M.KIRANANDHRA LOYOLA INSTITUTE

OF ENGINEERING AND TECHNOLOGY,

VIJAYAWADA

CONTENTS:Introduction.Marketing concept.CRM.Definition.Phases of CRM.Determinants of CRM.Service Sector.CRM in Service Sector.

Hospitality opts fro CRM.Health Care Industry opts

for CRM. IT opts for CRM.

Education Sector opts for CRM.Telecom Sector opts for CRM.Banking Sector opts for CRM.Financial Sector opts for CRM.Insurance Sector opts for CRM. Retail Banking opts for CRM. Call Centre opts for CRM.Outsourcing opts for CRM.Retail Sector opts for CRM.

Closing Comments.

INTRODUCTION MARKETING CONCEPT

CRM is a powerful functional area of Marketing Management. It is therefore desirable that one should have a relook at the concept of marketing in some of its evolutionary phases with the change in focus from products to relationships during the past 50years. Marketing and the Marketing communication mix are changing. New opportunities new threats, new tools and innovations are emerging. The worlds more than 650crore consumers and probably 50crore industrial buyers are becoming increasingly accessible. Marketing has moved from –

Customers acquisition ( winning new customers ) to Customers retention ( keeping customers for life ) The critical dominator in today’s commercial world is still CRM

Marketing.  

CUSTOMER RELATIONSHIP MANAGEMENT

CRM:- CRM is broadly recognized and

widely implemented strategy for managing and nurturing a company’s interactions with customer’s clients and sales prospects. It involves using technology to organize automate and synchronize business process – Principally sales activities, but also Those for marketing, Customer Services & technological support. When an implementation is effective, people, processes and technology work in synergy to increase profitability, and reduce operational costs.

Customer

There is only one boss. The customer! He can fire everybody in the company, from the chairman on down, simply by spending his money somewhere else.

------------- Sam Walton, founder of Wal-MartOur greatest asset is customer! Treat each customer as if they are

only one! --------- LAURICE LEITAO

Customer is kingKnow your customer……to capture & retain them!If, we don’t take of our customers someone else

will!

Phases & Determents of CRM

ACQUIREENHANCERETAINTRUSTVALUE

SERVICE SECTOR

For the last 30 years there has been a substantial shift. The primary and secondary sector to the tertiary sector in industrialized countries. The tertiary sector is now the largest sector of the economy. The service sector consists of the ‘soft’ parts of the economy. Where people offer their knowledge and time to improve productivity, performance, potentials the basic characteristic of this sector is the production of services instead of end products.

CRM IN SERVICE SECTOR

The service sector is receiving much deserved attention resulting from its inevitable role in a country’s economic development. Where it is mainly focusing of developing an inbound relationship with the customer. Which helps in terms of retaining the customer. Because service is an “intangible good” include attention, advice, experience, discussion. The scope of CRM in service sector is vast where it includes Govt, health care / hospitality education, banking, insurance, financial, legal, consulting, news media, hospitality(restaurants, hotels, casinos ), tourism, retail sales etc.,

 Hospitality opts for CRM :-

Developing CRM strategies

Information and Communication Technologies(ICT)

CRM based market research

Health Care Industry opts for CRM

Communication Services

Data base Construction

CRM for Physicians

Consulting Services

Information Technology opts for CRM

Customertouch pointsApplication server Data stores

IT Factors for CRM Traditional marketing doesn’t need to use Information Technologies

extensively because they is no need to distinguish, differentiate, interact with and customize for individual customers needs. Although some argue that it has a small role in CRM each of the four key CRM tasks depends heavily on Information Technologies and Systems.

Process Identification Differentiation

Interaction Customization

Goal Identify individual customers

Evaluate customer value and needs

Build a continuing relationship

1. Fulfil customer needs2. Generate Profit

Traditional mass Marketing

Not Done Clustering Call centre 1. Sales2. Services

CRM Customer Profiling Individual Level analysis

1. Call centre management2. Auto response system

1. Sales automation2. Marketing process automation

Information technologies

1. Cookies2. Web Site personalization

1. Data Mining2. Organization learning

1. Web Application2. Wireless Communication

1. ERP2. E-Commerce

 Education sector opts for CRM

o Student Relationship Management (SRM)

o Holygrall

Telecom sector opts for CRM

Customer service is Key to sales and loyalty

Customer service become the differentiator

 Banking sector opts for CRM

CRM banking focusing on the customer

Overall profitability Satisfied the customer Centralized the

informationCustomer segregation

Financial sector opts for CRM

Increase of customer knowledge of employees.

Provision of an excellent view of customer relationship.

Easy access to collated financial dataStorage and provision of financial

data of customersEnabling the building of trust for

brokers, agents and financial planners etc.

Managing financial deals

Insurance sector opts for CRM

CRM insurance integrates marketing with other operations

Increased insurance market share

Insurance CRM guarantees lead management

Insurance application queries /claim status queries can be answered sooner.

Retail Banking opts for CRM

Latest technology used by retail banking

Very good data base maintaining by the banks

Scope of more ATM’s

Call centers opts for CRM

Lead generation

Tele-calling

Email-campaign

Market research.

  

CRM benefits to the call center sector

Provision and storage of valuable customer data

Helps in assisting call centers with shorter call duration,

CRM is of considerable use in follow up actions

Employees perform their duties easily and with less strain on a/c of its user friendly attributes.

Outsourcing opts for CRM

Reducing operating costs Advantage sooner the

competitor Better business process Operations being greatly

improved Effective and increased

customer service.

Retail sector opts for CRMRetail sector is Indian’s largest

industry; this sector is valued at $200 billion account for over 10% of the country’s GDP and around 8% of the country’s employment. Modern retail has entered India as seen in sprawling shopping centers.

According to Pareto’s principle 80% of sales from 20% of the customers. But this would happen if the retailer has the 20% as its most profitable customer and not just normal customer.

The following are the some of the examples where retail malls are following

Pantaloon touch with its loyal customers through mailers, SMS, telephone informing them about their developments and promotions.

Shoppers stop known as the ‘first citizen card’ where customer can enjoy reward points for every purchase.

CONCLUSIONCustomer Relationship Management entails all aspects

of interaction a company has with its customer, whether it is sales or service related; it starts with the foundation of relationship marketing.

CRM is a systematic approach towards using information and ongoing dialogue to built long lasting mutually beneficial customer relationship. From the above all available data it is clear that how CRM is placing a vital role in service sector. So, it makes more strengthen this sector.

Closing Comments

• CRM requires a cultural change with organizations.• CRM can be enabled by technology, but this alone will not

deliver business benefits – change management is vital.• The customer experience needs to be consistently enhanced.• Its an ongoing business process and will create sustainable

competitive advantage.

Remember

“ If you aren't listening to your customer, your competitors will.”

Thank You

For your valuable

 time