Overview of CRM

Dr. Elijah Ezendu

FIMC, FCIM, FIIAN, FBDI, FAAFM, FCCM, MIMIS, MITD, ACIArb, ACIPM,
PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CMC
 Learning Objectives
At the end of the course, participants should
be able to do the following:
Explain the concepts of CRM
Explain the concepts of eCRM
Identify the difference between CRM and
Traditional Marketing
Identify the difference between CRM and
Database Marketing
Identify the relationship between CRM and
eCRM
“Customer Relationship Management
is a comprehensive strategy and
process of acquiring, retaining and
partnering with selective customers
to create superior value for the
company and the customer.”
- Parvatiyar and Sheth
“Customer relationship management is
about attracting, developing,
maintaining and retaining profitable
customers over a period of time.”
- Massey, Montoya-Weiss & Holcom
“CRM relates to strategy, managing the dual-creation
or value, the intelligent use of data and technology,
the acquisition of customer knowledge and the
diffusion of this knowledge to the appropriate
stakeholders, the development of appropriate
(long-term) relationships with specific customers
and/or customer groups and the integration of
processes across the many areas of the firm and
across the network of firms that collaborate to
generate customer value.”
- Boulding, Staelin, Ehret and Johnston
 CRM versus Traditional
Marketing
Traditional marketing focus on the four Ps
(price, product, place and promotion) for
increasing market share through increase in
the volume of transactions between seller
and buyer. While customer relationship
management focus on using strategies,
procedures, tools and technology for
promoting the relationship between the seller
and customer so as to increase sales
revenue, profitability and customer
satisfaction.
 Attributes of Market Exchanges
Attribute Marketing Through 4Ps Marketing Through
Transactions Relationships, Networks,
and Interactions
1. Actors The buyer has a generic need The buyer has a particular need,
and the seller has a generic offer and the seller has a unique offer

2. Nature of marketing
exchange
3. Interaction between actors The interaction between actors
4. Duration of marketing
exchange
5. Structural attributes of
market place
6. Marketing approach
The products or services are
standardized
are characterized in terms of, for
example, power, conflict and
control
The duration of marketing
exchange is independent and
discrete
The structural attributes of
market place is characterized as
an anonymous and efficient
market
The marketing approach is the
4Ps or the marketing mix
The products or services are
customized
The interaction between actors
are characterized in terms of, for
example, trust, commitment and
cooperation
The duration of marketing
exchange is on-going
The structural attributes of
market place is characterized in
terms of numerous networks to
a network approach
The marketing approach is
marketing through relationships,
networks and interactions

Source: Lindgreen and Antioco, Customer Relationship Management

Components of CRM
 Business Drivers of CRM
• Averagely, the cost of retaining a
customer is less than that of acquiring
a new one.
• A dissatisfied customer may become
aggressive opposition
• Advances in electronic commerce
provides wide range of relationship
opportunities for boosting customer
loyalty and satisfaction
 Assumptions of CRM
• Current information is right
• Consumers prefer individual,
differentiated treatment, services
and products
• The future behaviour of consumers
depends on their past behaviour
 Myths of CRM
Successful CRM needs complete customer
data and a very large database
CRM is a gigantic project
Very good CRM technology system guarantee
excellence in business
Segmentation is a prerequisite to CRM
CRM needs highly advanced analytics
Key Cost Goals of CRM & Action
Points
• Trim down cost of sales and distribution
- Deploy web applications for reducing sales force
- Manage customer relationships instead of products
- Use focused advertising to target customers
• Boost sales revenue growth by increasing customer
satisfaction
- Enhance sales by cross-selling
- Enhance sales by up-selling
• Reduce customer support costs
- Provision of appropriate level of information to
customer facing personnel
- Call center automation for easy access to information
• Reduce cost requirements for customer satisfaction
- Manage customer experience
- Deploy customer profitability analytics
 CRM versus Database
Marketing
Database marketing is a company-centric technique
which focus on using discount programmes and
promotions to sell more products to customers for
less cost: Therefore it’s difficult to use it for building
customer loyalty. While Customer relationship
management focus on enduring relationship with
customers by identifying and providing customer
values in the context of customer’s viewpoint and
not based on the company’s opinion: Therefore it’s
easy to use it for building customer loyalty.
 eCRM

eCRM involves matching and blending

people, processes and technology for
enabling an organisation to attract,
retain and partner with customers to
facilitate enhancement of value to
both customers and the organisation.
 CRM versus eCRM
The infusion of applicable electronic
technology including database-driven
software, business intelligence and web
systems to the customer relationship
strategy of a firm so as to achieve
established objectives depicts eCRM.
While CRM focus on the generic
application of a firm’s customer
relationship strategy in achieving
established objectives.
Customer relationship management
provides opportunity for expectations
of customers to be properly
identified, explored and used for
controlling value proposition with the
aim of increasing customer
satisfaction.
Customer Expectations Versus Experienced
Service
Model A Model B
 Benefits of eCRM to a Firm
• Transaction security
• Personalized services
• Relationship with customers
• eMarketing
• Using email for communication
• Enhanced workflow
• Large data storage
• Advanced analytics
• Time efficiency
 Benefits of eCRM to
Customers
• Convenience
• Confidence
• Service quality
• Transaction process speed
• Structured interaction
Steps for Achieving Goals of
CRM
• Customer Identification
• Customer Differentiation
• Customer Interaction
• Customization
Dr. Elijah Ezendu is a multidisciplinary professional whose business experience mounts through diverse fields.
He is a Certified Management Consultant, licensed by International Council of Management Consulting
Institutes which has a Special Consultative Status in United Nations Economic and Social Council. As a result
of his strides in management consulting, he received Merit Award for Excellence in Consulting. He is
concurrently Senior Partner, Shevach Consulting; Director of Strategy and Performance, Fortuna; Lead
Assessor and Member of Governing Council, Institute of Management Consultants; Director of Training,
International Council of Business Development Professionals; Member of Marketing Committee, International
Council of Management Consulting Institutes; Honorary Global Advisor, International Project Management
Commission; and Programme Coordinator (Nigeria), Regent Business School, South Africa. He holds a
doctoral degree in Management from St. Clements University, British West Indies. He is a Chartered
Manager certified by Canadian Institute of Management, Canada and holds numerous professional
qualifications including Master Project Manager; Project Manager E-Business; Fellow, Institute of
Management Consultants; Fellow, Certified Institute of Cost Management; Fellow, Institute of Business
Development; Fellow, American Academy of Financial Management; Fellow, Institute of Internal Auditors;
Member, Nigerian Institute of Training and Development; Member, Institute of Analytics Professionals;
Associate, Chartered Institute of Personnel Management of Nigeria; Associate, Chartered Institute of
Arbitrators (Nigeria). He is a Certified Business Development Analyst and Competitive Intelligence
Professional. Additionally, he is an information technology management professional certified by Institute for
the Management of Information Systems, UK along with Microsoft Corporation, USA and stands as a Member
of International Association of Software Architects. He is an outstanding motivational speaker with a knack
for recalibration of positive influence; and a world-class consultant, who has functioned as
Speaker/Facilitator at myriad programmes of professional institutes, international development
organisations, private and public firms including extra-governmental agencies and institutions. He is a
prolific writer and author who had served as Editor-in-Chief, Cost Management Journal; Part-Time Lecturer &
External Examiner (MBA Programme), Ladoke Akintola University of Technology; Director of MBA
Programme (Nigerian Outreach), Management Institute of Canada; Chief Operating Officer, Rohan Marine;
Second Vice President and Member of Governing Council, Certified Institute of Cost Management; Director of
Programmes and Member of Governing Council, The Institute of Business Development; Director, Refined
Shipping; and Examiner to various Professional Institutes.
 Gracias

Dr. Elijah Ezendu

elezendu@yahoo.com, 234 8033024596, 234 8058835237