SUPPLIER CUSTOMER RELATIONSHIP

Lecturer: Issa Almomani

Email: i.Almomani@ltuc.com

March 2022
 CUSTOMER
02 RELATIONSHIP
MANAGEMENT
 CRM,, Today

• Globalization and ubiquitous connectivity are forcing companies to

re-evaluate how to deliver value to customers.
• Large and small companies now deliver similar products at low cost
with an abundance of options for customers mainly due to
globalization.
• To be successful in this competitive environment, companies have to
deliver both quality products and unique and dynamic experiences for
the customer depending on his/her needs.
 CRM – What is it?

• CRM – “Strategy used to learn more about customers’ needs

and behaviors in order to develop stronger relationships with
them.
• CRM – “Any application or initiative designed to help an
organization optimize interactions with customers, suppliers,
or prospects via one or more touch points – such as a call
center, salesperson, distributor, store, branch office, Web, or
e-mail – for the purpose of acquiring, retaining, or cross-
selling customers.
CRM is
‘a process that addresses all aspects of identifying customers, creating
customer knowledge, building customer relationships, and shaping their
perceptions of the organization and its products’
 Importance of CRM

CRM can….
• Increase customer service levels
• Improve efficiency of call centers
• Cross-sell products more effectively
• Help sales staff close deals quickly
• Simplify marketing processes
• Increase ROI
 CRM strategy

Building relationships requires a business strategy and definitely

demands more than a functional strategy.
It affects the organization as a whole: marketing, IT, service,
logistics, finance, production and development, HR, management,
etc.
The CRM strategy describes how consumers and the organization
can find one another and how they can develop the desired
relationship.
• The CRM strategy provides direction to the organization as a whole, to
marketing and to IT.
• It thereby helps to make sure the fit between the business strategy,
commercial processes and enabling technology is optimal.
CUSTOMER RELATIONSHIP
MANAGEMENT STRATEGY

Organize the company around customer segments

Encourage and track customer interaction with the company

Foster customer-satisfying behaviors

Link all processes of the company from its customers

through its suppliers

Allows companies to tightly focus in on their target markets

 Three phases of CRM

Acquiring New Relationships

• You acquire new customers by promoting your company’s
product and service leadership.

Enhancing Existing Relationships

• You enhance the relationship by encouraging excellence in
cross-selling and up-selling, thereby deepening and
broadening the relationship.

Retaining Customer Relationships

• Retention focuses on service adaptability – delivering not
what the market wants but what customers want.
Three Steps to Measure Consumer Satisfaction
 Understanding Customer Needs

• To build long-term relationships firms must understand

what customers need, want, and expect.
• Must measure customer satisfaction.
• Marketers need to keep in touch with the needs of current
and potential customers.
Obtaining Customer Feedback and Ensuring Satisfaction

• Sources of information include toll free numbers or online feedback.

• Some firms hire mystery shoppers posing as customers to evaluate service.
• Complaints help firms overcome problems and demonstrate commitment to
service.
• Some firms conduct surveys to measure satisfaction.
Steps to improve CRM

1. Build a database.
2. Analyze, define types, profitability.
3. Customer selection.
4. Activities to delight selected customers
discourage others.
5. Analyze again to see how we’re doing
 Technology Drives CRM

• Customer support and call center software

• Provides customer interaction and improved service.
• Captures information about all interactions.

• Sales automation
• Links sales force to applications that facilitate selling and providing
service.
• Provides information to determine the best solution for customers.
• Determines order status, tracks deliveries, and identifies service
problems.
Technology Drives CRM (cont’d)

Technology
• Should not be used just as a cost-
reduction tactic.
• Should not be overwhelmed by
gathering unnecessary data.
• Should be used as a tool to
sustain long-term relationships.
Business Strategy Perspective of CRM

Business Promotes customer-centric approach

Customer segmenting
One-on-one marketing
Increase customer retention
Technology Foster close customer relationship
Analyze customer information
Coherent view of customer

Customer Increased interaction opportunity

Increase customer loyalty
Better “word-of-mouth” advertising
 Implications for Management

• CRM is a strategic business solution and not a technical solution.

• CRM should not be implemented as a single system or at one time.

• CRM systems come in a variety of shapes and sizes.

• Even though CRM provides a great solution for one-on-one individualized

marketing, it also provides good mechanisms for privacy and ethical
violations.
Summary

• Customer relationship management (CRM) systems are an integral part of

enterprise systems for today’s global market where many organizations are
competing for the same customers.
• No business can survive in a competitive environment without keeping a customer
happy.
• CRM systems can be categorized by functionality, business strategy, and
implementation perspectives.
• The customer relationship process is complex and integrates several functional
areas of the organization.
• A CRM system combines a wide variety of computer and communication
technology.
• The CRM manager is responsible for winning top management support and commitment,
• formulating the CRM strategy, formulating and implementing the various CRM
programmes and projects, and monitoring results – ultimately achieving CRM success.

• The major components of the CRM system are market research tools, sales force
automation software, customer service and support tools, and data mining and
analytics.

• CRM solutions exist in hosted and installed environments.

• CRM implementation must never focus on a technology solution.

STRATEGIC CRM
CRM Perspectives

CRM at the CRM at the CRM at the

functional customer- facing organizational
level level level- strategic
CRM

▪ Set of processes to ▪ Set of activities that

execute marketing provide a single-view ▪ Knowledge about
functions like sales of the customer across customers and their
force automation or all contact channels preferences have
marketing campaign ▪ Customer implications for the
management intelligence obtained entire organization
is available across all
customer-facing
functions
Strategic CRM

• Successful strategic CRM is a complex set of activities that

together form the basis for a sustainable and hard-to-imitate
competitive advantage.

• Strategic CRM shapes interactions between companies and

customers to allow the maximization of customers’ lifetime
value.

• Recognizes differences between customers with respect to their

economic value to the firm as well as their expectations from the
firm.
Components of CRM Strategy

Customer-
management
orientation

CRM
Strategy
Implementation

Integration and alignment Information capture

of organizational and alignment of
processes technology
Customer Management Orientation

• Defined as the set of organizational values, beliefs, and strategic

actions that enable the implementation of customer management
principles

• Characterized by a top management belief and commitment that the

customer is at the center of activity

• Recognizes that customers are heterogeneous in needs and value to

the firm and reflects a readiness to treat different customers
differently

• Considers the fact that a longer-term view of revenues from

customers needs to be taken into account
CRM Business Model

• Every customer carries a specific and unique credit

risk and potential revenue profile, which determines
his risk-return profile from the company’s point of
view

• The better the company can understand and assess a

customer’s specific risk, the better it can manage it
• The better the company understands the customer, the more it can tailor its
products to his needs

• Thus, low risk and high returns for the company on the one hand, and high
satisfaction for the customer on the other hand can ideally go hand in hand

• Management and employee evaluation is, amongst others, tied to customer

retention and customer profitability measures
Integration and Alignment of Organizational Processes

• Comprises organization wide creation and synchronization of

processes and systems enabling the implementation of
customer management principles

• Firmly incorporates needs of the customer and goals of the

firm into product and service delivery

• Strategic CRM works best for organizations that are organized

around cross-functional processes rather than functional silos
Integration and Alignment of Organizational Processes

• Characterized by an understanding that value provided to target customers

should be what drives all processes

• Individual processes work in sync with common goal of attracting and

retaining target customers

• Customer management compatible incentives drive employee and

organizational goals simultaneously

• Processes are designed in such a manner that they automate a feedback

Inter-functional Alignment

• Strong alignment of organizational processes with the customer-focused

strategy forms the backbone of CRM success

• The “Operations Department” cooperates closely with the “Marketing

and Analysis” department in the new product introduction process

• Information on customers used to craft strategy is obtained from the

front-end people.

• Information from “Operations” is used to improve the NPV (Net Present

Value) models that serve as decision-making aids
 Information Capture and Alignment of Technology

• Comprises all necessary technology and processes to collect, store, and process relevant
and timely customer information.

• Characterized by the capability of leveraging data to actionable information.

• Makes customer management processes not only more efficient but also more effective

• Helps to create entirely new processes and channels based on online and mobile
applications

• Firms that are able to generate intelligence and act on it will derive a competitive
advantage
THANK YOU