Prepared and presented by,

N. Ganesha Pandian,

Assistant professor,

Madurai School of management.

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CRM, or Customer Relationship Management, is a company-wide

business strategy designed to reduce costs and increase

profitability by solidifying customer satisfaction, loyalty, and

advocacy. True CRM brings together information from all data

sources within an organization (and where appropriate, from

outside the organization) to give one, holistic view of each

customer in real time. This allows customer facing employees in

such areas as sales, customer support, and marketing to make

quick yet informed decisions on everything from cross-selling and

up selling opportunities to target marketing strategies to

competitive positioning tactics.

Make It Sticky

Make It Easy

Make It Private

Make It Fast

Make It Personal

Make It Work

Make It Strong

Make It Professional

Make It Win-Win

Make It Interactive

The Eight CRM Essentials

Rapid time to value

Point-and-click customization

A 360-degree customer view

Real-time visibility

No more dirty data

High adoption

Extending your success

A broad community

4 Key Steps in the CRM Implementation Process

Identify all areas of your business that touch the Customer or the

Prospect.

Identify all of the business processes that manage the touch points with

the Customer or Prospect.

Select the appropriate CRM and Sales Force Automation (SFA) system that

will allow the business processes impacting the Customer or Prospect to

be managed in the most efficient and effective manner.

Document those business processes and train the users on the utilization

of the CRM system with a focus on how that system will deliver value to

their daily work lives and how it will maximize their efficiency and

effectiveness in managing their relationships with their Customers and

Prospects.

A challenge of defining CRM is that any

definition is contingent on the level at which

CRM is practiced in an organization or, for

that matter, what the researcher or man-

ager believes about the correct level of CRM.

There are three different possible levels: (1)

functional, (2) customer- facing, and (3)

companywide.

A customer acquisition strategy defines the

best mix of media and engagement tools

(lead generation and product offers to gain

new customers through targeting them and

reaching them through online and offline

customer journeys.

In general, three basic forms of customer

acquisition are

Developing existing or new markets,

Developing existing or new products, and

Branding programs

Identifying Markets

The ACTMAN Model

The ACTMAN: Acquisition Tactical Management 6 elements:

Targeting

Awareness generation and product positioning

Acquisition pricing

Trial

Usage experience and satisfaction

Post-introductory pricing and the creation of long-term

value for the product or service

Targeting

1st degree - Individual Customer Targeting

(profiling)

2nd degree – Segment Targeting

3rd degree – Self-Selection Targeting

Offer email receipts to every shopper

Can you ask for personal data at check-out?

Which products are similar to a shopper‘s purchase?

Online. Be respectful of customers‘ time

Customers are increasingly researching products

Make your preference centre easy to find and

navigate

Give customers a chance to voice their opinions

through a one- click recommendations feature

Target Prospects

Evaluate Risk

Determine the best offer

Originate credit Applications

Improve Direct Mailings

Market Research

Digital Marketing

What is Customer retention?

Customer retention is the activity that a

selling organization undertakes in order to

reduce customer defections. Successful

customer retention starts with the first

contact an organization has with a customer

and continues throughout the entire lifetime

of a relationship.

Set customer expectations

Be the expert

Build trust through relationships

Implement anticipatory service

Make use of automation

Build KPI’s around customer service

Build relationships online

Go above and beyond

Implement customer feedback surveys

Retain more customers

Every customer that you keep represents

at least three that you don’t have to

attract. Numerous research studies indicate

that the cost of acquiring a new customers

usually runs from two to four times the

annual cost of keeping an existing customer.

Obviously, an effective customer retention

strategy translates into profits.

You should know the following basic information about your

customer base:

Number of current customers

Average number of new customers you expect to acquire within

the next month/quarter/year

Average number of existing customers you expect to lose within

the next month/quarter/year

Where will those customers go?

Why will they leave you?

How will you know they‘ve left?

What will you do to retrieve them?

A successful service strategy serves two

vital functions:

defence

opportunity.

Everyone within the organization must

follow the guideline that, when a problem

does arise, “fix the customer first,” then

solve the customer’s problem.

Understanding Customer Defections

Customer expectations derive from wishes

and wants as much as actual needs

The key to pre-empting defections is to focus

on the root causes.

Customers defect for two primary reasons:

The need for your product or service has

ceased, or

Your offering has failed to satisfy their needs

in some way.

Personal attention, empathy and extra effort will

work to:

Increase response rates,

Provide direction for product and service

development efforts,

Improve sales forecasting,

Provide opportunities to test your marketing

mix, and

Support your marketing decision making process.

The database can be used further to:

Examine purchase behaviour information

Correlate, cross-reference, and analyze

data

Personalize messages

Provide special benefits and services

Speak with one congruent, consistent voice

Building and maintaining a current, accurate,

comprehensive customer data base is much

more easily said than done. Compilation,

management, and maintenance requires a

significant allocation of resources (people,

time, money), along with a total

commitment to customer service and

retention throughout your company.

Proprietary customer information can be

collected through:

Customer interaction records

Customer surveys

Focus groups

A few important things to remember about customer surveys:

Define clearly what you intend to measure (satisfaction,

dissatisfaction, loyalty, retention, quality, service), and

why you want to know it.

Experience your company from your customer‘s

perspective.

Understand the following:

The relative scale of loyalty within your customer base;

The strength of your relationship relative to your competition;

The relevant antecedents to loyalty;

he relative effect of various interactions, activities and

consequences.

Pay close attention to your best customers.

Stay in touch with your customers

Find out exactly why a customer defected

Build your customer database right

IDIC Model

QCI Model

CRM Value Chain Model

Identify

Differentiate (value, need)

Interaction

Customize

What is CRM Road Map?

A CRM Roadmap is a strategic plan that identifies how an

organization can meet and exceed its customers' needs.

This includes, but is not limited to, assessing how the

sales, marketing and service entities work together to

gain insight from their customers (e.g. purchase history,

desired products/services),

produce valuable offerings/products (e.g. personalized

product) and

provide the ultimate customer experience (e.g. multiple

touch points, 360 degree view of the customer).

Step 1: Gain Senior Level Sponsorship

Step 2: Gather Information

Step 3: Assess Current state and Define Future state Gaps

Step 4: Identify Value Opportunities

Step 5: Link Value Opportunities to strategic CRM Capabilities

Step 6: Define CRM Projects and Requirements

Step 7: Develop Business Case

Step 8: Develop a Roll-out strategy

Identify Your Strategic Team

Create a Vision & Objectives

Identify Pain Points

Map Business Processes

Align CRM to Business Processes

Import Quality Data

Create Powerful Analytics

Test before Release

Train Users

Review & Evaluate