CUSTOMER RELATIONSHIP MANAGEMENT

“CRM is an IT enabled business strategy, the outcome of which to optimize profitability, revenue and customer satisfaction by organising around customer segmentation, fostering customer satisfying behavior and implementing a customer-centric process”

-Gartner

Introduction

DIFFERENCE BETWEEN MM AND CRMMARKETING MANAGEMENT

CRM

Goal: Expand customer base, increase market share by mass marketing

Goal: Establish a profitable, long-term, one-to-one relationship with customers; understanding their needs, preferences, expectations

Product oriented view Customer oriented view

Mass marketing / mass production Mass customization, one-to-one marketing

Standardization of customer needs Customer-supplier relationship

Transactional relationship Relational approach

OBJECTIVES• Improve Customer Satisfaction• Retain Existing Customer• Provide Strategic Information• Improve Customer lifetime Value

STRATEGIES• Interaction• Value of Customers• Continuing Process• Overview Model• CRM Develpment

INTERACTION• Touch Points• To synchronize different access points in the

firms to provide a unified message to customer at each interaction point.

• By knowing and working with all the interaction points the goal is to improve the customer experience with the firm.

THE VALUE OF CUSTOMER MARGIN NO. OF CUSTOMERS REVENUE

Cont.• Customer Life Time Value

– Profit margin• Annual profit minus cost to serve the customers

– Retention rate• Estimation of total amount of customer who make repeat

purchases– Discount rate

• Current cost of capital– Time

• How long customer is expected to the companyAccording to Wreden:

customer value = (gross revenue) – (customer allowences) – (credits and rebates) – (product cost) - (channel cost) - (cost to serve) - (administrative cost)

CONT.According to Xu and Walton:

High PROFITABILITY

Low

Low High COST

VERY HIGH

VERY LOW

THE CONTINUING PROCESSSuccessful companies build systems that enable corporation to use customers information wisely and deliver what customers wants at their own level.

• Increase in customer loyalty– Full information about customer profile and previous preferences

instantly available to sales and service representatives when a customer calls.

• Superior service– Customer representatives can provide personalized service, offer new

product and services based on customer purchasing history.• Superior information gathering and knowledge sharing

– The system is updated each time when a customer contacts the organization, whether the contact is by the person or phone or via web sales. Marketing service and technical support have access to the shares database.

OVERVIEW MODELSCustomer Life Cycle

Customer Management Activities

CONT.Acquisition• Targeting

– Identifying channels to reach customers, finding influencers and prospcts for future sales

• Conversion– Capturing enquiries through all possible channels– Distributing sales leads to sales department, leads which can come

from alll parts of departments• Getting to know

– Identifying new customers, learning about them

Penetration• Delivering

– Key account management – Data collection

• Retention activity – Analyze the probability of keeping the customers– Build and understand the customers– Encourage customers to be involved

CONT.– Appoint responsibility of individual customers– Reward customer loyalty

• Value development– Analyze who the customer is and how the relationship and product can be

developed to provide further value to customer and firm.

Retention• Problem management

– Create a complaint process– Define the problems– Find the root cause

• Win back– Last minute lost prevention– Solving the identified problems and tell them about it– Deal with defecting customers

CRM DEVELOMENT• Planning• Research• System Analysis• Design• Construction Implementation• Maintenance and Documentation• Adaptation

CRM CHALLEGES

• Defining Clear Objectives• Appointing a Core CRM Team • Defining the Processes• Finding the Right Partner

THANK YOU TEAM MEMBERS : FATIMA KHALID SAJID WAQAR ZAIDI KASHIF JAMAL ADIL CHAUDHARY IMRAN PASHA ZAHEEN ANSARI