business Drivers of CRM

Averagely, the cost of retaining a customer isless than that of acquiring a new one.

A dissatisfied customer may becomeaggressive oppositionAdvances in electronic commerce provideswide range of relationship opportunities forboosting customer loyalty and satisfaction

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Assumptions of CRM

Current information is rightConsumers prefer individual, differentiated

treatment, services and productsThe future behaviour of consumers dependson their past behaviour

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Myths of CRM

Successful CRM needs complete customerdata and a very large database

CRM is a gigantic projectVery good CRM technology system guaranteeexcellence in business

Segmentation is a prerequisite to CRMCRM needs highly advanced analytics

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Key Cost Goals of CRM & Action PointsTrim down cost of sales and distribution- Deploy web applications for reducing sales force- Manage customer relationships instead of products- Use focused advertising to target customersBoost sales revenue growth by increasing customer satisfaction

- Enhance sales by cross-selling- Enhance sales by up-selling

Reduce customer support costs- Provision of appropriate level of information to customer facing

personnel - Call center automation for easy access to information

Reduce cost requirements for customer satisfaction- Manage customer experience- Deploy customer profitability analytics

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CRM versus Database Marketing

Database marketing is a company-centric techniquewhich focus on using discount programmes andpromotions to sell more products to customersfor less cost: Therefore it s difficult to use it forbuilding customer loyalty. While Customerrelationship management focus on enduringrelationship with customers by identifying and

providing customer values in the context of customer s viewpoint and not based on thecompany s opinion: Therefore it s easy to use it for

building customer loyalty.

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eCRM

eCRM involves matching and blending people,processes and technology for enabling an

organisation to attract, retain and partnerwith customers to facilitate enhancement of value to both customers and the organisation.

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CRM versus eCRM

The infusion of applicable electronic technologyincluding database-driven software, businessintelligence and web systems to the customerrelationship strategy of a firm so as to achieveestablished objectives depicts eCRM. WhileCRM focus on the generic application of a

firm s customer relationship strategy inachieving established objectives.

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Customer relationship management providesopportunity for expectations of customers tobe properly identified, explored and used forcontrolling value proposition with the aim of increasing customer satisfaction.

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Customer Expectations Versus Experienced Service

DesiredService

AdequateService

Experienced

Service

DesiredService

ExperiencedService

Adequate

Service

Model A Model B

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Benefits of eCRM to a FirmTransaction securityPersonalized servicesRelationship with customerseMarketingUsing email for communicationEnhanced workflowLarge data storageAdvanced analyticsTime efficiency

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Benefits of eCRM to Customers

ConvenienceConfidence

Service qualityTransaction process speedStructured interaction

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Steps for Achieving Goals of CRM

Customer IdentificationCustomer DifferentiationCustomer InteractionCustomization

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Dr. Elijah Ezendu is a multidisciplinary professional whose business experience mounts through diverse fields.He is a Certified Management Consultant, licensed by International Council of Management ConsultingInstitutes which has a Special Consultative Status in United Nations Economic and Social Council. As aresult of his strides in management consulting, he received Merit Award for Excellence in Consulting. He isconcurrently Senior Partner, Shevach Consulting; Director of Strategy and Performance, Fortuna; Lead

Assessor and Member of Governing Council, Institute of Management Consultants; Director of Training,International Council of Business Development Professionals; Member of Marketing Committee,International Council of Management Consulting Institutes; Honorary Global Advisor, International ProjectManagement Commission; and Programme Coordinator (Nigeria), Regent Business School, South Africa.He holds a doctoral degree in Management from St. Clements University, British West Indies. He is aChartered Manager certified by Canadian Institute of Management, Canada and holds numerousprofessional qualifications including Master Project Manager; Project Manager E- Business; Fellow,Institute of Management Consultants; Fellow, Certified Institute of Cost Management; Fellow, Institute of

Business Development; Fellow, American Academy of Financial Management; Fellow, Institute of InternalAuditors; Member, Nigerian Institute of Training and Development; Member, Institute of AnalyticsProfessionals; Associate, Chartered Institute of Personnel Management of Nigeria; Associate, CharteredInstitute of Arbitrators (Nigeria). He is a Certified Business Development Analyst and CompetitiveIntelligence Professional. Additionally, he is an information technology management professional certifiedby Institute for the Management of Information Systems, U K along with Microsoft Corporation, USA andstands as a Member of International Association of Software Architects. He is an outstanding motivationalspeaker with a knack for recalibration of positive influence; and a world-class consultant, who has

functioned as Speaker/Facilitator at myriad programmes of professional institutes, internationaldevelopment organisations, private and public firms including extra-governmental agencies andinstitutions. He is a prolific writer and author who had served as Editor-in-Chief, Cost ManagementJournal; Part-Time Lecturer & External Examiner (M BA Programme), Ladoke Akintola University of Technology; Director of M BA Programme (Nigerian Outreach), Management Institute of Canada; Chief Operating Officer, Rohan Marine; Second Vice President and Member of Governing Council, CertifiedInstitute of Cost Management; Director of Programmes and Member of Governing Council, The Institute of Business Development; Director, Refined Shipping; and Examiner to various Professional Institutes.

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Gracias

Dr. Elijah Ezenduelezendu@yahoo.com, 234 8033024596, 234 8058835237