Gopalan Narasimhan

(GN)
gnsimha@gmail.com
Ph 9845025586

Your
Expectations?

CRM Course Outline, Objectives and Contents

Course Objectives and Contents

Business Philosophy, Concepts, Principles and

Benefits
CRM in Sales, Marketing and CSS
Customer Analytics
CRM in Customer Profiling, Segmentation,
Targeting
CRM Systems Business Case, System Selection
Customer Centricity, Customer Loyalty
CRM Ecosystem, Trends and Developments
Case Studies on
Analytical CRM
CRM System Strategy and Implementation

Methodology, Assessment and Evaluation

Logistics and Admin

Blackboard, Communication, eGroup,

Presentations
Student Leaders 1. Coordination 2. Energy

Grading Approach
Assignments

10%

Class Participation and attendance

10%

Mid-term Quiz and End Term Quiz

10%

Team Presentation

10%

Final Individual Presentation

End-term Exam

10%

50%

Team Presentation

CRM Tool in New Areas CX, mCRM, Analytics (Customer /

Marketing / Sales / Channel)
Best Practices

Final Individual Presentation

Unique Practice by a company / Emerging CRM trend /

Agenda
Customer

Who is the Customer?

What is Customer Centricity

CRM

What is CRM? - Concept and Objectives

Customer Value Concept
Evolution and Growth of CRM
Strategic CRM
Components of CRM
Types of CRM
Drivers for CRM
Business Benefits of CRM

Who is
the
Customer
?

Who is The Customer

Can you come to a

single, consensus
answer?
Can you integrate
and reconcile the
roles / relationships
of different potential
Customers?

Who is the Customer for your Company?

Pharma
Compan
y

Patient?
Physician?
Hospital?
Insurance
Company?
Druggist?

FMCG

Consumer?
Retailer?

?
?

Telco

BFS

IT

?
?

?
?

Product or Customer or . What?

Product
Centricity?

Customer
Centricity?

Customer or Product Centric? Or .?

Walmart

Reliance

Apple

Flipkart

IBM

ICICI Bank

Tesco

Coffee Day

Starbucks

Google

Amazon

Samsung

Nordstrom

Microsoft

Zappos

Which firms are Customer Centric?

Walmart

Does not know any of its Customers unlike Tesco

No LP
Understand customers in Generic manner and not in granular
way
Volume focus
Product centric excellent at operational efficiency
Innovation Scan and go

Apple

Market research focus

Segmentation approach
Product innovation
Major initiative on KYC eg Genius

Starbucks

Customer centric at local level

Not across countries or cities

True Customer Centricity

Are these companies
Customer Centric?
Identify You (Customer) well

Know you well

Value your Relationship

Trusted Adviser

Make recommendations that are right

for you
Across the company Across stores,
channels, departments, online and
offline, .
Go beyond .. To meet your needs
and delight you

Apply the yardsticks and

check
IBM
Tesco
Walmart
Apple
Starbucks
Amazon
Nordstrom
Zappos
Reliance
Flipkart
ICICI Bank
Coffee Day
Google
Samsung
Microsoft

Truly Customer Centric?

Nordstrom
Great in Customer Centricity

BUT..

Should we go all out

to be a Customer
Centric Firm?

Select set of
Customers

Future needs Long term

perspective

Aligning

companys

How do you reward a

Sales Person?

Sales / Revenue $$$

New Customer acquisition
Focus of Sales Persons
Current - Future?
Short term - Long term?
Quota vs. CSAT?
Value vs. Targets?
Close vs. Relationship?

Sales Incentives
Challenges
Long term value created
by Salesperson

Strengthening and
deepening the
Relationships

Getting New

Relationships with LTV

Scientific Models and

framework
Data
Faith in people

Living in a Customer Centric World

Key Questions on Customer Centricity

Customer Relationship Management

Principles, Concepts and Objectives

Agenda Session 1
CRM Concept, Functions and
Objectives
Customer Value Concept
Evolution and Growth of CRM
Strategic CRM
Components of CRM
Types of CRM
Drivers for CRM
Business Benefits of CRM

What is CRM

CRM
Develop and
Maintain

Profitable Customer Relationships

Optimizes

Revenue
People
C-Focus
Culture

Profitability
Business
Processes
C-Centric

C-Sat
Systems and
Tools
SCV, CInsight,
Interaction

Unique Customer Experience, Customer

Loyalty
Enable Customer Success
Maximize Customer LTV / Wallet Share

CRM Domain
Marketing
Sales Force Management
Customer Service and Support
Customer Relationships
Customer Experience and Expression

CRM
Salesforce.com

CRM Domain
Marketing
Sales Force Management
Customer Service and Support
Customer Relationships
Customer Experience and Expression

CRM
Salesforce.com

CRM Functions
Process Automation Sales, Marketing and CSS
Increasing efficiency and effectiveness in Sales, Marketing
and CSS

Customer Insight, Intelligence

Customer profiling, segmenting, targeting, Personalizing
campaigns and CSS

Managing Customer Relationships across multiple channels

Presenting single face or organization to Customers
Customer Experience Management

CRM Objectives
Expand Customer Base
Improved Customer Relationships and C-Sat thru deepened
C-Relationships

Improved Customer LTV

Identifying profitable and unprofitable customers

Reducing cost to serve customers

What is CRM
What is CRM?

Software? Technology? Business area or practice?

CRM starts with Customer

CRM is a Business Strategy Customer is the Centre of the
Business Enterprise

Business Processes to centre around acquiring, nurturing and

benefitting customer relationships over a long period

Customer strategy aimed to increase Customer loyalty and

company finances over time

Alignment of people, business processes and systems

What is CRM
Management of mutually beneficial relationships from the
sellers perspective

The process that identifies customers, creates customer

knowledge, builds customer relationships, and shapes
customers perceptions of the firm and its products /
solutions

What is CRM
A comprehensive strategy and process of acquiring,

retaining, and partnering with selective customers to create

superior value for the company and the customer

CRM aligns business processes with customer strategies to

build customer loyalty and increase profits over time

CRM allows companies to gather customer data swiftly,

identify the most valuable customers over time, and increase

customer loyalty by providing customized products and
services

A systematic process to manage customer relationship

initiation, maintenance, and termination across all customer

contact points in order to maximize the value of the
relationship portfolio

What is CRM
All about Knowing Customers

Gathering and Analyzing information and Acting based on the

analysis
To maximize the Customer Lifetime value to the company

One-on-One Relationship
Interaction process and not transactions
Relationship centric and not transaction centric nor product
or sale centric approach

Value added activity thru mutual inter-dependence

Collaborative approach
Long term approach

Who needs CRM?

CRM Value by Business Domain

Customer Valuations

III
Airlines
Packaged
Goods
Market

III
Pharmacies
IT Systems

I
Gas stations

II
Bookstores

Uniform

Differentiated

Highly

Source
:www.1to1.com

Customer Needs
Uniform

Highly

Who can use CRM

Fincos and Telcos

Gather huge customer data

B2B Better productivity, Operationsl efficiency, SCM

Who benefits less

Low LTV of Customer

Business with huge churn and low loyalty
Location critical business
Customers not in contact with marketing / business

CRM Vision and Strategy

Customer Equity, Customer Value
and
Customer Experience

CRM Vision
Company Culture / DNA / Company Personality in Customer
focus

Employees what to deliver to customers

Customers - what to expect from a company
Vision motivates staff, keeps the focus across all the
organizational activities

CRM Vision
Company Culture / DNA / Company Personality
Amazons vision is to be earths most customer centric company; to
build a place where people can come to find and discover anything
they might want to buy online.

Facebooks mission is to give people the power to share and make

the world more open and connected.

Microsoft Vision Statement Create experiences that combine the

magic of software with the power of Internet services across a world

of devices.

Toyota Vision Statement To sustain profitable growth by providing the

best customer experience and dealer support.

Proctor & Gamble (P&G) Vision Statement To provide branded

products and services of superior quality and value that improve the
lives of the worlds consumers

Apple Vision Statement Apple is committed to bringing the best

personal computing experience to students, educators, creative

professionals and consumers around the world through its innovative
hardware, software and Internet offerings.

Zappos Keeps Delivering Happiness

"On any given day, 75 percent of our orders are from repeat
customers, so we're not as dependent on marketing and
trying to get new customers,

"Our whole philosophy is to take most of what we would have

spent on paid advertising or paid marketing and invest it
instead in customer service. Then, we let our customers do
the marketing for us through word of mouth."
Zappos CEO Tony Hsieh.

Customer Strategy
Marketing evolution

Product Centric Sales Centric

Customer centric

Customer centricity

Customer focus, Segmentation,

Target marketing, Relationship
marketing,

Customer strategy defines

which Customers to find and

keep

Business practices (products,

marketing and services) around

Customer segments

Customer Equity
Customer Equity

Value Equity Customers perception of value of product price, quality,

convenience aspects
Brand Equity Image aspects
Relationship Equity Customers perception of the relationship with the
Company

Customer Satisfaction, Customer Loyalty, Customer Success

Customer Experience
Customer Lifetime Value
Optimizing Customer Experience

Tangible Products, 4Ps

Services offered
Value proposition
Interactions
Image and perceptions

Customer Equity
Customer Value

Present Value, Future Value

Revenue, Profits and Margins
Strategic value of relationship
Referrals / Recommendations

Customer Value Proposition (CVP)

What the Customers value

What the company says it offers to its Customers
What the Company actually offers to its Customers

Customer Value
Cost of Acquisition of a New Customer vs. Cost of Retention
of an Existing Customer

Cost of New Business vs. Cost of Repeat Business

Customer Loyalty

Is the Customer satisfied? Performance vs. Expectations

Is the Customer likely to buy to buy from the Company in future?
Is the Customer willing to recommend the Company to other
Customers / Prospects?
Market Share vs. Wallet share
Market Share

Evolution and Growth

of
CRM

Evolution of CRM
Transaction centric marketing to Customer relationship
centric marketing

Selling to Relationship
Short term to Long term
Product centric approach to Customer centric approach

Source
www.mercerlal.com

ERP and CRM Integration

CRM Evolution
First Gen

SFA, CSS ; Functional approach; Operational efficiency, Process

automation

Second Gen

Customer facing front end approach; 360 degree customer view

of all activities (pre-sales, sales, post-sales)

Third Gen

Integrated Approach ( of front office systems and end with back

end systems)

Strategic CRM
and other
Types of CRM

Enterprise-wide Strategic CRM

CRM Functional
or
Operationa
l Level

CRM at
Customer
Facing
Level

CRM
Enterprise
-wide

Strategic CRM - Components

Companys
Customer
vision and
Focus

Companywide
Customer
Focus
(Company
Staff)

Business
Practices
and
Processes
alignment
and
integration
to meet
Customer
needs

Systems
and
Technology
alignment
and
integration

Integrated
approach to
CRM
Implement
ation
Systems,
People and
Processes

Types of CRM

Strategic CRM
Enterprise CRM
Analytical CRM
Operational CRM
Functional CRM
cCRM, mCRM, PRM, SRM
Social CRM

Operational CRM and Analytical CRM

Operational CRM

Process automation related to Customer interfacing functions

like front office sales / service and marketing representative.
Customer interactions are captured in system to enable easy
access

Analytical CRM

Analysis of Customer Data for decision making, optimizing

marketing effectiveness, customer retention, behavioral analysis

Why CRM
System?

Where do you keep your Contact data?

Phone book
Rolodex
Phone
Laptop /PC

MS Outlook, Google, Excel, etc.

MS Outlook or Google or . contacts, emails,

appointments, Calendar, tasks,

Why CRM
Think of your Business Process
May or may not be automated

How prospects are allocated to sales reps?

Mktg activities to generate leads or convert leads into customers

Customer
view 360
Degree

Source
www.sourceedge.com

Source
www.keyconcepts.com.
au

Customer Stage of Relationship

Suspect
Repurchas
e

Lead

Service

Prospect

Qualified
prospect

Order
Quote

CRM Components

CRM Components

Source www.ecrm.co.in

Successful CRM Deployment

Define your Customers
Develop Customer Strategies
Select a suitable CRM
Measure CRM benefits
Align business practices with system
Manage change
People system process : Alignment

Source HP

CRM Drivers

Business Drivers

Customer
demands and
growing Customer
diversity Value
consciousness,
Intolerance for
low service levels,
Decrease in
loyalty, multitasking (time
scarcity)

Competition,
margin pressure

High cost of
acquiring new
Customers

Technology
aptitude and
Information
availability

Internet /
Technology
Social Networks
Communication
channels
Consumer Behavior
Time shifting
Place shifting

Shift is Happening!
TV Internet
Limited info Information democracy
Info one way flow / view Reviews, comments, ranking /
rating

Control from Company Customer

Single channel Multiple channels
Passive customers Active customers
Fixed time Time shifting
Fixed Place Place shifting
Opaqueness Transparency and authenticity
Listen to Customer Engage and cocreate / collaborate

CRM Value Drivers

and
Benefits

CRM Benefits
Improved ability to target valuable Customers
Integrated offering across channels
Improved sales force efficiency and effectiveness
Individualized marketing messages
Customized products and services
Improved Customer service efficiency and effectiveness

CRM Benefits

Financial
Customer

Operational
Efficiency
Higher
productivity
and efficiency

Improved
service
delivery
Customer
Loyalty,
Customer
Retention
Customer
satisfaction

Profitability
Cross sell /
Up sell
Revenue
Growth

CRM Assignment 1
CRM 101

Assignment 1 CRM 101

Who is the Customer?

With the example of one or two Customer centric firms, explain
the way the firm has defined the Customer and what strategies
they adopt to be truly Customer centric.
Contents
Name of the Firm
Customer Definition for the Firm
Customer Centricity Strategies
Challenges Faced and how they overcome these challenges

File Naming standard

CRM-A1-MyName-IdNo.ppt

Assignment 2
Customer Experience
List and explain with two examples of companies that
focus on innovative ways to delight the Customers and
create memorable Customer experiences.

File Naming standard

CRM-A2-MyName-IdNo.ppt

Thank You!