Topic :CRM Customer Relationship Management

By: AMAN NARAIBS GURGAON

Definition The overall process of building and

mentioning profitable customer relationship by delivering superior value and satisfaction

Explaining CRM

Customer relationship management (CRM) refers to the principles, practices and guidelines that an organization follows when interacting with its customers. From the organization's point of view, this entire relationship encompasses direct interactions with customers, such as sales and service-related processes, and forecasting and analysis of customer trends and behaviors. Ultimately, CRM serves to enhance the customer's overall experience.

WHY CRM?

In the commercial world the importance of retaining existing customers and expanding business is paramount. The costs associated with finding new customers mean that every existing customer could be important.

It is cost effective to retain existing customer then making new one.

increased sales through better timing due to anticipating needs based on historic trends

identifying needs more effectively by understanding specific customer requirements

cross-selling of other products by highlighting and suggesting alternatives or enhancements

identifying which of your customers are profitable and which are not

Effective targeted marketing communications aimed specifically at customer needs

A more personal approach and the development of new or improved products and services in order to win more business in the future

How to build relationship Relationship building blocks: CUSTOMER VALUE and SATISIFICATION

CUSTOMER VALUE Customer value or say customer

perceived value is the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Customer satisfaction The extend to which a product’s perceived

performance matches a buyer expectations

Jet Blue exampleYear after year , jet blue rank at or near the top airline industries in terms of customer satisfaction The slogan company used –” jet blue; You above all “ – tells customers that they are the heart of the companies strategies and culture

Customer relationship levels and tools

CRM can be build at several levels by single firm only for example :

Nike : develops “ basis relationship” with low margin customers that’s normal customers . With tools like advertising , public relations etc.

Where as it “ full partnership with “ high margin customer with tools like personal call , personal representative of Nike to customers like famous sportsperson , sports authorities

REFERENCES Definitions: book “Principles Of

Marketing By Kotler Jet blue logo from jet blue advertising on

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