Prepared and presented by,
N. Ganesha Pandian,
Assistant professor,
Madurai School of management.
II y
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III Sem
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Academ
ic y
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2017-2
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CRM, or Customer Relationship Management, is a company-wide
business strategy designed to reduce costs and increase
profitability by solidifying customer satisfaction, loyalty, and
advocacy. True CRM brings together information from all data
sources within an organization (and where appropriate, from
outside the organization) to give one, holistic view of each
customer in real time. This allows customer facing employees in
such areas as sales, customer support, and marketing to make
quick yet informed decisions on everything from cross-selling and
up selling opportunities to target marketing strategies to
competitive positioning tactics.
Make It Sticky
Make It Easy
Make It Private
Make It Fast
Make It Personal
Make It Work
Make It Strong
Make It Professional
Make It Win-Win
Make It Interactive
The Eight CRM Essentials
Rapid time to value
Point-and-click customization
A 360-degree customer view
Real-time visibility
No more dirty data
High adoption
Extending your success
A broad community
4 Key Steps in the CRM Implementation Process
Identify all areas of your business that touch the Customer or the
Prospect.
Identify all of the business processes that manage the touch points with
the Customer or Prospect.
Select the appropriate CRM and Sales Force Automation (SFA) system that
will allow the business processes impacting the Customer or Prospect to
be managed in the most efficient and effective manner.
Document those business processes and train the users on the utilization
of the CRM system with a focus on how that system will deliver value to
their daily work lives and how it will maximize their efficiency and
effectiveness in managing their relationships with their Customers and
Prospects.
A challenge of defining CRM is that any
definition is contingent on the level at which
CRM is practiced in an organization or, for
that matter, what the researcher or man-
ager believes about the correct level of CRM.
There are three different possible levels: (1)
functional, (2) customer- facing, and (3)
companywide.
A customer acquisition strategy defines the
best mix of media and engagement tools
(lead generation and product offers to gain
new customers through targeting them and
reaching them through online and offline
customer journeys.
In general, three basic forms of customer
acquisition are
Developing existing or new markets,
Developing existing or new products, and
Branding programs
Identifying Markets
The ACTMAN Model
The ACTMAN: Acquisition Tactical Management 6 elements:
Targeting
Awareness generation and product positioning
Acquisition pricing
Trial
Usage experience and satisfaction
Post-introductory pricing and the creation of long-term
value for the product or service
Targeting
1st degree - Individual Customer Targeting
(profiling)
2nd degree – Segment Targeting
3rd degree – Self-Selection Targeting
Offer email receipts to every shopper
Can you ask for personal data at check-out?
Which products are similar to a shopper‘s purchase?
Online. Be respectful of customers‘ time
Customers are increasingly researching products
Make your preference centre easy to find and
navigate
Give customers a chance to voice their opinions
through a one- click recommendations feature
Target Prospects
Evaluate Risk
Determine the best offer
Originate credit Applications
Improve Direct Mailings
Market Research
Digital Marketing
What is Customer retention?
Customer retention is the activity that a
selling organization undertakes in order to
reduce customer defections. Successful
customer retention starts with the first
contact an organization has with a customer
and continues throughout the entire lifetime
of a relationship.
Set customer expectations
Be the expert
Build trust through relationships
Implement anticipatory service
Make use of automation
Build KPI’s around customer service
Build relationships online
Go above and beyond
Implement customer feedback surveys
Retain more customers
Every customer that you keep represents
at least three that you don’t have to
attract. Numerous research studies indicate
that the cost of acquiring a new customers
usually runs from two to four times the
annual cost of keeping an existing customer.
Obviously, an effective customer retention
strategy translates into profits.
You should know the following basic information about your
customer base:
Number of current customers
Average number of new customers you expect to acquire within
the next month/quarter/year
Average number of existing customers you expect to lose within
the next month/quarter/year
Where will those customers go?
Why will they leave you?
How will you know they‘ve left?
What will you do to retrieve them?
Everyone within the organization must
follow the guideline that, when a problem
does arise, “fix the customer first,” then
solve the customer’s problem.
Understanding Customer Defections
Customer expectations derive from wishes
and wants as much as actual needs
The key to pre-empting defections is to focus
on the root causes.
Customers defect for two primary reasons:
The need for your product or service has
ceased, or
Your offering has failed to satisfy their needs
in some way.
Personal attention, empathy and extra effort will
work to:
Increase response rates,
Provide direction for product and service
development efforts,
Improve sales forecasting,
Provide opportunities to test your marketing
mix, and
Support your marketing decision making process.
The database can be used further to:
Examine purchase behaviour information
Correlate, cross-reference, and analyze
data
Personalize messages
Provide special benefits and services
Speak with one congruent, consistent voice
Building and maintaining a current, accurate,
comprehensive customer data base is much
more easily said than done. Compilation,
management, and maintenance requires a
significant allocation of resources (people,
time, money), along with a total
commitment to customer service and
retention throughout your company.
Proprietary customer information can be
collected through:
Customer interaction records
Customer surveys
Focus groups
A few important things to remember about customer surveys:
Define clearly what you intend to measure (satisfaction,
dissatisfaction, loyalty, retention, quality, service), and
why you want to know it.
Experience your company from your customer‘s
perspective.
Understand the following:
The relative scale of loyalty within your customer base;
The strength of your relationship relative to your competition;
The relevant antecedents to loyalty;
he relative effect of various interactions, activities and
consequences.
Pay close attention to your best customers.
Stay in touch with your customers
Find out exactly why a customer defected
Build your customer database right
What is CRM Road Map?
A CRM Roadmap is a strategic plan that identifies how an
organization can meet and exceed its customers' needs.
This includes, but is not limited to, assessing how the
sales, marketing and service entities work together to
gain insight from their customers (e.g. purchase history,
desired products/services),
produce valuable offerings/products (e.g. personalized
product) and
provide the ultimate customer experience (e.g. multiple
touch points, 360 degree view of the customer).
Step 1: Gain Senior Level Sponsorship
Step 2: Gather Information
Step 3: Assess Current state and Define Future state Gaps
Step 4: Identify Value Opportunities
Step 5: Link Value Opportunities to strategic CRM Capabilities
Step 6: Define CRM Projects and Requirements
Step 7: Develop Business Case
Step 8: Develop a Roll-out strategy
Identify Your Strategic Team
Create a Vision & Objectives
Identify Pain Points
Map Business Processes
Align CRM to Business Processes
Import Quality Data
Create Powerful Analytics
Test before Release
Train Users
Review & Evaluate
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