CUSTOMER
RELATIONSHIP
MANAGEMENT (CRM)
What?
Definition
CRM is an approach that identifies the customer expectations and establish and maintain relationship with customers
CRM is the management of business processes whose aim is to increase long term profit of the firm’s customers by proper management of customer interactions at the individual customer level.
CRM is how the business
Find you
Get to know you
Keep in touch with you
Try to ensure that you get what you want from us in every aspect of our dealings with you
Check that you are getting what we promised you
Subject of course to it being worthwhile to us as well
History of CRM
IN THE BEGINNING -THE LEDGER
1950S-THE ROLODEX
EARLY 1980S -DATABASE MARKETING
LATE 1980S - CONTACT MANAGEMENT SOFTWARE
EARLY 1990S - SALES FORCE AUTOMATION
1995 - THE ACRONYM ‘CRM’ IS INVENT
LATE 1990S - MOBILE & SAAS
2000S - INNOVATIONS
Now - Fully optimised CRM platform
Evolution of CRM
Materials Requirements Planning (MRP)
Manufacturing Resource Planning (MRP II)
Enterprise Resource Planning (ERP)
Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Aspects of CRM
INDIVIDUAL CUSTOMER LEVEL VIEW
A RELATIONSHIP INSTEAD OF A TRANSACTION VIEW
MOVE FROM PRODUCT TO CUSTOMER AS UNIT OF ANALYSIS
Share of Wallet / Share of Customer
Factors
Customer potential
Power balance
Features
Implies potential for improvement
Can tell us about loyalty/retention
Share of wallet = The percentage a certain customer buys from us
Good measure for sales goals
From Marketing Mix to Customer Management
From Product Lifecycle to Customer Lifecycle
From Product Portfolio to Customer Portfolio
Rewarding those who send new customers
Sending thank you cards and personal letters
Reminding by phone
choosing the field in which they are the best
preparing events and occasions peculiar to customer
Evaluating the customer complaints in detail and giving quick
replies
CRM STRATEGIES
. Customer Profitability
Customer Acquisition
Customer Retention
.Customer Loyalty
Customer Development
Use e-business strategies
Individual customer analysis
Strategic level analysis
Acquisition Funnel
Customer lifetime value (CLV)
Deliver what customer wants
Provide value proposition to customers
Cross selling
Up selling
Increased the frequency or amount of current purchases
Increase mark up
Types of CRM
Operational CRM
Analytical CRM
Collaborative CRM
CRM IMPLICATIONS
CRM is a strategic business solution and not a technical solution.
CRM should not be implemented as a single system or at one time
no real off-the-shelf solution
Provides good mechanisms for privacy and ethical violations
CRM SOFTWARE
Implementation strategies
. Cloud Based CRMs
On Premise CRMs
Benefits
More control over your database
. Higher security
Directly involved with business decisions
Less susceptible to outside issues
Might not actually be cost effective
Examples
Microsoft Dynamics
SalesLogix CRM
SAP Business One CRM
Entellium CRM
Evolution of CRM to SCRM
