Customer Relationship Management

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Customer Relationship Management

Customer Relationship Management
Submitted By:
Ayush Singh
Roll no:09
PRN No:68211
Class- 2(D)
Semester: Fourth Semester
Date required:18/2/2008
Date of Submission: 18/2/2008
Assignment Grade:
Comments of the Faculty:

Customer Relationship Management
CRM (Customer Relationship Management) has been growing steadily for the last few years and is now seen as the way forward for any business wishing to thrive in the "e-future'. CRM concentrates on the retention of customers by collecting all data from every interaction, every customer makes with a company from "all' access points whether they are phone, mail, web or field. The company can then use this data for specific business purposes, Marketing, Service, Support or Sales whilst concentrating on a customer centric approach rather than a product centric. Every business is different and therefore needs a different approach to CRM. Every company also has different legacy systems and has various levels of data integration within the company. This is why CRM is so hard to define as it is all things to all companies. Customer Relationship Management (CRM) is developing into a major element of corporate strategy for many organisations. CRM, also known by other terms such as relationship marketing and customer management, is concerned with the creation, development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value.

Industry leaders are now addressing how to transform their approach to customer management. Narrow functionally-based traditional marketing is being replaced by a new form of cross functional marketing - CRM. The traditional approach to marketing has been increasingly 2

Customer Relationship Management
questioned in recent years. This approach emphasised management of the key marketing mix elements such as product, price, promotion and place within the functional context of the marketing department. The new CRM approach, whilst recognising these key elements still need to be addressed, reflects the need to create an integrated cross- functional focus on marketing - one which emphasises keeping as well as winning customers. Thus the focus is shifting from customer acquisition to customer retention and ensuring the appropriate amounts of time, money and managerial resources are directed at both of these key tasks. The new CRM paradigm reflects a change from traditional marketing to what is now being described as "customer management'.

In many companies there is still confusion as to what CRM is all about. To some it is about a loyalty scheme, to some it is about a help desk. To others it is about a relational data base for key account management and for others it is about mass profiling the customer base without undertaking detailed segmentation. Relatively few organisations have implemented an integrated approach, which addresses all the key strategic elements of CRM. Only a small number of businesses have a clear idea what should be done with information technology in order to successfully implement CRM.

The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationship between the firm and its customers, and/or other marketing actors. Such cooperative relationships as being interdependent and long-term oriented rather than 3

Customer Relationship Management...
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