Academic year 2017-2018

II year III Semester

Prepared and presented by,

N. Ganesha Pandian,
Assistant professor,
Madurai School of management.
 CRM, or Customer Relationship Management, is a company-wide
business strategy designed to reduce costs and increase
profitability by solidifying customer satisfaction, loyalty, and
advocacy. True CRM brings together information from all data
sources within an organization (and where appropriate, from
outside the organization) to give one, holistic view of each
customer in real time. This allows customer facing employees in
such areas as sales, customer support, and marketing to make
quick yet informed decisions on everything from cross-selling and
up selling opportunities to target marketing strategies to
competitive positioning tactics.
 Make It Sticky
 Make It Easy
 Make It Private
 Make It Fast
 Make It Personal
 Make It Work
 Make It Strong
 Make It Professional
 Make It Win-Win
 Make It Interactive
The Eight CRM Essentials
 Rapid time to value
 Point-and-click customization
 A 360-degree customer view
 Real-time visibility
 No more dirty data
 High adoption
 Extending your success
 A broad community
4 Key Steps in the CRM Implementation Process
 Identify all areas of your business that touch the Customer or the
Prospect.

 Identify all of the business processes that manage the touch points with
the Customer or Prospect.

 Select the appropriate CRM and Sales Force Automation (SFA) system that
will allow the business processes impacting the Customer or Prospect to
be managed in the most efficient and effective manner.

 Document those business processes and train the users on the utilization
of the CRM system with a focus on how that system will deliver value to
their daily work lives and how it will maximize their efficiency and
effectiveness in managing their relationships with their Customers and
Prospects.
A challenge of defining CRM is that any
definition is contingent on the level at which
CRM is practiced in an organization or, for
that matter, what the researcher or man-
ager believes about the correct level of CRM.
There are three different possible levels: (1)
functional, (2) customer- facing, and (3)
companywide.
A customer acquisition strategy defines the
best mix of media and engagement tools
(lead generation and product offers to gain
new customers through targeting them and
reaching them through online and offline
customer journeys.
In general, three basic forms of customer
acquisition are

 Developing existing or new markets,

 Developing existing or new products, and

 Branding programs

 Identifying Markets
The ACTMAN Model
 The ACTMAN: Acquisition Tactical Management 6 elements:
 Targeting
 Awareness generation and product positioning
 Acquisition pricing
 Trial
 Usage experience and satisfaction
 Post-introductory pricing and the creation of long-term
value for the product or service
 Targeting

 1st degree - Individual Customer Targeting

(profiling)

 2nd degree – Segment Targeting

 3rd degree – Self-Selection Targeting

 Offer email receipts to every shopper
 Can you ask for personal data at check-out?
 Which products are similar to a shopper‘s purchase?
 Online. Be respectful of customers‘ time
 Customers are increasingly researching products
 Make your preference centre easy to find and
navigate
 Give customers a chance to voice their opinions
through a one- click recommendations feature
 Target Prospects

 Evaluate Risk

 Determine the best offer

 Originate credit Applications

 Improve Direct Mailings

 Market Research

 Digital Marketing
 What is Customer retention?
Customer retention is the activity that a
selling organization undertakes in order to
reduce customer defections. Successful
customer retention starts with the first
contact an organization has with a customer
and continues throughout the entire lifetime
of a relationship.
 Set customer expectations
 Be the expert
 Build trust through relationships
 Implement anticipatory service
 Make use of automation
 Build KPI’s around customer service
 Build relationships online
 Go above and beyond
 Implement customer feedback surveys
 Retain more customers
 Every customer that you keep represents
at least three that you don’t have to
attract. Numerous research studies indicate
that the cost of acquiring a new customers
usually runs from two to four times the
annual cost of keeping an existing customer.
Obviously, an effective customer retention
strategy translates into profits.
 You should know the following basic information about your
customer base:

 Number of current customers

 Average number of new customers you expect to acquire within

the next month/quarter/year

 Average number of existing customers you expect to lose within

the next month/quarter/year
 Where will those customers go?

 Why will they leave you?

 How will you know they‘ve left?

 What will you do to retrieve them?

A successful service strategy serves two
vital functions:

 defence

 opportunity.
 Everyone within the organization must
follow the guideline that, when a problem
does arise, “fix the customer first,” then
solve the customer’s problem.

 Understanding Customer Defections

 Customer expectations derive from wishes

and wants as much as actual needs
 The key to pre-empting defections is to focus
on the root causes.

Customers defect for two primary reasons:

 The need for your product or service has

ceased, or

 Your offering has failed to satisfy their needs

in some way.
Personal attention, empathy and extra effort will
work to:
 Increase response rates,
 Provide direction for product and service
development efforts,
 Improve sales forecasting,
 Provide opportunities to test your marketing
mix, and
 Support your marketing decision making process.
The database can be used further to:

 Examine purchase behaviour information

 Correlate, cross-reference, and analyze

data

 Personalize messages

 Provide special benefits and services

 Speak with one congruent, consistent voice

 Building and maintaining a current, accurate,
comprehensive customer data base is much
more easily said than done. Compilation,
management, and maintenance requires a
significant allocation of resources (people,
time, money), along with a total
commitment to customer service and
retention throughout your company.
Proprietary customer information can be
collected through:

 Customer interaction records

 Customer surveys

 Focus groups
 A few important things to remember about customer surveys:

 Define clearly what you intend to measure (satisfaction,

dissatisfaction, loyalty, retention, quality, service), and
why you want to know it.

 Experience your company from your customer‘s

perspective.

 Understand the following:

 The relative scale of loyalty within your customer base;

 The strength of your relationship relative to your competition;

 The relevant antecedents to loyalty;

 he relative effect of various interactions, activities and

consequences.
 Pay close attention to your best customers.

 Stay in touch with your customers

 Find out exactly why a customer defected

 Build your customer database right
 IDIC Model

 QCI Model

 CRM Value Chain Model

 Identify

 Differentiate (value, need)

 Interaction

 Customize
 What is CRM Road Map?
A CRM Roadmap is a strategic plan that identifies how an
organization can meet and exceed its customers' needs.
This includes, but is not limited to, assessing how the
sales, marketing and service entities work together to
 gain insight from their customers (e.g. purchase history,
desired products/services),
 produce valuable offerings/products (e.g. personalized
product) and
 provide the ultimate customer experience (e.g. multiple
touch points, 360 degree view of the customer).
 Step 1: Gain Senior Level Sponsorship

 Step 2: Gather Information

 Step 3: Assess Current state and Define Future state Gaps

 Step 4: Identify Value Opportunities

 Step 5: Link Value Opportunities to strategic CRM Capabilities

 Step 6: Define CRM Projects and Requirements

 Step 7: Develop Business Case

 Step 8: Develop a Roll-out strategy

 Identify Your Strategic Team
 Create a Vision & Objectives
 Identify Pain Points
 Map Business Processes
 Align CRM to Business Processes
 Import Quality Data
 Create Powerful Analytics
 Test before Release
 Train Users
 Review & Evaluate