1.
CUSTOMER RELATIONSHIP
MANAGEMENT
SUBMITTED BY:
SACHIN KUMAR

2.
DEFINITION
Customer relationship
management is a model
for managing a company’s
interactions with current
and future customers. It
involves using technology
to organize, automate, and
synchronize sales, market
ng, customer service,
and technical support.

3.
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

4.
CRM STRATEGIES- PRIORITIES

Acquire the right customer.

Craft the right value proposition.

Institute the best processes.

Motivate employees.

Learn to retain customers.

5.
#1 - ACQUIRING THE RIGHT CUSTOMER
Account selection demands a clear understanding of:
1.
2.
3.
4.
5.
Seller’s resources
Customer’s needs
Cost of serving various groups of customers
Potential profit opportunities
How customers define value and how to meet
those expectations

6.
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.

7.
#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.

8.
#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.

9.
BEST PRACTICES FOLLOW-UP

1.
2.
3.
In addition to using best practices, successful
organizations (like IBM) employ follow-up
techniques such as:
Assigning a client representative to take
ownership of the relationship.
Assigning a Project Owner who completes the
project or solves project problems.
Developing an in-process feedback and
measurement system.

10.
#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.


11.
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 share
3.Projecting and enhancing
customer profitability

12.
EXPENDITURE ON CRM
Company
2012 2012 Market
Revenue Share (%)
2011 2011-2012
Revenue Growth (%)
salesforce.com
SAP
Oracle
Microsoft
IBM
Others
Total
2,525.6
2,327.1
2,015.2
1,135.3
649.1
9,437.7
18,090.0
2,004.6
2,325.1
1,870.0
900.9
465.6
8,513.7
16,079.9
14.0
12.9
11.1
6.3
3.6
52.1
100.0
26.0
0.1
7.8
26.0
39.4
10.7
12.5
CRM Software Spending by Vendor, Total Software Revenue Worldwide, 2012 (Millions of Dollars)
Source: Gartner (April 2013)

13.
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


14.
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.

15.
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

16.
FACTORS CONTINUED
Packaging customization
Two of the most important
element of package designed for
rural india include size and
visual communication. That’s
why sachet market is introduced
in rural area which make the
product affordable to Indian
rural customer.

17.
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

18.
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

19.
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.

20.
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.

21.
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.

22.
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).

23.
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.

24.
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


25.
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


26.
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

27.
REFERENCES
Customer relationship management: concepts and
cases
 http://www.gartner.com/newsroom/id/2459015
 http://en.wikipedia.org/wiki/Customer_relationship_m
anagement
 JISC CRM handbook
