An overview on Customer Relationship Management.

1. Customer Relationship Management

2. Customer is always right

3. Customer is king

4.  Customer Relationship Management (CRM) is,
as the name suggests, about managing
relationships with customers.

5. Linkages between customer relationship management and related
marketing approaches
Deliver the
marketing
communication or
product directly to
the individual
Emphasize
enhanced
customer service
through
knowledge of
customer
Technological
enabler
Relationships
are managed on
one to one
basis.

6. Transactional paradigm Relational paradigm
Market segment Individual customer
Transaction duration Lifetime
Margin Lifetime value
Market share Most valued customers
and customer share
Mass market broadcast Dialogue and tailored
communications
Passive consumers Empowered clients

9.  Operational- how a customer sees their website as well as their
entire online user experience.
 Analytical- analyses data collected by a business to determine
information about customers that can inform sales and marketing
decisions. Data mining is a crucial step to effective CRM. Web
analytics and conversion optimization can be seen as part of the
CRM process.
 Collaborative- Collaborative CRM refers to a process, which
combines customer data across all facets of a company.
For example, queries regularly submitted to the technical support or
customer service arm of a business can be used to inform website
updates (updating content on the website to address a regularly
submitted query) and to inform product development.

10.  The core approach to relationship marketing
is to focus our limited resources and
marketing activities on the most valuable
customers.

11.  Another facet is to focus on increasing
customer Loyalty
 Customer Loyalty – The desire on the part
of the customer to continue to do business
with a given supplier over time.
 Retention marketing is based on these two
loyalties.
◦ Behavioral Loyalty – Loyalty to a brand is
demonstrated by repeat sales and response to
marketing campaigns.
◦ Emotional Loyalty- Loyalty to a brand is
demonstrated by favorable perceptions, opinions
and recommendations.

12.  Focus on customer needs
 Handle their grievances via customer service
centers.
 Technology can also be used to allow the online
business to interact personally with a web visitor.
 Technology can and should be used to treat
different customers differently.
 How do you deal with 24 year old who is looking
for vacation and 35 year old with kids?
◦ Extreme sports activities and calling card (for 23 yrs old)
◦ Additional services like Baby sitting in a hotel reservation
(for 38 yrs old)

13.  eCRM is to remember that
technology should be used to
enable customer relationships,
not replace meaningful
relationships.
 Firstly, the data that is
collected online should be used
to build meaningful profiles of
potential customers, and that
information should be used in
fostering relationships.
 Web analytics tools gather a
wealth of data that can inform
customer relationships, from
search keywords used to reach
a website,
Collect Data
Make meaningful
profiles
Using Web analytics

14.  Using the web site for customer development.
 Managing e-mail list quality
 Applying e-mail marketing to support upsell and cross-
sell
 Data Mining to improve targeting
 Providing online personalization or mass customization
facilities to automatically recommend the next best
product.
 Providing online customer service facilities(such as FAQ,
call back or chat support)
 Managing online service quality to ensure better customer
experience
 Managing multi channel customer experience as customer
use different media as a part of their buying process.

15.  Targeting more cost-effectively
 Achieving mass customization of the
marketing messages.
 More one to one relationship
 Easy Tracking

16.  Sales Force Automation
 Customer Service Management
 Managing the sales process
 Campaign Management
 Customer Analytics

17.  SFA were originally meant to improve sales
force productivity and encourage
salespeople to document and communicate
their field activities.
 They are becoming increasingly focused on
cultivating customer relationships and
improving customer satisfaction.

18. You are on your way to a meeting with one of your best customer.
Jim is not only one of your best customers – he’s one of the
company’s best. His firm accounts for 2 percent of this year’s
revenues. Soon, you hope it will be 3.
You arrive early at the customer’s building, show your badge at the
desk and take the elevator to Jim’s office. He is in a meeting with a
member of his staff, but quickly dismisses them when he realizes
you are there.
He is always willing to listen to a sales pitch. However, he is not
placing an order today, in fact he may never place another order
again. His entire firm has been at a standstill for the past 48 hours
because of your product.
Your product is still on the fritz and Jim and his people have been on
the phone to your customer support center for the past day and a
half. Your face displays surprise.
“No one told me about it, Jim,” you stammer as you strive to recall any
voice-mail messages you might have prematurely erased. Jim
stands up from behind his desk, a wordless acknowledgement that
he’s far too busy to hear about your communication breakdown.
After all, he’s got a big one all his own to worry about. You think
about how to make up for the 2 percent in revenue you and your
company are about to lose.

19.  Jim is still the customer being discussed. En route to your
customer’s site, you turn on your PDA which begins to beep.
Priority one alert! Customer Impacted! Flashed on the
screen.
 You pull to the side of the road and read more, according to
the message the customer you are about to see has
experienced a major outage.
 A field service rep has been contacted and is now working
on the problem. Instead of going upstairs when entering the
building, you walk to the back and find the service rep
repairing equipment. When you find out that he’s working to
repair the problem and will have it fixed in the next thirty
minutes. You feel relieved and walk upstairs to meet with
Jim.
 Upon entering his office, Jim smiles and says he knew it
would be taken care of. Then he asks when the company can
get an upgrade. The revenue contribution also increases to
4 percent during the conversation.

20.  Scenario One:
◦ Salespeople need
better tools to help
them manage their
accounts, track
opportunities,
establish and
monitor the sales
pipeline, and
organize their
contact list.
 Scenario Two:
◦ The scenario
assumes that
headquarters posses
the necessary
information and can
communicate it
quickly – many did
not and still can not.

21.  Sales Force automation uses CRM software to
manage sales cycles and to collect customer
sales data. The software enables businesses
to track leads, schedule transactions and
communications with potential and existing
customers and to generate detailed reporting
on the sales process.
 Salesforce.com
◦ No 1 Sales cloud
◦ Good for field sales and on mobile devices

22.  there are many technological options which help
to record all this information in one place,
whether it be related to potential, current or past
 customers. As well as enabling the recording of
data, most of these services can also schedule
elements of the sales process, and set reminders
where appropriate for follow up action.
 Some notable examples include SalesForce
(www.salesforce.com), Genius (www.genius.com)
and Highrise (www.highrisehq.com).

23.  While most companies define customer loyalty based
on the repeat purchases of happy customers, some
businesses are built around once-off purchases.
Wedding photography is one of those businesses.
With so much time and effort invested in each
customer relationship, how can this be returned into
repeat business?
 Bella photography focuses on ensuring that its very
satisfied brides refer their service to friends and
family. In fact 18% of new business comes from these
referrals. They also offer services to wedding guests,
such as allowing them to make orders of wedding
photos themselves, which increases their customers
for each wedding. (Lewis 2008)

24.  Placing the customer at the centre of an
organization's planning and execution of
business plans.
 Or Having customers driving the direction of
a business.

25.  Flickr (www.flickr.com) and Twitter(www.twitter.com) are
examples of services that are user-driven rather than
user-centric.
 They provide tools which enable users to make the service
their own, often by allowing outside developers access in
order to create supplementary services.
 So, Flickr users can export their images and use them to
make custom business cards on Moo (www.moo.com).
 There are many auxiliary services based on Twitter such as
analysis services (www.klout.com) or access services
(www.twhirl.org).

27. Options for mass customisation and personalisation using the Internet

28. A summary of an effective process of permission-based online relationship
building

29.  Step 1. Attract new and existing customers to
site.
 Step 2a Incentivize visitors to action ( converting
unprofiled visitors to profiled visitors is a major
design objective of a website.)
 Two types of incentives are :
◦ Lead generation- offered in return for customers
providing their contacts details and characteristics.
Commonly used in B2B marketing where report or
seminar will be offered.
◦ Sales Generation offers- offers that encourage product
trail. A coupon redeemed against a purchase .

30.  Step 2b capture customer information into
maintain relationship
Opt-in customer profiling form

31. Opt-in customer profiling form (Continued)

32. Matrix of customer touch-points for collecting and updating customer
e-mail contact and other profile information

33.  Maintain dialogue using online
communication
◦ Sending email to customer
◦ Displays specific information on website when the
customer logs in refereed as personalization.
◦ Use push technology like phone calls or personal
visit.

34.  Maintain dialogue using offline
communication.
◦ Direct mailers
◦ webinars

35.  A key to theory and practice of CRM.
 LTV is the total net benefit that a customer or
group of customers will provide a company
over their total relationship with the
company.

37.  Different strategies
are developed for
different customers
groups within four
main value
groupings.
◦ Bronze- group A and
B realistically do not
have development
potential and are
typically
unprofitable, so the
aim is to reduce
costs in
communications.
◦ C have potential for
growth so for these
the strategy is to
extend their
purchases.

38.  Silver and Gold
targeted with
customer
extension.
 Platinum ones
are best ones so
it is important to
understand the
communication
preferences of
these customers
and not over
communicate.

39.  It is an internet based forum for special
interest groups to communicate.
 Main advantage of Virtual communities are it
attracts new member via positive feedback
loops and contribute in quantity and quality
of the community’s pooled knowledge.
 Member Loyalty grows as the community
grows and evolves.
 It is effective in Relationship Marketing.

40.  Improves brand value of your product.
 Word of mouth promotion of your site.
 Community are best suited for high
involvement brands such as professional
body, sports and hobbies.

41.  Different communities for different purpose:
 researching car www.autotrader.co.uk
 Comparison of price and product
www.bizrate.com
 Parenting sites www.babycenter.com
 www.football365.com
 www.walkingworld.com