Customer Relationship Management (CRM)

Amit Surana 118

Hrishikesh Baruah 119

Shashanka Yerabaty 120

CRM

A strategy to optimise profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviours and implementing customer-centric processes.

- Gartner

Aimed at maximizing their total customer life-time value, in addition to acquiring newer ones.

Purpose of CRM

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.

Points to be Considered

• Core business and its future evolution.

• Type of CRM appropriate for our business.

• IT infrastructure – present & required.

• Selection of vendors and partners.

INCREASE DECREASE

INTERNAL RevenueProfitabilityKnowledgeEfficiencyEffectivenessProduct InnovationCustomer Focus.

CostsTimeErrorsEmployee Defection

EXTERNAL Customer AcquisitionCustomer RelationshipsInteractionFeedbackService SatisfactionLoyaltyEvangelism

Customer IssuesComplaintsAttritionChurn Dissatisfaction

GOALS

Importance of CRM In the cellular business, it costs five times more to acquire a

customer. It is the same in every business. Retaining this customer is the critical first step for success.

(Harsh Goenka, Chairman, RPG Enterprises, India)

The average new customer spends $24.50 at a given web site in the first 3 months as a shopper. The average repeat customer spends $52.50 every 3 months.

Most companies lose 50% of their customers in 5 years (Harvard University)

CRM Strategies

Customer Acquisition

Customer Retention

Customer Loyalty

Customer Evangelism

Cost Reduction

Improve Productivity

CRM People

Customer relationship should be built with customers that are likely to provide value for services.

Not all customers are equally important

Building relationships with customers that will provide little value could result in a loss of time, staff and financial resources

Use of databases,

data mining..

Repository of all the

data.

Target specific

customers

Increased customer

relationship.

Information Technology and CRM

Information Technology and CRM: Examples

Phone calls, emails, mobile phone text messages, or WAP services can be used to reach to the customers.

Illustration: When tickets are purchased online via Makemytrip.com, the website retains the customers details and their purchase history. The website regularly send emails to previous customers to inform them of similar upcoming events or special discounts. This helps to ensure that customers will continue to purchase tickets from Makemytrip.com in the future.

Information Technology and CRM: Examples

CRM software- “Front office” solutions

Many call centres use CRM software to store all of their customer's details. When a customer calls, the system can be used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and also keeping all information on a customer in one place, a company aims to make cost savings, and also encourage new customers.

Face-to-face CRM

Staff members often remember the names and favourite services/products of regular customers and use this information to create a personalised service for them.

For example, in a hospital library you will know the name of nurses that come in often and probably remember the area that they work in.

However, face-to-face CRM could prove less useful when organisations have a large number of customers as it would be more difficult to remember details about each of them.

Benefits Drawbacks

Effective & efficient. Increased customer

satisfaction. Growth in numbers of

customers Increased access to a source

of market and competitor information.

Long term profitability and sustainability

Difficult to work with Costly Requires additional work

inputting data. Requires continuous

maintenance, information updating

Difficult to integrate with other MIS

Thank You…

Queries ???