customer relationship management
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TRANSCRIPT
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CUSTOMER RELATIONSHIP MANAGEMENT
SUBMITTED BY: SACHIN KUMAR
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DEFINITION
Customer relationshipmanagement is a model
for managing a company’s
interactions with current
and future customers. It
involves using technologyto organize, automate, and
synchronize sales, market
ng, customer service,
and technical support.
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FUNCTIONAL AREA
CRM is concerned with the creation, development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value
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CRM STRATEGIES- PRIORITIES
Acquire the right customer.
Craft the right value proposition.
Institute the best processes.
Motivate employees.
Learn to retain customers.
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#1 - ACQUIRING THE RIGHT CUSTOMER
Account selection demands a clear understanding of:
1. Seller’s resources2. Customer’s needs3. Cost of serving various groups of customers4. Potential profit opportunities5. How customers define value and how to
meet those expectations
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WHAT DO CUSTOMERS VALUE? Some demand low price Some demand customer service Some demand quick delivery
The question is: “Can the seller deliver it profitably?”
Many sellers try to meet all their customer’s needs, and may do so, but fail to do it profitably.
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#2 – CRAFTING THE RIGHT VALUE PROPOSITION A value proposition
encompasses the products, services, ideas and solutions that a business marketer presents to the prospect/customer that is designed to solve the customers’ problems.
They can be generic or customized.
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#3 - INSTITUTE BEST PRACTICES The sales force plays a key role in
establishing and growing a customer from a transactional account to a collaborative partnership.
They can do this by aligning and deploying technical and service support units to match with their customers’ units.
Technical groups can consist of research, logistics and customer service units.
Through careful management and screening, transactional accounts can progress to partnerships.
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BEST PRACTICES FOLLOW-UP
In addition to using best practices, successful organizations (like IBM) employ follow-up techniques such as:
1. Assigning a client representative to take ownership of the relationship.
2. Assigning a Project Owner who completes the project or solves project problems.
3. Developing an in-process feedback and measurement system.
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#5 - RETAINING CUSTOMERS
Retain customers by:
Providing superior value (more than expected) to ensure high satisfaction.
Nurturing trust. Developing mutual commitment. If possible, helping customers grow their
business.
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HOW TO PURSUE GROWTH FROM EXISTING CUSTOMERS
Identify and cultivate customers that offer the most growth potential by:
1.Estimating current percent “share of wallet”2.Pursuing opportunities to increase share3.Projecting and enhancing customer profitability
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EXPENDITURE ON CRMCompany 2012
Revenue2012
MarketShare (%)
2011 Revenue
2011-2012Growth
(%)salesforce.com
2,525.6 14.0 2,004.6 26.0
SAP 2,327.1 12.9 2,325.1 0.1
Oracle 2,015.2 11.1 1,870.0 7.8
Microsoft 1,135.3 6.3 900.9 26.0
IBM 649.1 3.6 465.6 39.4
Others 9,437.7 52.1 8,513.7 10.7
Total 18,090.0 100.0 16,079.9 12.5
CRM Software Spending by Vendor, Total Software Revenue Worldwide, 2012 (Millions of Dollars)Source: Gartner (April 2013)
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CRM IN RURAL AREA
it is worth mentioning for rural marketing that “sentiments of customers are more important than economical utility of the products.” this serves as the guiding principle for seller of rural market. Customer relationship management can increase through following factors.
Packaging Local language and local celebrity Distribution customisation Packaging customisation
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FACTORS INCREASING CRM IN RURAL AREA
Packaging : as packaging is important communication tool for rural market, companies must use prominent logo symbols and logo colors to ensure that illiterate consumer able to recognize the product. By creating a bond with customer through package, companies are able to establish a relationship that encourages repeat purchases.
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FACTORS CONTINUED
Local language and local celebrity:
the models would wear the clothes properly and would use local language to increase the relationship between product and rural customer. This actually shows that products are affordable and can be easily available for them
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FACTORS CONTINUED
Packaging customizationTwo of the most importantelement of package designed
forrural india include size andvisual communication. That’swhy sachet market is
introducedin rural area which make theproduct affordable to Indianrural customer.
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FACTORS CONTINUED
Distribution customization:
a variety of innovation have been takes place in customizing the distribution for rural market. For transportation of goods the regular store keeper hire auto rickshaws, bullock carts and even boats in south india
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FACTORS CONTINUED
Leveraging rural marketing :
Retailing is final phase of distribution channel. A study on buying behaviour of rural customers indicate that the rural retailer influence 35% of purchase decision. So it critically influence the rural market area and rural india
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TYPES OF CRM
Marketing CRM systems for
marketing track and measure campaigns over multiple channels, such as email, search, social media, telephone and direct mail. These systems track clicks, responses, leads and deals.
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TYPES
Customer service and support
CRM systems can be used to create, assign and manage requests made by customers, such as call center software which helps direct customers to agents. CRM software can also be used to identify and reward loyal customers over a period of time.
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TYPES
Appointments CRM systems can
automatically suggest suitable appointment times to customers via e-mail or the web. These can then be synchronized with the representative or agent's calendar.
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TYPES
Small business For small businesses a CRM
system may simply consist of a contact manager system which integrates emails, documents, jobs, faxes, and scheduling for individual accounts. CRM systems available for specific markets (legal, finance) frequently focus on event management and relationship tracking as opposed to financial return on investment (ROI).
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TYPES Social media CRM often makes use of social media to build up
customer relationships. Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook to track and communicate with customers sharing their opinions and experiences with a company, products and services.Trends identified through social media allow businesses to make more accurate decisions on which products to supply.
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ADVANTAGES OF CRM
Revenue and profitablity inhancement
Cost saving and reduction Organizational impact Gain customer loyality Increase in Productivity Enhanced customer service Leads to departmental
integration
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DISADVANTAGES OF CRM
Expensive implentation Needs additional management
to maintain. Mistaken tool choice make
CRM more complicated Reasentment by employes
towards change due to CRM practices
Major problem of learning curve due to implementation of CRM
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FACTS REGARDING CRM
“70% of CRM initiative fail”
Source: Cap Gemini Earnst and Young
“90% of enterprises cannot show a positive return on CRM.”
Source: META group
“75% of CRM initiatives fails to substantially impact the customer experience.”
Source: Gartener
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REFERENCES
Customer relationship management: concepts and cases
http://www.gartner.com/newsroom/id/2459015 http://en.wikipedia.org/wiki/Customer_relations
hip_management JISC CRM handbook