BY,
SARANYA .S
ANNU RADHA .B
1 MCA
WHAT IS CRM?
CRM has been defined in a variety of different ways:
•A way to identify, acquire, and retain customers
CRM is a technology-enabled business strategy whereby
companies leverage increased customer knowledge to
build profitable relationships, based on optimising value
delivered to and realized from their customers.
Example : call center.
Demand
Customer Relationship
Management
Supply Chain Management Supply
Manufacturer Retailer Consumer
Wholesaler
$
$
Purchase Produce Distribute Sell Consume
Customer Relationship
Enterprise Resources Planning Management
TRENDS IN CRM
There are four types of CRM that are commonly
used in companies today .Most of the business start
out with operational CRM systems .Then analytical
CRM are implemented using several analytical
marketing tools, such as data mining to exact data
about customers. Now business is moving into
collaborative CRM systems, this includes for
customer self-service and feedback.Fianlly many
business is building internet, extranet web based
CRM portals to access all customer information.
TYPES OF CRM WITH ALL
CAPABILITIES USED FOR BUSINESS:
OPERATIONAL CRM – supports customer interaction with
greater convince through phone,fax,e-mails,etc…
ANALYTICAL CRM – lets you to approach your customers
with relevant information and offers to satisfy their needs.
COLLABORATIVE – enables easy collaboration with
customers, suppliers and partners.
PORTAL-BASED – empowers all employees to respond to
customer demands more quickly and become truly customer-
focused.
PHASES OF CRM
Acquisition :
Techniques used to form relationships
with new customers to achieve an online
sale.
For achieving this special CRM software
tools and databases are used.
The main purpose of this CRM function
is to make aware the customer about the
superior product by a distinguished
company.
Enhance
To keep customer satisfied and happy to
offering superior service from specialists.
The profitability of the business is
increased by CRM sales for a automation
and direct marketing.
The customer experience the convenience
of one stop shopping at reasonable prices.
Retention
Customer retention refers to the actions an
organization takes to retain existing customers i.e.
the techniques to maintain relationships with
existing customer.
The customer retention has two distinct goals.
1. To retain customers of the organizations (repeat
customers).
2. To keep customers using online channel (repeat
visits).
ELEMENTS OF CRM
Three key elements
validation
Discovery
. Action
. Discovery
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Validation
Ensuring that the data of the customers is correct
Example:-Mobile number
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Discovery
se of data mining techniques
To find relationships that you did not know
existed
Data mining is an important enabler for CRM
Helps in the process of understanding a
customer by providing the necessary
information
Facilitates decision-making.
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Action
Right communication
Right messages communication
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
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COMPONENTS OF CRM
Contact and Account Management
Relevant data for customer profile is captured with the help of
software.
Necessary information is captured from prospective customers.
CRM system stores data in common customer database.
The database integrates customer account information and present it in
desirable format to the company.
This database can be accessed on Internet, intranet and on other
network links.
The data is used for sales, marketing, services and other applications.
The contact management software contains various modules of
databases, displays, charts, workflow programs.
Sales
Sales process management follows a customized
sales methodology with specific sales policies and
procedures.
Sales activities include - Product information,
product configuration, sales prospectus, sales quote
generation.
CRM also provide the history of customer account
so that the sales call can be scheduled accordingly.
Marketing and Fulfillment
CRM helps the professionals in product marketing,
target marketing, relationship marketing and
campaign management.
By analyzing customer and business value of direct
marketing can be estimated.
CRM also helps in customer retention, behavior
prediction, channel optimization, personalization.
Customer response and requests can be quickly
scheduled and hence sales contacts.
Customer Service and Support
CRM system provides service representatives with
adequate software tools and access to customer
database. It also helps to create, assign and manage the
service requests by customers.
Call center software is designed to route customer calls
to respective attendants as per the skills and authority to
handle special cases.
Help desk software is developed to help customer
service representative to help customers who face
problems with product or service to resolve it.
Web-based Self Service means help customer to access
personalized information at company website.
Retention and Loyalty programs
The primary objective of CRM is to enhance and
optimize customer retention and loyalty.
CRM systems are also useful in determining most
loyal and profitable customers and reward.
CRM analytical software includes determining tools
and analytical marketing software whereas CRM
databases consists of customer data ware house and
CRM data marts.
Pizza example
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
eCRM
eCRM provides to companies a means to conduct
interactive, personalised and relevant communication
with customers across both electronic and traditional
channels.
It utilises a complete view of the customer to make
decisions about messaging, offers, and channel
delivery.
eCRM v/s CRM: The Differences
Being able to take care of your customer via the Internet,
or, customers being able to take care of
themselves online: That’s the difference between CRM
and eCRM.
BENEFITS OF CRM
CRM allows business to identify and target their
best customers.
Itenables customization and personalization of
products and services based on the needs of
customers.
Keeps all your customer information in one place.
Know and understand your customers.
DIFFERENT SECTOR CRM IN INDIA
IT & TELECOMSECTOR
HOSPITALITY SECTOR
FINANCE SECTOR
RAILWAYS
TRAVELS AGENCIES
INSURANCE SECTOR
BANKING SECTOR
OTHERS
FAILURE OF CRM
Challenges of CRM
Problems of collecting and coordinating substantial data can
lead to privacy problems.
Firms still need to be sensitive to customer wishes about
unsolicited contacts. Customer privacy request needs to be a
part of CRM.
Privacy and data security
One of the primary functions of CRM software is to collect
information about customers. When gathering data as part of a
CRM solution, a company must consider the desire for customer
privacy and data security, as well as the legislative and cultural
norms. Some customers prefer assurances that their data will not
be shared with third parties without their prior consent and that
safeguards are in place to prevent illegal access by third parties.
SOME TOOLS OF CRM
CRM SW Midmarket SW
Vendors Vendors
Siebel Pivotal
PeopleSoft Onyx
Oracle Microsoft
SAP Saleslogix
Hardware and
Infrastructure
IBM
Hewlett-Packard
Genesys
Siemens
Avaya
SOME TOOLS OF CRM (CONTD)
Specialist SW
Vendors
1.SAS
2.NCR
3.Salesforce.com
Service Providers
1.Peppers & Rogers
2.Customer Connect
3.Accenture
4.IBM
5.Unisys
6.EDS
