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CRRM

UNIT I

Introduction :- Till now majority of marketers focused on traditional mode of

marketing.

Due to which they acquire few customers by targeting limited segment.

They use tools & techniques developed for mass marketing in industrial era.

But in present competitive era this proving to be highly ineffective.

Relationship marketing is emerging as the core marketing activites.

On an average, business spend six times more to acquire new customers than to keep

them.

As a result of which companies payinh more attention to their relationship with

exisiting customer.

Facing the competitive threat such as a new entrants pricing pressure ,technology

along with related cost organization realizing that traditional marketing model nolonger effective

PRESENT

APPROCHES

Relationship

marketingCustomer retention Cross selling

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BENEFITS OF CRM:

Help to retain customer.

RM creates intelligent opportunities for cross selling.

Opens up the possibility of rapid introduction of new brands & product. Organization must be able to customize their product offering, optimize price,

integrated products.

Service & deliver the service as promised & demanded by customer base.

We can categories the benefits generally in following :

Increased sales result from spending more times with customers, which results

from spending less time chasing (i.e. Productivity, improvement)

Win rates improves since companies can with draw from unlikely orbad deals

realier on in the sales process.

Increased margins resulting from knowing customers better providing a value sale.

Improved customer satisfaction ratings.

CRM Challenges:

BENEFITS

Cost Saving

Revenues

EnhacementStrategic impact.

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CRM is long term approaches that have to be adopted at strategic level.

Communicating customers at right time.

Breaking competitors relationship with customers.

OPRATIONAL CRM: This the process in which involve the areas where direct

customers contact is possible. Purpose of operational

CRM is to provide transaction level data about

individuals ,product & provide support for customer

facing processes.

E.g Direct mail, phone interaction

TYPES OF CRM

OPERATIONAL

CRM

ANALTICAL

CRM

COLLABORATIVE

CRM

EXAMPLES OF

OPERATIONAL CRM

Sales force

automation

Customer service

automation

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Sales automation :- Account management

Opportunity management

Contact management

Activities Management

Price & product list configuration

Sales incentive plans

Sales forcing & reporting

Customer Service Automation: Service request.

Customer complaints.

Customer interaction center (CIC) is critical component of operational CRM .

Sales force Automation also known as Technology Enable Selling(TES).This

includes:

Accurate business forecast

Generating customize presentations & proposals.

Personalized communication.

It also handle the entire sales pipline from lead generation to closure activities.

CALL CENTER SYSTEM provide extensive customer service by enabling customers to

recive any information

Answering quires

Buying products

Receiving product identifying opportunities of cross selling.

Order Manangment : This include quote generation

Campaigns

Service request

Ordering Products

Invoicing or billing- This includes multiple order billing & pricing functionalities

Marketing Automation: Enables comparing develop & refine strategies, gain insights into

buying behavior, revenues & profitability using marketing analytics.

Analytical CRM : Analytical CRM is the synthesis & interpretation of operational

data to identify opportunity , optimize customer behavior needed

to implement intelligent personalization.

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Analytics involve the capture, storage , extraction processing ,interpretation & reporting

of customer data.

COMPARISON BETWEEN OPERTAIONAL CRM & ANALYTICAL CRM:

Data gathered at operational sides is analyses at analytical CRM to improve

business performance management.

Data at operation CRM level gathered so diligently & analysis at analytical CRM

level provide insight includes

DATA WAREHOUSING: It is system of storing & delivering massive quantities of

data aids in analysis & decision making

Classify data

Co ordination

Identify relationships between information gathered.

DATA MARTS:-These are subjects specific data warehousing

Marketing automation

Campaign management

Database marketing

Optimizes profitability revenue & customer satisfaction analysis

To know buying pattern

Identification of most profitable customer/products/services

Customer

Competition

Customer categories

Cross selling of products

Fraud analysis

ANALYTICAL CRM FUNCTIONS:

Create a comprehensive customer knowledge base while ensuring

privacy.

Capturing all relevant customer information from different sources,

channels ,touch points.

Data guarded with utmost care so that customer right to privacy is never

compromised in any way.

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Customer behavior : This expressed through customer preference ,

priorities & activates

Customer value: This expressed in terms of customer profitabilitys,

potential.

Customer portfolio: learn understanding of composition of customerportfolio.

Optimizing cross selling Opportunities

Integrate customer value into strategies enterprise management to improve

share holder value.