• All marketing activities directed towards
establishing, developing and maintaining
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/
• Hyper competition
• Changing customer expectation
• Globalisation – global account management
– Improve marketing effectiveness
– Improve marketing efficiency
– Continuity Marketing
– One to One Marketing
– Partnering/ Co-Marketing
One to One
• Role Specification
• Communication-with customers and intracompany
• Common Bonds
• Planning process
• Process Alignment
• Employee Motivation
• Monitoring Procedures
CRM Performance Evaluation vis a vis CRM
CRM Implementation issues
• Multi department involvement
– Role of IT
Winning markets through
Customer Contact by
• In person
After sales service
Web Enabled and
•Customer Info Sys.
•Sales Force Autmn.
•Lifetime value of a
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
• Use of Net
Personalising customer interaction
• Customer communities
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.
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