CRM ASSIGNMENT: WHAT ARE THE FACTORS AFFECTING CRM THROUGH CHANNELS

 Customer Relationship Management : Plays a crucial role in managing customer

interactions. Companies around the world have leveraged CRM strategies to gain a
competitive edge. It covers critical customer-facing departments like sales, marketing,
customer services, and more. The implementation of a CRM solution is a business
priority to serve customers better.

CRM important for your Business:

 Customer satisfaction is the key to business success. For a business to consistently

maintain success, it needs to satisfy its customers by interacting with them,
understanding their needs and expectations, and providing high-quality products or
services at a competitive price.
 These interactions should be tracked and analyzed in an organized fashion to foster
long-lasting customer relationships which in turn transforms into long-term success.

 Distribution channels: used to manage the flow of goods

 Contact channels: used to manage the flow information between two parties.

Indirect channels:

 offline: stores, sales force

 Offline: third party websites

Direct channels:

 Offline: own stores, own catalogs

 Own websites

TRADITIONAL CHANNELS IN CUSTOMER RELATIONSHIPS

 Direct customer relationships

 Protecting the interests of customers

MAJOR CHALLENGES FACED BY TRADITIONAL CHANNELS

 Prevent dilution of CRM strategies

 Indirect control of CRM through channels
 Eliciting customer information from all channels for central processing.
 EMERGING CHANNEL TRENDS THAT IMPACT CRM:

 Proliferation of direct channels: the presence of the internet and electronic channels in
the business and the daily life has tremendous impact on the firms channel options.
 Technological enabled channels the options exists, to record the information about the
customers.

DRIVERS OF MULTICHANNEL BUYERS

 sales person
 direct mail
 telesales
 online

CHANNEL PROLIFERATION AND EMERGENCE OF MULTICHANNELS SHOPPERS

 Recent times have witnessed the virtual explosion of number of number of media
channels which seeks the individual consumers attention- internet , email, phones, cable
tv, sms, mms.
 Consumers derive differing benefits from different channels.
 Proliferation of the channels and its effect on customer behaviour and information
offers new opportunities to the firms , but it creates new difficulties in managing the
marketing flow.

RECENT OPPORTUNITIES AND CHALLENGES FOR CRM WITH RESPECT TO DISTRIBUTION

CHANNEL:

 Widening coverage of consumer population

 Improved customer information of the firm.
 Lower dependency on specific channel partners
 Customer self selection across channels and individualization
 electronic channels and availability of customer information
 firms have the direct access to the end customers
 record and store the relevant information

NEW CHALLENGES FOR THE FIRM TO BENEFIT FOR THE CRM

 media planning is becoming increasingly difficult

 consistency in the service levels
 channel conflict and channel differentiation.
 CONCLUSION:

 it reduces the current costs , increases the short term profits

 increases the customer relationships
 multi channel shoppers are more loyal
 reduces the risk to loose the customers
 they provide the high revenues

Effective customer relationship management systems can realize the following benefits to an
organization.

 Help organizations to determine their most profitable customers and establish a long-
term relationship with them. This can increase the firm’s sales revenue.
 Results in reduced churn rate (the number of customers who stop buying or using
products of a company) by enabling the firms to customize and personalize the products
according to user needs, preferences. buying habits, etc.
 Enables provision of better customer service and support across all the touch points,
whichever the customer uses.
CRM ASSIGNMENT

B.S.ASHRITHA
MBA-D
(1234114104)