Crm 27aug08

8/8/2019 Crm 27aug08

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Masters in FMS

Co-Taught By : Ms.Dimple,

Assistant Professor, FMS Department

NIFT-Delhi

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What is CRM?

Customer Customer RelationshipRelationship Management Management isis aa

comprehensivecomprehensive strategy strategy and and process process of of acquiring,acquiring,

retaining retaining and and partnering partnering withwith selectiveselective customerscustomers toto

createcreate superior superior valuevalue for for thethe company company and and thethe

customer customer .CRM CRM is is a a management management approach approach a a model model that that puts puts aa

customer customer at at the the core core of of a a company company processes processes and and practices practices..

CRM CRM leverages leverages cutting cutting edge edge technology technology integrated integrated strategic strategic planning planning up up--close close and and personal personal marketing marketing techniques techniques and and Organisation Organisation development development tools tools to to build build internal internal external external relationships relationships that that increase increase profit profit margins margins and and productivity productivity within within a a company company

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CRM has helped today·s businesses by:

providing greater individual customer insight allowing firms to effectively respond to

individual requirements

integrating the business processes of the firm

around individual customers

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BI meets CRM

Customer facing applications

All By Itself

Upcoming Technologies

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Where are we?

Loyalty

Builder

Satisfactionfocussed

Company ³knows

you´ServiceDifferentiationbased on EconomicPotential

Retention focussedEvent reminders

Pleasant

Transactor

EfficientOperations

Ease of doingBusiness

Lack of specificknowledge of customers

Undifferentiatedofferings

Product based

Emphasis onRevenue

MinimalSegmentation

Customer

Centric

Proactive inproduct / servicedevelopment

Voice of customer

Activecollaboration

Learningorganisation

Decision makingsegment driven

Actively grow valueof customerportfolio

World Class

Total experiencemanagement

Real timeinformationmanagement

Precision ininvestments

Co-ordinatedfront office and

back-officeCustomerinvestment focus

Systematicallydefined businessrules

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Customer Need Assessment and

Acquisition

Customerdevelopment

Through

Personalization and

Customization

Customer Equity

Leverage through

Cross Selling and

Up Selling

CustomerRetention and

Referrals for new

Customers

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Team Structure

Role Specification

Planning Process

Process Alignment

Monitoring Process

Employee Motivation

Employee Training

Purpose

-increases effectiveness

-improve efficiency

Programs

-Account Mgmt

-Retention Mktg.-Co-op Agreement

-Strategic Partnership

Partners

-Criteria

-Process Evolution

-Enhancement

-Improvement

Relationship Performance

-Strategic

-Financial

-Marketing

Retention

Satisfaction

loyalty

Communication

Formation Management & GovernancePerformance

CRM Process Framework

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Personal Needs

Expected Service

Perceived Service

Service Delivery

Word - of- MouthCommunications

Management perceptions of

Customer Expectations

Service quality specifications

Past Experience

External Communicationsto Customers

Service

Provider

Customer

SERVICE QUALITY MODEL

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Gap 1 : Not knowing what customers expectGap 1 : Not knowing what customers expect

Gap 2 : Not selecting the right service design standardsGap 2 : Not selecting the right service design standards

Gap 3 : Not delivering to Service StandardsGap 3 : Not delivering to Service Standards

Gap 4 : Not matching Performance to PromisesGap 4 : Not matching Performance to Promises

Gap 5 : Perceived Service and Expected ServiceGap 5 : Perceived Service and Expected Service

Service Quality Gaps Service Quality Gaps

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The Key Stages of CRM

Satisfaction Based

State Culture

Re-active Meet customer needs

Respond to complaints

Minimal evaluation of customer service levels

Performance Based Pro-Active Evaluate customer perception

Identify customer retention

factors

Stage

Commitment

Based

Very Pro-

Active

Evaluate multiple customerneeds

Continuous inbound/outboundflow and feedback

Continuous improvement

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Customer Relationship Management - A Framework

Traditional Approach to

CRM

Customer Contact by:

Telephone, Mail, InPerson

Personal Selling

After Sales Service

Complaint Handling

Account Management

Customer care

Customer Satisfaction

Web-enabled and

Integration Approach

Customer InformationSystem

Customer Database Electronic Point of Sale

Sales force

Automation of Customer SupportProcesses

Call Centres

Systems Integration

Lifetime value of acustomer

Integration with

Technology

Web & Internet

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Image ValueImage Value

Product ValueProduct Value

Services ValueServices Value

Monetary PriceMonetary Price

Time costTime cost

Energy costEnergy cost

Psychic costPsychic cost

TotalTotal

customercustomer

valuevalue

TotalTotal

customercustomer

costcost

CustomerCustomer

delivered valuedelivered value

DETERMINANTS OF CUSTOMER ADDED VALUE DETERMINANTS OF CUSTOMER ADDED VALUE

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Gap Analysis Grid

Attributes thatneed attention -area where

priorities shouldbe focused

Low Priority

Currentcompanystrength

Unnecessary

strengths -

possible

overskill

Low High

High

Low

I

M

P

OR

T

A

NC

E

SATISFACTION

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CRM Programs -1

Program Type: Continuity Marketing Program Type: Continuity Marketing Customer Types :

Mass MarketsMass Markets

Loyalty ProgramsLoyalty Programs

CrossCross--sellingselling

DistributorsDistributors

ContinuousContinuous

ReplinshmentReplinshment

ECR ProgramsECR Programs

Business toBusiness toBusinessBusiness

MarketsMarkets

Special SourcingSpecial Sourcing

Arrangements Arrangements

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CRM Programs -2

Program Type: One Program Type: One--toto--One Marketing One Marketing

Customer Types :


PermissionPermissionMarketingMarketing

PersonalisationPersonalisation


CustomerCustomer

BusinessBusiness

DevelopmentDevelopment

Business toBusiness toBusinessBusinessMarketsMarkets

Key AccountKey Account

Global AccountGlobal Account

ProgramsPrograms

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Program Type: Partnering / Co-marketing


Affinity Partnering Affinity Partnering

CoCo--BrandingBranding


Logistics PartneringLogistics Partnering

Joint MarketingJoint Marketing

Business toBusiness to

BusinessBusinessMarketsMarketsStrategic PartneringStrategic Partnering

CoCo--DesignDesign

CoCo--DevelopmentDevelopment

Customer Types

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Sample measurements for the balanced scorecardSample measurements for the balanced scorecard

Financial MeasuresFinancial Measures

Price PremiumPrice Premium

Volume increasesVolume increases

Value of customer Value of customer referralsreferrals

Value of Cross salesValue of Cross sales

LongLong--term Value of term Value of

Customer Customer

Customer PerspectiveCustomer Perspective

Service PerceptionsService Perceptions

Service ExpectationsService Expectations

Perceived ValuePerceived Value

Behavioral intentionsBehavioral intentions% Loyalty% Loyalty

% intent to switch% intent to switch

# Customer referrals# Customer referrals

# Cross sales# Cross sales

# of Defections# of Defections

Operational PerspectiveOperational Perspective

Right First Time (% hits)Right First Time (% hits)

Right on Time (% hits)Right on Time (% hits)

Responsiveness (% onResponsiveness (% ontime)time)

Transaction Time ( hours,Transaction Time ( hours,days)days)

Innovation

andLearning Perspective

Goals MeasuresGoals Measures

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Myths of CRM

CRM is Primarily about Technology

Successful CRM projects are managed by IT

³Executive buy-in is the key´

³We need to roll this out across the enterprise

ASAP´

³CRM systems are intuitive«. Users will onlyneed some initial hand holding.´

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Kindly Remember

Customer Satisfaction

is

A Moving Target

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Crm 27aug08

Documents

Transcript of Crm 27aug08