Customer Relationship

Management (CRM)
BBM – 404
(Specialization)

Unit – 1
Introduction to CRM

1. Evolution of Customer Relationship Management (CRM)

2. 2. Types of CRM (on the basis of programmes)

3. 3. Types of CRM (on the basis of application)

4. 4. Significance and importance of CRM in Modern Business Environment

Evolution of Customer Relationship Management (CRM):

What is a CRM? (intro)

CRM stands for “Customer Relationship Management” and refers to all strategies, techniques, tools,
and technologies used by enterprises for developing, retaining and acquiring customers. Over the last
few decades, customer management technologies like Customer Relationship Management (CRM)
software have become an integral part in organizations, functioning as a way to provide and optimize
a quality customer experience for both their present and future customers.

CRM Software aims to organize, analyze, and understand the relationships and interactions between a
business and its customers, both current and potential. CRM’s are usually thought of in their most
common form, the CRM system or CRM software. Regardless of what type of implementation of a
CRM your organization utilizes, the CRM framework helps in improving the sharing and collaboration
of business information like contact management, account planning, sales management, and
productivity .
CRM is all about:

➔ Acquiring(get, earn, receive, obtain,etc.) customers

➔ Keeping customers
➔ Growing your customers
➔ Gaining customer insight Customer insight refers to having a deep understanding of your
customers, their behaviors, their preferences and even their needs.
➔ Interacting with your customers
➔ Building everlasting relationships
➔ Deliver customer value Customer value measures a product or service's worth and compares it
to its possible alternatives. This determines whether the customer feels like they received
enough value for the price they paid for the product/service.
➔ Acquiring a sustainable competitive advantage
➔ Growing your business
Evolution:

By the time customers walk into your business – or log-on to your website or call your sales center –
most already know what they want and how much they’re willing to pay and they now have the upper
hand in most purchase transactions.

However in the early 1990s there were door to door services in order to approach the customers
where the sellers had to please their customers. This was the earlier version of business.

Then mass marketing was introduced which replaces the intimacy of a direct sales force. The
companies have implemented call centers and sales force automation software and customer sales
representative training. However, while improving the sales and service components of customer
transactions, companies have largely ignored the very piece required to attract customers in the first
place.

Later, targeted marketing evolved where the marketing techniques were more customized such as use
of direct emails and telemarketing.

And the latest and the next step is CRM, a concept supported by more advanced and latest
technologies. We’re not saying that the last decade’s investment in CRM has been wasted. However,
companies haven’t reached the end of the CRM road. Today, the challenge is to take this evolution
one step farther – to focus on building lasting
and profitable customer dialogues at all inter- action and transaction touch points to build customer
and brand value. We believe the modern CRM will bring about the ultimate transformation of
customer experiences – not just by strengthening sales and service or even promoting interactions
with your customers – but by creating a series of “intelligent conversations” that build over time into a
long-term, meaningful dialogue.
The current picture of how modern CRM look:
 An Ecosystem Built Around the Customer
The modern CRM is more like an ecosystem built around the customer.

The CRM has become more interpreted, it not only focused on one department, goal or service but it
is much more than that. CRM focuses on creating and developing superior customer value. The main
goal of CRM is not just to have a CRM strategy but also to create and deliver superior customer value
with the help of different departments ( sales department, management department, service
departments, store departments and marketing departments etc ), people numbers etc.

Types of CRM (on the basis of programmes):

There are four types of Customer Relationship Programmes that enable the company to Win back
customers who have defected or are planning to create loyalty among existing customers. They
are:

1. Win Back or Save: This is the process of convincing a customer to stay with the organization while
they are discontinuing service or convincing them to rejoin once they have left. Marketers spend a lot
of time and money trying to find new customers to replace ones they lose. The average company
loses between 20 and 40 percent of its customers every year. Of the four categories of campaigns, win
back campaigns are four times more likely to succeed, if contact is made within the first week
following a defection that if it is made in the fourth week. So how can you win them back? What to
do? Few things that we can do are:
 1. Hold a conversation. ...
2. Get personal. ...
3. Prompt a purchase. ...
4. Lay off the hard sell. ...
5. Send timely reminders. ...
6. Reward customer loyalty. ...
7. Ask for customer feedback.

Selectivity is another aspect of a successful win back campaign. Leading organizations often filter
prospects for contacting to exclude customers who have frequently switched , who have bad credit
ratings or whose usage is low.

To preserve the revenue stream and prevent the customer from becoming a “traditional” win back
candidate, a few organizations are now including partial disconnects and reduced usage customers in
their win-back campaign.

2. Prospecting: Prospecting is the effort to win new, first time customers. Apart from the offer itself,
the three most critical elements of the prospecting campaign are segmenting, selectivity and sources.
It is essential to develop an effective-need based segmentation model that allows the organization to
effectively target the offer.
Prospecting is the effort to win new, first time customers. In sales, the term prospecting designates a
process of identifying and creating a database of potential customers, also known as prospects. This
process is also called lead generation. The primary goal of prospecting is self-explanatory - the bigger
your pool of prospects, the more of them you will be able to convert into real customers. There are
many techniques which help salespeople find potential clients, such as cold calling or emails. You can
also do so with built-in tools to generate prospects from email, social networks, telephony, website
visitors, paid advertising and other channels. Email and telemarketing solutions as well as quotes,
invoices and sales funnels are available in prospecting software as well.

Apart from the offer itself, the three most critical elements of the prospecting campaign are
segmenting, selectivity and sources. It is essential to develop an effective-need based segmentation
model that allows the organization to effectively target the offer. Without this focused approach, the
organization fails to achieve an adequate acceptance of the offer or spends too much on promotions,
advertising and concessionary pricing. Selectivity is important to prospecting as it is to win back.
Need-based segmentation defines what the customer wants from the organization and profit-based
segmentation defines how valuable the customer is and helps the organization decide how much it is
willing to spend to get the customer. Pre-scoring a consumer credit rating is one of the techniques
that organizations can use to determine the latter.

3. Loyalty: Loyalty is the third category in which it is most difficult to gain accurate measures.
Customer loyalty is the inclination for an individual to favor a particular product, brand or service.
Loyalty is the third category in which it is most difficult to gain accurate measures. Customer Loyalty is
the inclination for an individual to favour a particular product, brand or service. Gaining customer
loyalty cannot be a one-off thing. A brand needs a focused and integrated plan to retain its best
customers - put simply, it needs a customer loyalty program. A loyalty program is a system of
structured rewards given to customers, usually in exchange for desired behaviors, with the goals of
increasing customer loyalty and collecting customer data.

A loyalty program typically involves giving customers free merchandise, early access to sales, products
and coupons. Loyalty programs have been proven to be extremely successful in driving repeat sales
for brands. The "Get With The Program" report states that all other things being equal, 72% of
consumers will buy from retailers with a loyalty program over one without.

The organizations trying to prevent customers from leaving, uses three essential elements: Value
based and Need based segmentation and predictive churn models. Value-based segmentation allows
the organization to determine how much it is willing to invest. Once the customer is determined to
belong to the value based segmentation screening, the organization can use need-based
segmentation to offer customized loyalty programs. Affinity programs such as airline miles and hotel
points are some of the most popular methods. However, the organization focuses more on the needs
of individual customers, they find that they are able to achieve the same loyalty with less investment.

4. Cross Sell/Up Sell: increasing the wallet share or the amount the customer spends.

i) Cross sell: it is a strategy where you invite your customer to buy related goods or
complementary products or items.
ii) Up sell: It is a practice of encouraging the customer to make a purchase of a higher product
or even more expensive.
The Cross –sell/ Up sell is also known as increasing the wallet share or the amount the customer
spends. Upselling is the practice of encouraging customers to purchase a comparable higher-end
product than the one in question, while cross-selling invites customers to buy related or
complementary items. Though often used interchangeably, both offer distinct benefits and can be
effective in tandem. Upselling and cross-selling are mutually beneficial when done properly, providing
maximum value to customers and increasing revenue without the recurring cost of many marketing
channels. Cross- Sell and Up-sell campaigns are important because the customers targeted already
have a relationship with the organization. In financial terms, when a customer accepts a cross –sell or
up-sell offer, that organization begins to reap more profits.

The purpose is to identify complementary offerings that a customer would like. For instance, a basic
long-distance customer could be a candidate to buy internet access. Up selling is similar but, instead
of offering a complementary product, the organization offers an enhanced one. For example, If the
customer has used his credit card a few times in an apparel shop. CRM tool will enable the credit card
company to send his customized mailers on apparel offers including special incentive schemes.

http://managementportal.blogspot.com/2012/05/types-of-customer-relationship.html
Types of CRM (on the basis of application):

1. OPERATION CUSTOMER RELATIONS MANAGEMENT: Operational CRM is a platform that

focuses on simplifying sales and marketing interactions with clients. Operational CRM also
offers automation of the process, specifically, the ability to perform tasks more effectively and
with fewer steps. Operational CRM can help streamline the operations of sales, marketing, and
service over the entire consumer journey:
● SALES: Sales functionality includes your company’s sales team’s roles, as they operate
through a lead list. From the leads, the team recognizes prospects that then become the
to-do-list of sales reps to turn all prospects into purchasing and loyal customers.
● MARKETING: This portion involves identifying the marketing team on the lead list and
how best to target them.analytical CRM is designed to analyze deeply the customer’s
information and data and unwrap or disclose the essential convention and intension of
behavior of customers on which capitalization can be done by the organization
● SERVICE: Service includes the support staff that manages contact and customer
communications from time to time to answer questions, address issues that occur, and
process requests for assistance.analytical CRM is designed to analyze deeply the
customer’s information and data and unwrap or disclose the essential convention and
intension of behavior of customers on which capitalization can be done by the
organization

2. ANALYTICAL CUSTOMER RELATIONS MANAGEMENT: Customer Analytics- This is the base

analytic used to analyze customer knowledge base. It provides a better view of customer
behavior and by modeling, assessing customer values and assessing customer’s portfolio or
profiles and creates an exact understanding of all the customers.Marketing Analytics- This helps
discovering new market opportunities and seeks their potential values. It also helps in
managing marketing strategies and scale and plan marketing performance at district, regional
and national levels. Marketing analytics also focus on campaign management and planning,
product analysis and branding.Sales Analytics- Sales analytic provides an essential environment
to plan, simulate and predict sales volumes and profits by constantly analyzing organizational
sales behavior. It helps in pipelining all the selling opportunities in an efficient way by indulging
and improving the sales cycle.Service Analytics- Analytical CRM has major role in enhancing the
services which answering all the questions regarding customer satisfaction, quality and cost of
analytical CRM is designed to analyze deeply the customer’s information and data and unwrap
or disclose the essential convention and intension of behavior of customers on which
capitalization can be done by the organization.

3. COLLABORATIVE CUSTOMER RELATIONS MANAGEMENT: Collaborative CRM systems – as the

name implies – allow you to establish communication between various entities that are related
to customer service. This might include different departments of your organization (i.e.,
marketing, sales, customer reps, technical support), external stakeholders, vendors, suppliers,
 and distributors.

Features and benefits of the Collaborative CRM type:

● Interaction management: The better you know your customers, the better you will be able to
serve them, and a collaborative CRM makes that possible. Not all teams interact with clients
directly; that’s obvious. A centralized access point to customer data and interaction history
makes it easier to support them.
● Channel management: Customers will connect or contact your company through many different
channels. So it becomes essential to keep track of their preferred method of communication.
Collaborative CRMs records how your customers contact you and enable you to employ the
same channels to get back to them.
● Document management: Collaborative CRMs also support document management systems, so
that you don’t have to worry if any of your team needs to access any formal documents like
contracts, technical docs, proposals, etc.

Significance and importance of CRM in Modern Business Environment:

Increased Sales/Enhanced Sales: With the introduction of CRM, the business develops healthy relations
with the customers. And as they receive advice based on their preferences, they are easily convinced to
buy the product or use the service which ultimately leads to increase in sales for the business as a
whole. Managers should Identify the customer’s specific requirements and help to grow the sales.
While consumer apprehension improves immensely, the business can sell different products
highlighting alternatives and suggesting enhancements. Moreover, Based on the data, business
concentration over profitable customers improves, a CRM lets the company identify who among the
customers are more profitable, and who are not.
Effective Marketing: A business can market its products/services to the correct audience aiming
specifically on the customer needs. This also helps in building a personal approach with favorable
clients and development of new products leading to a better business in future.

Enhanced Customer Satisfaction: Great marketing techniques prove to the customer that they are our
prime focus and as they get personal attention and all their issues are addressed directly they feel
satisfied and thus they do not think of switching over in any scenario. CRM can be useful in such
scenarios. It helps your support team to track the customer queries. Also, it is helpful for customers as
well to generate and track the status of their query. Thus, excellent marketing and sales shall lead to
enhanced customer satisfaction. This is because a company with the help of a CRM, effectively markets
its products to its target audience. It corresponds accurately to the client's needs. A more personalized
approach leads to improved goods and services in future for the customers.

Improved Profitability: Customer satisfaction is the key to improved profits. It is only the customer who
pays for your services. Thus, an improved customer satisfaction generates more profits to the
organization. Moreover, a CRM helps the firm cut down unproductive ways of sales and apprehend
only the profitable ones.
CRM for Enhanced Communication: In the absence of CRM, there used to be issues where a specific
employee used to handle a customer and in case of this employee’s unavailability, the customer had
to explain all the matter to someone new. A Fresh start was to be done. But now, with the presence of
CRM, the whole Customer Data is on Cloud and there can never be any pauses or gaps due to the
absence of an employee. Thus, the communication becomes very simple and effective and the process
hassle-free.

Cost Effective: Implementing CRM strategies is not an easy task. A lot of resources are utilized such as
money, time and employees. Various techniques would have been considered and then analyzing the
cost-benefits for CRM. The initial investment for CRM would be considered as too high but the
benefits are even higher. To keep the customers happy, you should have a better understanding of
their needs and that is what CRM does. It provides easy communication, quality customer service and
organized data. Also, with the help of the dynamic reports generated from the CRM, you can boost
your sales. Thus, in order to have a business that can have an ongoing concern, it is a must to have
CRM to hold the customers and keep them tied up to the products and services the business has to
offer takes it cost effective in the long run.

Automation of Daily Tasks: Achieving the sales targets is not an easy task. Numerous activities form
part of a single sale. Once a sale is done it’s not just that a product is gone and money comes in.
Various documents, invoices, etc. are to be generated and then a single transaction is completed. We
can imagine the level of these routine activities as there are too many sales in a single day. With the
integration of CRM, all these things can be done automatically. The sales team can focus on bringing
in more customers instead of worrying about the daily tasks.
Long Term Success: Ultimately it is the profit, reputation and goodwill a business earns in the long
term using a CRM. CRM is a success tool that comes into use at every level of your business. Right
from planning strategies to building products for customers; from marketing sales, satisfaction and
goodwill, this one is for all. It helps businesses assess the consumer market precisely through the data
and knowledge it wears.
Unit 2
-Introduction to CRM and planning:

Customer relationship management (CRM) is a process in which a business or other organization

administers its interaction with customers, typically using data analysis to study large amounts of
information. CRM system compile data from a range of different communication channels, including a
company’s website, telephone, email, live chat, marketing materials and more recently, social media.
They allow businesses to learn more about this target audiences and how to best for their needs, thus
retaining customers and during sales growth. CRM may be used with past, present or potential
customers. A CRM system is not only used to deal with the existing common filfalls associated with
new business process and technology. Some of the planning components are as follows:

I. Data-Driven Culture: using data to drive business processes and achieve organizational goals is
more then just a strategy to improve upon and learn customers relationship.
II. Executive Support: in modern economics, the customers drive business more then ever before.
Leadership support for customer relationship initiatives has become exponentially more
important because of the impact on CRM strategy has on all business operations.
III. Communication: it is the essential communication effectively with the appropriate stakeholders to
prepare for the type of change that need customer but it is also useful in acquiring new
customers. Theprocess first starts with identifying a customer and maintaining all the
corresponding details into the CRM system which is also called ‘operating of business’ .The
sales and field representatives then try getting business out of the these customer relationship
management strategies have given a new outlook to all the supplies and customers to keep the
business going under an estimable relationship by fulfilling mutual needs of buying and selling.
CRM planning requires strategies and execution before new business process and technology
can be introduced. This preparation reduces resistance to change and minimize the impact of
Customers relationship strategies bring to your team.
IV. Feedback: the employees taking action on customer relationship strategies provide valuable
insight. This experience in the trends with the existing CRM process and CRM technology is
relevant to the planning phase.

-Strategy for CRM

What is a CRM strategy?

A Customer Relationship Management strategy is a plan to grow sales and improve customer service
through a combination of processes, actions, and technology. It typically involves the sales, marketing,
and customer service functions of a business.
-Reasons for CRM strategy:

A good CRM strategy will help you:

● Provide an enjoyable customer experience at all touchpoints of the customer journey ●

Strengthen collaboration between sales, marketing, and customer service teams ● Clearly
and quickly identify the most worthwhile leads and opportunities ● Keep track of your leads
and customers as they move through the buyer funnel ● Carry out targeted marketing
campaigns
● Produce concrete figures and data insights to inform and guide your future business strategies

-CRM strategy (create):

1. Define your CRM strategy vision and goals: The first thing to do before creating a CRM strategy
is to revisit your overall business strategy and high-level business goals. Create a vision of what
you want to achieve from the CRM strategy. That way it has a clear purpose from the very
beginning.
2. Define your target customer with buyer personas: Create a buyer persona that represents your
ideal customer. Make it as detailed as possible. Include information such as demographic and
behavioral characteristics, as well as interests, challenges, and aspirations.
3. Define your customer journey: To master customer relationship management, you need to know
each and every step of the customer journey. Then you need to ensure a top notch customer
experience at each of those touchpoints. Start at the beginning. Map every single customer
interaction from the moment they first discover you. It might be through digital ad campaigns,
email marketing, direct contact with team members, or other processes. This is where you’ll
highlight areas for improvement and establish who is responsible for what.
4. Establish the processes for a 360° customer experience: Your CRM strategy planning so far
should have highlighted the areas that need improvement. Now you’re going to look at the
structure of your internal processes. Do you have the resources in place to provide a 360-
degree customer experience? Do an audit of roles and responsibilities to check all the
necessary bases are being covered . Here are examples areas to optimize processes:
i. Presales
ii. Sales processes:
iii. Customer relationship management:
iv. After-sales
5. Study the market and know your positioning: It’s always a good idea to look to the
competitivelandscape for inspiration when developing CRM strategies. Ask yourself:
i. Where does your company fit into the market?
ii. What is your unique selling proposition (i.e. what makes you different from others in your space?)
iii. How do your competitors differentiate themselves?
iv. What opportunities exist?
v. Can you learn anything about how your competitors handle customer relationships?
vi. What are the trends in your industry right now?
6. Knowing your product or service: Take the time to revise and develop your product/service
narrative and elaborate your value proposition. What are the messages you want to transmit?
What benefits do you want to highlight? Why should a customer choose you over your
competitors? Communicate this narrative internally and implement
employee training where necessary. Everyone needs to be on the same page, relaying the same
message.
7. Invest in CRM software: One of the best ways to drive forward your CRM strategy is to invest in
a CRM software for your business. It’s great for collaborating between teams, storing customer
data and keeping track of all interactions between you.Define your CRM software needs by
evaluating your existing business processes and getting input from teams. The main factors to
be considered when choosing a CRM software are price, capabilities, and ease of use. It’s also
important that your CRM can integrate with your existing tools.
8. Setting Key Performance Indicators (KPIs) for each team: All strategic actions need to be backed
up by figures and data – and your CRM strategy is no exception. You need to be able to
measure its progress. You outlined your CRM strategy goals back in Step 1. Now you’re going
to give your team some concrete targets to work towards. When setting objectives for your
teams remember to make them S.M.A.R.T (i.e. Specific, Measurable, Achievable, Realistic, and
Time-bound).

-Process of Segmentation:

Identifying the target market starts with segmentation. Once you understand your customers and are
able to segment the market, you can identify the target market with the most potential. There is a
process of segmenting the market and then selecting and reaching the target segments. The process
has five steps as shown in the figure below:

1. Group Potential Buyers into Segments: There are five main criteria to use when forming the
segments:
a. Potential for increased profit: Segmentation is costly. Businesses apply segmentation only
if it will lead to higher profits. If there is no chance of increasing profits, then there is no
need for segmentation.
b. Similarity of needs of potential buyers within a segment: Potential consumers who are in
the same segment must share similar needs and wants. Businesses take marketing
actions towards each segment and they expect to get the same reaction from the
consumers who are in the same segment.
c. Difference of needs of buyers among segments: Potential consumers who are in different
 segments must have different needs and wants. If they share similar needs and wants,
they should be in the same segment. Different segments require different marketing
actions, which means greater costs.
d. Potential of a marketing action to reach a segment: Reaching a segment requires
effective marketing actions. If the actions are very complicated or impossible to take
then there is no point in segmentation.
e. Simplicity and cost of assigning potential buyers to segments: As mentioned earlier,
segmentation is costly. It requires research to identify specific needs of potential buyers.

2. Group Products to be Sold into Categories: Businesses pay close attention to the differences in
the needs of consumers in each segment. In order to address the needs in the best way
possible, businesses create differentiated products. These products could be different based on
the features of the product, pricing, distribution, etc.

3. Develop a Market-Product Grid and Estimate Size of Markets.

4. Select Target Markets: Once you develop a market-product grid, it is fairly easy to identify the
target market from the grid based on the highest market size estimates. 5. Take Marketing Actions
to Reach Target Markets: Identifying target markets makes it possible to take actions towards the
segments we include in the target market. Based on the characteristics of each segment, marketers
decide on the best tools to reach out to these segments.

-Choice of Technology in CRM:

While a software application can't completely replace the significance of effective face to face
customer service practices, the importance of CRM technology is widely accepted in the modern
business world. CRM software is designed to allow companies to facilitate effective marketing, sales
and data management efforts. The basic building block of a CRM technology application is a customer
database. Database allow companies to store key information about their customers and prospects.
Some CRM applications are very basic, while others are complex and sophisticated. Instead of keeping
a database that is nothing more than a targeted mailing list, many companies opt to utilize a
sophisticated CRM database and report writing system to store and access a great deal of information
about customers and prospects. CRM systems can be set up to track as much or as little information
about a company's client base and prospect lists as desired, presuming the desired information is
available. The power of a CRM software application does not lie with storing information. Key
information has to be in the database for the system to be useful. A CRM technology application
allows companies to manage even the largest customer and prospect databases in an efficient and
effective manner. When you have a comprehensive customer database with key information, you are
able to leverage that information for marketing purposes. CRM technology can help build positive
customer relationships. A good CRM system will allow you to access a great deal of information about
your customers quickly and efficiently. Rather than digging through paper files or seemingly endless
spreadsheets, CRM technology allows you to access the information you need with just the touch of a
few keyboard buttons. However, choosing a CRM technology system is a big decision that should not
be made lightly. Shop around before purchasing a system and make sure that you are aware of how
the database is structured and what kind of report writing capabilities are included. There are a
number of off-the-shelf CRM software applications on the market. it is important to choose an
application that is appropriate for the size and type of company that you are responsible for running.
-Choice of organizational structure of CRM:

CRM is the organization structure design for two-sided relation to customer. CRM is divided by 3
major section including operational, analytical and relational. CRM can be considered in two trade &
work and cost views. Out comes resulting from implanting CRM cause growth in the organization and
its more productivity. CRM, in effect, is the organization structure design for connection to customer
from outside to inside and vice versa and creating double-sided value via the process. Mutual
costumer relations will be performed via physical section of behavior with him/her and through
associated contact with customers and making connection. For a special sample of the mutual
behavior, all essential data, series commercial law of strategy implementation are provided via EAI
layer . This makes the customer capable to find constant and sequential experiences in his/her own
suitable level to creative connection and at the time doesn’t consider the contact point. As soon as the
mutual relationships are done and strategies are performed , the organizations purpose has been
specified and now the conclusion is developed to select the best way of increase in value for giving to
customer and getting his/her satisfaction.

CRM is classified to 3 main sub-systems: operational – analytical and relational.

1. Operational CRM: Includes customer face to face software likes sale force automation,
commercial marketing automation, supporting automation and customer protection. 2. Analytical
CRM: Analytical CRM gets, stores, extracts. Interprets and reports the customer data. In world
today there is frequent change. Changes velocity influences directly over all commercial
aspects.Organizational CRM strategy also is affiliated to informational infrastructure which stores,
analyses and handles customer related data in a wide level .4 main sections of data technology in a
CRM as follows:
● Data storage
● Management system of data base
● Data exploration
● Commercial analysis software

Inside of each main section of the subsystems and applied software exist which every one of
them handles part of associated actions of CRM.
 3. Relational CRM: Including all various customer relations to organization like Email, telephone,
fax, web pages. Also software such as relation management software to parties is discussed in
this section. In effect, the section is communications center which provides ways like nervous
networks between customer and its supplier's affaires management software or exchanges
center to customer. In other word each action of
CRM per se provides an exchange to customer and is a connection canal. Kiang ham describes
the relational tools of a CRM:
a. Project Management
b. Project Collaboration
c. Chat and Instant Messaging
d. E-Learning Systems
e. Web cast Systems
f. Broadcast Tools
g. Web Audio and Radio
h. Web Video and Cams
i. Customer Support
j. Interactive Sales Suppor

-Understanding market enterprises

Understanding your market - both your customers and your competitors – is essential if you're going
to build a successful business. Finding out what your customers really want will help you improve your
products and services to meet their needs.

-Why undertake market research?

Many businesses don’t realise that digital market research activity can increase your annual turnover
by over a quarter.1 Carrying out market research will:

1) Give you the information you need to plan

2) Reduce the risk of making the wrong decision
3) Identify potential new openings
4) Help improve your marketing, selling points and create effective advertising
and Give you ideas for product and service development
5) Help you better understand the competition you face
6) Inform your business plan.

You need to understand how business is done in your industry, the ways products are sold and
delivered, and what discounts and credit arrangements are offered by other suppliers.

-What is enterprise marketing?

Enterprise marketing can be defined as company-wide customer relationship management and lead
generation through multichannel, integrated marketing campaigns targeted toward large enterprises,
usually doing over $100m ARR.

While that might sound like “marketing in general” to some of you, things are a bit more nuanced for
enterprise marketers than they might be for generalists.

-Some of the things that differentiate the needs and realities of enterprise marketing are

You work with a larger team of decision-makers: This means managing a broader range of
expectations, personalities, challenges and opportunities in driving action and ultimately closing deals.
Things can get heavily segmented by departments, locations or other factors: This means you often
have to define and sell to one group at a time. While you have to have specific, granular focus across
segments, the bigger picture always looms: Even as you break down sales barriers and build
relationships one segment at a time, you have to be thinking about how to unify the whole. Lots of
tools must be taken advantage of to keep you sane and keep your projects performance-driven:
Fortunately, marketing automation platforms and other tools can help you keep track of your
performance, reach the right people and build the cross-departmental collaboration, content
execution and audience relativity that’s critical to achieving results.

-When and how should I focus on enterprise marketing?

Enterprise marketing can be daunting and may even seem unmanageable, especially if you and the
people you work with aren’t prepared to make it work. Luckily, it doesn’t have to be that way. In fact,
you can establish systems and norms across your teams and those you work with to set yourselves up
for success.

Unit-3

What is business oriented solutions?

It is a strategy that focuses or way on how to deal with customers properly. There should be
centralized way that a company should have for them to be able to maintain their customers trust on
them. It is not easy to please the customers but this strategy would greatly help if a certain company
used this.

How and what are the benefits?

It has many benefits especially when it comes to dealing with the customers. It greatly affects the
company’s way of dealing with them and on how to make them stay and be satisfied of products and
services that the company offers.

The following are some of the benefits of business oriented solutions:

1. Customer relationship improved.Making the customers satisfied. By using this strategy, all
kinds of dealing would be done properly in an organized manner. Customer would be given
the chance to give there feedbacks if they like the product or service or not.
2. Customer service is better.Using CRM in a business would give the company a chance for the
customers to get their personalized relationship giving them the ability to be treated properly
and equally.
3. Trace the target customers.It helps trace who are the customers who need products on
services. It is not only used to stone the contacts of the customers but it is used to make the
productively increase.
4. Time management is more effective.Since CRM used technology to function, the company is
able to spend time wisely. They have a balanced time to eaten the customer’s need because using
CRM helps them to look for systematic way on how to deal with them.
5. Important bits of information are kept. It is very important for companies either big or small
to keep their record in a safe place. Using CRM would help them to keep important files and
record not only of the customers but also their own important records that they need.
6. Customers are protected. Customers today are looking for companies that do not only cater to
their needs but also companies that can protect their night .it is not right to abuse the right of
the customers .they should be treated properly so that they would because loyal to you and if
customers know that they are being prioritized they would also make ways to give back to the
company.
7. Improving customer relationship is not an easy task for many companies. Finding customer
would take time that is why using CMR is very helpful to trace the political customers. Plus,
using CRM is also an advantage compared to those who are not utilizing it.

- What is project management (CRM)? A project management (CRM) helps to keep track of all the
details, so if risk do crop up during the project, the strategy can change with project management
ensuring that the project is part of the strategic realignment.
-What are the importance of project management?
The important of project management are:
1. Strategic alignment. A project management helps you keep track of all the details, so if risks
do crop up during the project, the strategy can change with project management ensuring
that the project is part of the strategic realignment.
2. Leadership. Project management adds essential direction adds essential direction and
leadership to projects. With everyone’s task clearly delineated, there is no confusion about
who is doing what and the lead project management can keep everyone in line, taking
responsibility for the whole project’s success.
3. Clean objectives. Clear objectives and accomplishment of tasks by set deadlines are required,
breaking up the project into smaller chunks. Your CRM help you monitor and set this
deadline, as well as track progress.
4. Project planning. A project that comes in late and over budget is not what you want. Once a
sense of end up being compromised, along with quality.
5. Quality control. An effective project management CRM provides consistent quality. Without
it, schedules can be tightened, processes hurried and tasks vastly underestimated. Correct
project management lists quality at set stages.
6. Risk management. Project management also allows the correct management of risks and
prevents them from becoming long-term issues. As they occur, they can analyzed,
quantified, and mitigation or contingency plans put in place.
7. Orderly process . This involved everyone doing what they do best at the correct time and in
accordance with the project lifecycle. Without clear and orderly processes in place, projects
way fail and employee attrition increase.
8. Progression tracking. This involves continuous oversight and the tracking place, if it does start to
veer off course, the quicker you can get it back on track.

-What are project management features?

Some of the features are:

i) Agile support
ii) Budget control and management.
iii) Effective planning of the project.
iv) Tools to enable easy communication.
v) Tracking of important milestones.
vi) Tracking of portfolios’

-What is channel Management?

It is defined as a process where the company develops various marketing techniques as well as sales
strategies to reach the widest possible customer base. The channels are nothing but ways or outlets
to market and sell products.

-Benefits/importance of CRM in banking Sector

1. Improved Customers Retention :Gaining a new customer is a critical job for banks. In this
tough market conditions, retaining the existing customer becomes crucial to have a grip on this
competitive sector. Customers’ retention can be accomplished through enhanced customer
satisfaction and loyalty. CRM in banking is capable of retaining customers. It can convert a mere
account holder into a loyal, satisfied and fruitful customer.

2. Boosted Sales :Sales have become an important part of banks with the CRM evolution. CRM
assists banks in sales management with its sales module. It helps you identify and convert leads
into prospective customers. CRM assists in the acquisition of new customers through the use of
past track records and value they brought to the bank.

3. More Effective Marketing Efforts :CRM makes the efforts of marketing department more
productive. CRM generates report highlighting customers’ touch and data points, purchase
behavior, engagement channels and much more. With this information, marketing teams can
develop new marketing opportunities for engagement and retention. CRM strengthen marketing
strategies through proper segmentation, focused targeting and automation.

4. Increased Productivity:With a complete data of customers on a single screen, bankers now can
spend more time on strengthening their customer relationships than spending on gathering and
organizing data. CRM increases productivity by reducing cost through minimizing or eliminating
repetitive tasks. With the right technology in place, bankers are able to handle more customers
account in less time than before, making them more productive.

5. Personalized Customer Relationships :The CRM ultimate objective is to handle customers on a

personalized level, as apparent identity. It is difficult to keep track of and follow up each individual
customer data and look at trends. CRM overcome this difficulty, by letting bankers provide
personalized services to its every customer. You can see about need, preferences and the behavior
of each customer on a single platform and then plan your marketing strategy.

6. Efficient Communication :Bank call centers are using CRM software for many purposes. CRM is
automating communication and interactions with customers. A CRM also helps banks to monitor
conversations about their brand and products across different online media. It is also assisting in
inter-department communication.

7. Better Customer Service and Experience:CRM provides deeper insights into customers’ data,
 thus enabling greater customer support service. It provides better customer service via quick
automated response to customers’ queries, facilitating services relevant to them. CRM aids in
improving customer experience. CRM and banks together create better customer experience
through assisting in knowing what customer desires, furnishing quick support, building personal
relationships and then maintaining an ongoing journey.

-Features of financial sector

1. 360-Degree View of Financials :Have accurate and up-to-date information about the products
used by your clients, their incomes, debts, loans, credit scores and other details. Store centralized data
about customers including transactions, interactions, and preferences. Full client knowledge will
empower financial advisors to respond instantly when problems arise.

2. Contact Management :CRM for the Financial Industry provides a searchable database of stored
client contact information as well as important documents such as contracts and sales proposals.

3. Lead Management :Banks, insurance companies and other businesses in the finance industry need
lead acquisition and funneling tools. When a lead comes in, it needs to be routed to the correct
agent, advisor or manager, and then tracked correctly.

4. Customer Engagement:The CRM should contain tools that improve customer engagement,
including email newsletters, social media integration, and relationship tracking.

5. Marketing Management :Send out multi-channel and multi-wave campaigns and derive maximum
ROI for every marketing dollar. Design and personalize marketing messages and target campaigns
towards the most suitable segments.

6. Sales Automation:Give your sales team everything they need to prospect, manage contacts, record
activities and ultimately close more business opportunities.

7. Integration Capabilities:A lot of important data often resides in specialty accounting and banking
software. Look for a CRM offering third-party integration with your company’s desired solutions.
Seamless CRM integration allows the system to sync data across multiple platforms, marketing
channels, and users, saving precious time and money.

8. Workflow Automation :Standardize business processes. The system will automatically set the next
task in the process once the previous task has been marked as completed. Improve operational
efficiency by building workflows that provide automated alerts and reminders for follow-ups that
need to be taken care of personally.
9. Reports and Analytics :CRM Analytics allow you to create reports and generate analytics that help
evaluate performance and productivity. These reports are based on the activities that have been
logged into the CRM system such as the amount of revenue generated. These tools can be extremely
useful for predicting future sales figures.

-Issues/challenges of CRM in Banking and finance sector

1.Technological issue:Most of the officers perceive the technology limited to record the
information and transaction about the customers. The use of technology in further sophisticated
information processing and dissemination is no done. There are multiple integration channels that
simultaneously use the latest technologies in customer interface, service, and sales.
2.People issue:It means the lack of knowledge and skills in converting data to customer
knowledge. There is lack of motivation to utilize the potential of CRM software solution. There are
less or insufficient decision-making authority and inadequate performance management
parameters. In order to use the concept of CRM towards the customer centricity, sufficient
decision-making power it requires to provide the customized, responsive and proactive services.
3.Process issue;As CRM is an organizational wide strategy, so the complete process requires being
aligned inappropriate manner. The CRM implementation demands a change in organizational
culture in terms of shared values, vision and mission. The success of CRM software lies in the
ownership by all the departments with marketing in the strategic role to combine all efforts
towards better customer service.

-TOURISM

Definition: Tourism is travel for recreational, leisure, or business purposes. The world tourism
organization define tourist as people” travelling to and staying in places outside their usual
environment for not more than one consecutive year for leisure, business and other purposes”.
Tourism has become a popular global leisure activity. These service industries include transportation
service, such as airline, cruise ships, and taxicab; hospitality service, such as accommodations,
including hotels and resorts etc.

-Types of tourism:

Tourism has two type and various forms on the bases of the purpose of visit and alternative forms of
tourism. Tourism can be categorized as international and domestic tourism.

1.International tourism:When people visit a foreign country.It referred to as international tourism. In

order to travel to a foreign country. One need a valid passport. Visa , health document, foreign
exchange, etc. international tourism further divides into two types. Inbound tourism &Outbound
tourism.

Inbound tourism: these refer to tourist of outside origin entering a particular country. When people
travel outside their host/ native country to another country, then its is called inbound tourism for that
country where he/she is travelling. For example when a tourist from Indian origin travel to japan then
it is inbound tourism for japan because foreign tourist comes to japan.

Outbound tourism: these refers to tourist travelling from the country of their origin to another
country. When tourist travel a foreign region then its outbound tourism for his own country because
he/she is going outside their country.for example when tourist from India travel to japan then it is
outbound tourism for India .

2.Domestic tourism:The tourism activity of the people within their own country is known as domestic
tourism. Traveling within the same country is easier because its does not required from of travel
document and tedious formalities like compulsory health checks and foreign exchange. In domestic
tourism, a traveller generally does not face many language problems or currency exchange issue.

ClassifiCation of tourism:

Tourism can be classified into six distinct categories. According to the purpose of travel. They are;

1). Recreational: recreational or leisure tourism takes a person away from the humdrum of everyday
life. In the this case, people spend their leisure time at the hills, sea beaches,etc.

2) Cultural: cultural tourism satisfies cultural and intellectual curiosity and involves visit to ancient
monuments, places of historical or religious importance, etc.

3) Sports/Adventure: trips have taken by people with a view to playing golf, skiing and hiking, fall
within category.
4) Health: under this category people travel for medical, treatment or visit places where there are
curative possibilities, for example, hot springs, spa, yoga, etc.

5) Convention tourism: it is becoming an increasing important component of travel. People travel

within a country or overseas to attend convention relating to their business profession or interest

6) Incentive tourism: holidays trip are offered as incentive by major companies to dealer are salesman
who achieve high targets in sales. This is a new and expanding phenomenon in tourism.

-TELECOM

Meaning: telecommunication, also known as telecom, is the exchange of information over significant
distances by electronic means, referring to all type of voice, data and video transmission. This a broad
term that include a wide range of information-transmitting technologies and communication
infrastructures, such a weird phone, mobile devices, such as cell phones, microwave communication.
Fibresoptics, satellites, radio and television broadcasting; the internet and telegraphs.

History of telecommunications:
The world telecommunication comes from Greek prefix Tele which means “distant”. Combined with
Latin word Communicate, which mean to share important telecommunication technologies include
the telegraph, telephone, radio, television, video telephony, satellites, closed computer networks and
the public internet.

.1876.The first telephone was invented by Alexander Graham Bell. This early model required an
interpreter, or telegrapher at both ends. These first telephone were intercom system, where two
phones were connected directly.

1877. The invention of the switchboard exchange telephone system enable any combination of two
phone lines to connect and talk with each other.

1891. Dial telephone were invented, which bypassed the need for an operators on each call. This
made it much quicker and easier to make calls via telephone.

1947. The transistor was invented which led to development of modern electronic, such as computer
and calculators.

1948. Microwave began to be used to transmit phones signals, in places where phone wire did not
exist.

1960. Phones began to transmit from mechanical switching to electronic switching, which enabled
features such as voice messaging, speed dialling and caller ID.

1984. The bell system, which provided AT&T with near- monopoly over telecommunication service in
the U.S was broken up, opening up space for competition for other providers.

1990s Cellular and personal communication service(pcs) phone use, which offered mobile
communication for other provider.
2000& beyond: The first decade of the 2000s saw mobile phones grow increasingly sophisticated.By
2012 smartphone usage was wide spread.

-HOSPITALITY

Meaning: Hospitality is defined as taking care of your guest and anticipating their needs and it is the
relationship between the guest and the host, or the act or practice of being hospitality. This include
the reception and entertainment of guests, visitors, or stranger. Louis chevalier de Jaucourt describes
hospitality in the Encyclopaedia as the virtue of a great soul that cares for the whole universe through
the ties of humanity.

HOSPITALITY EXAMPLES:

An example of hospitality being given is how you give positive experience and memories for people.
That why even in your homes you can be hospitable. People of different cultures and background
have different concepts for hospitality. For some hospitality can be given by simply offering a place to
stay at home. Other might consider it as hospitality when they receive a luxurious experience. Here
are few example of how you can do this:

. Make sure your guest are comfortable: How you make someone feel comfortable in your home can
also vary from person to person. A few ways to do is by offering refreshment as simple as water or
snack. If the prefer, you could even give tea or coffee. You can also keep your home clean and tidy.
You make your home feel very welcoming.

. Invite people in your home often: Another to make people feel welcoming in your home is
repeatedly inviting them to it. This says that you want to build a relationship with them as you let
them in. they’ll fell more welcome and comfortable when they know that it’s not just a one-time
invitation.

Extend your help: Another way of showing hospitality is by giving help whenever you can, maybe you
can help move furniture or clean the front of their house. Be it a minor one or major one. A little help
can go along way. Helping out a friend or neighbour display how much you love and care for them.
Its can be also be a great way to bond with someone.

. Let them know you enjoy company: communication how much you like having them in your home.
Nothing feels more welcoming than assuring them that you are having fun in their company.

. Provide a personalized service: Given a guest a fully customized and personal service is one of the
best way you can show hospitality. It could be a personalized handwriting note left in their room. You
can learn their name and call them by that throughout their stay. When they have special request you
provide it to them as best as you could.

.Identify and reward loyal customer: when you have loyal customer, you can show hospitality by
expressing your gratitude to them. It’s not just given them thank you card or offering discount
through deals. if you have information on their preferences you can give them a customized gift as
well.

-The Effects of CRM in Retail Markets

Customer relationship management in retail can increase customer satisfaction, reduce your costs and
improve your company's performance in the marketplace. CRM software manages your relationships
with
individual customers to create advantages for both parties. To select the appropriate software and
ensure it includes the features you need, you have to know how CRM works and what effects it has on
your retail operations.

1.Segmentation

CRM helps you gather information about each of your customers, including preferences and
demographic data. You can use such information to segment your market and customize your
approach to each group of customers. For example, if you find you have a large number of young
families in a segment, you can create a family-friendly retail environment. If your data shows you have
many seniors, you can install ramps for wheelchairs and make your store more easily accessible. The
effect of segmentation based on CRM data is to adjust your retail strategies to better suit the
customers you have.

2.Promotions

The data you gather within a CRM system lets you not only target a market segment with promotions
that appeal to its members, but also to target individual customers. For example, when you know that
a customer is reaching retirement age, you can promote appropriate hobby products to him. If you
see that a customer has visited your website and looked at particular products, you can include
promotions of those products in his mailings. In this way CRM reduces promotions that are of no
interest to the recipient and increases the relevance of material you send out.

3.Purchases

A CRM system keeps records of customer purchases and customer service calls. You can keep track of
the products each customer has purchased and whether there have been any warranty or
dissatisfaction issues with the purchase. This information allows you to send out special offers to
customers when the products they have purchased reach the end of their lives. Such a strategy keeps
your products in front of the customer just when he might need them and gives him the benefit of
lower pricing if he buys from you again. On your side, the costs of such a targeted promotion are
lower than marketing to a large group and receiving only a few responses.

4.Retention

The overall effect of CRM is to increase the retention of customers by serving them in a more focused
and convenient way. You can further increase this effect by using the CRM software to implement
customer loyalty programs. Since the applications already track purchases, you can issue reward
points and bonuses to keep valuable customers. Such programs let your further reduce costs because
sales to long term.

5.Customer history

CRM stores all the customer information and profile like their last purchase, business cards, phone
numbers. This helps in recording all the history of a customer so you know each one of them
individually and you know who are your regular customers and what are their needs. Which also helps
you in for seeing the demands and getting better business and makes the customers”™ experience
better at your store.

6.Tracking

CRM software helps you in tracking all the customers individually. This provides you the clear
information as to which customers are beneficial for you and which are not. And which customers
have proven to be loyal
which have not. So you can also provide them better service and at times reward your loyal customers
to keep up their loyalty and get more buyers indirectly.

7.Loyalty

CRM allows you to focus on each customer individually hence you can pay attention to their needs
more closely. This way you can also focus on your long term customers and provide them with points,
bonuses and rewards which will help you gain customer loyalty. This way you can have better
business as loyalty will bring you committed customers which will set the level of your sale and profit
in the right track.

8.Cost effective

It allows you to manage the customers in the most cost effective way. You can send out bulk sms and
email easily updating them about the upcoming sale, offers and also allows you to take care of them
individually by focusing on their individual needs. CRM implementation is a simple and cost effective
process it also saves you more income as you will have have lesser staff and lesser resources to spend
on.

9.New buyers

CRM does not only manage your old customers or existing customers for you. It also has an
intelligence that helps you identify potential buyers and convert them into leads which can turn into
customers. CRM can help you get their attention by identifying them for your sales department who
can then go ahead and deliver their interests to them from your business”™ side with sophistication
so they show up at your door soon.

-Benefits of CRM in retail Marketing

1. Customer Segmentation

The moment I scroll through my social media accounts after looking up stuff on search engines, my
feed is flooded with highly relevant sponsored ads and I end up clicking on most of them. I am sure
you have experienced the same. By learning our search patterns, social media displays ads that we are
most likely to click. If you are running an online retail business, wouldn’t you want the same with your
end users?

At Rolustech, our clients from the retail industry have demanded precise segmented data of their
customers in order to provide personalized customer service to all their customers.By viewing
customer groups sorted by gender, interests (fashion, gadgets, etc.), spending history and so on, sales
agents are able to communicate with customers in the best possible way.

2. Access to Most Relevant Information

How many customers visit your online store and leave without placing an order or paying for items
they added in their cart?
Smart CRM systems give you deep insights into such data so that your team can take appropriate
actions before it’s too late. In my personal experience as an Ali Express shopper, I have received many
polite reminders from sellers every time I forget to check out an item.

According to Baymard, the average cart abandonment rate is a whopping 68.81%. With a smartly
implemented CRM in Retail business, you can take action to convert these visitors into shoppers!

3. Effective Use of Time

Turns out, sales agents are only able to spend 11% of their total time on active selling. Most of the
time is spent on administrative issues and problem solving.

A CRM Customization for eCommerce can automate a series of self-service processes that can save
your agents’ time and enable them to focus on their main job. Enterprise workflows now need to be
smarter and the best way to achieve that is to acquire CRM Consultancy services before opting for a
solution.

4. Centralized Social Media Interactions

If you’re running an online retail business, we bet you are not doing it without actively managing your
social media pages.

A large part of E-Commerce traffic comes through social media referrals and paid campaigns. Social
media is also the source of customer queries, and your responses to these queries are how customers
judge your customer service.

42 percent of consumers complaining in social media expect a 60 minute response time. Our clients
have managed response time much better than that through our Social Media Integrations.
Moreover, you can also leverage the powerful tools that different CRMs provide to their customers.
For example, for marketing, Salesforce Marketing Cloud is a game changer in any E-Commerce
business.

5. Payment Data

If your site is supporting multiple payment channels, analyzing payment data at once can be difficult.
With CRM, you can manage everything from invoicing and billing to payment failures. You can even
integrate your CRM with a payment gateway.

Advanced analytics in CRM can track payment trends, empowering you with the ability to analyze:

 Best revenue sources

 Highest value customers
 A number of metrics that can help you customize your services
6. Order Management

Order management includes steps from lead generation all the way through to revenue. You can view
and act upon order placement, order processing, shipment tracking, delivery and customer feedback
against each product.

UNIT-4
E-COMMERCE IN CRM
CONTENTS:
1. Use of CRM in E-Commerce
2. CEM( customer experience management)
3. Data mining .
 4. Information required in effective CRM.

USE OF CRM IN E-COMMERCE

What is e-Commerce CRM?
E-commerce CRM (ECRM for short) is a customer relationship management system designed
specifically to help e-Commerce businesses manage customer contact information, purchasing
behavior, and other analytics data.

Why is CRM needed for ecommerce?

CRM is a tool that allows retailers to interact with their customers by collecting huge volumes of data
about them and, therefore, to personalize messages. Properly leveraging the benefits of CRM solves a
range of business problems while saving time and money.
CRM is especially important for ecommerce, as it compensates for the lack of daily face-to-face
contact with customers. Making the right conclusions from the collected data, the retailer will adapt its
marketing to the customers’ tastes, habits, and expectations. All such information is a multitool for
increasing revenue.
Simply stated, CRM software for e-commerce helps to drive sales. An effective platform displays the
customer journey, allowing you to collect, analyze, and use user data to increase profits.
Reference:https://www.mavenecommerce.com/2020/08/27/crm-software-for-ecommerce/

The importance of CRM for e-commerce sites

CRM has impacted e-commerce sites by becoming an essential part of a business’s success. One study
found that interactively collecting and condensing customer data helps to build a company’s e-CRM
capability, which ultimately leads to their corporate success. It is safe to say that going forward, CRM
platforms created specifically for e-commerce (as well as implementing a scalable e-commerce
solution) may very well be a necessity for web-based businesses.

Failing to understand the importance of CRM for your e-commerce site could result in the loss of a
multitude of benefits, including but not limited to:

1. A better understanding of supply and demand;

2. Seeing if your customers are able to navigate your site without any issues;
3. Better customer service;
4. Easy check out processes;
5. A decrease in loss and costs (due to the ability to better record customer sales);
6. Having the ability to create advertisements that are aimed at your target audience.
 Impact of e-commerce on CRM

Although it is truly about managing relationships with customers and providing a great
customer experience, e-commerce has made an impact on CRM in a variety of ways. One study
discovered that e-commerce had promising implications for improving customer
satisfaction and loyalty. In fact, the study shows that the elements that lead to customer loyalty
are:
I. Competency;
II. Capability to establish the relationship;
III. Commitment;
IV. Solving the customer’s problem;
V. Trust;
VI. Quality of the relationship.
Implementing e-CRM is beneficial not only because it records and stores customer data 24/7, but also
because it is capable of accomplishing all of the above — ultimately ending with positive customer
experiences

Reference:https://www.sana-commerce.com/blog/what-is-the-role-of-customer-relationship-
management-in-e-commerce/
.
Key advantage of CRM in e-Commerce
Today, online retailers use multiple channels to connect with their patrons. Online marketplaces, e-
Commerce websites, social media, and more all need to be carefully managed to ensure the best
experience for customers. That’s to say nothing of order fulfillment and emergencies that always crop
up. To keep ahead of the game, online retailers need to implement CRM eCommerce integration.cross
channel communication is made much more effective when paired with a centralized database
containing customer and order information. Integrating CRM technology into your e-commerce
platform is vital to the success of any online retail enterprise.E-commerce and CRM work together to
make all these things happen. This results in a smoother, more convenient customer experience, which
directly translates to more sales.

The 7 Benefits of Integrating E-commerce and CRM Systems

1. Improve Customer Experience:Integrating E-commerce with CRM improves the customer
experience in a variety of ways. By offering order status updates, inventory checks, and
shipment tracking, it helps your customers stay informed on when to expect their
merchandise.Integrating Ecommerce with CRM improves the customer experience in a variety
of ways.For online retailers who utilize Omni-channel retail, CRM also helps them collect
information about their customers across multiple channels.
 2. Enhanced Marketing and Promotion:CRM e-commerce integration offers shop owners a
centralized location for their customer data. This enhances all marketing activities, from
planning to targeting and execution. When your customers receive highly personalized email
marketing, the kind of marketing that’s only possible with CRM, it will have a direct impact on
your online shop’s income.

3. Improve Sales Team Performance: Any shop that employs customer service or sales
representatives can benefit from CRM integration. With access to customer details, including
platforms created specifically for e-commerce (as well as implementing a scalable e-commerce
solution) may very well be a necessity for web-based businesses.

Failing to understand the importance of CRM for your e-commerce site could result in the loss of a
multitude of benefits, including but not limited to:

I. A better understanding of supply and demand;

II. Seeing if your customers are able to navigate your site without any issues;
III. Better customer service;
IV. Easy check out processes;
V. A decrease in loss and costs (due to the ability to better record customer sales);
VI. Having the ability to create advertisements that are aimed at your target audience.
4.Better Inventory Planning and Forecasting:Correctly used, a CRM system will provide you with
data about the most popular products in your store. This allows you to use real sales data to forecast
for manufacturing, sourcing, and sales purposes
5.Drive Services After Sale:One of the best advantages of CRM for e-commerce is the opportunity it
gives your sales team to address client concerns before they turn into problems. Order issues,
inventory shortages, and product education issues can be handled much more quickly and precisely by
sales reps who understand the behavior of their customers.
6.Minimize Losses and Costs:Without CRM system integration, your online store likely experiences
problems due to simple typos and other data-entry errors. Manual data transfer is highly prone to
these issues, which can directly impact sales and customer loyalty. The best answer is CRM and e-
commerce integration.
7.Improve Your Competitive Edge:Automated, synchronized data transfer also increases the overall
efficiency of your business by ensuring correct order fulfillment and timely communication. This gives
your store a real competitive edge over other stores in the same market.
Reference:https://dinarys.com/blog/7-key-advantages-of-crm-for-e-commerce

What is CEM?
CEM stands for Customer Experience Management. It is a strategy used to track, oversee and organise
all interactions, in order to help a business focus in the needs of its customer.
Use of CRM in CEM CRM enables you to get a 360-degree view of your customer, which you can then
use to create highly customized offers based on their interests, purchase history and more.
 The use of CRM to improve customer experience management are:
1. Keeping in touch:A great customer experience is impossible without ongoing and meaningful
communication. In this area a CRM system can be a great help, as it is increasingly used as a customer
loyalty enhancement tool. A CRM system contains a wide range of information about your customers
and how they interact with your business – including past activities, conversations and purchases.CRM
also allows you to segment the customers and address the right audience with the right message,
instead of sending them all the same type of information.
2. Listening to customers' needs:For example, A Customer is very talkative, sharing opinions and
information about products through various communication channels, such as social media. So, if you
want to be in the loop of what’s real and what’s not, you’d better start social listening to what he or
she has to say.One way of doing this is by asking your customers for their opinion. Send them a survey
through email marketing and ask them what they think of your products, services, and what you can
you do to make their experience better. In this way, you will show them that you care – and that’s
exactly how you keep your customers happy!
3. Creating personal relationships:Customers can contact your company through a variety of channels,
including email, phone and website. They can also contact you through different departments, such as
sales, marketing and customer service. CRM software captures all of these conversations over time,
regardless of the channel or department they occur in – giving you and your entire company access to
the same information. That’s a lot of useful information. You can use this information to give the
customer a unique experience by addressing them by their name, or when they call, knowing exactly
what the issue is without having to ask them to repeat themselves. By personalizing your
communication, you will see how your customers’ perception of your company starts to improve.
4. Offering what customers really want In case a Customer has plenty of choices. In order to win their
heart and wallet you need to proactively offer them a relevant product or service. A CRM system gives
you the knowledge of what your customers need, by telling you what products or services they’re
interested in, have asked for or have already bought. You also know what problems they have had
before, and whether they were happy with the solutions you offered them. In other words, a history of
your customer interaction recorded in a CRM system helps you offer your customers what they really
want, not what you think they want.
5. Providing attentive customer support A unique customer experience also means that you offer help
and support to your customers how and when they need it. A Customer prefers online communication
when it comes to solving their problems and handling their complaints.Customer service software
helps you ensure that no customer inquiry is lost, as each request is logged into a central system that
can be accessed online. Once a customer sends in a request, you can set up the system to
automatically send an email to inform the customer you have received it.

USES OF CRM IN DATA MINING

What is Data Mining?
Data mining is the process of finding useful patterns and relationships in large volumes of data. This
uses statistical algorithms and models to find trends, patterns and correlations from existing data
warehouses.
Role of Data Mining :
Although it is still a relatively new technology, businesses from all industry verticals be it healthcare,
manufacturing, financial, transportation etc. have invested in it to take advantage of historical data.
Data mining techniques in CRM can assist your business in finding and selecting the relevant
information that may then be used to get a holistic view of the customer life-cycle which comprises
four stages: customer identification, customer attraction, customer retention and customer
development.
a. The main purpose of CRM is to establish a relationship with customers and other
individuals. In order to ensure the best relationship with customers, it’s essential to
possess all the right information and group it correctly.
b. With all the information that the system collects, data mining can be of great help. Data
mining can help analyse and process the data, making it easier for the business to
interact with customers and future clients.
c. Although data mining is a relatively new trend, businesses from all verticals have started
investing in data mining technology. Companies can study historical data and
information about their customers and input them into the tool for a better process. For
once, it will definitely help improve customer retention as you will be able to analyse
their purchase behaviour and provide them customized service.
d. It gives you a holistic view of the customer’s life-cycle, which comprises customer
identification, attraction, retention, and development. The critical elements of data
mining are predictive modelling, forecasting, and descriptive modelling techniques
e. Combining data mining with CRM can help you select the right prospect, segment your
audiences, set optimal pricing policies, and more.

Benefits of Data Mining in CRM

Some of the areas where the application of data mining in CRM can be quite helpful:
1. Helps in Sales Forecasting :Data mining can help you predict future trends by analysing past
behaviour adopted by the people. This is quite helpful in making re-stocking decisions as you
neither overstock your products nor understock it so that your customer doesn’t have to return
empty-handed. In short, it helps you with supply chain and financial management, which are
co-related. And thus, you gain control over your internal operations.
2. Helps in Market Segmentation: Data mining helps you correctly segment your target
audience based on demographics, buying behaviour, gender, and other factors. The
information can be collected through some sort of market survey, social media platforms, and
more. You can then design your marketing campaign and strategy, keeping their tastes and
preferences in mind. It will automatically result in increased ROI for your business. It removes
 inefficiency by removing customers from the list who shows little to no interest in your product,
saving you time and money.
3. Helps in Making Quick and Smart Business Decisions: Data mining uses predictive model
analysis to determine each customer’s lifetime value. With such information and in-depth
insights, it enables you to create personalized service for each customer appropriately by
ensuring proper allocation of funds. For example, your billing software solution contains all the
information about your new and old customers. You can collect the information and use it to
study the buying behaviour of those customers, and create a personalized experience for them.
4. Helps in Fraud Detection :One core advantage is that it helps in detecting fraud. How? For
starters, it analyses past fraudulent activities to prevent it from occurring again. It keeps an eye
and immediately detects in case it notices a similar transactional process in nature. It allows
businesses to take corrective measures to stop fraud from happening. Institutions like banks
and other financial companies can make use of data mining to predict fraudulent trends and
reduce the number of bad debts.
5. Helps in Increasing Customer Loyalty :Every time a competitor offers a lower price,
customers jump from one ship to another. If you want to reduce this customer churning rate,
data mining can help. For example, data mining uses a model called ‘customer cluster,’
whereby it uses data from audiences on social media sites to generate ideas for improving
brand service, satisfying customers, and increasing loyalty. In fact, data mining is not always
customer-centric. Inputs from your employees can also give you a great insight into how to
improve your service, get feedback on product development, and more. In short, determining
your lifetime customer value not only helps you improve your acquisition costs but also
enables you to find out why customers bail. And by identifying reasons, you can create
strategies on how to retain your customers and increase brand loyalty.
6. Helps to Predict Numbers for Warranty Claims: Data mining helps you predict the number
of customers who will actually cash in on the warranty you have set up. You can then calculate
the average cost of those claims. It’s usually done by looking at the data of past warranties or
guarantees, net sales, and profits.
7. Final Words:It’s clear that exploiting CRM in this age of data analytics enables you to optimize
business opportunities. It makes the whole process of building and maintaining the customer
relationship more productive. The more data you gather, the more value you can deliver to
your customers, that could ultimately result in increased revenue. However, it largely depends
on how effectively you utilize the data. The key to an effective CRM is not just in data collection
but also in how you organize and interpret it. So if you are sitting with a load of customer data
and not doing anything with it, it’s time to take action. It’s an excellent opportunity to get the
most out of your business data.
 INFORMATION REQUIRED FOR EFFECTIVE CRM:
The employees of a firm employing CRM would require rich information about their firm and customer
base including:

1.Information about the market

2.Information about the firm

3.The current segment

4.Demographic Distribution (by age, sex, education, income, marital status, etc)

5.The firm’s best customers and the segment they belong to, products they buy, preferences, habits
and tastes of each segment.

6.Individual level information consisting of:

(A)Customer personal details such as name, address, family details, education, etc

(B)The customer group /segment to which the individual belongs

(C)History of present and past behavior

(D)Likes, dislikes, habits and preferences

(E)Events coming up in their personal life etc.

UNIT 5:
Customer Loyalty and CRM Concept of Loyalty in CRM
CONTENTS:
❏ Definition of Loyalty
❏ Customer Loyalty and Customer decency
❏ Process of Developing Customer Loyalty
❏ Status of CRM in India
Definition of Loyalty:
❖ the state or quality of being loyal; faithfulness to commitments or obligations.
❖ faithful adherence to a sovereign, government, leader, cause, etc.
❖ an example or instance of faithfulness, adherence, or the like
Definition of Customer Loyalty:
According to Referral Rock, “customer loyalty is a concept that presumes a customer’s willingness to
engage in a business relationship with a brand or company again and again. “
Characteristics of a loyal customer are:
1) they are not actively searching for different suppliers;
2) they are more willing to refer a brand to their family and friends;
3) they are not open to pitches from competing companies;
4) they are open to other goods/services provided by a particular business;
5) they are more understanding when issues occur and trust a business to fix them;
6) they offer feedback on how a brand can improve its products or services;
7) as long as there is a need, they will keep purchasing from a business.
Why is customer loyalty important?
1) Repeat customers spend more than first-time customers
2) Loyal customers produce higher conversion rates
3) It boosts profits
4) Retaining an existing customer is cheaper than acquiring a new one
5) Customer loyalty helps in effective planning
6) Loyal customer shop regularly
7) Repeat customers spend more during the holidays
Process of Developing Customer Loyalty
1) Reward loyal customers with a loyalty program: The simplest and probably the most popular
loyalty programs use a point system, that is, customers earn loyalty points every time they buy
from the brand. Then, these points, when accumulated, earn them a reward, e.g., discounts, special
client treatment, freebies, etc.
2) Make customer care a priority for the brand: An effective client relationship management strategy
translates to more focused solutions for specific customer needs
3) Boost customer experience by introducing VIP tiers: By adding VIP tiers for the most loyal
customers, a company can boost loyalty among existing customers and entice new and less
engaged customers to interact more with the brand. For eg. Myntra insider
4) Segment your clients: It allows every client to feel special and cared for. To be at the right time
with the right message, make use of segmentation.
5) Send event-based emails: Automation 360 allows users to send personalized emails, web push
notifications, and SMS to thousands of customers in one go.
6) Optimize the businesses’ referral program: creating a program where customers can get rewarded
for recommending the brand to other people is so important. Boost the referral program by
offering rewards for both the senders and receivers, encouraging customers to spread a word
about the brand on different channels, etc.
7) Encourage customers to give feedback and act on it: Ask them why they prefer to buy from the
brand as opposed to competitors and areas they think the business could improve.

-Customer decency:
:Decency is defined as actions that are moral, modest or socially acceptable, or is what basics are
required for a good standard of living
How to improve in delivering better customer decency?
1) Proper communication from Sales team(sales person)
2) Efficient customer service
3) Creating Connections
4) Developing on the interpersonal skills