Final MBA Project
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Transcript of Final MBA Project
1
CUSTOMER RELATIOSHIP MANAGEMENT (CRM)
IN NEXUS GROUP
__________________________________________________
A PROJECT REPORT
Under the guidance Of
Mr. A. Abdul Hameed, MBA, M. Phil., Assistant Professor
______________________________
Submitted by
Javeed Mohmad
Reg. No. 531010348
__________________________
in partial fulfillment o f the requirementfor the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
(MBA)
IN
Marketing Management
January – 2012
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ACKNOWLEDGEMENT
First and foremost I would like to thank God Almighty for His
blessings that have been showed upon me for the success of the project.
I express my sincere thanks with gratitude to my faculty Mr. A. Abdul
Hameed, Department of Management Studies for his able guidance, advice,
valuable suggestion and support, which he imparted to me in the completion
of the project.
I am also thankful to, Centre Head of Sikkim Manipal University Learning
Centre – Jeddah Mr. Mohsen S Bazaham. I would also like to thank the
respondents who rendered their help in responding to my interview schedule.
Last but not the least I would like to thank my parents and friends for their
valuable support and help.
JAVEED MOHMAD
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DECLARATION
I hereby declare that the dissertation report entitled “Customer
Relationship Management (CRM)”. Submitted in partial fulfillment for the
award of Master of Business Administration to the SMU University, is a
record of independent research work carried out by me under the guidance of
(Mr. A. Abdul Hameed), I also declare that this dissertation report is the
result of my own effort and has not been submitted earlier for the award of
any other degree / diploma / associateship and prize by any other university.
Place: Jeddah
Date: 28/01/2012
JAVEED MOHMAD
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BONAFIDE CERTIFICATE
Certified that this project titled “Customer Relationship Management
(CRM)” is the bonafide work of JAVEED MOHMAD under my
supervision. Certified further, that to the best of my knowledge the work
reported herein does not form part of any other project report or dissertation
on the basis of which a degree or award was conferred on an earlier occasion
on this or any other candidate.
Place: Jeddah
Date: 28/01/2012 Signature of the Guide
Forwarded by
Internal Examiner External Examiner
5
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Table of Contents
PAGE NO CHAPTER -1
INTRODUCTION 8
1.1 Company profile 11
CHAPTER- 2 METHODOLOGY
2.1 Need for the study 26
2.2 Objectives of the study 26
- Primary Objective 26
- Secondary Objectives 26
2.3 Scope of the study 26
2.4 Method of data collection 27
2.5 Schedule of work 27
2.6 Limitation of the Study 27
CHAPTER - 3
REVIEW OF LITERATURE 28-62
CHAPTER 4
DATA PRESENTATION AND ANALYSIS 63-78
CHAPTER 5
FINDINGS, SUGGESTIONS & CONCLUSION 78-80
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INTRODUCTION:
The idea behind Customer Relationship Management is not new. CRM is simply a tool &
technology used to achieve incremental operational improvement. CRM is a set of
strategies, processes, metrics, organizational culture and technology solutions that enhance
an organization's ability to see the differences in its customers’ and prospects' behavior and
needs, track new opportunities to better serve their customers and act, instantly and
profitably, on those differences and opportunities.
A vast way of approach to customers, in an attempt to realize their living style in every
field of life and eventually to influence them to change their life style toward their
benefitable direction through the company initiating ceaseless communication of indirect,
implicative and inspiring suggestion so that the company may attract new customers and
bind existing customers steady with the company.
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Recently CRM has taken a center stage in the business world with businesses
concentrating on saving money and increasing profits by redefining internal processes
and procedures. It costs a company dramatically less to retain and grow an existing
client, than it does to court new ones. It is said that “It is seven times more expensive to
acquire a new customer than to keep an existing one”, therefore the value of customer
information and management should never be underestimated.
A customer relation management analyst says CRM is "a buzzword that's really not so new.
The aim of CRM is optimize the use of technology and human resources for the business to
gain insight into the behavior of costumer.
Customer Relationship Management refers to the process - usually depending on
sophisticated computer systems - to record and analyze the buying habits of customers, so
that a company can offer them goods or services in which they are likely to be interested.
In additional to all the usual customer care principles, CRM includes the storing of
customer information in a database (or data warehouse) and using the information in a way
that improves the customer's "experience".
Today it’s widely acknowledged how you treat your customer goes long way in
determining your future profitability, and companies are making bigger and bigger to do
just that. Customers are serious about the service they should beget and are voting with
their wallets based on the experience they receive.
Market analysts squabble over the exact figures, but all agree that in the next few years
company will pour billions of dollars into CRM solution software and service designed to
help the business more effectively manage customer relationships through any direct or
indirect channel a customer opts the use. Specially in banking CRM it is very important
because bankers have to daily interact with their customers and provide value added
services to them.
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By investing in CRM or e-CRM applications, companies are looking at retaining existing
customers and converting potential customers into lifetime customers. In many industries,
customer retention is a key driver for profitability.
This project answers to all the queries regarding what customer relationship management
is. In this project stress is not on the technology, which is a part of CRM but stress is on the
customer preference on the needs, so that companies can please most of the customers all
the time. Relative graphs and diagrams are also included in this project. The role of the
customer in any business activity is very important and this can be clearly revealed from
this project. So why, is the market of CRM technology exploding, is the most common
question at CRMguru.com “What Is CRM?” because if you ask three CRM experts, you’ll
get five different answers.
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About NEXUS GROUP:
NEXUS, Head office based in Riyadh capital of
Kingdom of Saudi Arabia, provides world proven
Enterprise Mobility Solutions along with total Turn-key
Vehicle Tracking Solutions, GIS applications, Telemetry
solutions, IT solutions and Communication Systems.
NEXUS a technology firm of high standing and integrity has
been awarded prestigious Enterprise and Innovation Awards
as we have developed our business.
We design, supply, install, train, service and support entire
range of Mobility Solutions, Telematics systems that
encompass vehicle tracking, on line information, satellite
navigation, route planning and other vehicle information.
Our business is customer focused - people without any previous experience of computer
technology can use our systems effectively within 2 minutes.
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We have highly motivated, enthusiastic and knowledgeable team members involved in the
development of vehicle telematics systems, in development, testing and installation as well
as working towards providing the very best customer service in the industry.
Our products and Service:
ENTERPRISE MOBILITY SOLUTIONS
Automated Fuel Management
Fleet Management Solutions&
Vehicle Tracking Systems
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NEXUS Applications
e-Station:(Fuel/Diesel Containers)
Enterprise Mobility Solutions: Nexus offers complete Mobile Computing solutions across organizational functional
requirements. Our range of mobile computing solutions and services help customers
invest more strategically and works more efficiently while improving ROI from
Investments
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RFID Solutions:
RFID technology is evolving rapidly in the Middle East, Worlds Major Technology
players in the RFID Market are investing, working very closely with system Integrators
such as NEXUS in conducting Pilots, Project Roll-outs in specific industry Verticals in
anticipation of a surge in demand when the larger markets begin to mature RFID way.
CUSTOMER REFERENCES:
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Automated Fuel Management:
RFID (Radio Frequency Identification) is a relatively new technology. It is used mainly
for automated data collection, similar to barcodes. RFID is easily integrated with
Barcode technologies to optimize data capture and exchange. Benefits include
reduced/eliminated human error, reduced/eliminated labor costs, increased accuracy and
visibility at the ITEM level, and opportunities to simplify existing procedures. RFID us
radio frequency waves to transfer data between a reader and a tag. As the tag enters the
RF field, the RF signal powers the tag or turns it on. The tag then transmits the ID and
data that has been programmed to the reader. RFID readers (Interrogators) translate the
radio frequency information into digital information that can be read by software on the
host computer. The computer determines the required actions and instructs the reader,
which in turn transmits data back to the tag.
RFID interrogators are available in many sizes and shapes including portable units. All
interrogators have the same basic architecture: antenna, decoder, data converter,
computer interface, and a power supply.
The tag, which varies in size and appearance, is composed of:
a chip which houses the "intelligence"
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an inlay which is the antenna
a unique identifier number (similar to a license plate) to enable item level
visibility and tracking, also referred to as a SID
read/write data blocks
optional label which is the visual packaging of these components
The tag may be attached to the units at origin. As the units pass interrogators installed in
appropriate locations within the supply chain, RFID technology, when fully developed,
can provide SKU level visibility to inventory as it moves through every process.
Moreover, RFID offers read/write capability so users can add data to the tags as they
pass by an interrogator; enabling functions like time stamping.
RFID does not depend on orientation or line-of-sight and may be read through cartons.
In addition, RFID can identify multiple articles simultaneously. The RFID tag may be
read-only or read/write. Read-only tags are historically less expensive than read/write
tags. The RFID tag read/write distances vary depending on tag and antenna size, design
and operating frequency. Depending on the tag construction, an RFID system can
operate in harsh industrial or commercial environments with operating temperatures in
the range of –25C to +85 C.
The Most Recognized Fuel Management Solution Available:
MCEF is exclusive distributor for Ejward USA. As the original developer of automated
fuel management, Ward has provided fleet fuel management solutions for over thirty-six
years. By working with thousands of customers, Ward knows the concerns and
requirements fleets have with their fuel management systems. Ward is recognized for
providing the most technologically advanced, reliable and integrated hardware and
software solutions bringing a new level
of fuel
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management solutions to fleet managers. Ward offers the most reliable, flexible, and
scalable solution in the industry.
Better Payback & ROI:
The Ward AFMS provides fleets with the resources to improve the
operation of their fuel management. As a result, Ward has provided fleets
with the proven ability to better manage their fleet assets and improve ROI
since 1974. Several key paybacks of the Ward AFMS include
Minimize the consumption of petroleum based fuels and other fluids
Assure fuel and other fluids security and accountability
Minimize the cost of fuel used by the fleet
Provide safe, convenient fuelling access for fleet customers
Provide reliable and accurate fleet data information (odometer and other meter
readings, vehicle diagnostic data)
Assure conformance with all federal, state, and local regulations
Record and report fuel usage to other enterprise systems and fleet maintenance
Fuel Management Solutions
Manufactured in the USA Supports Green Initiatives Complete Fuel Reporting Data Enterprise Software SQL or Oracle Database Wireless Connectivity Customization Support Monitor GHG Emissions Prognostic Fleet Maintenance Unlimited Users, Vehicles, and
Fueling Locations
Fuel Management Benefits
100% Fuel Accountability Reduces Fuel Expenditures Improve Fuel Efficiencies OBD Data Acquisition Assures Fuel/Fluid Security Eliminate Fuel Data Entry Highly Configurable System Improve Maintenance Costs Monitor Fuel Inventory Improve Driver Behavior Integration with Fleet Fuel Card
and Retail Card Transaction
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Processing
Greater Savings, Safety, and Performance for Fleet Vehicles:
Improper pressures cause significant losses in efficiency and savings through increased
fuel use, decreased handling and braking, increased downtime, added maintenance,
higher carbon emissions and more. To combat low pressure situations, Ward has
developed Ward Pressure Track™. Pressure Track™ is the only wireless, electronic, tire
pressure monitoring system that both integrates seamlessly with the Ward AFMS™ and
operates as a standalone product.
The Ward Pressure Track™ tire monitoring system brings greater savings, safety, and
performance to fleet vehicles. Ward Pressure Track™ provides early notification of
possible tire pressure problems before inefficiencies or dangerous situations occur.
Pressure Track™ displays current tire pressures on demand, whether the vehicle is
moving or stationary.
Vehicle Tracking Systems:
NEXUS provide what is probably the only true real time live GSM/GPRS, SATELLITE
and GPS vehicle tracking, location and communication system in the Middle East,
developed specifically for commercial, logistic and fleet requirements. Our systems are
intuitive, very simple to use and extremely cost effective. Advanced Vehicle Telematics,
including Automatic Vehicle Location (AVL), Live Vehicle Tracking, and Data
Transfer and messaging at its best.
Live Vehicle Tracking from NEXUS can cost as little as 0.15p per use! Our competitors
will tell you it's simply not possible but our customers know different.
Nexus has chosen the Ejward/TELTONIKA smart terminal devices as a powerful and
very cost effective concept that can solve the core problems described above. They
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allow clients a flexible, quick and easy combination of three of the most powerful state-
of-the-art technologies (GSM/GPRS, GPS, and Internet) into a wide range of
applications for the vertical and horizontal market. NEXUS is the exclusive distributor
for Ejward/TELTONIKA and has been given the responsibility to establish the required
infrastructure to sell and support their products in Saudi Arabia NEXUS VTS solution is
an intergraded hardware and software solution that allows you to monitor your fleet
(Locate, Track, Control and Manage) remotely and conveniently. Our VTS solution is
customer based and has been developed internally and can be tailored to your company's
needs and requirements; special input and output sensors can be installed to feed your
database with the information needed for more productivity and efficiency.
The system utilizes GPS (Global Positioning System) and GSM (Global System for
Mobile Communications) to give you real-time detailed information about your vehicles
on Digitally Generated Maps (DGM), such as position, direction and velocity allowing
you to build a database of collected information that will identify opportunities for
productivity improvement and cost reduction.
Know where ones vehicles are, what they are doing and ensuring their protection is
critically important to all in operating their vehicles efficiently and cost effectively while
ensuring the maximum safety of the vehicle and the people inside when it is on the road.
TME can, therefore, be regarded as your eyes and ears in your vehicles when they are
away on the road. The objective is to offer you the chance to experience a state of the art
fleet management and
Vehicle location based system, which addresses the following priorities:
Provide location based services to customers (Vehicle Tracking)
Decrease vehicle maintenance and repair costs (Fleet management)
Conduct accident analysis (Fleet management)
Evaluate Driver performance (Fleet management)
Potential for insurance savings (Vehicle Tracking)
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Improved bottom line (Fleet management)
Protection of the passengers, loved ones and the driver inside your vehicle
(Vehicle Tracking)
Improve customer satisfaction though sharing of critical information (Fleet
Management)
NEXUS Applications:
"Award winning systems that just keep getting better"
Underneath the bonnet of the vehicle tracking system lies the most innovative
communications and database solution ever devised for commercial use.
Since 1998 NEXUS have led the way in vehicle tracking applications. There are
three distinct parts to the system.
Communications engine
V-Track was the first of its kind when introduced. It has been in continuous use
since 1998. At its heart is a live communications engine. Conventional thinking
at the time of its creation was that in the first instance absolute live on the move
tracking was not possible and anyway it was not what business required.
It is true the challenge of creating a reliable real time platform was not easy. It
required and still does a level of understanding that few people have or were
prepared to gain. The opportunities to provide ongoing continuous business
benefits from Telematics require real time data. NEXUS software continues to
evolve and adapt to the ever demanding
requirements that our customers require. These only possible thanks to our
unique communications engine.
Database Engine
Telematics systems are about information and lots of it. The real measure of a
system lies in its ability to provide timely and appropriate responses to users'
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requirements. NEXUS are proud to have database designers that others could
only dream of. Our customers are constantly challenging us to further enhance
the systems and we are happy to oblige. We have introduced several firsts in
information presentation via our engine and are looking forward to introducing
even more in the coming years.
User Interface
Our single minded objective has been to provide applications that are usable by
anyone within two minutes. There should be little requirement for training and or
manuals or help systems, hypertext or otherwise.
Our approach to user interfaces has required us to throw away windows
conventions, often having to develop completely new tools. The results are that
the applications we develop not only look different but deliver benefits that are
clear to measure. Our quest for improvement is ongoing and customer feedback
provides us with ever increasing challenges that we will continue to rise to.
INNOVATION: "Truly unusual, making simple of that considered complex"
Policies:
Warranty/Servicing Policy
NEXUS operate a quality system. Our objective is to treat all our customers as we
would wish to be treated if we ourselves were the customer. Our aim is to achieve
continuous improvement in all that we do.
Our warranty policy seeks to provide whole life cover for equipment, with no additional
charges during the term. NEXUS make a warranty provision when equipment is sold
which is used
wherever possible to cover all costs associated with whole life warranty. If charges/costs
are unavoidable we work with our customers to minimize them.
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NEXUS do not use warranty/service work as a source of profit.
Warranty Terms:
NEXUS products are manufactured in Europe to high standards using quality labor,
equipment, materials and components. Prior to any equipment being released many
individual tests are carried out. These tests are not limited to samples; each and every
unit has to pass the tests before it is released for fitting.
The quality of each tracking unit supplied allows us to provide a 1 year manufacturers
hardware warranty with confidence. Should the tracking unit fail during this period
NEXUS will provide a complete hardware replacement? Replacement units are supplied
as standard on a return to base policy.
Environmental Strategy Policy:
NEXUS offers a comprehensive service encompassing all aspects of Vehicle
Telematics/Telemetry and are the longest established companies in the Middle East
offering Live-Real Time Vehicle Tracking using GPS and GSM and satellite
communications.
It is our policy to comply fully with our legal obligations in respect of all environmental
matters and particular attention is given to waste off all kinds. We are aware that our
activities can have both a positive and negative impact on the environment and shall
Endeavour to continually improve our environmental performance.
In particular we will Endeavour to:-
1. Ensure our employees and subcontractors are aware of our environmental commitment
and that they understand their environmental responsibilities.
2. Actively encourage employees and subcontractors to suggest environmental
improvement activities.
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3. Ensure that all waste that cannot be reused within what we do is transferred to a
recycling plant via established means.
4. Ensure that where waste could cause contamination to surface or ground waters that is
carefully stored so as to prevent such occurrence.
5. Seek to minimize nuisances such as dust, odor, noise, and vibration resulting from our
activities by complying with any local and national regulatory requirements.
6. Evaluate the potential to reuse or recycle all of our waste materials on an ongoing
Ejward/Teltonika.
7. Where possible work closely with our clients regarding materials used.
8. All motor vehicles are regularly services to ensure exhaust pollution is kept to a
minimum and encourage driving and vehicle habits that will lessen the use of fuels and
therefore the amount of emissions potentially output.
9. Furthermore we intend to include this policy within our ISO9001:2000 systems and
therefore have it subject to audit and review annually.
Equal Opportunities Statement:
NEXUS is an equal opportunities company, this means that:
1. In the provision of the company’s services and employment of staff to provide these
services, the company will seek to ensure equality of opportunity for all persons.
2. No person or group of persons applying for the company’s services, of for employment,
or for contracts with the company will be treated less favorably than any other person or
group of persons solely because of their race, color, ethnic or national origin or because of
their religion, sex, physical disability, appearance or marital status.
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3. No person will be discriminated against because of a medical condition, provided that
the condition does not normally prevent them from carrying out the tasks required of their
position.
4. As an employer, the company where and when possible will seek to employ staff from
minority groups. Where necessary it will provide them with special training facilities to
enable them compete or qualify for positions within the company.
5. To help fulfill its commitment to equal opportunity, the company will collect and
monitor records of (racial, ethnic, cultural, national or religion) origin of all those seeking
employment from the company.
6. In hiring subcontractors and other agencies to work for it the company will be mindful of
its commitment to equality.
7. In the composition and operation of its management the company will be mindful of its
commitment to equality.
Trademarks:
All names, images, logos identifying NEXUS are proprietary marks of NEXUS. All
third party brand, product, service and company names contained on this site are the
trademarks, service marks and trade names of their respective holders. NEXUS does not
give permission for their use by any person other than the holders. Any such use may
constitute an infringement of the holders' rights.
External links:
NEXUS strives to only introduce relevant external links; however NEXUS does not
represent, warrant, endorse or hold responsibility over any external sites that may be
linked to and from this site. Any external site that you visit by clicking through a link on
this site is outside the control of NEXUS as we are not in control of the content or
activity and you visit entirely at your own risk.
Jurisdiction:24
These Terms of Use shall be governed by and construed in accordance with the laws of
the Middle East Countries. Disputes arising here from shall be exclusively subject to the
jurisdiction of the courts of the Middle East Countries.
If any of these Terms should be determined to be illegal, invalid or otherwise
unenforceable by reason of the laws of any state or country in which these Terms are
intended to be effective, it shall be severed and deleted from this clause. All other Terms
of Use shall remain in full force and continue to be binding and enforceable.
NEXUS reserves the right to change any of its terms and conditions at any time.
Web Site: www.nexus.com.sa
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2.1 Need for the study:
This study has been carried out to find out the benefit of CRM also find out the
beauty of CRM at Nexus Group.
2.2 Objectives of the Study:
To know about the latest trends prevailing in CRM and E-CRM
To know how different companies compete on the basis of CRM and E-CRM
To innovate new ideas for better CRM
To know how CRM can help to retain and attract new customers in a better way
Primary objectives
The primary objective of the study is to assess the CRM at various departments at Nexus
Group, The information availability among the department has become very essential and
CRM help them to accomplish at the finger tips.
Secondary Objectives
The secondary objective is almost the same as primary objective. Another purpose of
secondary objective is that if the primary purpose is not feasible or after the
accomplishment of the primary purpose.
2.3 Scope of the Study:
This study will provide an insight into the Organization the steps being taken by them to
improve their relationship with their customers. From the study, one can infer the present
scenario of the practices and programs being followed by the leading players in this sector
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and the steps being followed by them to enhance customer retention, customer satisfaction
and in turn, leading to enhanced profits and brand image in the minds of the customers.
2.4 Method of Data collection:
Manual and Automated data collection methods have been used to prepare this document.
Primary Objectives
Direct Interview
Telephonic Communication
Secondary Objectives
Internet
Books
2.5 Schedule of the work:
This study took approximately 5 weeks
Limitation of the Study:
Due to time limitation, the study will focus on some of them and a complete picture of
the topic will not be provided. This study is only limited to the research questions. This
study is also limited to B2B organizations Relationships.
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About CRM
In the recent years, it has been observed that for any business giant to have maximum
market share requires something more than technology, innovation, capital. It has been
seen that the company first tries to be market favorite and then heads on to be the market
leader. The key which takes the share price of the company at top most level is the
customer.
Many organizations have realized that to sustain in the market they have to do more than
selling of their product. For this the only mantra is to provide customized and personalized
services to customers, which in management is also known as praticising “customer
relationship management”. This concept is tremendously gaining importance in corporate
circles and is emerging as the business theme for the 21st century.
To understand this, few key concepts should be taken into consideration. They are stated as under:
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Who is a Customer?
A customer refers to individuals or households that purchase goods and services generated
within the economy. The word historically derives from "custom," meaning "habit"; a
customer was someone who frequented a particular shop, who made it a habit to purchase
goods from there and with whom the shopkeeper had to maintain a relationship to keep his
or her "custom," meaning expected purchases in the future.
There is a difference between customer and a consumer. A consumer is always a customer
but a customer is not necessarily a consumer. A customer can be a medium between a
goods manufacturer and/or a service provider and the end user E.g. A person who
purchases a chocolate from retail shop is a consumer who is also a customer but the same
retail shop owner when purchases it from the wholesaler or manufacturer is just a customer
and not a consumer because he never consumes the chocolate.
Customer who was considered to be the king of market is now regarded as the emperor of
market. Since all the organizations have the same technology and more or less the same
price offering, it is only the customer’s loyalty which can take their business sky high.
What is a Relationship?
A relationship is a specific connection between objects, entities or concepts. This bond can
exist between an individual and an organization or between two individuals or between two
organizations. These relationships are categorized as social relationships, causal
relationships and mathematical or theoretical relationships which are between components
of a modeled system. Herein, presence of both the parties is a must. Both cannot survive
without each other.
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What is Management?
Management comprises directing and controlling a group of one or more people or entities
for the purpose of coordinating and harmonizing them towards accomplishing a goal.
Managing of human resources, financial resources, technological and natural resources are
the core activities of a business.
Now, in case of customer relationship management it means managing of the customers of
the company. In today’s competitive environment, customer is not only the king but the
emperor of the market. Two things a service provider has to keep in mind while performing
business activities:
• Customer’s time is precious.
• Apart from him, there are several other service providers to serve his customer.
Because of this, the company cannot afford to lose a single customer, may it be regular or
occasional. Retaining the customer is an essential part of business today. That is why a
healthy relationship should be established with the customers of the company. In order to
serve the customers, the company should understand all their needs and desires, so that the
customer buys the company’s product over and over again.
The personnel who manages these relationships with the customers is called customer
relationship manager and the process carried out by the company is called customer
relationship management. Like any other manager, the Customer relationship Manager also
has certain set of responsibilities and goals to be achieved for his organization. For him, the
duties include right from building relationships with the customers to maintaining and
enhancing relationships with the valued customers.
Converting a stranger to a potential buyer and then to a loyal customer who does not
change his loyalty even if there are cost benefits, this task is undertaken by the customer
relationship manager. Essentially he reshapes business process to meet customer
expectations, empower employees to best serve the customer and determine how to most
efficiently and effectively deliver on those needs.30
APPROACHES TO MARKETING
There are two approaches to marketing for any marketer. They include
• Traditional marketing
• Relationship marketing
1. Traditional Marketing
This is also called as transaction marketing. Herein, the focus is entirely on making a sale.
Only product features are focused. Very little attention is given to customer service.
Because of this the commitment of customer is low, there is moderate customer contact.
This kind of marketing approach solely aims at customer satisfaction by showing the
customer only functional benefits of the product.
2. Relationship Marketing
This kind of approach is practiced in modern times. Herein, the focus is much more than
selling. It aims at making a customer loyal. This is done by emphasizing on high customer
service. Primary concern is quality.
It does not emphasize on selling more and making more customers. It stresses on the fact
that a customer should b a lifetime client for the company. Customer retention is the sole
aim of relationship marketing.
Definition of CUSTOMER RELATIONSHIP MANAGEMENT
There are various definitions of customer
relationship management stated by many experts
over the years.
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Berry defined CRM as relationship marketing is attracting, maintaining and enhancing
customer relationships.
Shani and Chalsani also in 1992 defined relationship marketing (CRM) as “an integrated
effort to maintain and build up a network with the individual consumers and to
continuously strengthen the network for mutual benefits of both the sides, through
interactive, individualized and value added contacts over a long period of time”.
Peppers and Rogers in 1993 gave a recent technology based approach in which they have
said, “CRM is to focus on an individual or one-to-one relationship with the customers that
integrate database knowledge with long term customer retention and the growth strategy”.
From the above definitions we can arrive at one suitable definition, which is “customer
relationship management is a comprehensive strategy and the process of acquiring,
retaining and partnering with selective customers to create superior value for the company
and the customer”.
UNDERSTANDING CUSTOMER RELATIONSHIP MANAGEMENT
In marketing literature, the term customer relationship management and relationship
marketing are used interchangeably. CRM starts with in dept knowledge of customers, their
habits, desires and their needs by analyzing their cognitive, effective behavior and
attributes. CRM applies this knowledge to develop and design marketing strategies, to
cultivate long lasting mutually beneficial interaction and relationship with the customer.
Every organization should remember that “you are not in a business to delight customers.
You are in a business to be delighted by them”.
CRM is a business strategy that can help organizations drive new growth, attain operational
excellence, and gain competitive agility. The core theme of all CRM and relationship
marketing perspectives is its focus on co-operative and collaborative relationships between
the firm and its customers. CRM is based on the premise that, by having a better
32
understanding of the customers’ needs and desires we can keep them longer and sell more
to them.
CRM isn’t new; every company needs to do CRM-one way or another. No matter what the
business, every company has to make its product known to the market and find customers
who are willing to buy its products in order to stay in business. Every company must
discover customer needs, market and sell the products that meet these needs, provide some
sort of customer service and make sure the revenue it generates covers the cost of business
plus any profit margin it tries to achieve.
Once a business organization selects its target market, it has to collect customer database
and develop customer preference. The
relationship cannot be a one sided approach. It
should involve the other side equally with value
sharing proposition. Hence, CRM is
“development of lasting strategic alliances with
customers on a value sharing basis. This implies
future orientation and a winwin proposition
between the seller and the customer.
Relationship marketing is a philosophy of doing business on strategic orientation that
focuses on keeping and improving current interactions with the parties concerned rather
than acquiring new parties. The philosophy has an underlying assumption that the
customers prefer to have an ongoing relationship with an organization than to switch
continually in search for values. It is undoubtedly a slow and a continuous approach of an
organization to become market favorite and increase its customer base.
Hence, CRM cycle can be described as follows:
• Acquiring customers
• Keeping customers
• Growing your customers
• Gaining customer insight33
• Interacting with your customers across all touch points
• Building lasting relationships with your customers
• Delivering value to your customers
• Achieving a sustainable competitive advantage
• Growing your business
These parameters are integrated together to achieve one goal for organization i.e.:- to
establish and manage long term mutually beneficial relationships with current and
prospective customers. Infact successful companies build their business around their
customers. They strive to become fully customer driven, delivering superior customer value
and consistently providing exceptional customer service.
Tom Peters stated “listening to customers must become everyone’s business. With most
competitors moving ever faster, the race will go to those who listen and respond intently”.
No business can exist without customers. Without customers there is no reason to make any
investment in employees, products, office equipments or technology. That’s why you need
to look at your business from the customer’s perspective. No matter how good a product is
or how efficiently an organization operates, without customers there is neither growth nor
profitability.
Customers make their purchasing decision and they bid the price up or driving it down
depending on the value they perceive from a product or service. It’s the customer who
decides which way and when he or she wants to interact with the company and how he or
she wants to buy a product-online, over the phone, in the store, or through any other
channel. It’s the customer’s perception of everything a company does that creates an image
of its brand and eventually determines its success or failure as a business. Hence, you need
to develop strategies that enable your organization to continuously improve the ability to
win, know and keep your customers.
Growth strategies International (GSI) performed a statistical analysis of customer
satisfaction data encompassing the findings of over 20,000 customer surveys conducted in
40 countries by Infoquest.34
• A totally satisfied customer contributes 2.6 times as much revenue to the company.
• A totally satisfied customer contributes 17 times as much revenue as a somewhat
dissatisfied customer.
• The average company loses 20% of its customers every year and the number is increasing
every year.
• It costs up to 10 times to acquire a new customer as it does to keep an existing one.
• A 5% deduction in customer defections can result 25% to 100% increase in profits
depending on the industry.
• A totally dissatisfied customer decreases revenue at a rate equal to 1.8 times what a
totally satisfied customer contributes to a business.
HISTORY OF CRM
Looking back at the snapshot history of marketing, we can see the following clear
developments and progression over the last four decades:-
• 1960 – The era of Mass Marketing when Gibbs SR toothpaste began the first marketing of
its kin with its black and white TV campaign.
• 1970 – Saw the beginning of segmentation, direct mail campaigns and early Tele-
marketing.
• 1980 – Where Niche Marketing made millionaires of those who were best at it.
• 1990 - Relationship Marketing. The explosion of telemarketing and call centers all set up
to develop relationship with customers. The recognition of the true value of retention and
the use of lifetime value as a business case. In addition to this, a number of key marketing
concepts can also be used to see where.
CRM has developed from:-
• Satisfaction needs customer orientation.
• The organization needs to be arranged so that all functions contribute.
• Profit must be the consequence of delighting customers.
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EVOLUTION OF CRM
In recent years however, several factors have contributed to the rapid development and
evolution of CRM. These include: -
1. The growing de-intermediation process in many industries due to the advent of
sophisticated computer and telecommunication technologies that allow producers to
directly interact with end-customers. For example, in many industries such as airlines,
banks insurance, software or household appliances and even consumables, the de-
intermediation process is fast changing the nature of marketing and consequently making
relationship marketing more popular. Databases and direct marketing tools give them the
means to individualize their marketing efforts.
2. Advances in information technology, networking and manufacturing technology have
helped companies to quickly match competition. As a result product quality and cost are no
longer significant competitive advantages.
3. The growth in service economy. Since services are typically produced and delivered at
the same institution, it minimizes the role of the middlemen.
4. Another force driving the adoption of CRM has been the total quality movement. When
companies embraced TQM it became necessary to involve customers and suppliers in
implementing the program at all levels of the value chain. This needed close working
relationships with the customers. Thus several companies such as Motorola, IBM, General
Motors, Xerox, Ford, Toyota, etc formed partnering relations with suppliers and customers
to practice TQM.
5. Customer expectations are changing almost on a daily basis. Newly Empowered
customers who choose how to communicate with the companies across various available
channels. Also nowadays consumers expect a high degree of personalization.
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6. Emerging real time, interactive channels including e-mail, ATMs and call centre that
must be synchronized with customer’s non-electronic activities. The speed of business
change, requiring flexibility and rapid adoption to technologies.
7. In the current era of hyper competition, marketers are forced to be more concerned with
customer retention and customer loyalty.
8. As several researchers have found out retaining customers is less expensive and more
sustainable competitive advantage than acquiring new ones.
9. On the supply side it pays more to develop closer relationships with a few suppliers than
to develop more vendors.
10. In addition several marketers are concerned with keeping customers for life than
making one time sale. There is a greater opportunity for up selling and cross selling. In a
recent study in 1999 it was found that relational intensity increased in hospitals facing a
high degree of competitive intensity.
11. The globalization of world marketplace makes it necessary to have global account
management for the customers.
Following things comes to our mind when we hear of CRM
1. Technology.
2. Call centre.
3. Complaint resolution.
4. Customer data.
5. Making customer happy.
KEY CRM PRINCIPLES.
• Differentiate Customers
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All customers are not equal; recognize and reward best customers disproportionately.
Understanding each customer becomes particularly important. And the same customers’
reaction to a cellular company operator may be quite different as compared to a car dealer.
Besides for the same product or the service not all customers can be treated alike and CRM
needs to differentiate between a high value customer and a low value customer.
What CRM needs to understand while differentiating customers is:-
Sensitivities, Tastes, Preferences and Personalities
Lifestyle and age
Culture Background and education
Physical and psychological characteristics
• Differentiating Offerings
→ Low value customer requiring high value customer offerings
→ Low value customer with potential to become high value in near future
→ High value customer requiring high value service
→ High value customer requiring low value service
• Keeping existing customers
Grading customers from very satisfied to very disappoint should help the organization in
improving its customer satisfaction levels and scores. As the satisfaction level for each
customer improves so shall the customer retention with the organization.
• Maximizing life time value
Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger
points by customer, marketers can maximize share of purchase potential. Thus the single
adults shall require a new car stereo and as he grows into a married couple his needs grow
into appliances.
• Increase Loyalty
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Loyal customers are more profitable. Any company will like its mindshare status to
improve from being a suspect to being an advocate. Company has to invest in terms of its
product and service offerings to its customers. It has to innovate and meet the very needs of
its clients/customers so that they remain as advocates on the loyalty curve. Referral sales
invariably low cost high margin sales.
ASPECTS OF CRM
APPROACHES TO CRM
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Front office operations
Back office operations
Business relationships
Analysis
Operational CRM
Analytical CRM
Collaborative CRM
OPERATIONAL CRM
Gives support to ‘Front Office’ business process
(e.g. sales, marketing etc)
Any interaction with customers is stored in
customers’ contact histories, which the staff can
retrieve as necessary
Gives staff access to important information about
the customer, eliminating need for individually
obtaining it from the customer
ANALYTICAL CRM
Analytical CRM analyzes customer data for
a variety of purposes:
Designing and executing targeted marketing
campaigns.
Analyzing customer behavior in order to
make decisions relating to products and
services (e.g. pricing, product development).
Management information system (e.g. financial forecasting and customer
profitability analysis).
Analytical CRM generally makes heavy use of data mining.
COLLABORATIVE CRM
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Helps unify information that is collected through various departments’ interaction
with customers
Goal is to use information collected by all departments to reduce costs and improve
the quality of services provided by the company
OBJECTIVES OF CRM
1. CRM aims at integrating all business strategies that places the customer at the centre of a
business’s consciousness.
2. Aligning of organization towards customers.
3. Integrating your customer touch points.
4. Establishing and managing relationships with customers.
5. Knowing and understanding your customers and potential customers Before framing and
implementing CRM it is very important to know what your customer expectations are. Be it
a small organization or a business giant, every organization is bound to have a CRM
strategy for itself. The
only difference is their level of operation. A satisfied customer always acts as an unpaid
salesman for the company. So, better the organization understands its
customer’s expectations, the future results are to be expected positively.
Following mentioned are some of the expectations of the customer when they carry out transaction with the organization.
1. Overall quality
2. Handling queries
3. Staff friendliness
4. Treat as a valued customer
5. Complaint handling
6. Competence of staff
7. Speed of service
8. Ease of doing business
9. Helpfulness of staff
10. Kept informed
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From the above mentioned, it is observed that 7 out of 10 relate to EMOTIONS.
So the customers remember:-
(a) Interactions
(b) Specifically how “human” the company was
In mathematical form, a customer remembers only 30% about the product and its price and
rest 70% is determined by treatment during interactions, which includes sales and
marketing is 15%, repair/service takes 30%, installation is 10% and billing accounts for
nearly 15%. (Source- bell labs scientist’s study of 3,00,000 customers)
DO CUSTOMERS LOOK FOR RELATIONSHIP
The answer is YES. Customers do look for relationship with business people. They also
gain some benefits through the relationship with the seller. The following are some of the
benefits the customers gain:
• RELIABILITY: - Customers want to build relations to find a reliable source of supply
and service.
• TIME: - When customers find reliable seller they need not waste time searching for
various other sellers.
• SEARCH: - The information search costs and energy cost gets minimized.
• EXCHANGE: - A known seller accepts return of defective goods or executes recovery in
the case of service without any difficulty.
• SUPPORT: - Many a time customers seek sellers support in taking purchase decisions.
The advice of a known seller provides greater support to the customer.
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• IN ABSENTIA PURCHASE: - A continuous rapport with the seller enables the customer
to communicate his/ her likes, dislikes or preferences. He may manage to get the products
at home, without personally going out for the service.
• CREDIT: - Customers make seek liberal credit without security from a known seller.
• SOCIAL VALUE: - Consumers are social beings and they look for identity and
recognition in society. When sellers wish them at various social occasions, they feel very
happy and delighted. In the changing competitive scenario many business concerns satisfy
the values listed above. The imbalance in value to the business and value to the customers
due to relationships still exists. Companies which progress through value- sharing
relationships are likely to achieve better results. The spread of information and the
educational campaigns of many organizations have increased consumer expectations
manifold. It is not only the market share but the mind share and heart share that need to be
captured. For this reason only, organizations should adopt relationship marketing with a
strong process to achieve the above mentioned purpose.
CRM FORMATION PROCESS
In the formation process, three important decision areas relate to defining the purpose (or
objectives) of engaging in CRM, selecting parties (or customer partners) for appropriate
CRM programs and developing programs (or relational activity schemes) for relationship
engagement with the customer.
CRM PURPOSE
The overall purpose of CRM is to improve marketing productivity and enhance value for
parties in involved in the relationship. By seeking and achieving operational goals, such as
lower distribution costs, streamlining order processing and inventory management,
reducing the burden of excessive customer acquisition cost, and through customer retention
economics, firms could achieve greater marketing efficiencies. They can enhance
marketing effectiveness by carefully selecting, customers for its various programs,
individualizing and personalizing their market offerings to anticipate and serve the
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emerging needs of individual customer, building customer loyalty and commitment,
partnering to enter new markets and develop new products, and redefining the competitive
playing field for their company. Thus, stating the objectives and defining the purpose of
CRM in a company helps clarify the nature of CRM programs and activities that ought to
be performed by the partners. Defining the purpose would also help in identifying suitable
relationship partners who have necessary expectations and capabilities to fulfill mutual
goals. It will further help in evaluating CRM performance by comparing results achieved
against objectives. These objectives could be specified as financial goals, marketing goals,
strategic goals, operational goals, and general goals. Customers are motivated to engage in
relational behavior because of psychological and sociological benefits associated with
reduction in choice decisions.
CRM PROGRAMS
A careful review of literature and observation of corporate practices suggest that there are
three types of CRM programs: continuity marketing; one-to-one marketing; and, partnering
programs. These take different forms depending on whether they are meant for end
consumers, distributor consumers or business-to-business consumers.
(A) CONTINUITY MARKETING
Take the shape of membership and loyalty card programs where customers are often
rewarded for their member and loyalty relationships with the marketers. The basic premise
of continuity marketing programs is to retain customers and increase loyalty through long-
term special services that has a potential to increase mutual value through learning about
each other.
(B) ONE-TO-ONE MARKETING
This relates to meeting and satisfying each customer’s need uniquely and individually. In
the mass markets individualized information on customers is now possible at low costs due
to the rapid development in the information technology and due to availability of scalable
data warehouses and data mining products. By using online information and databases on
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individual customer interactions, marketers aim to fulfill the unique needs of each mass-
market customer.
Information on individual customers is utilized to develop frequency marketing, interactive
marketing, and after marketing programs in order to develop relationship with high-
yielding customers. In the context of business-to business markets, individual marketing
has been in place of quite some time. Known as Key Account Management Program, here
marketers appoint customer teams to husband the company resources according to
individual customer needs.
(C) PARTNERING PROGRAMS
The third type of CRM programs is partnering relationships between customer and
marketers to serve end user needs. In the mass markets, two types of partnering programs
are most common: co-branding and partnering.
ORGANIZING FOR CRM
How do you know that your business requires CRM? It is very easy for a business to get
caught in the latest ‘customer trap’ when it is being driven by the information technology
(IT) market. Every business does require CRM. The question is to what level. Many
businesses are pushed by the current trend to change their business strategy, especially
around CRM. There are basically three trends that affect a business. They are as follows:-
• CONSUMER
The customer is an ever-changing image; to be really successful with CRM you must
recognize the customer trends that are affecting the business. If a business does not
understand a customer profile and the changes that have occurred then it is not possible to
provide true customer relationship management.
• PRODUCTS
It is the business providing the products that meet the changing customer trends. Products
need to be reviewed constantly perhaps enhanced or even removed. Supermarkets are a
perfect profile to look at for45
viewing ‘product trends’, they constantly add and remove products and they constantly
view customer buying profiles and set out the pattern of the store to meet the strongest
buying trend.
• TECHNOLOGY
Ensure that the business is ready to install the new technologies, is the customer data up to
it, or is it time to start again? Do you need to review every technology being used or just
one area. Will it assist the business, is it going to grow with the business requirements or is
the technology just another ‘trend’?
Relationship management should not be an alternative to existing functions/technology; it
could be a logical extension to enhance those in existence, though it could radically change
some of the operational process.
Does CRM really matter? Is your business and customer ready for it? Whatever the
business activity is, all companies have to ask themselves is CRM the real factor for their
company to succeed. Some customers do not need long-term relationship with their
suppliers; therefore only minimal information is required from that customer. That however
is still a form of CRM. Other companies have high quality and high value customers that
they need to know information about, they need to provide exceptional service, the
‘pedigree’ of CRM.
Whatever the business is, if it has customer it has to ask, does customer relationship
management matter? What does it mean to them in business terms? At what cost? What is
the overall loss if not adhered to?
CRM: Yes it does really matter – the strategy needs to last, be constantly reviewed and can
evolve over time.
CRM GOVERNANCE PROCES
• Greater the scope of CRM program and associated tasks, and the more complex is the
composition of the relationship management team; the more critical is the role specification
decision for the partnering firms.
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• It is essential to establish intra-company communication particularly among all concerned
individuals and corporate functions that directly play a role in managing the relationship
with a specific customer or customer group.
• With mass-market customers frequent face-to-face interactions will be uneconomical.
Thus marketers should create common bonds through symbolic relationships,
endorsements, affinity groups and the membership benefits or by creating online
communities.
• Involving customers in the planning process would ensure their support in plan
implementation and achievement of planned goals. All customers are not willing to
participate in the planning process nor is it possible to involve all of them for relationship
marketing programs for the mass markets.
• Human resources decisions are also important in creating the right organization climate
for managing relationship marketing. Training employees to interact with customers, to
work in teams, and manage
relationship expectations are important. So is the issue of creating the right motivation
through incentives and rewards.
CRM IMPEMENTATION ISSUES
One of the most interesting aspects of CRM development is the multitude of customer
interfaces that a company has to manage in today’s context. Until recently, a company’s
direct interface with the customers, if any was primarily through sales people or service
agents. In today’s environment most companies interface with their customers through a
variety of channels including sales people, service personnel, call centers, Internet
websites, marketing departments, fulfillment houses, market and business development
agents, etc. For large customers it also includes cross-functional teams
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that may include personnel from various functional departments. While each of these units
could operate independently, they still need to share information about individual
customers and their interactions with the company on a real time basis.
For example, a customer who just placed an order on the Internet and subsequently calls
the call centre for order verification expects the call centre staff to know the details of his
or her order history. Similarly a customer approached by a sales person unaware that she
has recently complained about dissatisfactory customer service, is not likely to be treated
kindly by the customer. Therefore effective CRM requires a front-line information system
that shares relevant customer information across all interface units. Relational databases,
data warehousing and data mining tools are thus valuable for CRM systems and solution.
The challenge is to develop and integrated CRM platform that collects relevant data input
at each customer interface and simultaneously provides knowledge output about the
strategy and tactics suitable to win customer loyalty and support. If a call centre personnel
cannot identify or differentiate a high value customer and does not know what to up-sell or
cross sell to him then it would be a tremendous loss of opportunity for the company.
Although most CRM software solutions based on relational databases are helping share
customer information, they still do not provide knowledge output to the front line
personnel. CRM solutions platform needs to be based on interactive technology and
processes. It should assist the com any in developing and enhancing customer interactions
and one-to-one marketing through the help of suitable intelligent agents that help develop
front-line relationship with customers.
Such a system would identify appropriate data inputs at each customer interaction site and
use analytical platforms to generate appropriate knowledge output for front-line staff
during customer interactions. In addition, implementation tools to support interactive
solutions for customer profitability analysis, customer segmentation, demand generation,
account planning, opportunity management, contact management, integrated marketing
communication, customer care strategies, customer problem solving, virtual team
management of large global accounts, and measuring CRM performance would be the next
level of solution sought by most enterprises.
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CUSTOMER SELECTIVITY
An important facet of CRM is “customer selectivity”. As several research studies have
shown not all customers are equally profitable (In fact in some cases 80% of the sales come
through 20% of the customers). The company must therefore be selective and tailor its
program and marketing efforts by segmenting and selecting appropriate customers for
individual marketing programs. In some cases, it could even lead to “outsourcing of some
customers” so that a company better utilize its resources on those customers it can serve
better and create mutual value.
However, the objective of a company is not to really prune its customer base but to identify
appropriate customer programs and methods that would be profitable and create value for
the firm and the customer
CUSTOMER LIFE CYCLE
Customer life cycle is a term used to describe the progression of steps a customer goes
through when considering, purchasing, using, and maintaining loyalty to a product or
service. Marketing analysts Jim Sterne and Matt Cutler have developed a matrix that breaks
the customer life cycle into five distinct steps: reach, acquisition, conversion, retention, and
loyalty. In layman's terms, this means getting a potential customer's attention, teaching
them what you have to offer, turning them into a paying customer, and then keeping them
as a loyal customer whose satisfaction with the product or service urges other customers to
join the cycle. The customer life cycle is often depicted by an ellipse, representing the fact
that customer retention truly is a cycle and the goal of effective CRM is to get the customer
to move through the cycle again and again.
Following is the example of a particular customer who does business with the bank and
remains loyal irrespective of the existing competition. Here, the customer life cycle does
not break because the bank (organization) provides the customer with customized services
and creates a win-win proposition for both the parties.
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CUSTOMER VALUE PROPOSITION.
In the field of marketing, a customer value proposition consists of the sum total of benefits
a customer is promised to receive in return for the customer's associated payment (or other
value transfer). In simple words: value proposition = what the customer gets for what the
customer pays.
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5 STAGE CUSTOMER DEVELOPMENT CYCLE
1st step – Awareness
2nd step – Comparison
3rd step – Transaction
4th step – Reinforcement
5th step – Advocacy
Now let’s see these in detail.
Awareness- This is the first stage. Here the customer gets information about the product
from various sources. These includes from media, websites, medical representatives,
references, magazines, newspapers etc.
Comparison – In this stage, the customer compares the new product with the product of
competitor. By giving what the customer expects, benefits over competitors and credibility
are the key to success at the comparison stage. Essentially, the more information you
provide, the higher the likelihood you will make the sale.
Transaction – This stage is the beginning of the relationship. Price becomes a critical
aspect for the customer. Unless you are giving products away for little or no profit, the
transaction stage will only take place if you have played your cards right during the
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awareness and comparison stages. The transaction stage should be viewed as the beginning,
not the end, of the relationship.
Reinforcement -The reinforcement stage is where you add value to your customers'
purchases by showing them how to maximize the value and pleasure their purchases can
provide. The reinforcement stage presents you with an opportunity to position yourself
apart from your competition by thanking your customers for their purchase and paving the
way for future purchases. It's where you begin the process of creating word-of-mouth
ambassadors for your firm out of satisfied customers.
Advocacy – This is the final stage of customer development cycle. This is the stage where
the customer becomes the company’s promoter and gives recommendations to the aspirers
of the product. It is considered to be the most effective form of advertising ever devised.
SUCCESSFUL APPROACHES TO CRM
1. CUSTOMERS AS FRIENDS
In the service business, personal relationships and warmth are critical to success. A small
automotive repair business in Mexico has blazed a new trail in service leadership by
treating customers as “friends”. At servicious automatrices echegary (SAE), proprietor
Alfredo Gomez impresses upon his employees, through personal example that customers
must be treated as friends. The following are the guiding principles for this stated concept:
• Do not make abnormal and unfair profits out of friends. SAE basis its repair pricing on
labor costs plus a 40% margin. As most of its customers are themselves automotive
experts, there is no point in even trying to hoodwink them.
• Do not make a margin on a friends cause. The discounts offered by suppliers should be
passed on to friends.
• Do whatever is possible to help a friend. It may mean working overnight or even on
weekends. Remember, a friend in need is a friend indeed.
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• Try to share your friend’s concerns. Learn more about his vehicle, what is causing him
trouble and keep him cautioned on what could cause a problem in the future. Take a ride
with him in his vehicle to understand his concern fully.
• Drive with him when he comes to collect the car, and ensure that he is fully satisfied with
the repair. Do not compromise on this.
• Friends need to be in touch. Maintain a database and call your friends when it is time for
routine maintenance.
• Friends should spend time together. So make a party of your job. Allow your friends to
participate in what you are doing and how you are doing it. Share with them whatever you
do and plan to do. Encourage them to help you fix their cars and maintain them.
• Friends will give you a chance for they know that no one is perfect. Even if you make a
mistake they may be willing to overlook it. Just let them know that you are doing your best.
Track your performance and keep improving so as to help your friends better. Get back to
school! (To learn new advances and update on technology).
2. CUSTOMERS AS GUESTS
Bruce Laval, a former senior vice president at Disney, coined a term “guestology” to focus
everyone’s attention on the importance of guest behaviors and expectations. Guestology
turns traditional management thinking upside down. Instead of focusing on organizational
design, managerial hierarchy and production system to maximize organizational efficiency,
it forces the firm to look systematically at the customer experience from the guest point of
view. Guestology involves systematically searching for the key factors that determine
quality and value in the eye of guest, analyzing them, measuring their impact on the
customer experience, testing various strategies that might improve the quality of experience
and then providing a combination of factors or elements that attracts loyal customers. Only
after developing this total guest orientation, can the rest of the organizational issues are
addressed. The goal is to create and sustain an expertise that can respond to the customer’s
needs and expectations and still make a profit.53
From their study of customer preferences, Disney’s guestologists learnt that an important
reason for customer satisfaction with its theme parks is its cleanliness. Disney therefore
stresses on keeping the parks clean, and this has become one of its greatest assets. Keeping
a theme park clean is a big job. So the Disney organization encourages its customers to
help out by disposing of their own trash. In studying customer behavior Disney learnt two
things about trash disposal.
First, if caste member (Disney term for park employees) constantly pick up even the
smallest bins of trash, park visitors would emulate, rather than litter. Caste members
practice and respect cleanliness, and so they are role models for the customers. Second, if
trash cans are convenient, easily seen and not very far apart, most people will throw their
own trash into them. Disney locates its trash cans 25 to 27 paces apart. Understanding how
customers respond to environmental cues and using that knowledge to help maintain a high
standard of cleanliness is guestology in practicality.
ROLE OF CRM IN SCM
In the context of SCM, where alliances and partnerships are keys to success, CRM plays an
important role in building long-term relationships. Apart from the end-users, it involves
internal employees, channel members and other external entities such as advertising
agencies and consulting organizations. The success of relationships depends upon sharing
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of savings from the supply chain, which may be reinvested to further enhance its
efficiency, and sustain the competitive advantage. The supply chain of tomorrow will look
like a virtual organization, seamlessly integrated through sharing data and savings as well.
The bonding between partners will be closely held by CRM practices.
CUSTOMER SATISFACTION
Customer satisfaction, a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation. It is seen as a key performance
indicator within business. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has become
a key element of business strategy.
Measuring Customer Satisfaction
Organizations are increasingly interested in retaining existing customers while targeting
non-customers; measuring customer satisfaction provides an indication of how successful
the organization is at providing products and/or services to the marketplace. Customer
satisfaction is an ambiguous and abstract concept and the actual manifestation of the state
of satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and physical variables
which correlate with satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other options the customer may have and other
products against which the customer can compare the organization's products. Because
satisfaction is basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has recently
been developed.
If expressed as a calculation, customer satisfaction might look something like this:
Customer Satisfaction =
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You’re Performance
Customer Expectations
Of course, customer satisfaction is influenced by a complex interplay of factors; it's hardly
as simple as plugging numbers into a formula and calculating the result. Nevertheless, this
calculation serves as a reminder that your customers' level of satisfaction can be affected by
changes in either their expectations or your performance. That means you have to pay
attention to both. And that's where things can get tricky, because how you perceive your
performance may differ from how your customers perceive it. In fact, discrepancies
between your perceptions and theirs would not be at all unusual; I routinely encounter such
discrepancies when I interview a company's service staff as well as its customers. So, even
if you're working yourself to the proverbial bone, if customers view you as unresponsive,
then you are unresponsive in their eyes.
CUSTOMER RETENTION
The trend in marketing towards building relationships with customers continues to grow
and marketers have become increasingly interested in retaining customers over the long
run. Marketing analysts have identified satisfaction as a key determinant in a consumer’s
decision making, relating to keeping or dropping a given product or service relationship.56
According to Oliver, satisfaction is the consumer’s fulfillment response. It is a judgment
that a product or service feature, or the product or service itself, provided a pleasurable
level of consumption related fulfillment, including level of under or over fulfillment.
Companies do spend a lot of money through different media to attract new customers to the
business. Attracting new customers requires substantial skills and effort. However, these
skillful efforts will be of little use if the company suffers from high customer churn. Unless
organizations pursue customer retention strategies, the problem cannot be solved. Every
company needs to define and measure its retention rate. Each company must also
distinguish the reasons for losing customers and identify those causes that can be managed
better. It is important to know how much loss the company makes when it loses customers.
The key to customer retention is to offer continuous satisfaction to customers.
According to Philip Kotler, a highly satisfied customer
• Stays loyal and longer.
• Buys more as the company introduces new products and upgrades existing products.
• Talks favorably about the company and its products.
• Pays less attention to competing brands and advertising and is less sensitive to price.
• Offers product or service ideas to the company.
• Costs less to serve than making new customers because transactions take place in a
routine manner.
It is necessary, therefore, to measure customer satisfaction regularly by surveying the
customers to know whether they are highly satisfied, indifferent, dissatisfied or highly
dissatisfied. Customer complaints are one of the important sources to track the level of
customer satisfaction. Speedy recovery of complaints results in a stronger customer base.
In the words of Albrecht and Zemke, between 54% and 70% of the customers who register
a complaint will do business again with the organization if their complaint is resolved. The
figure goes up to a staggering 95% if the customer feels that the complaint was resolved
quickly. Customers who had complained to an organization and have had their complaints
satisfactorily resolved, usually tell an average of 5 people about the good treatment they
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receive. The key to customer retention is relationship marketing. The service company
should develop overtime the means of monitoring and evaluating the quality of
relationship. There are 2 basic approaches that can be pursued to monitor the relationship:
relationship survey and customer database. Current customers should be surveyed in order
to understand their value perception of the services, the quality and satisfaction. Customer
database in relation to names addresses, phone numbers, demography, lifestyle, usage
pattern, interest, opinions and so on forms the basic foundation for designing customer
retention strategies.
Berry and Parshuraman have developed a framework which suggests that retention
marketing can occur at three different levels. Each
successive level of strategy results in ties that bind the customer a little closer to the firm.
Following are the three levels of retention strategy:-
o Level one: Financial Bonds.o Level two: Financial and Social Bonds.o Level three: Financial, Social and structural bonds.
1. Financial bonds:-
At this level, customers are offered financial incentives either for greater volume purchases
or for continuation of relationship for a long time.
2. Financial and social bonds:-
At this level, the firm intends to develop long-term relationships with customers through
social as well as financial bonds. The customers are identified by name and services are
customized to fit individual needs. Marketers are looking for new ways to keep in touch
with their customers by providing a personal touch and building informal relationships.
3. Financial, social and structural bonds:-
The strategy is to develop structural bonds along with financial and social bonds. Structural
bonds are created by providing highly customized service to the clients. Specific customer
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needs are brought into organizational system to design new ways and to improve the
offerings to the clients.
In service business, sometimes there is a possibility of things going wrong. Under such
circumstances, a recovery strategy needs to be designed for retaining customers. Effective
recovery is essential to save and even build relationships. Therefore, service firms should
track and anticipate recovery opportunities.
E-CRM
In simplest terms e-CRM provides companies with means to conduct interactive,
personalized and relevant communications with customer across both electronic and
traditional channels. It utilizes a complete view of the customer to make decisions about
messaging, offers and channel delivery. It synchronizes communication across otherwise
disjoint-customer facing systems.
It adheres to permission based practices, respecting individual’s preferences regarding how
and whether they wish to communicate with you and it focuses on understanding how the
economics of customer relationship affect the business.
While the definition is simple, achieving e-CRM itself is hard. For business organizations
evolving to e-CRM requires process and organizational changes, a suite of integrated
applications and a non- trivial technical architecture to support both the e-CRM process and
the enterprise applications that automate the process.
BENEFITS OF IMPLEMENTING CRM
Attracting new customers
Quicker and more efficient response to customer leads and
customer information
Simplification of marketing and sales processes
Understanding customer needs
Better customer service
Building customer loyalty
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WHY EMPLOYEE E-CRM
Companies need to take firm initiatives on the E-CRM frontier to:
• Optimize the value of interactive relationships.
• Enable the business to extend its personalized reach.
• Leverage customer information for more effective E-marketing and E-business.
• Focus the businesses on improving customer relationships and earning a large market
share through consistent measurement and assessment.
THE SIX E’S OF E-CRM
The ‘e’ in e-CRM not only stands for electronic but also stands for many other
connotations viz:
1. ELECTRONIC CHANNELS:
New electronic channels such as the web and personalized e-messaging have become the
medium for fast, interactive and economic communication, challenging companies to keep
pace with this increased velocity.
2. ENTEPRISE:
Through e-CRM a company gains the means to touch and shape a customer’s experience
through sales, services and corner offices whose occupants need to understand and assess
customer behavior.
3. EMPOWERMENT:
E-CRM strategies must be structured to accommodate consumers who now have the power
to decide when and how to communicate with the company.
4. ECONOMICS:
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An e-CRM strategy ideally should concentrate on customer economics, which drives smart
asset allocation decisions, directing efforts at individuals likely to provide the greatest
return on customer communication initiatives.
5. EVALUATION:
Understanding customer economics relies on the companies’ ability to attribute customer
behavior to market programs, evaluate customer interactions etc.
6. EXTERNAL INFORMATION:
The e-CRM should be able to gain and leverage information from such sources as third
party information networks and web page profile application.
KEY E-CRM FEATURES
An e-CRM solution must possess certain key characteristics. It must be:
• It must be driven by a data warehouse.
• Focused on consistent metrics to assess computer actions across channels.
• Built to accommodate new market dynamics that places the customer in control.
• The loopholes in traditional CRM can be outlined.
• The CRM offering remains channel centric.
• Customer centric matrix is not consistent.
• Contemporary customer facing systems rarely interact with each other.
10 WAYS TO AVOID CRM PITTFALLS
Despite the hype surrounding CRM, a number of reports suggest that the company’s are
dissatisfied with their CRM implementations. So is this the beginning of CRM or the end
of CRM. Not so fast.
Decision makers must identify a clear corporate strategy before investing millions of
dollars in the CRM project. The following list determines the top ten strategies for avoiding
the common pitfalls in CRM.
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1. CRM software should mould to your company’s best practices rather than forcing you to
use the best practices of the CRM vendor.
2. One should understand their own business processes before buying CRM software. The
CRM vendor should be able to help, identify and align these business processes with CRM
technology.
3. No CRM vendor excels in all areas. If your main goal is to build a customer contact
centre, do not pick a vendor that specializes in sales force automation or marketing
automation.
4. Given that any CRM vendor only provides 20% of the total CRM solution, examine how
easy or difficult it will be to integrate the vendor’s product into your company’s legacy and
new systems.
5. CRM needs are inheritantly fluid and will change as organizations evolve. CRM
solutions should be able to support these changes without massive professional service
charges.
6. Any CRM project that takes more than 90 days to implement runs the risk of failure.
7. Total cost of ownership over 5 years must include the whole CRM strategy not just an
individual piece of software. If you don’t factor in these costs you will be unable to
measure true ROI.
8. One has to make sure that the CRM vendor is financially stable and can weather an
economic downturn.
9. Beware of jumping on the latest technology bandwagon.
10.CRM technology is useless if the employees are unwilling or untrained to use the CRM
project. Gain internal support by communicating the benefits of CRM technology to all
parties and provide through product training.
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From the above diagram we can come to know whether the CRM strategy of the
organization is a success or a failure. A fact which should be taken into consideration is
that only 10% of the CRM is executed properly.
DRAWBACKS OF CRM
CUSTOMER RELATIONSHIP MANAGEMENT IN NEXUS GROUP
ABOUT SAGE SOFTWARE
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Lack of commitment
Poor communication
Weak leadership
Complete solution
Sage Software supports the needs, challenges, and dreams of more than 2.6 million small
and midsized business customers through easy-to-use, scalable, and customizable software
and services. Our products support accounting, operations, customer relationship
management, human resources, time tracking, merchant services, and the specialized needs
of the construction, distribution, healthcare, manufacturing, nonprofit, and real estate
industries. Sage Software is a subsidiary of The Sage Group plc, a leading international
supplier of accounting and business management software solutions and related products
and services for small to midsized businesses. Formed in 1981, Sage was floated on the
London Stock Exchange in 1989 and the Group now has 5.0 million customers and
employs over 10,500 people worldwide. For more information, please visit the Web site at
www.sagesoftware.com/moreinfo
About ACT!
The #1 selling contact and customer management solution for over 20 years, ACT! by Sage
continues to bring the latest, most intuitive technology to businesses across the globe.
ACT! solutions have more than 2.8 million individual users and 43,000 corporate
customers in 25 countries, including individuals, small businesses, selling professionals,
and corporate teams. Because ACT! solutions support an “anywhere” workforce with
seamless online, offline, and mobile access solutions, they work for any business 64
environment. With ACT!, you can achieve maximum productivity so you have time to
focus your attention on business-critical activities, provide a better customer experience
because you understand the intricate needs of your contacts, and make informed decisions
to advance your business.
SAGE ACT! PRODUCT BRIEF:
ACT! by Sage Premium Solutions are feature-rich, scalable1 contact and customer
management solutions used effectively by 43,000 corporate customers, including
individuals and teams of selling professionals in a variety of industries. ACT! Premium
Solutions offer seamless online, offline, and mobile access to an integrated view of contact
relationships so teams can maximize productivity and provide a better customer
experience. With individual and team performance reporting, managers can ensure
employees stay on track to meet and exceed their goals. Take advantage of this powerful
functionality today and accomplish tasks crucial to the success of your organization.
Centralize Prospect and Customer Relationship Details
Track detailed contact information, including notes, history, activities, sales opportunities,
and documents—all tied to the associated Contact Record for a complete, integrated view.
Even track Companies with associated multiple contacts or groups of related contacts for
easier communicating. Manage interactions at the company or account level for a complete
view of relationships with that organization. You and your team get accurate, detailed
information about contacts, impressing prospects and customers with your knowledge.
Manage Daily Responsibilities and Improve Productivity
Manage individual and team schedules and tasks for the day, week, or month using one of
many calendar views; the Task List for a filterable view of all activities; and the dashboard
for a graphical summary view. If your organization uses Microsoft® Outlook®, copy ACT!
and Outlook calendars automatically2 to keep activities up-to-date in both schedules.
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Stay on top of deliverables by setting Activity Alarms. Any activities not completed roll
over to the next day. Schedule an Activity Series3 to automate redundant tasks for routine
activities with multiple steps; a due date change to one will realign related activities. Plus,
use group scheduling functionality across your team. Enhance overall individual and team
productivity all day, every day
Feature-Rich, Scalable Contact and Customer Manager
Key Capabilities:
Contact and Customer Management
Company Management
Intuitive Interface
Lookups and Searching
Calendar and Activity Management
Sales Opportunity Management
Prospect and Customer Communications
Dashboards and Reporting
Data Sharing and Security
Codeless Customization
Anywhere Workforce
Integration
Extensibility
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Forecast and Track Sales Opportunities
Track sales opportunities from initial inquiry through close, using the ACT! sales process
or a process customized for your team’s selling philosophy for managing leads. When
working a sales opportunity, schedule a follow-up activity (populated automatically with
the opportunity details), ensuring all tasks are covered as a lead moves through the sales
process. And track products on each sales opportunity, specifying product discounts and
costs for each item—even generate Instant Quotes4 2—without having to enter additional
information.
Get a complete view of sales pipelines by viewing the Dashboard or one of 20 preformatted
sales reports for a better understanding of which sales are tracking to close this month,
quarter, or year and where to focus attention in the coming days or weeks. With more
visibility into sales pipelines, more accurate forecasts are generated for your organization.
Gain Insight into Individual and Team Performance
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Interactive Dashboards provide you and your team with a comprehensive summary view
of top priorities and sales opportunities, including a gauge of team targets, and enable
managers to monitor individual and team performance. You and your team can set the
Dashboard as your default startup view to begin the workday with a snapshot of this
information so you understand your priorities for the day.
Managers get more detailed insight into individual and team performance with one of 40
preformatted reports, including Activity Reports, Sales Summaries, and more for each team
member or for the team as a whole. Or for further analysis, send most reports to Excel®,
HTML, PDF, or e-mail. Managers gauge individual and team performance using team
views on the Dashboard and reports specific to each team member, so they can coach
underperforming reps without delay.
Share and Secure Details Across Teams
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Keep information secure across your organization by setting security options at the
Contact, Group, Company, and field levels5, marking each as full, read-only, or no access
for particular users and teams. Assign up to five security levels and restrict users from
deleting and exporting data to keep this information as an organizational asset, even when
team members leave. Finally, set password rules to keep data secure from intruders. All this
ensures that your organization maintains high security standards for your valuable contact
information.
Deploy and Implement with Ease
Install and deploy ACT! Premium Solutions using Silent Install6 for rolling out the
Windows product, establish a link and logins for rolling out the Web product, or provide
both for each user. Once installed, setting up teams of users is accomplished quickly using
team functions, like grouping team members to grant access and user permissions on
multiple levels. In addition, maintaining ACT! and ensuring database health is easy with
automatic database functions3, including backup, maintenance, and sync, keeping
information safe and up-to-date. Implementing and maintaining a solution to manage
contact information has never been easier.
Support an Anywhere Workforce
ACT! Premium Solutions are available for use in a standalone or mixed-use environment,
allowing administrators to provide a solution that matches how each user in your
organization works, and still enjoy the benefits of centralized customer data. Because the
Windows and Web products are full-featured ACT! applications, you and your team truly
receive seamless access options. Additionally, sync2 ACT! to Palm OS®, Pocket PC,
BlackBerry®7, and iPhone7 devices for all the power and convenience of ACT! on-the-go.
Or, you and your team can access via Citrix® or Terminal Services8. With these options,
you and your team can be productive wherever you are.
Enhance the Power of ACT! Premium Solutions with Extensibility Options
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Utilize downloads available on ACT! Dev Net to extend ACT! functionality or add
powerful enhancement solutions designed to expand core ACT! functionality, including e-
mail marketing, quoting, analytics, and more—all available through third-party vendors9.
Administrators with advanced technical skills can also make enhancements to ACT! with
the ACT! Software Development Kit (SDK), OLEDB Provider, ACT! Reader, and SA
Password tools.
Key ACT! Premium Solutions Capabilities and Benefits:
Contact and Customer Management: • Centralize important prospect and customer
relationship details for quick, organized access.
Company Management: • Manage interactions at the company or account level for a
complete view of relationships with that organization.
Intuitive Interface: • Get up-to-speed quickly and remain productive with ACT!
Premium Solutions because of the easy to learn and use interface—eliminating the
need for formal training.
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Lookups and Searching: • Find specific relationship details instantly using powerful
search capabilities in an easy-to-use format.
Calendar and Activity Management: • Manage daily responsibilities by scheduling
and tracking activities within ACT! Premium Solutions to ensure individual and
team productivity.
Sales Opportunity Management: • Forecast and track sales opportunities to stay on
top of all new leads and to provide management with insight into sales pipelines.
Dashboards and Reporting: • Gain instant and accurate insight into individual and
team performance using Dashboards and reports.
Prospect and Customer Communications: • Communicate consistently and
successfully with prospects and customers using Outlook or other e-mail solutions
used by your organization.
Data Sharing and Security: • Share and secure precious prospect and customer
relationship details across teams of users.
Codeless Customization: • Easily customize ACT! Premium Solutions, with little
technical knowledge required, to fulfill the requirements of your organization and to
ensure adoption.
Administration: • Deploy and implement ACT! Premium Solutions quickly and
maintain with ease.
Anywhere Workforce: • Support an anywhere workforce with Windows, Web, and
mobile access options.
Integration: • Integrate ACT! Premium Solutions with the applications already used
by your organization to make the most of existing technology investments.
Extensibility: • Enhance the power of ACT! Premium Solutions with extensibility
options available to administrators.
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REASONS FOR ADOPTED ACT! CRM BY NEXUS GROUP
Nexus Group has successfully implemented CRM Sage ACT Premium for
Web in 2008 with 25 users.
Expect Great Things
The company’s success depends on skillful communication between its
external and its internal customers. ACT! by Sage is the communication
solution Nexus has relied on for more than five years. “Our customers
expect great things from us,” explains Mr. Sadiq M. Al-Awawdeh C.E.O of
Nexus Group, and ACT! helps ensure we remain responsive to their
needs.” C.E.O says the company originally chose ACT! for its ease of use
and intuitive interface. “We wanted a reliable contact management
system that had the marketing and communication functionality,
without the overhead of the features we didn’t need—ACT! was
affordable and included just what we needed.” ACT! Premium for
Workgroups to take advantage of the advanced workgroup functionality
and centralized administration features. “ACT! Premium or Workgroups
keeps improving,” explains the C.E.O. “The ACT! Premium or
Workgroups added a feature that allows us to create a new Group from
a Lookup. We can search for clients or prospects that meet certain
criteria, and instantly create a new Group from that list.” Another new
feature C.E.O appreciates is the ability to click on the company name
within a Contact Record and see a listing of all the contacts associated
with that company.
Targeted Marketing
Direct mail is a fundamental component of Nexus Group’s marketing
strategy. ACT! Premium for Workgroups allows the company to
administer all aspects of its direct mail campaigns: targeting its
audience, generating mailing labels, tracking the communication, and
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recording the results. The company uses a custom field within ACT!
Premium for Workgroups, labeled Industry, allowing them to target
prospects within a certain business sector to receive a particular
mailing. Telemarketing campaigns are similarly managed; Nexus
Group’s staff can create a group of prospects in ACT! Premium for
Workgroups, and work from that list making phone calls. Results are
recorded and follow up actions are scheduled within ACT! Premium for
Workgroups. Organized By Mr. Sadiq M.
Al-Awawdeh relies on his ACT! Premium for Workgroups calendar to
keep his busy days organized. “I can click on a telephone appointment
on my calendar, and ACT! Premium for Workgroups opens the Contact
Record so I have all the background information for my call right there.”
The group scheduling feature in ACT! Premium for Workgroups allows
staff to schedule meetings while viewing the availability of other team
members. The ability to schedule recurring events—a Wednesday staff
meeting or the first-of the- month follow-up phone call—is a favorite
time-saver among staff. As tasks are scheduled, pop-up reminders help
ensure appointments, telephone calls, or meetings are not forgotten. As
a task is completed, staff can record the resulting notes and append
them to the contact’s history record. “We’re all busy people, yet we
don’t want important tasks to get overlooked,” says
C.E.O. “When we say we’re going to do something—we do it. ACT!
Premium for Workgroups helps ensure we follow through on our
promises.”
Using ACT! Premium for Workgroups as the receptacle for all customer-
related communication means that valuable information about customer
relationships is not lost when there is turnover of Nexus Group’s staff.
“Having that information in a secure, shared location helps ease any
turnover transitions,” explains C.E.O. Value For The Long Term Nexus 73
Group’s ACT! adding and relabeling fields to tailor the solution to the
company’s needs. It’s a real benefit to have that anytime, anywhere
access to our customer database,” says C.E.O. notes that one measure
of the success of ACT! Premium for Workgroups at Nexus Group is how
little feedback he receives about it, “If it wasn’t working— I’d hear about
it. Because we find it easy to use, reliable, and so much a part of what
we do each day, we rarely give it much thought. “There’s an intrinsic
value to ACT! Premium for Workgroups for our organization. Being
efficient with our time, being organized, and being consistent in our
follow through is fundamental to the way we work.”
SAGE ACT PREMIUM FOR WEB:
Main Login Page
Home Page
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Lookup menu
Contacts Menu
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Group Menu
Companies Menu
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Schedule Menu
Opportunities Menu
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Write Menu
Reports Menu
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Tools Menu
Help Menu
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FINDINGS
CRM that is customer relationship management is an very emerging activity in the
organizations as many of the firms are competing on the basis of this as their
competitive edge.
Some of the software implication is also there in CRM for companies.
Sales employees plays an important role in the customer satisfaction and customer
retention of the given company
The hypothesis we have selected that is null hypothesis that is CRM has no impact
on the customers is being rejected by one way anova test and the alternative
hypothesis is selected as it is being proved that it has impact on the customer
satisfaction.
SUGGESIONS80
Companies must try to build CRM strategies for every type of customer. For
example, if a customer is not having a IT background then he may not use websites
and forums to solve the problem. So, many methods should be present to solve the
actual problem otherwise customer may shift to another brand
CRM should be attached with marketing which the customer can see or feel while
buying the product. If customer will know that the company has best policies and
framework then the customer will get attracted towards the brand.
CONCLUSION
CRM is emerging as the central theme of corporate strategy. It is no more an option
to accept customer oriented philosophy for business. Essentially, customer
relationship assumes greater significance since customer participation is vital in the
production process and customer is the evaluator of service quality. It is also
evident that handling customer relationship is not only the responsibility of
marketing department or sales department, rather it is the responsibility of all the
people working right from lower level to management level.
Approach towards customer relationship management should be an integrated one
and continuous. This helps a business to gain customer loyalty at faster pace and
have an edge over other competitors. Philosophies like ‘friend approach’ and ‘guest
approach’ are of immense help for proper implementation of CRM.
Customer Relationship Management is not a mere tool for improving the
relationships whenever a dip in the reputation of a company is noticed. Rather, it is
a method of securing long-term commitments with the customers by providing the
right product with the right quality. Essentially, CRM plans relationship on the
basis of win-win proposition between the seller and the buyer. The scope of CRM
is, therefore very vast and its reach is mind-boggling. What remains to be seen is
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that, will CRM take a different shape and come face- to-face with us or is CRM the
final stage in the evolution of relationships
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