This document discusses customer relationship management (CRM) and its benefits. It defines CRM as integrating all customer interactions through various channels to provide end-to-end customer management. CRM requires organizational change and information/application support. It should have consistent, repeatable processes. Customers want more value, responsiveness and flexibility for less aggravation. CRM helps increase customer retention and profitability by understanding customers. Technology like data warehousing enables CRM by providing customer insights.
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Customer loyalty and technology as crm tool
1. Customer Loyalty and Technology as CRM toolPresented by:AmitDubey 201034JeetPradhan 201070Rahul Pathak 201072PankajShukla 201095Ajit Singh 201096
2. What is CRM?End-to-end customer managementProcess enabled by set of technologiesProcess designed to integrate all customer interactions through all channelsLike all processes organisational change is neededCRM systems need information and applications supportCRM processes should be consistent and repeatable
3. Illusion of Customer Relationship ManagementCustomers are not outsiders.We are all customers – of utilities, service providers, financial institutions, government agencies.CRM is about how WE want to be treated by our service providers.When we talk about customers (THEM), we mean usHow do you want to be treated by your service providers?That is exactly how your customers want to be treated by you.
4. Customer Service and Customer SatisfactionPoor customer service is still pervasive despite awareness of the need for and benefits of improved customer service.Many organisations have not changed their business processes to deliver improved customer service and provide what customers want.Improved customer service means optimising end-to-end processes from the customer viewpointInvolves linking multiple internal processes to get cross-functional view from customer perspectiveWhat Customers Really Want – More For LessMore OfValueResponsivenessInvolvementConsiderationDependabilityFlexibilityLess OfAggravationTime to Complete TransactionRigidityCostBureaucracyExcusesLack of Integration
5. What Organisations Try to Do – More With LessMore OfWorkCustomersSalesRevenueMarginLess OfPersonnelFacilitiesCost
6. Balance Between Internal and ExternalNeed to balance management focus between “more with less” and “most for less”More with less focuses on internal reductions: cost, staffMore for less focuses on external improvementsOnly a cross-functional customer-oriented view of business processes can achieve this balanceInternal processes focus on operational functionsCross-functional view links internal processes to get end-to-end customer view of organisationCross-functional processes are those that really affect customers – from start to end
9. Why CRMGreater competitionEconomics of customer retentionAvailable technologyOptions to increase customer profitability:Get more customersOptimise value of existing customersRetain right customers longerImplement at lower costCosts of options:Customer acquisition 5-10 greater than retentionLoyal customers spend more and pay premiumLoyal customers must like and trust companies
10. CRM ProcessCRM is about:Integration of customer contact pointsSynchronisation of customer information and management assetsIdentification highest (and lowest) value customersServicing those with greatest actual or potential valueCRM enables:Reduction of marketing costs through effective targeted campaignsIncrease in customer satisfaction and retentionIncrease in salesImprovement in profitability by customer and sale
11. Which Customers?20% of customers generate 80% of profit5% increase in customer retention means 25%-95% increase in profitabilityNew customers take 8-10 contacts before saleExisting customers take 2-3 contacts before sale
12. Customer Service95% of customers who have had problems will continue to do business if problems are resolvedFor every complaint you receive there are another 20 potential complaints that have not been articulated but still representGood customers tell about 3 others of their experienceBad customers tell about 8 of their experience68% of former customers left because of poor customer service
14. Role of Data Warehouse in CRMTechnology/infrastructure core of architectureAllow marketers to make decisions on customer segmentations and profiles and match products/offersData Warehouse enables CRM processesCRM elements depend on quality of information inData Warehouse and accuracy of derived resultsCentral common repository or all relevant allows effective data sharing and reduces latencyCRM assumes good information
15. Data MiningExploration and analysis, by automatic or semi-automatic means, of large quantities of data in order to discover meaningful patterns and rulesIn order to develop new products and services that are demanded by the customer, that can be delivered profitably by the organisation and to remove unwanted customers and/or products
16. How To Create Customer LoyaltyBond with the customer earlyAll customers are not created equalConvey your company's value proposition in everything you doDo more than make your pointKnow why customers leaveMeasure everythingBuild opportunities for repeat business
17. How To Create Customer LoyaltyAlways ask for referralsMake loyalty-building a team effortMeet customers' expectationsGo beyond rewards programsTurn complaints into opportunities as quickly as possibleEngage customers in a two-way dialogueSurvey customers, and pay attention to the responsesCreate a system for collecting, analyzing and acting upon all customer feedback
21. Four problem that prevent a firm effectively using CRMLarge InvestmentDifficulty in getting every one customer orientedNot all customers want an ongoing relationshipAssumption behind CRM may not always hold true
22. Breaking Down CRM: What CRM Really ComprisesCRM ImperativeCrafting the right value propositionInstituting the best processesMotivating employeesLearning to retain customerAcquiring the right customerYou Get It When…Have identified most valuable customers
33. Senior management monitors customer defection metricsCRM Technology Can Help…Analyze customer revenue & cost data to identify current and future high value customers
46. Track customer service satisfaction levelsSource: Darrel K., Reichheld F., and Schefter P., “Avoid the Four Perils of CRM” Harvard Business Review (Feb, 2002) pg. 106
47. Top 8 CRM Organisation Direct line Amazon.com HSBC Hewlett Packard Lloyds TSB Dell BBC British Airways
48. Amazon.comSite easy to navigate Database remembers your previous sales choice Remembers credit card number Such small details helps in building customer relationship.