PRESENTATION ON CUSTOMER RELATION MANAGEMENT

PREPARED BY

AMANDEEP & PRABHDEEP

INTRODUCTION

Customer relationship management is a model for managing company’s interaction with current and future customers.

It involves using technology to organize ,automate, and synchronize sales , marketing, customer services and technical support.

WHAT IS CRM?

CRM can be defined as business philosophy and set of strategies that focuses on identifying and building loyalty with a marketer’s profitable customers.

CRM “is a business strategy that aims to understand, anticipate and manage the needs of an organisation’s current and potential customers” .

It is a “comprehensive approach which provides seamless integration of every area of business that touches the customer- namely marketing, sales, customer services and field support through the integration of people, process and technology”

WHAT IS CRM?(CONT.)

CRM is a shift from traditional marketing as it focuses on the retention of customers in addition to the acquisition of new customers

“The expression Customer Relationship Management (CRM) is becoming standard terminology, replacing what is widely perceived to be a misleadingly narrow term, relationship marketing.

People

Process

Technology

CRM

Customer acquisition

Value

Rela

tion

ship

Retention

Loyalt

y

DEFINITION

CRM is concerned with the creation, development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value

PURPOSE OF CRM “The focus [of CRM] is on creating value for

the customer and the company over the longer term”.

When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs .

CRM enables organisations to gain

‘competitive advantage’ over competitors that supply similar products or services.

TYPES OF CRM

Collaborative CRMAnalytical CRMOperational

CRM

Various types of crm are :-

OPERATIONAL CRM

Mainly focused on automation, improvement of business processes based on customer supporting.

Renders direct support to businesses having direct customer’s interaction.

Every interaction is recorded b/w customer is recorded and used by different departments to retrieve customer information.

ANALYTICAL CRM

Supports organizational back-office operations and analysis.

Deals with processes and operations that don't directly deals with customers.

Unlike OPERATION CRM ,it is designed to data mine the customer info and data to find useful patterns of intentions of customers which can be focused by organization.

COLLABORATIVE CRM

Deals with synchronization and integration of customer interaction and communication channels in consistent and systematic way.

Deals with enhancing the customer retention and liberty.

Groups various departments to highlight better understanding of customers.

PROCESS OF CRM

Acquire customer

Activities to gain customer

satisfaction

Customer satisfaction

Customer Dissatisfaction

Customer loyalty

Customer retention

Attrition

Re-Acquisition

Defection

CRM Activities

No activities

PROCESS OF CRM (CONTD.)

Acquisition:- vital stage in building customer relationship

Involves interaction, enquiry, exchange, co-ordination, adoption

Involves enquiry about organization , product, nature of transaction.)

Customer interaction management:- plays important role in building relationship.

Better the interaction, better will be the customer relationship, leading to greater customer satisfaction.

PROCESS OF CRM (CONTD.) Customer retention:- process of keeping customers

in inventory for unending period. Possible only through meeting demands exceeding

expectations of customers. Approach to convert casual customers to loyal and

committed customers. Attrition:- born from customer dissatisfaction. Process of gradually weaving down of loyalty of

customers . May lead to defection of customers if not checked on

earlier stages. Defection:- means when customer stop dealing with

particular company and look for its alternative. Occurs through poor service, not satisfying the

demands of customers, poor quality.

SIGNIFICANCE

1. Increased sales revenue and reduced cost of sales:-

2. Increased customer satisfaction:-

3. Increased customer retention and loyalty:-

4. Evaluation of customer profitability:-

SIGNIFICANCE

5. Excellent customer service:-

6. Customer knowledge:-

7. Customization:-

8. Opportunity to Cross-Sell and Up-Sell:-

THANKS

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