Customer Relationship Management

(CRM)

Dr. Tarek Diab

Salma Elsayed
 Agenda

▪ What is CRM? ▪ Challenges with Customer Interactions ▪ The Eight Building Blocks of CRM

▪ CRM Strategy ▪ So what has changed? ▪ CRM Strategy consideration

▪ The Purpose of CRM ▪ What Does CRM Involve? ▪ Implementing CRM

▪ Why is CRM Important? ▪ Types Of CRM ▪ Process to Implement CRM

▪ Why Did CRM Develop? ▪ Strategically Significant Customers ▪ Information Technology & CRM
 What is CRM?
CRM . . .
3 small letters, with three core concepts:
✓Customer (Constituents/ Stakeholders) – The heart of your organization
✓Relationship – The key to growing your company through engagement with your prospects, customers and stakeholders
✓Management – Managing these stakeholder relationships to increase lifetime value

➢ CRM is a business strategy that aims to understand, anticipate and manage the needs of an organization's current and potential customers.
➢ It is a comprehensive approach which provides seamless integration of every area of business that touches the customer- namely
marketing, sales, customer services and field support through the integration of people, process and technology.
➢ CRM is a shift from traditional marketing as it focuses on the retention of customers in addition to the acquisition of new customers.
 CRM Strategy

▪ CRM is a business strategy whose outcomes optimize profitability, revenue and customer satisfaction by
implementing customer-centric processes.
▪ A CRM strategy cannot be developed in isolation. It must be relevant and linked to the overall corporate strategy.
 The purpose of CRM

➢ The focus of CRM is on creating value for the customer and the company over the longer term.
➢ When customers value the customer service that they receive from suppliers, they are less likely to look to alternative
suppliers for their needs.
➢ CRM enables organizations to gain ‘competitive advantage’ over competitors that supply similar products or services.
 Why Is CRM Important?

➢ Today’s businesses compete with multi-product offerings created and delivered by networks, alliances and partnerships
of many kinds. Both retaining customers and building relationships with other value adding allies is critical to corporate
performance.
➢ The adoption of CRM. is being fuelled by a recognition that long-term relationships with customers are one of the most
important assets of an organization.
 Why did CRM develop?

CRM developed for a number of reasons:

➢ The 1980’s onwards saw rapid shifts in business that changed customer power .

➢ Supply exceeded demands for most products.

➢ Sellers had little pricing power .

➢ The only protection available to suppliers of goods and services was in their relationships with customers .
 So what has changed?

Traditional buying model

Eyeballs Awareness Consideration preference action loyalty Buyers

 So what has changed?

A more complex buying model

Competitive alternatives

Peer Reviews

Buyers
Eyeballs
Contributors

▪ The internet
▪ Advances in technology
▪ Social media
▪ Changes in buyer behavior
 What Does CRM Involve ?

CRM involves the following:

➢ Organizations must become customer focused
➢ Organizations must be prepared to adapt so that it take customer needs into account and delivers them
➢ Market research must be undertaken to assess customer needs and satisfaction
 Types of CRM

1. Analytical CRM 2. Collaborative CRM 3. Operational CRM

5. Sales Intelligence
4. Geographic CRM CRM
 Types of CRM

1. Analytical CRM
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.
 Types of CRM

2. Collaborative CRM
Collaborative CRM deals with synchronization and integration of customer interaction and channels of communications like
phone, email, fax, web etc. with the intent of referencing the customers a consistent and systematic way.
 Types of CRM

3. Operational CRM
Operational CRM is mainly focused on automation, improvement and enhancement of business processes which are based
on customer-facing or customer supporting.
 Types of CRM

4. Geographic CRM
▪ Geographic CRM (GCRM) combines geographic information system and traditional CRM.
▪ Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer
visits.
 Types of CRM

5. Sales Intelligence CRM

▪ Top-performing sales organizations are meeting the challenges of identifying the most likely buyers of their products and
services through the deployment of sales intelligence solutions that introduce a wide variety of data streams to their front-
line staff.
▪ By empowering their sellers with better information about their prospect companies, markets and individuals, these firms
are able to maximize their chances of hitting quota, and at the same time create efficiencies within the sales operations
environment.
 Strategically significant customers

❑ Customer relationship management focuses on strategically significant markets. Not all customers are equally important.
❑ Therefore, relationships should be built with customers that are likely to provide value for services.
❑ Building relationships with customers that will provide little value could result in a loss of time, staff and financial
resources.
 Strategically significant customers

Strategically significant customers need to satisfy at least one of three conditions:

1. Customers with high life-time values ( customers that will repeatedly use the service in the long-term. Nurses in a
hospital library).
2. Customers who serve as benchmarks for other customers e.g. In a hospital library consultants who teach on
academic courses.
3. Customers who inspire change in the supplier.
 Strategically significant customers

Strategically significant customers need to satisfy at least one of three conditions:

1. Customers with high life-time values ( customers that will repeatedly use the service in the long-term. Nurses in a
hospital library).
2. Customers who serve as benchmarks for other customers e.g. In a hospital library consultants who teach on
academic courses.
3. Customers who inspire change in the supplier.
 The Eight Building Blocks of CRM

1. CRM Vision : leadership , market position , value proposition

2. CRM Strategy : objectives , segments , effective interaction

3. Valued Customer Experience 4. Organizational collaboration

▪ Understand Requirements ▪ Culture and structure
▪ Monitor Expectations ▪ Customer understanding
▪ Satisfaction VS Competition ▪ People skills , Competencies
▪ Collaboration and feedback ▪ Incentives and compensation
▪ Customer Communication ▪ Employee Communication
▪ Partners and suppliers

5. CRM Processes : Customer life cycle , knowledge Management

6.CRM Information : data , analysis , one view across channels

7. CRM Technology : Applications , Architecture , infrastructure

8. CRM Metrics : Value , retention , satisfaction , loyalty , Cost to serve

 CRM Strategy consideration

Information abundance
People Mobile Trend

Social Media Cloud trend

Customer expectation Marketing Sophistication

Customer Behavior Big Data

Processes Technology
Staff expectation Pricing Pressure
Alternative products and services
 CRM Strategy consideration

People
➢ Communicate vision
➢ Recognize customer-centric behavior
➢ Train staff on Customer Service and customer dispute resolution
➢ Make customers front and center for all key business decisions
➢ Measure and report:
oSurveys (written or face to face)
oSocial media monitoring
oMystery Shopping
oManagement involved with Customer
 CRM Strategy consideration

Processes
➢ Lead management
➢ Sales Pipeline management
oCall back responses

➢ Accounts Management
oRecord account specifics and all account interactions across the organization
oCustomer care program
oAccount Ratings –Advocate, Passive, Detractor

➢ Service Desk
oCase management
oDispute recognition
oSocial media management

➢ Marketing
oLeverage technology, individual behaviors and context to drive more personalized marketing and engage
prospects and customers
 CRM Strategy consideration

Technology
➢ Implement a CRM System
oUse CRM to cement your process
oMake CRM central source of truth

➢ Integrate your CRM system

oContent Management System (CMS)
oE-Commerce platform
oMarketing Automation software
oLearning Management System
oERP
oAccounting software
 Implementing CRM

When introducing or developing CRM, a strategic review of the organization's current position should be undertaken.
Organizations need to address four issues :
1. What is our core business and how will it evolve in the future?
2. What form of CRM is appropriate for our business now and in the future?
3. What IT infrastructure do we have and what do we need to support the future organization needs?
4. What vendors and partners do we need to choose?
 Process to implementing CRM

Identification Solution design

▪ CRM solution walk through ▪ Alignment of organization goals gap analysis
▪ Poor of concepts ▪ Tech design

Support Rapid Implementation

CRM
▪ Post production Support ▪ Project management
▪ End to end apps setup
▪ Configuration , QA

User Group Training

▪ Walk through
Upgrades
▪ User procedures
▪ Upgrades to new versions Customer Development
▪ Training
▪ Customer reports facilitation
▪ Customer adds ons
THANK YOU

Salma Elsayed