CRM

Topics: Customer relationship management, Marketing, Customer service Pages: 101 (3603 words) Published: July 26, 2015
Customer Relationship
Management
Relationship Marketing
• All marketing activities directed towards
establishing, developing and maintaining
successful relationships.
Customer Relationship Management
• Comprehensive strategy and process of
acquiring, retaining and partnering with selective
customers to create superior value for the
company and the customer.

Importance of CRM





Growing de-intermediation process
Growth of the services economy
Emergence of TQM/ JIT/ MRP/ ERP
Advent of digital technology/ complex products/
solution selling
• Hyper competition
• Changing customer expectation
• Globalisation – global account management

CRM Process
CRM Formation
• Purpose
– Improve marketing effectiveness
– Improve marketing efficiency

• Programs
– Continuity Marketing
– One to One Marketing
– Partnering/ Co-Marketing

Program Types

Mass markets

Distributors

B2B Markets

Continuity
Marketing

        After marketing
        Loyalty programs
        Cross Selling

        Continous
replenishments
        Efficient customer
response programs

        Special sourcing
arrangements

One to One
marketing

        Permission marketing
        Personalisation

        Customer Business
Development

        Key Account
        Global Account
Program

Partnering/ Comarketing

        Affinity Partnering
        Co0branding

        Logistics Partnering
        Joint Marketing

        Strategic Partnering
        Co-Design
        Co-Development

 

CRM Process
CRM Governance
• Role Specification
• Communication-with customers and intracompany
• Common Bonds
• Planning process
• Process Alignment
• Employee Motivation
• Monitoring Procedures

CRM Process
CRM Performance Evaluation vis a vis CRM
objectives
CRM Implementation issues
• Multi department involvement
– Role of IT

Winning markets through
effective CRM









Traditional Approach
to CRM
Customer Contact by
• Telephone
Integration
• Mail
with Tech
• In person
Personal Selling
(Web &
After sales service
Internet)
Complaint Handling
Account Management
Customer Care
Customer Satisfaction

Web Enabled and
Integration Approach
•Customer Info Sys.
•Customer Database
•Electronic POS
•Sales Force Autmn.
•Automation of
Cust Supp.Processes
•Call Centres
•System Integration
•Lifetime value of a
Customer

Elements of effective CRM
Developing Customer Insight
• Use of Customer Database
Use of Technology
• Electronic Point of Sale
• Sales Force Automation
• Customer Service Help Desk
• Call Centres
• System Integration

Elements of effective CRM
Customer Contact
• Use of Net
Personalising customer interaction
• Customer communities
• Personalisation
Achieving superior customer experience

Enables organizations to provide excellent
•Real - time customer service by
•Developing relationship with each valued customer
•Through effective use of individual account information.
Customer strategies for improving value of customer base.
•Reducing the rate of customer defection.
•Increasing the longevity of the customer relationship
•Enhancing the growth potential of each customer through
“share-of-wallet,” selling, and upselling.
•Making low – profit customers more profitable or terminating them.
•Focusing disproportionate effort on high value customers.

Martha Rogers four – step framework for one-to-one marketing

1. Identify your prospects and customers. Do not go after everyone. 2. Differentiate customer value. Companies should spend
proportionately more effort on most valuable customers (MVCs) Customer value is estimated as the net present value of all future profits coming from purchases and referrals, less customer
specific servicing costs.
3. Interact with individual customers to improve your learning about their needs and to build stronger relationships.
4. Customize...
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