1. Prepared and presented by,
N. Ganesha Pandian,
Assistant professor,
Madurai School of management.
IIyearIIISemester
Academicyear2016-2017

2.  Definitions
 Concepts and context of relationship
management
 Evolution
 Transactional Vs relationship approach
 CRM as a strategic marketing tool
 CRM significance to the stakeholders

3.  Customer relationship management can be
defined as a business philosophy and set of
strategies, programs, and systems that
focuses on identifying and building loyalty
with a marketer’s profitable customers.
 The goal is to develop a base of loyal
customers who patronize the retailer
frequently

4.  According to Gartner, “CRM is a business
strategy designed to optimize profitability,
revenue and customer satisfaction”.
 According to PWC consulting, “CRM is a
business strategy that aims to
understand/appreciate, manage and
personalize the needs of an organization’s
current and potential customers”.

5.  CRM consists of three definitional
components in its architectural structure:
1. Customer
2. Relationship
3. Management

6.  Relationship management is a strategy employed
by an organization in which a continuous level of
engagement is maintained between the
organization and its audience.
 Relationship management aims to create a
partnership between the organization and its
audience rather than consider relationship
merely transactional.

7. Concepts and context of
Relationship management
Quality
Commitment
Promise Trust
Shared goals and
mutual benefits
Satisfaction

8.  The concept of customer relationship
management came into vogue in the mid 1990’s,
CRM has undergone a substantial evolution.
1. First generation (Functional CRM approach)
- Sales force automation (SFA)
-Customer service and support (CSS)
2. Second generation (customer facing front end
approach)
3. Third generation (strategic approach)

9. 1. Strategic CRM: is a core customer centric
business strategy aims at winning and
keeping profitable customers
2. Operational CRM: focuses on the
automation of customer facing processes
such as selling, marketing and customer
service

10. 3. Analytical CRM: focuses on the intelligent
mining of customer related data for
strategical or tactical purposes
4. Collaborative CRM: applies technology
across organizational boundaries with a view
to optimizing company, partner and customer
value

11.  Product oriented
 Production oriented
 Sales oriented
 A customer / Market oriented

12. 1. Marketing
automation
 Market segmentation
 Campaign
management
 Event based
marketing
2. Sale force
automation
Account Management
Lead management
Opportunity
management
Pipeline management
Contract management
Quotation and
proposal
management
Product configuration

13. 3. Service Automation
 Case management
 Inbound communications management
 Queuing and routing
 Service level management

14.  Transactional marketing or mass marketing is
on individual transaction and does not
concern continuous relationship with
customers
 Relationship marketing focus on continuous
multiple transactions rather than isolated
individual transactions.

15. Customer
retention
Customer
acquisition
Functionally
based
marketing
Cross- Functionally based
marketing

16.  Relationship marketing is the practice of using
marketing activities to establish, develop, and
maintain successful long term relationships.
 Relationship marketing has numerous
implications for market planning, employee
training, advertising, promotion, public
relations, direct marketing, package design and
more.

17. Mass Marketing
Discrete transactions
Short term emphasis
One-way
communication
Acquisition focus
Share of market
Product differentiation
Relationship marketing
Continuing transaction
Long term emphasis
Two-way
communication and
collaboration
Retention focus
Share of mind
Customer
differentiation

18.  Share of customer
 Lifetime value of customers
 Customer equity
 Greater focus on high value customers
 Use of technology

19.  Understand what motivates customers
 Treat customers individually
 Differentiate offerings
 Increase loyalty
 Providing efficient and consistent service
 Selecting ‘good’ customers instead of ‘bad’
customers based on lifetime value

20.  Manage customer as an asset
 Rate customers on the basis of their profit
stream – current and future potential
 Using information based decision making
capabilities
 Implement innovative ways and means to get
close to the customer – Hear the voice of
customers

21.  To provide updated information
 To customize strategies
 To anticipate problems
 To prompt follow-up
 To establish problem solving mechanism
 To assess customer interest
 To integrate functional system

22.  Strategic CRM is a core customer centric
business strategy aims at winning and
keeping profitable customers
 CRM as a effective strategic marketing tool
acts as a competitive advantage
 CRM helps in strategic planning and reduces
cost to serve

23.  Business owners
 VP of sales and sales manager
 Salespeople
 Customer service/ support manager
 Customer service representatives
 Business development/ marketing manager
 Financial perspective – CFO/Controller/Accounting
 IT department
 All other employees

24.  Increased sales revenue and reduced cost of
sales
 Increased customer satisfaction
 Lower costs of recruiting customers
 Increased customer retention
 Evaluation of customer profitability
 Excellent customer service

25.  Customer knowledge
 Customization
 Positive referral creation
 Reduced cost through customer self-service
 Opportunity to Cross-sell and up-sell
 Decreased general sales and marketing
administrative costs

26.  Requires top management support
 Confusion in attributes
 Problem in implementation
 Building relationship
 Not functionally organized
 Customer dissatisfaction
 Front line staff

27. 1. CRM is a database marketing
2. CRM is a marketing process
3. CRM is an IT issue
4. CRM is about loyalty scheme
5. CRM can be implemented by any company

28.  Reduced marketing costs
 Better customer insight
 Life time value
The goal of maintaining customer base must
be to retain existing customers and recruit
new customers that have future profit
potential or are important for other strategic
purposes

29. 1. Recognition
2. Personalization
3. Power
4. Risk reduction
5. Status
6. Affiliation