ROLE OF CRM IN MARKETING

PRESENTED BY –VIVEK KUMAR GUPTAROLL NO- 106

Customer Relationship Management

• Customer Relationship Management (CRM) is a strategy that focuses on building strong relationships with customers and potential customers for creating and maintaining a loyal customer base.

• CRM works across all departments to harmonize customer-centric thinking.

• It reduces costs, increases efficiency and improves customer satisfaction.

Process of creating and maintaining relationships with business customers or consumers”

“A holistic process of identifying, attracting, differentiating, and retaining customers”

CRM is basically for developing long lasting relationship with a customer.

This maximizes profits, since it is cheaper to retain a current customer than it is to find a new one.

It typically costs 5-10 times as much to acquire a new customer as it does to retain an existing one.

It also consists of the processes a company uses to track and organize its contacts with its current and prospective customers…..

CRM Objectives

To simplify marketing and sales process - With innovative Lead management portal,

you can ensure that the right lead is distributed to the right sales person at the right time.. With the integrated customer service module, even your customer support people now become qualified lead generators with up-selling and cross-selling opportunities.

Increasing sales effectiveness- Make your sales teams more effective by automating

tedious repetitive tasks. Leads get entered into the system only once.. With CRM, your sales people can automate a big chunk of their daily tasks such as sending out e-mails, generating reports, organizing leads and so on.

With CRM's Mobile access, your sales people have instant access to customer information when they need it, without being tethered to a computer. The Lead portal can route leads to the best-suited sales person, increasing your chances of closing the deal

Access to customer information- With CRM, all of your customer information is in

one centralized location and is constantly updated every time an activity happens with a prospect or customer. So now you have up to the minute tracking of all your prospects and customers. With all your opportunities tracked down to the stage that it is in, you can forecast your sales pipeline with a lot more accuracy.

Reduce Customer Support Time – CRM enables your service agents to answer all

customer inquiries quickly, accurately and consistently by phone, e-mail, chat or in person. With FAQs and the knowledge base you can help your customers help themselves. By offloading maximum customer interactions to these self-service channels, you can significantly reduce your customer support costs.

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Why CRM?

• It typically costs 5-10 times as much to acquire a new customer as it does to retain an existing one.

• “Some companies can boost profits by almost 100% by retaining just 5% more of their customers.”

• Most companies lose 50% of their customers in 5 years .

• 70% of repeat purchases are made out of indifference to the seller, NOT loyalty….

Implementation of CRM

• To implement CRM, following factors need to be given due consideration:

1. Easy interaction between customers and company,

2. Easy access to information about company like content of customization, advantages of the company, benefits to the customers.

3. Abundant supply of customer information

4 .Customers' information should be updated always

5. Have cordial relationship with other companies targeting the same customer segment…..

Types of CRM

Basically there are three types of CRM which are as follows:-

• Operational CRM: support to front office• Analytical CRM: analyze customer data• Collaborative CRM: inter staff coordination

Strategies of CRM

1. Customer retention

2. Customer acquisition

3. Customer loyalty

4. Cost reduction

5. Improve productivity

6. Enhancing e-business strategies

• Companies that invest in CRM systems can learn even more about their customers and offer more personalized products and services because they receive relevant information daily in a way that allows them to spot trends.

RFM Data in CRM

• Organizations can find their most valuable customers through

“RFM” - Recency, Frequency, and Monetary value– How recently a customer purchased items

(Recency)– How frequently a customer purchased items

(Frequency)– How much a customer spends on each purchase

(Monetary Value)

The purpose of CRM

“The focus of CRM is on creating value for the customer and the company over the longer term” .

CRM enables organisations to gain ‘competitive advantage’ over competitors that supply similar products or services.

Goals of CRM

• Retention rate: CRM, relationship building, increases customer loyalty which increase revenue per customer and frequency of purchases.

• Referrals: CRM can turn customers into advocates. Referrals typically have higher retention rates and spending rates than other newly acquired customers.

• Increased sales: CRM leads to increased cross-selling, upgrades, or simply more products by existing customers.

• Reduced costs: CRM can lead to more cost effective marketing; avoids expenses of mass marketing, reduces direct mailings.

Benefits of CRMBenefits of CRM include:

Provide better customer serviceCross sell products more effectivelyHelp sales staff close deals fasterSimplify marketing and sales processesIncrease customer revenues Reduced costs, because the right things are being done Increased customer satisfaction,

because they are getting exactly what they want Ensuring that the focus of the organisation is external Growth in numbers of customers Maximisation of opportunities Increased access to a source of market and competitor

information Long term profitability and sustainability

THANK YOU