Customer Relationship ManagementCourse Handout- Week 1

Shainesh GProfessor of Marketing Indian Institute of Management Bangalore

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Introduction to CRM

The core focus of CRM is building long-term relationships with customers

The four factors that helped CRM emerge as a top management priority are

Technology

Competition

Growth of service sector

Analytics

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Introduction to CRM

Marketing and CRM compliment each other.

Marketing plays a significant role in attracting customers, while the focus of CRM is to retain customers.

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Introduction to CRM

CRM is a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers to create superior value for the company and the customer.

CRM is helps attract, retain, and enhance relationships with customers through customer-centric processes”.

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Six Markets Framework

Firms should build relationships with several stakeholders

The six markets framework, helps organizations identify the stakeholders, with whom the organization should strengthen relationships.

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Transactional Vs Relationship Marketing 6

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Criticality of Customer Relationships

Non-Traditional competition

Market Maturity

Misalignment between revenue and profits

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Non- Traditional Competition

Michael Porter, identified the five forces that determine the long-term attractiveness of any industry.

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Source: Michael Porter

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Market Maturity

Market maturity has forced companies to become more customer

oriented. It forces companies to retain their customers in their current

markets and also attract customers in new markets, especially overseas

markets.

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Misalignment between Revenue and Profits 10

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Benefits of CRM

Marketing benefits

Service benefits

Benefits to customers

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Why Should Businesses Adopt CRM?

Demand side factors

Increase in affluence

Media explosion

Customer diversity

Supply side factors

Impact of technology on production and distribution

Impact of technology on facilitation and consumption

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