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Customer Relationship Management (CRM) (History of CRM (EARLY 1980S …
Customer Relationship Management (CRM)
CRM is an approach that
identifies
the customer expectations and
establish and maintain relationship
with customers.
Definitions
"The development and maintenance of
mutually beneficial long term
relationships
with
strategically significant customers
”
"An IT enhanced value process which identifies, develops, integrates and
focuses the various competencies of the firm to the ‘voice’ of the customer in
order to
deliver long term superior customer value
, at a profit to well
identified
existing and potential customers
.”
What?
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 the overall process of
building and maintaining profitable customer
relationships
by delivering superior customer value and satisfaction.
3 Main Focuses
• To create customer loyalty
• To portray a positive corporate image
• To attract potential customers
CRM is how a business;
• Subject of course to it being worthwhile to us as well
• Check that you are getting what we promised you
• Try to ensure that you get what you want from us in every aspect of
our dealings with you
• Keep in touch with you
• Get to know you
• Find you
History of CRM
EARLY 1980S -DATABASE MARKETING
1950S-THE ROLODEX
IN THE BEGINNING -THE LEDGER
EARLY 1990S - SALES FORCE AUTOMATION
1995 - THE ACRONYM ‘CRM’ IS INVENTED
LATE 1990S - MOBILE & SAAS
2000S - INNOVATIONS
LATE 1980S - CONTACT MANAGEMENT SOFTWARE
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)
Aspects of CRM
INDIVIDUAL CUSTOMER LEVEL VIEW
Share of Wallet / Share of Customer
• Share of wallet = What customer buys from you / All Purchase Basket
Implies potential for improvement
• Can tell us about loyalty/retention
• Good measure for sales goals
A RELATIONSHIP INSTEAD OF A
TRANSACTION VIEW
Creating Customer Loyalty
MOVE FROM PRODUCT TO CUSTOMER
AS UNIT OF ANALYSIS
From Marketing Mix to Customer Management
From Product Centric to Customer Centric
From Product Lifecycle to Customer Lifecycle
Managing Customer Life Cycle
Acquiring
Enhancing
Retaining
From Product Portfolio to Customer Portfolio
CRM Strategies
Customer Loyalty
Customer Retention
• Deliver what customer wants
• Provide value proposition to customers
Customer Acquisition
• Acquisition Funnel
Customer Profitability
• Individual customer analysis
• Strategic level analysis
• Customer lifetime value (CLV)
6.Use e-business strategies
Customer Development
• Cross selling
• Up selling (to higher priced products)
• Increased the frequency or amount of current purchases
• Increase mark up (sale price – cost)
Types of CRM
• Operational CRM
• Analytical CRM
• Collaborative CRM
CRM Implications
Not a technical solution.
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 (for relatively smaller organizations)
On Premise CRMs (for larger organizations with sensitive data)
Benefits
More control over your database
Higher security
Directly involved with business decisions
Might not actually be cost effective
Less susceptible to outside issues
Manufacturers
Microsoft
Sage Software
Netsuite Inc.
