Customer Relationship Management

Presented By Viral Jani Bhavik Patel Bhavik Gajjar Manthan Shah

CRM

Customer relationship management (CRM)

Term applied to processes implemented by a company to handle its contact with its customers CRM is a software-based approach to handling customer relationships

Store information on current and prospective customers

CRM

Customer relationship management (CRM)

From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a variety of employees in different roles and departments CRM is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provides a mechanism for tracking customer information
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Customer requirements

Control over buying process

Information, comparison, selection, easy to find

Best possible price

Delivery (free), quality

All payment options

Secure
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Applications

Information in the system can be accessed and entered by employees in different departments)

Sales Marketing Customer service Training Professional development Performance management Human resource development
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Applications

Details on any customer contacts is stored in the system

The reason behind this approach is to improve services provided directly to customers To use the information in the system for targeted marketing and sales purposes

Related aspects

Many inter-related aspects

Front office operation Back office operations Business relationships Analysis

Aspect 1 Front office

Direct interaction with customers

Face to face meetings Phone calls E-mail Online services etc

Aspect 2 Back office

Operations that ultimately affect the activities of the front office

Billing Maintenance Planning Marketing Advertising Finance Manufacturing

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Aspect 3 - Business relationships

Interaction with other companies and partners

Suppliers/vendors Retail outlets/distributors Industry networks (lobbying groups,)

This external network supports front and back office activities

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Aspect 4 - Analysis

Key CRM data can be analyzed in order to plan

Target-marketing campaigns Conceive business strategies Judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability)

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Flip side - Implementation

CRM initiatives often fail

Implementation was limited to software installation Inadequate motivations for employees to learn, provide input, and take full advantage of the information systems

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Three key elements of CRM

1. Validation
2. Discovery 3. Action

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1. Validation
Correct data
Ensuring

that the data you have on your customers is correct and accurate in a suitable state for targeting programs

Also,

communications

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2. Discovery

Use of data mining techniques

To find relationships that you did not know existed

Sometimes conventional analysis is impaired by your own natural assumptions and prejudices Discovery techniques help to solve these issues. They simply search for relationships in the database against a set of objectives

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3. Action

Right communication

Your customers and prospects need to have the right messages communicated to them This is done with a Campaign Management tool that can automatically select the right targets and the right messages via the right channels The responses are then fed back into the Validation process for evaluation and refinement

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Three main phases

Customer Acquisition

Customer-Relationship

Enhancements
Customer Retention

Customer Acquisition
Contact management module and direct marketing module of CRM allow companies to effectively promote and market their products and services to prospects.

Those modules help speed up the acquiring processes and reduce the cost of acquiring new customers.

Customer Relationship Enhancements

CRM helps companies better understand existing customers' needs and behaviors and enhance the profitability from existing customers by cross-selling.

They can customize their products and services to individual customers needs and preferences.

Customer Retention
Customer service module of CRM system gives the organizations the edge in customer support.

Identify and reward its most loyal and profitable customers

They can increase customer satisfaction

Customer Retention is evaluated with following criteria

Retention rate

customer segment, cohort

Competitors offer Average customer tenure Percentage

of customers who interact via e-

mail

Types of CRM

Operational CRM
Analytical CRM Collaborative CRM

Portal-based CRM

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Operational CRM
Supports customer interaction

Synchronizes customer interaction

Makes company easier to do business

Analytical CRM
Extracts in-depth customer history

Analyze, predict and derive customer value

Approach customer with relevant information

Collaborative CRM
Easy collaboration with customers, suppliers and partners

Improves efficiency and integration

Greater responsiveness to customer needs

Portal-based CRM
Provides users with the tools and information

Respond to customer demands more quickly

Access, link and use all internal and external information

CRM Implementation at TATA Motors

PHASE 1

focused on capturing customer and vehicle data and automating routine tasks. this data was used to improve customer interactions and streamline product development and planning.

PHASE 2

PHASE 3

concentrates on tuning the system and delivering additional value-added services to customers.