SLIDE 4

Lets start with Understanding what CRM is …..

Customer relationship management (CRM) is a technology for managing all your

company’s relationships and interactions with customers and potential customers. The
goal is simple: Improve business relationships. A CRM system helps companies stay
connected to customers, streamline processes, and improve profitability.
CRM “is a business strategy that aims to understand, predict and manage the needs of an
organization's current and potential customers”

The Definition of CRM is…..

 “CRM is concerned with the creation, development and enhancement of individualized customer
relationships with carefully targeted customers and customer groups resulting in maximizing their
total customer life-time value”

So, basically

A CRM solution helps one to focus on the organisation’s relationships with individual
people — including customers, service users, colleagues, or suppliers — throughout the
lifecycle with them, including finding new customers, winning their business, and
providing support and additional services throughout the relationship.

SLIDE 5
The adoption of C.R.M. is being fuelled by a recognition that long-term relationships with
customers are one of the most important assets of an organisation

The purpose of CRM is to help a business to keep customers.

CRM helps in understanding what the business should do to get more customers

There are some services which are useless to the users , so CRM helps in finding out those services
and also reduce cost by managing costly complaints

Another purpose of CRM is to increase profit by helping a business figuring out if their product is
working or not

Last but not the least the PRIME purpose of CRM is to log and manage customer relationship

The focus of CRM is on creating value for the customer and the company over the longer term 
When customers value the customer service that they receive from suppliers, they are less likely
to look to alternative suppliers for their needs  CRM enables organisations to gain competitive
advantage over competitors that supply similar products or services

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TYPES OF CRM’S

CRM consists of 4 types

First is Strategic CRM (Marketing, Sales) 

The aim of strategic CRM is to concentrate and enhance the knowledge about customers and
use this knowledge to improve and customize the interactions with customers to maintain a long-
term relationship with them. Strategic CRM involves almost all the departments of an
organization e.g. finance, sales, manufacturing, distribution, marketing etc

EXAMPLE OF STRATEGIC CRM Loyalty cards given by the banks

The primary role of this customer loyalty card is to gather data about customers. This in turn
leads to customer comprehension and cost insights (e.g. customer retention rates at different
spending levels, response rates to offers, new customer conversion rates and where money is
being wasted on circulars), followed by appropriate service action and follow-up analysis.

Second type is Analytical CRM (Marketing, Sales) 

Analytical CRM is based on data mining and data interpretation. It's used to analyze customer
sales data, payment and credit history and evaluate customer response to marketing campaigns
 Analytical CRM systems use techniques such as data mining, correlation, and pattern
recognition to analyze the customer data

 EXAMPLE OF ANALYTICAL CRM  is  payment and credit history, including payment type, credit
scores, etc.

Financial companies can gather information from this data to find answers to questions that
would help them identify important customer relationship strategies. Useful information gleaned
from analytical CRM might include which customers are most loyal, or which customers are most
likely to respond to certain offers

Third is Collaborative CRM (Service) 

The primary aim of this CRM systems is to incorporate external stakeholders such as suppliers,
vendors and distributors and share customer information across organizations. The purpose of
collaboration is to improve the quality of customer service and as a result, increase customer
satisfaction and loyalty.

EXAMPLE OF COLLABORATIVE CRM CRM software act as “Front office” solutions Many banks
use CRM software to store all of their customer's details. When a customer calls, the system can
be used to retrieve and store information relevant to the customer. By serving the customer
quickly and efficiently, and also keeping all information on a customer in one place, a company
aims to make cost savings, and also encourage new customers.

Last one is Operational CRM (Service)

Operational CRM generally refers to services that allow an organization to take care of their
customers. It provides support for various business processes, which can include sales,
marketing and service.
The actual interactions with customers such as contact, direct sales, direct mail, call centers, data
aggregation systems, web sites and blogs etc. are examples of operational CRM. Each interaction
with a customer can be collected to the client database generally known as ‘customer’s history’ and
the information can later be used wherever necessary. 

Operational CRM is made up of three main components  Sales force automation  Marketing
automation  Service automation
SLIDE 7 read from the PPT
SLIDE 17
Service quality is generally viewed as the output of the service
delivery system, especially in the case of pure service systems.
Moreover, service quality is linked to consumer satisfaction
Service quality measures how well a service is delivered, compared to customer expectations

Service Quality can be defined as An assessment of how well a delivered service conforms to the
client's expectations. Service business operators often assess the service quality provided to their
customers in order to improve their service, to quickly identify problems, and to better assess client
satisfaction.

SLIDE 17-18 read from the PPT