- 1. 2 Customer relationship management (CRM) Term applied to
processes implemented by a company to handle its contact with its
customers CRM is a software-based approach to handling customer
relationships Store information on current and prospective
customers
2. 3 Control over buying process Information, comparison,
selection, easy to find Best possible price Delivery (free),
quality All payment options Secure Communication designed to suit
needs Computerized, complex, caring 3. 4 All forms of trading
Direct Traditional Retail E-commerce Wholesale Combination 4. 5 New
convergence Telephony & telemarketing Internet Mobile, SMS
Digital TV Cable & satellite 5. 6 Control over buying process
Information, comparison, selection, easy to find Best possible
price Delivery (free), quality All payment options Secure
Communication designed to suit needs Computerized, complex, caring
6. 7 All forms of trading Direct Traditional Retail E-commerce
Wholesale Combination 7. 8 New convergence Telephony &
telemarketing Internet Mobile, SMS Digital TV Cable & satellite
8. 9 Customer relationship management (CRM) From the outside,
customers interacting with a company perceive the business as a
single entity, despite often interacting with a variety of
employees in different roles and departments CRM is a combination
of policies, processes, and strategies implemented by a company
that unify its customer interaction and provides a mechanism for
tracking customer information 9. 10 Information in the system can
be accessed and entered by employees in different departments)
Sales Marketing Customer service Training Professional development
Performance management Human resource development 10. 11 Details on
any customer contacts can also be stored in the system The
rationale behind this approach is to improve services provided
directly to customers To use the information in the system for
targeted marketing and sales purposes 11. 12 Many inter-related
aspects Front office operation Back office operations Business
relationships Analysis 12. 13 Direct interaction with customers
Face to face meetings Phone calls E-mail Online services etc 13. 14
Operations that ultimately affect the activities of the front
office Billing Maintenance Planning Marketing Advertising Finance
Manufacturing 14. 15 Interaction with other companies and partners
Suppliers/vendors Retail outlets/distributors Industry networks
(lobbying groups, trade assn) This external network supports front
and back office activities 15. 16 Key CRM data can be analyzed in
order to plan Target-marketing campaigns Conceive business
strategies Judge the success of CRM activities (e.g., market share,
number and types of customers, revenue, profitability) 16. 17 17.
18 CRM initiatives often fail Implementation was limited to
software installation Inadequate motivations for employees to
learn, provide input, and take full advantage of the information
systems 18. 20 Three key phases 1. Customer Acquisition 2. Customer
Retention 3. Customer Extension Three contextual factors 4.
Marketing Orientation 5. Value Creation 6. Innovative IT. 19. 21
20. 22 Attracting our customer For the first purchase We have
acquired our customer Growth Market orientation, innovative IT
& value creation Aim is to increase the number of customers
that purchase from us for the FIRST TIME 21. 23 Re-purchase Our
customer returns and buys for a second time This is most likely to
be the purchase of a similar product or service, or the next level
of product or service. Growth Market orientation, innovative IT
& value creation Aim is to increase the number of customers
that purchase from us REGULARLY 22. 24 Additional, supplementary
purchases Our customers are regularly purchasing We introduce
products and services to our loyal customers different from
original purchase Once purchased, our goal is to retain them as
customers for the extended products or services Growth Market
orientation, innovative IT & value creation Aim is to increase
the number of customers that purchase ADDITIONAL products 23. 25
24. 26 Focused upon the three levels of needs of customers Actual,
tangible product Core product and its benefit Also the augmented
product such as a warranty and customer service 25. 27 Core Benefit
Basic Product Expected Product Augmented product Potential Product
26. 28 Generation of shareholder value Based upon the satisfaction
of customer needs (as with marketing orientation) Delivery of a
sustainable competitive advantage 27. 29 28. 30 29. 31 30. 32
Updated IT Efficient, speedy and focus upon customer needs Whilst
IT and/or software are not the entire story for CRM, it is vital to
its success CRM software collects data on consumers and their
transactions Organizations will track individuals, and try to
market products and services to them based upon similar buyer
behavior seen in other individuals 31. 33 32. 34 1. Validation 2.
Discovery 3. Action 33. 36 1. Validation 2. Discovery 3. Action 34.
37 Correct data Ensuring that the data you have on your customers
is not only correct Also, in a suitable state for targeting
communications programs 35. 38 Use of data mining techniques To
find relationships that you did not know existed Sometimes
conventional analysis is impaired by your own natural assumptions
and prejudices Discovery techniques help to solve these issues by
starting from ground zero They simply search for relationships in
the database against a set of objectives 36. 39 Right communication
Your customers and prospects need to have the right messages
communicated to them Quality Inter-Action drives quality
Trans-Action This is done with a Campaign Management tool that can
automatically select the right targets and the right messages via
the right channels The responses are then fed back into the
Validation process for evaluation and refinement 37. 40 CRM is
corporate strategy composed of applications, technology and
products that fulfill three essential requirements 1. Organization
perspective 2. Customer perspective 3. Front office staff
perspective 38. 41 360 view of each customer For consistent and
unified contact with that customer whenever anyone anywhere in the
enterprise deals with that customer This knowledge increases the
opportunities for sales and the effectiveness of customer service
39. 42 Customers to have a consistent view To enable your customers
to have a consistent view of your enterprise, regardless of the way
the customer contacts you This improves customer satisfaction and
customer retention 2. Customer perspective 40. 43 Staff performance
To enable front office staff to perform sales, service and
marketing tasks more efficiently as a team Increasing expertise and
reducing costs 41. 45 42. 46 Important Business starts with the
acquisition of customers However, any successful CRM initiative is
highly dependent on a solid understanding of customers 43. 47
Understand Demographics, purchase patterns & channels
Segmentation to identify logical unique groups Primary research to
capture needs and attitudes Customer valuation to understand
profitability Differentiate Based on the value customers are
expected to deliver 44. 48 Develop Products, services, channels and
media can be customized based on the needs of quantitative customer
segments Customize Based on the potential value delivered by
customer segment 45. 49 Interact Not just through marketing, sales
and media Distribution, shipping, customer service & online
Deliver Delivering value is a cornerstone Factors including
quality, convenience, speed, ease of use, responsiveness and
service excellence 46. 50 Acquire Learning about customers makes it
easy to identify those producing the greatest value Retain Maintain
interaction; Deliver on value Customers change as they move through
differing life stages Modify the service 47. Subconscious
Expectations Pizza with specified toppings Take 10 minutes Come in
a packed box Remain warm till you reach home Charges standard and
acceptable price Pizza will taste reasonably good You will come
back is all the above are met 48. If you go regularly Rapport with
employees You forgive if they mess up with one or two expectations
Degree of confidence determines tolerance If using first time, and
even one expectation is not met You will never go again 49.
Exceeded expectations Deliver on all expectations Give you a garlic
bread FREE ! You will tell everyone about it
