What is CRM?

CUSTOMER RELATIONSHIPMANAGEMENT

What is CRM?Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer.CRM is a management approach a model that puts a customer at the core of a company processes and practices. CRM leverages cutting edge technology integrated strategic planning up-close and personal marketing techniques and Organization development tools to build internal external relationships that increase profit margins and productivity within a company.

CRM DefinitionCRM is a cross functional process for achieving:A continuing dialogue with customersAcross all their contact and access points, withPersonalized treatment for the most valuable customersTo increase customer retention and the effectiveness of marketing initiatives

AND PHASES ARE

AcquisitionProspectingRetention123- Target to lead conversion- Campaigns to educate targetLead Account Contact opportunity Customer / contactCase / issue / tickets

OK .. But the question is still the sameWhat is target??

when should I consider the details as lead and when it becomes contact???

What is opportunity???

Why contact and account are different???

Why & why

ProspectingFirst stage of any sales process : Principle module - Campaign

You create a list of people based on certain criteria like: age, Sex, Special interests, demography etc. and run a campaign email / tele-calling / outdoor etc. to reach themCampaignRecipients feedback

LeadsSo:::Campaign recipients = TargetsInterested Targets = Leads

Acquisition

: Contact, Account, Opportunity

LeadsFollow-up calls, meetings

Qualified LeadsConverting Lead contact

-Adding Contact against Account

Creating Opportunity Sales conversion1234So::: Contacts are more qualified leads with the defined interest in your services/products. Accounts are generally company details and contacts belongs to these accounts.Opportunity is the defined contacts (buyers) interest in the specific services with an expected monetary value. Retention

Principle Module: cases, bugs Once sales is closed; the most important activity is customer retention. It is about creating, recording and assigning cases/bugs against customer complainsHandling and resolving the cases with customer satisfaction. It gives you an opportunity for cross/up selling. Evolution Of CRM

Need For CRMTo meet the changing expectations of customer due to: (a) social and demographic factors. (b) economic situations. (c) educational standards. (d) competitors product (e) experience.

Loyal customers are the source of most profitsA relatively small percentage of customers may generate most of the profits.Marketing cost and efforts are less for existing customers.Dissatisfied customers tell others about their experiences.So do satisfied customers.

Slowing the rate of defection grows the customer base.

Reducing costs (e.g. through self-service).

Models of CRMCRMs can be broken down into three key components.Enhance Company Relationship with CustomerFront Office Operations (sales, marketing, service etc)Interaction within the firm (email, letters, phone, meetings, fax etc)

Collaborative CRM (Communication with Clients) Focus on customer interaction Efficient Communication on all medias (Email, Fax, Letter) Sending the correct information Latest Version Only having one Wine Price List Instead of a couple lying around the office Many account managers Someone else can instantly pick up the customers account Providing online services to reduce CUSTOMER Service costs (Customer can update there accounts details, see the latest invoices etc)

Operational CRM (Basic Business Processes)I think of this as one way process, you are dealing with the customer but not directly

So for example you maybe update order than has be dispatched, the CRM process with log this in the customers history record.

This component can be broken down further into three areas

Sales Force Automation

11Operational: Because of sharing information, the processes in business should make customers need as first and seamlessly implement. This avoids multiple times to bother customers and redundant process.Analytical: Analysis helps company maintain a long-term relationship with customers.Collaborative: Due to improved communication technology, different departments in company implement (intraorganizational) or work with business partners (interorganizational) more efficiently by sharing information.

The Customer RelationshipTargetFindUnderstandAttractQualifyCloseLearn fromDevelop

Team StructureRole SpecificationPlanning ProcessProcess AlignmentMonitoring ProcessEmployee MotivationEmployee TrainingPurpose-increases effectiveness-improve efficiencyPrograms-Account Mgmt-Retention Mktg.-Co-op Agreement-Strategic PartnershipPartners-Criteria-ProcessEvolution-Enhancement-ImprovementRelationship Performance-Strategic-Financial-Marketing Retention Satisfaction loyaltyCommunicationFormationManagement & GovernancePerformance

CRM Process Framework

The Key Stages of CRMSatisfaction BasedStateCultureRe-activeMeet customer needs Respond to complaintsMinimal evaluation of customer service levelsPerformance BasedPro-ActiveEvaluate customer perceptionIdentify customer retention factorsStageCommitment BasedVery Pro-ActiveEvaluate multiple customer needsContinuous inbound/outbound flow and feedbackContinuous improvement

Economics Of Customer Retention

Winning back a lost customer can cost up to 50-100 times as much as keeping a current one satisfied.Rob Yanker, Partner, McKinsey & CompanyUnderstanding your customer is key to retention..

16(c) 2000 Michele Bartram, mjb@webpractices.com17Customers DesiresConvenience: One-stop shopping, tools, online servicesRelevance: all community, content, products and services around a topicSimplicity: usability, ease-of-useChoice: Selection of products/ services and way they are presentedVoice: Interaction with and responsiveness of merchantReinforcement: community, ratings / reviews Safety: of credit card and other personal dataControl: over use of her private data, plus offers, contentRecognition: Remember and apply my unique name & preferences. (Ex. Women surveyed insisted they wanted to be known as unique not part of a group.)Building Customer Relationships A major shift in marketing thought: from mass marketing to individualized marketingFrom focus on acquiring lots of new customers to retaining and building more business with fewer loyal high-value customersGoal: build long-term relationship

A firms ability to build and maintain relationships with customers, suppliers, and partners may be more important than the firms land, property, and financial assets.The key: Treat customers like friends

18Relationship MarketingEstablishing, maintaining, enhancing, commercializing customer relationships through promise fulfillment

Building long-term profitable relationships with mutual benefit

Tool: promise fulfillment => customer satisfactionDominos Pizza ads claim 30 minute delivery of pizzas.

19

Subconscious ExpectationsPizza with specified toppingsTake 10 minutesCome in a packed boxRemain warm till you reach homeCharges standard and acceptable pricePizza will taste reasonably good

You will come back is all the above are met

Pizza example Pizza example If you go regularlyRapport with employeesYou forgive if they mess up with one or two expectations

Degree of confidence determines toleranceIf using first time, and even one expectation is not metYou will never go again

Pizza example Exceeded expectationsDeliver on all expectationsGive you a garlic bread FREE !

You will tell everyone about itCUSTOMER RETAINED????Advantages Of CRM

Using CRM, a business can : Provide better customer service Increase customer revenues Discover new customers Help sales staff close deals faster Make call centers more efficient Simplify marketing and sales processes

Electronic Customer Relationship Management Latest paradigm in the world of CRM

NEED OF e-CRMDue to the introduction of new technology

To satisfy the customers at global level. (Sometimes customer itself prefer to do online purchasing.)

Basically e-CRM is concerned with attracting & keeping economically valuable customers & eliminating less profitable ones.

Goals of e-CRMReduce :Costs of marketing

Improve :Accuracy and relevancy of recommendationsCustomer satisfaction

Increase :Conversion rate, i.e., Turn browsers into buyersCustomer retention and frequencyOrder size

The 3 ways of achieving eCRMProcessesPeopleTechnologyInternet, Intranet & ExtranetIntranet ManagementEmployeesProduction CentresOther departmentsExtranet Vendors/SuppliersDistributors,BankersConsultantsInternet CustomersCompetitorsGeneral PublicA suggested eCRM transitionMass Marketing

DatabaseMarketing

Customer specific Real time Marketing

Profit based Marketing

Measurement based frameworkCollect Customer DataAnalyze Customer DataFormulate InformationBased Hypothesis Collect Data onPerformance of HypothesisProcess of e-CRM

e-CRM Implementation Steps

Enterprise resource planning(ERP) is business management softwareusually a suite of integrated applicationsthat a company can use to store and manage data from every stage of business, including:Product planning, cost and developmentManufacturingMarketing and salesInventory managementShipping and payment

Difference Between CRM And e-CRM CRITERION CRM e-CRMCustomer ContactsTraditional Means-Retail Store, Telephone Or FaxThrough Internet, E- Mail, Wireless, Mobile And PDA TechnologiesSystem InterfaceWorks With Backend Application Through ERP SystemDesigned For Frontend As Well As backend Applications Through ERP, Data Mart And Data WarehouseSystemIT Requires PC Clients To Download Various Applets And Applications.Here, Browser Is The Customers Portal To e-CRM

Contd..CRITERIONCRMeCRMCustomization and PersonalizationDifferent People Require Different Information But Personalized Views For Different Audience Are Not Possible HerePersonalized Views Based On Purchase Are Possible. System FocusSystem Is Designed Around Product And Job Functions. Here, Applications Are designed Around One Department Or Business Unit.System Is Designed Around The Customers Need. Enterprise Wide Portals Are Designed And Not Limited To A Single Department. Systems Maintenance And ModificationsImplementation Is Longer And Costly. System Implementation Require Less Time And Cost.

Categorizing Customers*You have no choice but to handle them very carefully.Will consume energy.#Think of innovate ways of getting them on your side, but the cost of acquisition must be controlled*Cultivate relationship. Spend energyGo out of your way# Think of strategies to move them away from competitionWill consume disproportionately high energy* Focus on short term profitabilitySpend minimum energy to meet your objectives# Dont pursueUse opportunity as it comesShort term acquisition should not affectLong term image* Very cautious decision neededRe-examine business plan & strategy. Evaluate that your loss does not become nightmare for you# Needs in-depth strategic review as acquisition alone and dissatisfaction later could be more harmfulLowHighProfitability Potential LowHighStrategic Importance to your business Plan* Existing Customer # Potential Customers

Key applications of e-CRMInformation integration application

An incomplete view of customers reduces their loyalty and trustConsolidating customer data and information from different sourcesTo keep up with every customers interaction

Customer analysis application

Measures, predicts, and interprets customer behaviorsPredictive models to identify the customers most likely to perform a particular activityOnline analytical processing, data mining and statistics

Continued.Real-time decision applicationTo coordinate and synchronize communications across disparate customerAn effective real-time decision application promotes information exchange between the company and every customer

Personalized messaging applicationBuilding customer profiles and enables customized product and service offerings based on the information integration application

Benefits :

Retaining existing customers.Selling more to existing customers.Finding and winning new customers.Interactions lead to trusted relationships:

Focus the business on improving customer relationships and earning a greater share of each customers business.

Increasing efficiency.Improving marketing and sales decision making.Enabling process measurement leading to process improvement.

Benefits Of e-CRM Convenience

Improvement in overall quality of customer experience

Increased profitability More effective marketing.

Improved customer service and support..Greater efficiency and cost reduction.

Increased customer loyalty. (time frame)

Continued.Enables 24/7 customers interaction: optimize interactive relationships between customers and companies.

Personalization through technology: enable a business to extend its personalized messaging through the Web and email.Continued.customer responsecompetitiveness through differentiationProfitability.

e-CRM : The Closure

e-CRM isnt CRM unless it affects the customers experience for the goode-CRM is a strategy, not a project !!!e-CRM should improve ROITechnology is a means, not an end to achieve effective relations with customers !!!Get a 360degree view of your customer