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Presented By : NEHA RAI


Introduction Workflow of CRM CRM cycle Best practices in CRM Current status of CRM Why has CRM failed? Vision for the future Conclusion

Customer relationship management (CRM) is a management strategy that unites information technology with marketing. It originated in the United States in the late 1990s, and, to date, has been accepted in a significant number of companies worldwide. It is a business philosophy which provides a vision for the way the company wants to deal with customers.

Collecting customer data and information

Analyzing data to predict customer behaviour

Marketing campaigns applying the results of analysis Measuring results , revising hypotheses and repeating this workflow process

According to a survey by Gartner, Inc., the worlds largest technology research and advisory firm, more than 50 percent of CRM implementations are considered failures from the companys point of view. CRM retail Study 2004 , showed that only about 30 percent of that years respondents said that their CRM initiatives are fully meeting or exceeding their expectations at this point. Management Tools & Trends 2005, survey conducted by Bain & Company, showed that CRM is now only surpassed globally by the practice of strategic planning as the most used management tool.

Implementing CRM before creating a customer strategy

Rolling out CRM before changing the organization to match

4 Perils of CRM

Assuming that more CRM technology is better

Stalking , not wooing , customers

In the light of return of investment:ROI is calculated as returns divided by investments. Recently, considerable research has been undertaken in the field of Marketing Return on Investment, which pursues the optimal allocation of marketing resources.22 Thus, the concept of ROI will become more sophisticated in the near future.

Privacy concern:Although personalization and customization are the key features of CRM, companies need to balance these attributes with privacy.


In Japan, CRM has gradually become accepted, and software has been sold mainly to large companies. But, in 2006, Microsoft entered the market, aiming at small and medium-sized companies. Thus, the market will be expanding before too long. Total revenues have already increased dramatically and are expected to continue

The essential qualification for implementing CRM is a high frequency of customers purchases. there are three value disciplines in which companies can combine operating models and value propositions to be the best in their market. Operational Excellence Product leadership Customer intimacy