Description
It shows emergence,functions,components,implementation and packages of CRM Customer Relationship Management
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
CUSTOMER RELATIONSHIP MANAGEMENT(CRM)
It is built on the simple and basic principle that relationships lead to Commitment and trust and hence create a wider Zone of tolerance leading to Customer Satisfaction and Loyalty.
Views of what is CRM?
1.It is database marketing emphasizing the promotional aspects of marketing linked to data base efforts.
2. CRM focuses on one to one relationship with customers that integrates data base knowledge with long term customer retention programme, as a growth strategy.
3.CRM is an integrated effort effort to identify ,maintain and build up network with individual customers and to continuously strengthen the network for the mutual benefit of both sides,through interactive , individualized and value added contacts over a longer period of time. .
4. The focus of CRM is on cooperative and collaborative relationship between the firm and its customers,which is long term oriented ratehr than short term oriented.
5. CRM aims at “customer selectivity” as all customers are not equally profitable for the company to establish relationships with.
Hence. CRM is a comprehensive strategy and process of acquiring , retaining and partnering with selective customers to create superior value for the customer and the company.
Big picture CRM is a business strategy to select and manage the most valuable customer relationships.
Emergence of CRM
Increased cost of acquiring new customers ? Possibility of increased sales and profit from existing customers. ? Increased competition
?
?
Growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technology that allow producers to directly interact with end users.
.
Emergence of effective data base management systems. ? Popularity of TQM which required very closer and meaningful interactions with customers (and suppliers).
?
JIT and MRP had also underlined the importance of closer relationships with customers (and suppliers) ? Growth of Services ? Expectations can be managed better in an environment of relationships.
?
AREAS OF FOCUS
?
Sales
?
? ?
Customer service
Marketing research
IT/Marketing automation
ROLE OF FUNCTIONS IN CRM
1. SALES – ? provide information on customer and data regarding revenue, profit, cost, order size and order frequency etc.
?
Direct and indirect personal interactions with customers.
2. CUSTOMER SERVICE ? Customer service standards management ? Complaint handling ? Designing customer loyalty programme 3. MARKETING RESEARCH ? study and collect , analyze and interpret data from customer ? Study competitors
4. IT/ MARKETING AUTOMATION
?
Decide on hardware and software for data collection, storage and analysis.
Decide on equipment and technology for customer communication and continuous interactions.
?
3 COMPONENTS/PHASES OF CRM
?
OPERATIONAL
?
ANALYTICAL
?
COLLABORATIVE
PHASES OF CRM- issues in implementation
A. Operational System ? Process ? Standards of delivery ? Structure- People- own or outsourced, large or small or through Call centres etc.
B. Analytical System ? Data base management system – 1. Data warehousing 2. Data mining 3. Data analysis. ? Technology&equipments
C. Collaborative System ? Customer Selection- for relationship based on CPA and LTV (also Categorize the above
on the basis of Present benefits and Future potential benefits- Invest, Re-engineer, Nurture, and Sack.)
?
Channel decision- Personal, telephone, mail, e-mail/Web, Voice mail, Automatic Complaint handling devise etc.
?
Contact programmes- When (date, month,stage) what( memberships ,discounts, new facilities, add-ons, invitations, freebies etc)
BUILDING A CRM SYSTEM
1.
CUSTOMER RELATIONSHIP FORMATION PROCESSES
2. RELATIONSHIP MANAGEMENT AND GOVERNANCE 3. RELATIONAL PERFORMANCE EVALUATION 4.RELATIONSHIP ENHANCEMENT PROCESS
1. CRM FORMATION PROCESS
(A.) Decide on CRM Purpose. Objective could be - financial, marketing, strategic or operational. It could be ? increase profits ? increase satisfaction ? lower distribution costs ? streamlining order processing
decreasing customer acquisition costs ? balance sales/demand ? retaining customers ? improve marketing efficiencies ? saves time _______
?
(B) Select parties for establishing relationship a. Identifying the the characteristics of present customers b. Customer Portfolio c. Categorize the above into (on the basis of Present benefits and Future potential
Benefits.
d. Identifying customers with whom relationships or contacts have to be established.
© CRM programmes
Decide on Value proposition to be offered.
(1). For mass market – feel proud as owner (2). One -to -one marketing- individual account based programmes. Eg. Improved after sales (3). business to business – problem solution, easy and quick availability etc.
2. RELATIONSHIP MANAGEMENT AND GOVERNANCE Decision issues ? Role specification ? team structure ? process alignment ? Communication methods ? Stages of contact. ? Employee motivation ? Monitoring procedures.
3.RELATIONAL PERFORMANCE EVALUATION A balanced score card consisting of any, many or all of the below could be developed for assessment of effectiveness of relationship programme ? distribution costs ? time saved ? sales
profit ? Market share ? Brand equity ? customer satisfaction
?
4. RELATIONSHIP ENHANCEMENT PROCESS Based on ? Fresh criteria and evaluation of LTV. ? New competition ? New technology ? New channels ? New contact programmes ? New process ? New People & Capability
STEPS IN CRM IMPLEMENTATION
1.Map the front stage process -see it is interactive. 2.Map the - back stage process see it is interactive.
3.Develop a customer friendly/oriented Customer Service Manual/standard.
4.Profile the present customers.
5. Customer Portfolio Analysis.Establish criteria for selecting „relationship? customers. 6.Decide on Customer category based on Life time Value (LTV) calculation.
7. Decide on Value Proposition.
8.Decide on data base mgmt Technology/systems. Data collection/receiving technology (formal data collection, enquiries, ? Data warehousing? Data mining ? Data analysis
?
9. Establish Complaint handling system with the help of the above. 10. Decide channels to communicate to customers. 11. Decide on contact programmes and stages of contact.
12. Relationship satisfaction study. 13. Establish loyalty programmes.
Some CRM solutions providers : Siebel, Vantive, Clarify, SAP, Oracle, People soft, Servicesoft, Onyx, Goldmine, Saleslogix, iSeva,Oracle. Some CRM Packages: My SAP, Sales force automation,Customer data integration, Data analysis, e-CRM etc. End.
doc_474882452.ppt
It shows emergence,functions,components,implementation and packages of CRM Customer Relationship Management
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
CUSTOMER RELATIONSHIP MANAGEMENT(CRM)
It is built on the simple and basic principle that relationships lead to Commitment and trust and hence create a wider Zone of tolerance leading to Customer Satisfaction and Loyalty.
Views of what is CRM?
1.It is database marketing emphasizing the promotional aspects of marketing linked to data base efforts.
2. CRM focuses on one to one relationship with customers that integrates data base knowledge with long term customer retention programme, as a growth strategy.
3.CRM is an integrated effort effort to identify ,maintain and build up network with individual customers and to continuously strengthen the network for the mutual benefit of both sides,through interactive , individualized and value added contacts over a longer period of time. .
4. The focus of CRM is on cooperative and collaborative relationship between the firm and its customers,which is long term oriented ratehr than short term oriented.
5. CRM aims at “customer selectivity” as all customers are not equally profitable for the company to establish relationships with.
Hence. CRM is a comprehensive strategy and process of acquiring , retaining and partnering with selective customers to create superior value for the customer and the company.
Big picture CRM is a business strategy to select and manage the most valuable customer relationships.
Emergence of CRM
Increased cost of acquiring new customers ? Possibility of increased sales and profit from existing customers. ? Increased competition
?
?
Growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technology that allow producers to directly interact with end users.
.
Emergence of effective data base management systems. ? Popularity of TQM which required very closer and meaningful interactions with customers (and suppliers).
?
JIT and MRP had also underlined the importance of closer relationships with customers (and suppliers) ? Growth of Services ? Expectations can be managed better in an environment of relationships.
?
AREAS OF FOCUS
?
Sales
?
? ?
Customer service
Marketing research
IT/Marketing automation
ROLE OF FUNCTIONS IN CRM
1. SALES – ? provide information on customer and data regarding revenue, profit, cost, order size and order frequency etc.
?
Direct and indirect personal interactions with customers.
2. CUSTOMER SERVICE ? Customer service standards management ? Complaint handling ? Designing customer loyalty programme 3. MARKETING RESEARCH ? study and collect , analyze and interpret data from customer ? Study competitors
4. IT/ MARKETING AUTOMATION
?
Decide on hardware and software for data collection, storage and analysis.
Decide on equipment and technology for customer communication and continuous interactions.
?
3 COMPONENTS/PHASES OF CRM
?
OPERATIONAL
?
ANALYTICAL
?
COLLABORATIVE
PHASES OF CRM- issues in implementation
A. Operational System ? Process ? Standards of delivery ? Structure- People- own or outsourced, large or small or through Call centres etc.
B. Analytical System ? Data base management system – 1. Data warehousing 2. Data mining 3. Data analysis. ? Technology&equipments
C. Collaborative System ? Customer Selection- for relationship based on CPA and LTV (also Categorize the above
on the basis of Present benefits and Future potential benefits- Invest, Re-engineer, Nurture, and Sack.)
?
Channel decision- Personal, telephone, mail, e-mail/Web, Voice mail, Automatic Complaint handling devise etc.
?
Contact programmes- When (date, month,stage) what( memberships ,discounts, new facilities, add-ons, invitations, freebies etc)
BUILDING A CRM SYSTEM
1.
CUSTOMER RELATIONSHIP FORMATION PROCESSES
2. RELATIONSHIP MANAGEMENT AND GOVERNANCE 3. RELATIONAL PERFORMANCE EVALUATION 4.RELATIONSHIP ENHANCEMENT PROCESS
1. CRM FORMATION PROCESS
(A.) Decide on CRM Purpose. Objective could be - financial, marketing, strategic or operational. It could be ? increase profits ? increase satisfaction ? lower distribution costs ? streamlining order processing
decreasing customer acquisition costs ? balance sales/demand ? retaining customers ? improve marketing efficiencies ? saves time _______
?
(B) Select parties for establishing relationship a. Identifying the the characteristics of present customers b. Customer Portfolio c. Categorize the above into (on the basis of Present benefits and Future potential
Benefits.
d. Identifying customers with whom relationships or contacts have to be established.
© CRM programmes
Decide on Value proposition to be offered.
(1). For mass market – feel proud as owner (2). One -to -one marketing- individual account based programmes. Eg. Improved after sales (3). business to business – problem solution, easy and quick availability etc.
2. RELATIONSHIP MANAGEMENT AND GOVERNANCE Decision issues ? Role specification ? team structure ? process alignment ? Communication methods ? Stages of contact. ? Employee motivation ? Monitoring procedures.
3.RELATIONAL PERFORMANCE EVALUATION A balanced score card consisting of any, many or all of the below could be developed for assessment of effectiveness of relationship programme ? distribution costs ? time saved ? sales
profit ? Market share ? Brand equity ? customer satisfaction
?
4. RELATIONSHIP ENHANCEMENT PROCESS Based on ? Fresh criteria and evaluation of LTV. ? New competition ? New technology ? New channels ? New contact programmes ? New process ? New People & Capability
STEPS IN CRM IMPLEMENTATION
1.Map the front stage process -see it is interactive. 2.Map the - back stage process see it is interactive.
3.Develop a customer friendly/oriented Customer Service Manual/standard.
4.Profile the present customers.
5. Customer Portfolio Analysis.Establish criteria for selecting „relationship? customers. 6.Decide on Customer category based on Life time Value (LTV) calculation.
7. Decide on Value Proposition.
8.Decide on data base mgmt Technology/systems. Data collection/receiving technology (formal data collection, enquiries, ? Data warehousing? Data mining ? Data analysis
?
9. Establish Complaint handling system with the help of the above. 10. Decide channels to communicate to customers. 11. Decide on contact programmes and stages of contact.
12. Relationship satisfaction study. 13. Establish loyalty programmes.
Some CRM solutions providers : Siebel, Vantive, Clarify, SAP, Oracle, People soft, Servicesoft, Onyx, Goldmine, Saleslogix, iSeva,Oracle. Some CRM Packages: My SAP, Sales force automation,Customer data integration, Data analysis, e-CRM etc. End.
doc_474882452.ppt