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Customer Relationship Management

Present by :-Ravi Jain

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Contents• Introduction• Why need CRM• Goals of CRM• Types of CRM• Implementation Type of CRM• Web Based CRM• Benefits of CRM• Cost Calculations• Q&A• Thank you !!!• Appendix A - Market Capitalization • Appendix B – CRM Definition

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Introduction

Customer Relationship Management (CRM) is the term given to the concepts that a company employs to manage its relationship with their customer.

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Why Need CRM

Communication Gap

Getting a new customer cost 5 times then retaining existing customer

Every company do CRM – one way or other.

Few Facts : why need CRM

Not a single point of contact

1% increase in sale with existing customer will boost profit by 17% while 3% in other case

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Goals of CRM The idea behind CRM to gain insight into the behavior of customers and the

values of those customers. If it works as hoped then business can :-

Provide better customer services

Make call center more efficient

Cross sell product more effectively

Helps sales staff close deals faster

Simplify marketing & sales process

Discover new customers

Increase customer revenue

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Types of CRM• Operational CRM which provides support to front office, business

processes including sales, marketing and service. Operational CRM processes customer data for a variety of purposes:

• Managing campaigns• Enterprise Marketing Automation• Sales Force Automation• Sales Management System

• Analytical CRM which analyses the customer data for various purposes such as design and execution of targeted marketing campaigns to optimize marketing effectiveness, design and execution of specific customer campaign, analysis of customer behavior to aid product and service decision making, management decision, prediction of probability of customer defection.

Continue….

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Types of CRM• Consumer Relationship CRM covers aspects of a company's

dealing with customers handled by the Consumer Affairs and Customer Relations contact centers within a company. Representatives handle in-bound contact from anonymous consumers and customers.

• Sales Intelligence CRM is similar to Analytical CRM, but is intended as a more direct sales tool. Features include alerts sent to sales staff regarding:

• Cross-selling/Up-selling/Switch-selling opportunities • Customer Drift• Sales performance • Customer trends • Customer margins • Customer alignment

Continue….

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Types of CRM• Collaborative CRM covers aspects of a company's dealings with

customers that are handled by various departments within a company, such as sales, technical support and marketing. Collaborative CRM's ultimate goal is to use information collected by all departments to improve the quality of services provided by the company.

• Campaign Management combines elements of Operational and Analytical CRM. Campaign management functions include:

• Target groups formed from the client base according to selected criteria

• Sending campaign-related material (e.g. on special offers) to selected recipients using various channels (e.g. e-mail, telephone, SMS, post)

• Tracking, storing, and analyzing campaign statistics, including tracking responses and analyzing trends

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Implementation type of CRM Two Category to implement CRM :

REMOTELY HOSTED :-

Smooth running

Free upgrade

Secure Application

Continuous Support

Possible misuse of

data

LOCALLY HOSTED :-

Complete Control

Customize in our own way

Technical Support Security concernsProblematic

upgrade

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Web Based CRM

Web based CRM are different from traditional CRM in look and feel.

Benefits :-• Low implementation Cost• Rapid Development• Accessibility• Instant Information Sharing• Light Weight

Features :-• Power Dialing• Voice Messaging• Fax / email Customization

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Benefits of CRM

Growth VisionImprove

Sales & Service

• Increate thenumber of opportunity

• Expand the market& attract new partners

•Develop additional streams of revenue

• Single Point communi-cation With Customer

• Email Marketing

• Reporting

Profit

• Long termprofitability

• Sustainable Income

improved customer

satisfaction

• By knowingwhat customerdemands

• CustomizeKnowledgebase

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Cost Calculations

• CRM Cost Includes :-

Hardware CostSoftware CostProfessional Services

Approx Cost :- 0.5 M $ or 2.5 Cr Rs

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Q&A

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Thank you !!

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Appendix A – Market Capitalization

Vendor % Share

Oracle 16.3%

SAP 25.3%

Salesforce 8.3%

Amdocs 5.2%

Microsoft 4.1%

Others….. 40.6%

*Data as per year 2006-07

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Appendix B – CRM Definition

• CRM is an IT-enabled business strategy, the outcomes of which optimize profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviors and implementing customer-centric processes. - Gartner Group

• “CRM is a business strategy to select and manage customers to optimize long – term value” –CRMGuru.Com

• "CRM is an enterprise – wide mindset, mantra and set of business processes and policies that are designed to acquire, retain and service customers. - Scott Fletcher, VP, i2.