CUSTOMER RELATIONSHIP

MANAGEMENT
Name- Manish Panwar

Course- BBA (Platina)

Semester- 3rd

Assignment-1
QUES 1- What is CRM? What are the various
components of CRM?

ANS- Customer relationship management (CRM) is sales pipeline

management software and it has one goal in mind: give any business the
power to build game changing relationships. A CRM system offers a simple
way to manage contacts, manage the sales process and gain valuable insight
into your entire client base.
It 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.
When people talk about CRM, they are usually referring to a CRM system, a
tool that helps with contact management, sales management, productivity,
and more. A CRM solution helps you focus on your organization’s
relationships with individual people including customers, service users,
colleagues, or suppliers throughout your lifecycle with them.
A CRM system gives everyone from sales, customer service, business
development, recruiting, marketing, or any other line of business a better
way to manage the external interactions and relationships that drive
success. A CRM tool lets you store customer and prospect contact
information, identify sales opportunities, record service issues, and manage
marketing campaigns, all in one central location and make information
about every customer interaction available to anyone at your company who
might need it.
Components of Customer Relationship
Management
Sales Force Automation- Sales Force Automation is the most essential
components of customer relationship management. This is one such
component that is undertaken by the maximum business organizations. It
includes forecasting, recording sales processing as well as keeping a track of
the potential interactions.

It helps to know the revenue generation opportunities better and that

makes it very significant. The component also includes analyzing the sales
forecasts and the performances by the workforce. To achieve an overall
improvement in the development and growth of the industry, numerous
components work hand in hand to form sales force automation as a
consequent unit. Some of the major elements of the same are Lead
Management, Account Management, Opportunity Management, Forecasting,
Pipeline Analysis, Contact Management, Activity Management, Email
Management and Reporting.

Human Resource Management- Human Resource Management

involves the effective and correct use of human resource and skills at the
specific moment and situation. This requires to be making sure that the
skills and intellectual levels of the professionals match the tasks undertaken
by them according to their job profiles. It is an essential component not only
for the large scale corporations but the medium industries as well. It
involves adopting an effective people strategy and studying the skills or the
workforce and the growth being generated thereby designing and
implementing the strategies needed accordingly with the aim of achieving
development.

Lead Management- Lead Management as the name suggests, refers to

keeping the track of the sales leads as well as their distribution. The
business that are benefitted by this component of CRM the most are the
sales industries, marketing firms and customer executive centers. It involves
an efficient management of the campaigns, designing customized forms,
finalizing the mailing lists and several other elements. An extensive study of
the purchase patterns of the customers as well as potential sales leads helps
to capture the maximum number of sales leads to improve the sales .
 

Customer Service- Customer Relationship Management emphasizes on

collecting customer information and data, their purchase information’s and
patterns as well as involves providing the collected information to the
necessary and concerned departments. This makes customer service an
essential component of CRM. Almost all the major departments including
the sales department, marketing team and the management personnel are
required to take steps to develop their awareness and understanding of the
customer needs as well as complaints. This undoubtedly makes the
business or the company to deliver quick and perfect solutions and
assistance to the customers as well as cater to their needs which increases
the dependability and trust of the customers and people on the organization.

Marketing- Marketing is one of the most significant components of

Customer Relationship Management and it refers to the promotional
activities that are adopted by a company in order to promote their products.
The marketing could be targeted to a particular group of people as well as to
the general crowd. Marketing involves crafting and implementing strategies
in order to sell the product. Customer Relationship Management assists in
the marketing process by enhancing and improving the effectiveness of the
strategies used for marketing and promotion. This is done by making an
observation and study of the potential customers. It is a component that
brings along various sub-elements or aspects. Some of the major elements of
marketing are List Management, Campaign Management, Activity
Management, Document Management, Call Management, Mass Emails and
Reporting. The use of the aforesaid elements varies from business to
business according to its nature and requirements as well as the target
crowd.

Workflow Automation- A number of processes runs simultaneously

when it comes to the management and this requires an efficient cost cutting
as well as the streamlining of all the processes. The phenomenon of doing so
is known as Workflow Automation. It not only reduces the excess
expenditure but also prevents the repetition of a particular task by different
people by reducing the work and work force that is getting wasted for
avoidable jobs. Routing out the paperwork and form filling are some of the
elements of the process and it aims at preventing the loss of time and excess
effort.
Business Reporting- CRM comes with a management of sales, customer
care reports and marketing. The customer care reports assist the executives
of a company to gain an insight into their daily work management and
operations. This enables one to know the precise position of the company at
any particular instance. CRM provides the reports on the business and that
makes it play a major role here. It is ensured that the reports are accurate
as well as precise. Another significant feature is the forecasting and the
ability to export the business reports on other systems. In order to make
comparisons, one can save historical data as well.
Analytics- Analytics is the process of studying and representing the data
in order to observe the trends in the market. Creating graphical
representations of the data in the form of histograms, charts, figures and
diagrams utilizing the current data as well as the one generated in the past
is essential to achieve a detailed understanding and study of the trends.
Analytics is an extremely significant element of Customer Relationship
Management as it allows making in-depth study of information that is
required to calculate the progress in the business.

QUES 2- How companies can benefit from CRM?

Explain with an example?

Ans- A CRM system can benefit your business by helping you centralize,
optimize and streamline your communications with customers, and become
better in these 6 areas.

1. Better knowledge of customers

As simple as it may sound, but a mere fact that you have all information
stored on each contact in one place make CRM a super powerful
communication tool. Like a cheat-sheet offering easy access to key
information, a CRM system gives your sales marketing and customer service
teams a competitive advantage. Not only do they know a contact’s full name,
email address, telephone number, postal address, website and social media
accounts, but also such critical business facts as a contact’s position in the
company, his/her relations to other contacts in your database, the language
they speak, and even their birthdays. With all this information at your
fingertips, personalizing your communication with a contact becomes a
breeze.
2. Better segmentation
Nobody wants to do business with a faceless crowd. Everybody wants to deal
with a perfect audience. You can do it by segmenting contacts (customers
and prospects) into target audiences. And there’s hardly anything else out
there that does segmentation better than a CRM.
CRM allows you to break down data by categories and criteria, making it
easy to create focused lists. Used in sales and marketing, such segmented
lists allow you to run specific customer marketing campaigns (and account-
based marketing campaigns) and analyze your sales process and lead pool.
When you know whom you’re addressing, you can consciously tailor your
offer, your tactics, and even your sales pitch.

3. Better customer retention

Apart from being a great asset in finding and nurturing your potential and
new customers, CRM is also a great tool for keeping your existing customers
happy. A CRM system comes up with a handful of “customer retention”
benefits: it will help you keep your promises by reminding you about
appointments or when to send follow up emails. But what makes the real
trick here is that CRM can also prompt you to reach out to those customers
who have not been contacted in while, and perhaps feel neglected.
After all, keeping an existing customer is 6 or 7 times cheaper that getting a
new one, claims the report by Frederick Reich held of Bain & Company.

4. Better anticipation of needs

We feel more confident when we know what to expect. The same applies to
business. It’s easier to cross-sell or upsell a customer when you’ve been
tracking their buying habits. And since one of the key benefits of having a
CRM system is to help salespeople sell more and sell faster, it is the access
to customer interaction history through the entire customer journey that
allows sales reps to anticipate customer needs.
If you know the contact’s purchase history what they bought and when,
what contracts they were offered, what buying habits they demonstrated,
and even how they became your customers, you can be proactive and come
up with new or better offers at the right time.
A CRM system is also indispensable in providing great customer service. The
access to interaction history makes it easy to offer timely customer service.

5. Better and speedier communication

Not making your customers wait by quickly replying to their requests is a
sign of professionalism. Saving yours and your customers’ time is the CRM
system, which offers you a set of customizable, ready-to-use email
templates, letters, documents, proposals, quotes, invitations, newsletters,
etc. Speaking of ready-made templates, here's one for you. Our most recent
edition of the Customer Service Benchmark Report found that 90% of
companies do not use auto responders to acknowledge they have received a
customer service email. Simply copy the template below and upload it in
your CRM system to stand out from the competition. Another benefit is that
a CRM system can also help you draft SMS and emails and schedule their
dispatch weeks or months in advance. And when it comes to dealing with
customer service requests, speed is everything.
6. Better protection of data privacy
In order to comply with the data privacy requirements of the new EU
regulation, it’s very important to have CRM software that has inbuilt the
General Data Protection Regulation (GDPR) related functionality. The main
benefit of CRM here is that it will save you a lot of time and effort, as being
GDPR compliant is a job in itself, not to mention all the unpleasant legal
consequences if you violate this privacy law.
A CRM system can help you obtain and document your contacts’ permission
to store and use their personal details (consents), send automatic
notifications to all new contacts informing that you would like to store their
data, manage your customers’ subscription to email communication
preferences, and even set up rules to update personal details for groups of
contacts all at one time.

EXAMPLE:-
 Amazon CRM
Throughout the past few years, Amazon has become the go-to online
platform for online shopping. One of the main reasons for this is Amazon’s
CRM system. Amazon has one of the most complete CRM infrastructures in
the world that harnesses customer data during purchases to
instantly customize users’ online experience.

When purchasing an item from Amazon, you will need to set up a personal
account. Then, Amazon can track your purchases and browsing history
to tailor marketing campaigns and email campaigns based on things you
will probably like.

Moreover, you can configure your account to set up purchases in one-click.

This is one of Amazon’s most popular feature and customers appreciate it as
it dramatically speeds up the checkout process when making a purchase.