presentation crm3

8/8/2019 Presentation CRM3

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INTRODUCTIONCRM is a management strategy that unites informationtechnology with marketing

Customer relationship Management: The overall process of

building and maintaining profitable customer relationships by

delivering superior customer value and satisfaction.

CRM consists of three components:

·customer,

·relationship, and·management

CRM

Customer

Relationship Management



CRM HISTORYIt is a concept that became very popular during the 1990s

Before the advent of supermarket, customers where loyal to the

store and made repeated purchases.

The proprietor and the small staff recognized the customer byname and knew his purchases.

This idyllic customer relationship disappeared as the population

moved from the farm communities to large urban areas,

supermarkets and department stores were established



CRM included two major markets:

1. Sales Force Automation (SFA) Contact Management

Activity Management

Communication Management

Forecasting

Opportunity Management

Order Management

Document Management

Sales Analysis

Product Configuration

2. Customer Services (CS)Call centre management

Field Service Management

Help Desk Management



CUSTOMER FOCUS

It is an aligned, organization-wide and unwavering

commitment to service excellence, leading to customer

loyalty and advocacy

This requires:

1. Every action should be shaped by a relentless

commitment to meeting customer expectation.

2. Customer touch points and supporting internal

processes should be constantly evaluated & improved.

3. Every employee should understand what he/she must

do in order to add value to every relationship.



CUSTOMER SATISFACTION

The extent to which a product¶s perceived performance matches

a buyer¶s expectations.

If product¶s performance matches expectation, the customer is

satisfied.A company can always increase customer satisfaction by

lowering price or increasing services.



HOW IS CUSTOMER EXPECTATION

RELATED TO HIS SATISFACTION

When performance exceeds customer expectations, he is highly

satisfied or delighted.

Delighted customers become ³customer evangelists´

A business organization should exceed its customer¶s expectation

thereby maximizing the satisfaction .This also increases the credibility of its goods and services



Over-promise and under- delivery results in customer

dissatisfaction

RULE 1- You cannot assume, you must ask.

RULE 2- Customer expectations constantly change, so they must

be determined

Expectations of different customers for same product varies:

social & demographic factors

economic situation

educational standards

competitor products

experience



SIX CUSTOMER SERVICE

STRATEGIES THAT WIN

Stay in Touch

Make Great service a priority

Store Collective Wisdom

Empower yourself Staff

Know your customers

Manage customer Relationships



CUSTOMER RELATIONSHIP

MANAGEMENT

It is an approach to doing business and providing better service

Traditional marketing strategies focused on the four P¶s

(Product, Price, Place, Promotion).

CRM aims to improve customer service by encouraging

Better interaction and

Smoother internal operations.



OBJECTIVES OF CRM

CRM, the technology, along with human resources

of the company, enables the company to analyze the

behavior of customers and their value.

To simplify marketing and sales process

To make call centers more efficient

To provide better customer service

To discover new customers and increase customer revenue

To cross sell products more effectively



WHYDO ORGANIZATIONS UNDERTAKE CR M OR

WHY DO ORGANIZATIONS NEED CRM?

CRM is a new concept to many organizations

CRM can have a major impact on an organization

through: Shifting the focus from product to customer

Streamlining the offer to what the customer

requires, not what the organization can make

Highlighting competencies required for an

effective CRM process



CR M as a process

The CRM processes should fully support the basic steps of

customer life cycle. The basic steps are:

Attracting present and new customersAcquiring new customers

Serving the customers

Finally, retaining the customers



Features of a good CR M

Reliability

Responsiveness

Accessibility

Safety

Consideration

Communication

Recognizing the customer

Competence



How do you achieve a good CR M?

Achieving effective Customer Relationship Management

requires many organizations to adopt a new perspective.

Consider the following:

Traditional customer service is something you µdo to¶ the

customer

Modern Customer Relationship Management is µdone with¶the customer



Pareto¶s Law

Paretoµs Law is commonly known as the 80:20 rule. Typically

in any organization:

20% of customers account for 80% of your turnover 20% of customers account for 80% of your profits

20% of customers account for 80% of your service and

supply problems



CR M and communications

In terms of CRM, communication needs to be consistent and high

quality; as determined by:

On time

FocusedRelevant



People and CRM

Successful and effective Customer Relationship Management

people tend to display the following key characteristics:

Positive attitude

People orientation

Organizational skills

Analytical skills

Customer focus (natural empathy)

Understanding of the link between CRM and profitability



Benefits of effective CR M

Reduced costs

Increased customer satisfaction

Ensuring that the focus of the organization is external

Growth in numbers of customers

Maximization of opportunities

Increased access to a source of market and competitor

information

Long term profitability and sustainability



aspects of CRM

Front office operations

Back office operations

Business relationships

Analysis



Types of CR M

Operational CRM

Analytical CRM

Sales Intelligence CRM

Campaign Management

Collaborative CRM

Consumer Relationship Systems

Simple CRM

Social CRM



CASE STUDY

The Best Buy Experiment

A good example of a major retailer who has adopted a customer-centric

approach is Best Buy. Earlier, it determined that it could not continue to

operate on price as its major strategy and message to its customer.

Brad Anderson, CEO of Best Buy, said, ³If we do nothing, Wal-Mart will

surpass us by the simple fact that they open more stores than we do each year.

³There is no point in trying to compete on price´

How Best Buy became customer-centric: Best Buy launched its customer-

centric strategy. The initiative was two-pronged.



Best Buy identified key customer segments in five areas of its

customer-centric program:

Affluent professionals

Younger males wanting cutting-edge technology -gadgeteers

Fathers looking for technology to improve their lifestyle

Mothers seeking technology to enrich their childrenµs lives

Small business-people

The way Best Buy adapted the stores to target each segment is interesting.

Part of the strategy also included giving employees closest to the customer

some of the more important decision-making responsibilities



In addition, Best Buy store associates received customer-centric

training to be able to really deliver on the promise at the store level

³People come to specialty stores because they are looking for some

service or selection that they canµt get from the mass market, ³Anderson

said. He went on to say that ³for those reasons, Best Buy intends to

invest more heavily in customer service, and position itself as a

solutions provider for consumers of high-tech entertainment products

Internally, Best Buy has also worked extensively on its customer

database. The company wanted to identify who its best customers are, as

well as who the customers are that are costing them money by abusing

their customer service policies.



Results of Best Buy becoming customer-centric: Initially, the customer-

centric strategy in the stores paid off. The company posted an incredible 85

percent profit gain in its fiscal first quarter.

Best Buy said its third- quarter profit would fall well short of Wall Street

expectations because of higher costs. Anderson said that month that the

company¶s ³customer-centricity³ initiative has proved more expensive than

anticipated, and Best Buy might have to eliminate staff to help control costs.

overspent -³We have to make adjustments³. ³But he also says that Best

Buy¶s commitment to being customer-centric has not been reduced.´

Lessons Learned: The lesson to be learned from Best Buy¶s move to a more

customer-centric focus is not that it doesn¶t work, but rather, that it is not aneasy thing to accomplish.



Best Buy likely should have done it slower and used more of what they

learned about each segment before they expanded the program

Another issue they are trying to address is that many locations have a mix of

all five customer segments ± design store for one segment is dangerous

Being customer-centric is key to future growth and profitability, but it must be

done right

Checklist for Creating Customer-Centric

Stores

1.Have you identified distinct customer segments?

2.Do you know the special needs and wants of each segment?

3.Do you have products and services that meet these customers¶ needs and

Wants?

4.Have you created an environment that is attractive to each segment?5.How will you communicate with each segment?

6.Is your staff aligned with these segments?

7.Is your staff trained to meet the requirements of these customers?

8.How will you measure success?

9.Is your technology sufficient to deliver the information about these customers?



BIBLIOGRAPHY

Textbooks:Customer Relationship Management, Paul Gray Professor, Jongbok ByunWhy CRM doesn¶t work how to win by letting customers manage therelationship Frederick Newell, Seth Godin.Customer Relationship Management Systems Handbooks Duane E.Sharp

³The Customer-Centered Enterprise: How IBM and Other World-ClassCompanies Achieve Extraordinary Results by Putting Customers First´Harvey Thompson

Websites:http://www.businessballs.com/crmcustomerrelationshipmanagement.hmwww.crminfoline.com/en.wikipedia.org/wiki/Customer_relationship_managementhttp://www.management-crm.com/http://www.crm2day.comwww.management-crm.com/

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