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Customer relationship management (CRM) (history (THE LEDGER, 1950S-THE…
Customer relationship management (CRM)
definition
identify customer expectations and establish and maintain relationship with them
deals with
acquiring customers
keeping customers
growing customers
mainly focused on
To attract potential customers
To create customer loyalty
To portray a positive corporate image
functions
Goal is to understand customer needs, develop profitable one to one relationship with customer
Focus on solving customers’ problems
Customer oriented
Customization and focused marketing
Relationship Marketing
history
THE LEDGER
1950S-THE ROLODEX
EARLY 1980S -DATABASE MARKETING
LATE 1980S - CONTACT MANAGEMENT SOFTWARE
EARLY 1990S - SALES FORCE AUTOMATION
1995 - THE ACRONYM ‘CRM’ IS INVENTED
13
LATE 1990S - MOBILE & SAAS
2000S - INNOVATIONS
Evolution of Information Requirements
Materials Requirements Planning(MRP) -> Manufacturing Resource Planning(MRP II) -> Enterprise Resource Planning(ERP) -> Supply Chain Management(SCM) -> Customer Relationship Management(CRM)
IMPORTANT ASPECTS
INDIVIDUAL CUSTOMER LEVEL VIEW
Share of Wallet / Share of Customer
Good measure for sales goals
Power balance
Customer potential
Share of wallet / share of customer = The percentage a certain customer buys from us, out of all her purchases in the category
A RELATIONSHIP INSTEAD OF A TRANSACTION VIEW
Creating Customer Loyalty
1.rewarding those who send new customers,.
2.sending thank you cards
3.sending personal letters
4.reminding by phone
5.choosing the field in which they are the best.
6.preparing events and occasions peculiar to customer,
7.evaluating the customer complaints in detail and giving quick replies.
MOVE FROM PRODUCT TO CUSTOMER AS UNIT OF ANALYSIS
From Product Portfolio to Customer Portfolio
From Product Lifecycle to Customer Lifecycle
1.From Marketing Mix to Customer Management
Customer Centric
Customer acquisition
Customer development (get more money from existing customers)
Customer retention
MANAGING THE CUSTOMER LIFE CYCLE
Acquiring new customers
Enhancing
profitability of existing
customers
Retaining
profitable customers
for life
CRM STRATEGIES
4.Customer Loyalty
5.Customer Development
6.Use e-business strategies
1.Customer Profitability
levels
Individual customer analysis
Individual customer analysis
2.Customer Acquisition
Offer bundled promotions and service
Advertise on company innovation and competitive edge
Promoting company’s products and service
CHALLENGES IN ATTRACTING CUSTOMERS
Learn from customer
Identifying customer
Understand customer values
Access to customer profiles
3.Customer Retention
Deliver what customer wants
Provide value proposition to customers
TYPES
Operational CRM
Analytical CRM
Collaborative CRM
CRM IMPLICATIONS
strategic business solution
should not be implemented as a single system or at one time
variety of shapes and sizes
CRM SOFTWARE IMPLEMENTATION STRATEGIES
Cloud Based CRMs
On Premise CRMs
BENEFITS
•
Provides service quickly and efficiently
•
Integrated customer information
•
Central database of customer contacts
•
Inside knowledge about customers
•
Enables 24/7/365 operations
•
Individualised system (learn how each customer defines quality, to design customized products)
•
Improved information (integrate all information)
•
Speeds problem identification/resolution (record keeping)
•
Speeds processes (removes handoffs)
•
Improved integration (streamline business processes and gain business intelligence)
•
Improve product development (identify opportunities for product offering through tracking customer behaviour)
•
Improved planning (managing and scheduling sales follow-ups)
VENDORS
