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M Nadeem Akram

Roll No. 3003

MBA (2012-2016)

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

How It’s Work?

University of Education, Lahore. (Okara Campus)

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CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

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TYPES

Types

1. Marketing

2. Customer service and support

3. Appointments

4. CRM in B2B market

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CHARACTERISTICS OF CRM

Well-designed CRM includes the following characteristics: Relationship management is a customer-oriented feature with

service response based on customer input, one-to-one solutions to customers’ requirements, direct online communications with customer and customer service centers that help customers solve their questions.

Sales force automation. This function can implement sales promotion analysis, automate tracking of a client’s account history for repeated sales or future sales, and also coordinate sales, marketing, call centers, and retail outlets in order to realize the sales force automation.

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CHARACTERISTICS OF CRM

Use of technology. This feature is about following the technology trend and skills of value delivering using technology to make “up-to-the-second” customer data available. It applies data warehouse technology in order to aggregate transaction information, to merge the information with CRM solutions, and to provide KPI (key performance indicators).

Opportunity management. This feature helps the company to manage unpredictable growth and demand and implement a good forecasting model to integrate sales history with sales projections.

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HOW CRM WORK?

Essentially CRM works by collecting leads or consumer information. Analyzing the collected information to understand customer or market requirements. Adjusting marketing campaigns accordingly to increase sales.

CRM also serves for customer service and support--making businesses efficient and improve customer satisfaction.

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HOW CRM WORK?

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HOW CRM WORK?

In any business, the bottom-line of CRM work flow is to

Initiate Marketing Process Sales Schedule Orders and Provide Support

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HOW CRM WORK?

CRM is often misunderstood as an application or a tool, but in the real sense of the term it is a way of doing business. There can be innumerable reasons for businesses to implement CRM. However, let's take a look at few of the most apparent benefits of using CRM.

360 degree view of business Organizational-level data sharing Reduce cost on customer acquisition Centralized customer interaction Improved customer support Increase customer satisfaction High rate of customer retention Boost new business Increase revenue at low cost

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HOW CRM WORK?

Thus CRM is becoming increasingly important among businesses. With an ever increasing customer expectation there is a need for organizations to adopt new business services and strategies - CRM provides this versatility in enhancing sales, customer support and success in business.

Realizing the investment towards any CRM initiative, it is crucial to all businesses to have a CRM evaluation method or CRM metrics in place. The prime concern of a CRM system is to improve relationship with customers and generate higher revenue.

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CRM Evaluation

Here are a few major points that can guide you in evaluating a CRM system at its face.

CRM ROI

Depending on the type of implementation and the strength of organization, CRM initiative can be a complex and costly venture. Thus your selected CRM should: Provide tangible and measurable ROI Help calculate the real business benefits Enable accurate budgeting and reduced resources

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CRM Evaluation

Ease of Use

Implementing a CRM system should: Simplify customer relationship and business process Provide a user-friendly interface Allow ease of CRM navigation

Simplified Workflow

A CRM system in place, should help: Perform the various tasks easily Present simplified workflow logics Encourage easy adoption by users

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CRM EvaluationCustomization

The real efficiency of any CRM implementation lies in: Flexibility to change the default CRM setup Provision to mould the CRM to your business process Provision to rollback to the default CRM setup

Integration

The drive to maximize the value of your customer relationship necessarily demands the CRM system to: Provide well-defined integration architecture Enable cross-application business process Reduce implementation time for custom integration

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CRM Evaluation

Post-Sales Support

No CRM system is complete without the end user help files. Besides the tips and tricks to efficient performance, your CRM implementation should have: Reference documentation for users Ready on-line support Notes and tutorials to complement documentation

Understand the CRM Concept

As mentioned above, once you are aware of the CRM system you should ask your vendor for the obvious and see if they can explain the functionality in simple terms, for the CRM system is full of jargons and buzzwords. If the vendor cannot provide a convincing explanation on the functionality of their product - do not buy it.

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CRM Evaluation

Define your CRM Requirement

Once the fundamental CRM concepts are understood, it is important that the top executives and the decision makers sit down to clearly decide upon the requirements for implementing CRM system. Compromises are natural down the road but the exercise will surely help you avoid being confused at the CRM marketplace.

Frame your CRM Objectives

When you consider CRM as software, it is tempting to nibble just a piece of CRM software to solve immediate problem. However, it is necessary that you frame your company's long-term objectives around the CRM process than on the CRM software, as this would reduce overall implementation costs and business complications.

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CRM Evaluation

Shortlist your CRM Vendors

After you have got your business objectives clear, the next step is to list down vendors who match your requirements. Extract from vendors the real cost of adopting their solutions and be cautious about the hidden fees.

Deal with Several CRM Players

Getting the real cost of a CRM system is tough, especially when deployment involves third-party intervention. However, you should submit your RFP to the few short listed vendors and wait for them to provide you a good deal. This even helps to analyze if the vendors understand your needs and requirements.

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CRM Evaluation

Invite Meetings and Demos

Truly, no one understands your business better than you. Invite vendors to prove they can satisfy your needs in your business environment. A customized demo allows you to evaluate the CRM system-giving a clear picture of meeting your needs.

Compare and Negotiate

There are quite many CRM comparison tools available by which you can conduct a feature level and pricing level comparison before concluding to a specific CRM solution.

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CRM Evaluation

Deploy your CRM Solution

Once you have all the information, it becomes easy to choose the CRM vendor that meets all your CRM needs. Introduce the system slowly so that users get comfortable with the new solution without being forced to complete a job.

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EXAMPLE

Customer Relationship Management (CRM) at Samsung company

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CUSTOMER RELATIONSHIP MANAGEMENT (CRM) AT SAMSUNG COMPANY

Samsung is a market leader in Consumer Electronics and Cell Phones. For more than 70 years, Samsung has been at the forefront of innovation. Our discoveries, inventions and breakthrough products have helped shape the history of the digital revolution.

SAMSUNG Electronics provide unique solutions to meet customer needs. For this, Samsung will expand marketing programs based on CRM (Customer Relationship Management - Customer Relationship Management) at the world level that can be applied to all products. Samsung also will develop a digital network by improving the compatibility between products with the best solutions to serve our customers. SAMSUNG Electronics place and will continue to place our consumers' needs as the main thing driving the market for a company who can be trusted.

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REFERENCES

http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://www.zoho.com/crm/buy-crm.htmlhttp://henysunshine.blogspot.com/2010/12/customer-relationship-management-crm-at.html

CRM (Video Link)

www.youtube.com/watch?v=wJ63PqPIjcM