Customer Relationship Management - Copy

7/31/2019 Customer Relationship Management - Copy

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CUSTOMERRELATIONSHIP

MANAGEMENT


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Customer Relationship Management (CRM) is now an

essential part of the business strategy, as the development

of new technologies has increased tremendously the

possible benefits for large as well as small companies.Today, CRM is an important influence for any company

to:

Improve the service delivered to your customers

Improve both your customers' satisfaction and yourcustomer retention

Identify and recognize your best customers

Optimize the processes of your customer interactions,

and thus reduce costs

Capitalize on your customer knowledgeWin new customers


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CRM technology enables

information about the customer to be stored in

databases

businesses to analyze that data, pull out customer

preferences and make clear their behavior

easy access to that data across departments thatmay be widely geographically dispersed

easy access for customers in terms of online

transactions speedy personalized communications

that enable the customer to feel valued andspecial even though in reality they may be just

one of hundreds of thousands of customers


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The three parts to CRMtechnology, processes and people

In a sense, the technology part of CRMthe database - largely

equates to the information that was previously stored 'in the heads'of Managers of small businesses. But good customer relationships

are about far more than that.

Processes, or key steps, have to be put into place to make sure

that such data is used effectively. In fact it is the processes thathold the whole thing together.

And the people involved in any way with the customer have to be

aware of those processes and preferably believe in those processes

so that a seamless service can be delivered to the customer


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...a management strategy that enables

an organization to become customer-

focused and develop stronger

relationships with its customers. It

helps piece together information about

customers, sales, marketing

effectiveness, responsiveness and

market trends.

DEFINITION OF

CRM


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CRM :

The concept of CRM is premised on the

simple logic of business :it must keep tracking customers once

attracted; retain them in business portfolio

and profit from their growth.

CRM epitomizes the marriage ofrelationship marketing with the emerging

information technology.

Integration of people, process ,

technology and data


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CRM can be viewed in 4 principal ways :

Firstly it is a contemporary response to theemerging climate of unprecedented customer

churn, waning brand loyalty and lower

profitability.

Secondly, CRM is central to the task of makingan organization customer centric.

Thirdly, CRM is the surest symbol embracing IT

in business.

Fourthly , CRM is the most certain way to

increase value to the customers and profitability

to the practicing organizations.


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Effective CRM practices can mean the

difference between the success and failureof a business across all industries.

CRM is a way of differentiation between

customers to provide greater value to more

valuable customers. The meaning of more

valuable would be in terms of the monetary

spending received from the customer alongwith recency and frequency of visit.


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Definition :

CRM is the business strategy that

aims to understand, anticipate,manage and personalize the needs

of an organization's current and

potential customers"

Rather it is the IT face of business

processes that aims to establish

enduring and mutually beneficialrelationships with customers in

order to drive customer retention,

value and profitability up.


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Important features of CRM :It permits a one-toone marketing

as compared to mass marketing

It stresses commitment over flirtinIt helps disintermediation and

delayed distribution aspects.

It helps reducing marketing costsignificantly.


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Retail in India :

India 's largest industry, the retail sector isvalued at $200 billion accounting for over 10

per cent of the country's GDP and around

eight per cent of the country's employment.Modern retail has entered India as seen in

sprawling shopping centers, multi-storied

malls and huge complexes offer shopping,entertainment and food all under one roof.


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CRM in Retail :

Expectations of customer is increasing, he asks for

more and more value for the same price, andwhoever provides him increasing value for money,

he buys products from that marketer.

Every retailer today is aiming at an attempt to

make a casual customer into a loyal customer whodevelops a bond with the retail store he/she visits.

Customer relationship management as a

transactional exchange helps the marketer to

understand the customer's sentiments and buying

habits so that the customer can be provided withproducts and services before he starts demanding

them.


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A successful and effective

CRM program results in increase

of Customers Lifetime Value forthe store.


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The Pareto's Principle which talksabout generating 80% of sales

from 20% of the customers This

can only happen if the retailer hasthe 20% as its most profitable

customers and not just normal

customers


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The variety of activities together play an

important role in bringing repeat customers

and in turn generating positive word ofmouth to also increase new footfalls into

the store. Data Mining activities through

CRM also provides insights and knowledge

about the retailers most valuable customers

who result in maximum sales.


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Description: A Customer RelationshipManagement (CRM) system model embeds

modules like

:Business-to-Business (B2B) CRM,

:Marketing Automation, Sales Force

Automation, Customer Service and Support,

Partner Management, Contract Management

and Creation, Project and Team Management,Business-to-Consumer (B2C) CRM, Internet

Sales, E-Mail Response Management, B2C

Analytics and Business Intelligence,


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Other CRM-Related Application Areas, E-mail

marketing, Customer reference, Commission

management, Field service, Relationship capital

management, Survey software, Sales proposal

software, Product and price configuration, Web

conferencing, Mobile computing, Channel

management, Retail solutions, TechnicalFunctionality and Support, Business

Functionality, Technical Functionality, and

Ongoing CRM Solution Support


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Business-to-Business (B2B) CRM. The

Business-to-Business (B2B) CRM enables

organizations to manage the whole

customer/partner lifecycle and rapidly

establish a selling channel, whether merelyconventional or online through web-based

applications (E-Sales)It encompasses

modules from marketing automation toproject execution, and contract

management.


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Concept

CRM is abusiness philosophy based on upon individual

customers and customised products and servicessupported byopen lines of communication and feedback

from the participating firms thatmutually benefit both

buying and selling organisations.

The buying and selling firms enter into a learning

relationship, with the customer being willing to

collaborate with the seller and grow as a loyal customer.

In return,, the seller works tomaximize the value of the

relationship for the customers benefit.

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