Presented By:

Abdul Haseeb
Aunzila Aslam
Prithvi Raj Soni
Suraksha
B2B CUSTOMER RELATIONSHIP MANAGEMENT

Identifying and grouping customers in order

to develop an appropriate relationship
strategy
So the organization can acquire, retain, and
grow the business
 TYPES OF CRM

1. Analytical CRM

2. Collaborative CRM

3. Operational CRM

4. Geographic CRM

5. Sales Intelligence CRM

TECHNOLOGY IN SALES
MANAGEMENT
Technology can help ensure a firms sales are
profitable
Programs analyze orders for profitability as
they are placed
Companies are dropping losing product lines
and unprofitable customers
 DATA MINING
Companies data mine information collected
in CRM databases
Purchase dates, incentives offered the customer,
product/services purchased, selling price, the
buyers position in the organization, number of
rep visits between buys, and samples and
promotional materials requested
Allows identification of important relationships or
connections that might not be readily apparent
Can conduct competitive analyses that result in
higher sales revenues, lower order entry errors,
and increased acquisition of new customers
 CUSTOMER-CENTRIC SELLERS
CRM technology helps
firms become more market-
or customer-oriented
Firms practice a market
orientation when business
processes and functions are
aligned to maximize
effectiveness in the
marketplace
A market-oriented selling
firm places the buyer at the
center of all of the strategic
decisions
THE NATURE OF B2B
RELATIONSHIPS
Three types of relationship between the buyer
and the seller
Transactional Relationship

Facilitative Relationships

Integrative Relationships
 TRANSACTIONAL RELATIONSHIP
Very Basic and Common type of relationship
Also called Arms Length Relationship where both the

buyers and sellers have no concern with each others well being.
Best price is only focused and fail to see the benefits of

organization while obtaining goals and objectives.

Neither buyer nor supplier will rush to each other for
assistance in bad times because of lack of mutual
understanding.
Limited communication between buyer and seller and no

ongoing relationships between the two parties

Powerful buyer can force the supplier to lower the prices of

products and services otherwise he will approach the

competitor
FACILITATIVE RELATIONSHIP
This relationship requires Trust and cooperation between buyers
and sellers and can create values for both parties.
Example: Buyer might award most of the companys business to

one particular seller to save time by not having to contact

multiple vendors while the seller minimizes the expenses of
buyer( purchasing cost) to win new accounts.

Infacilitative relationship, the salesperson might advance the

relationship with the customers by

Either
solving day to day problems or suggesting the solutions to
problem.

Asthe relationship expends, the seller better analyse buyers past

purchases and figure out the best strategies for doing business
 INTEGRATIVE RELATIONSHIPS
Also called Deep Relationship
Occurs when buyers decide to partner with a seller who can add
value to the buyers products.
Buyer and seller Trust one another and cooperate to reduce costs
and advance their mutual goals
By building integrative relationship a particular selling firm
becomes the buyers Sole source supplier (single supplier for
buyers product)
Example: Google is an example of a firm that has partnered with
Yahoo and has become its sole search engine supplier.
INTEGRATIVE RELATIONSHIPS
Both partners seek new ways to add value to each others
product and processes
In certain integrative relationship, A sales Manager Might
higher an outside salesperson who is actually or currently
working in buyers Firm.
E.g.: IBM is one of the company that has a representative
at their buyers side.
Trust is very important in this relationship because
without trust the buyer will be hesitate to share
information with the seller and so the buyer will not be
able to recommend the solutions to the buyers problem
 DIFFERENCES IN KEY VARIABLES
BASED ON STAGE OF RELATIONSHIP
Relationship Transactional Facilitative Integrative
Trust Little trust Increasing trust Broad trust

Communication Buyer-seller bow tie A few depts begin Direct communication

communicating between all depts

Value Win-Lose Buyer: lower prices Win-Win for both

Seller: lower costs
Little expectations Growing commitment Long-term expectations
Commitment beyond current by buyer & seller of partnership
contract

Feedback Little expectation of Growing acceptance of Honest feedback

feedback feedback expected and sought

Sales programs Little opportunity to May switch to inside Expansive opportunity

cross-or up-sell salesperson to cross- or up-sell

Little concern for Acknowledgement that

Profits supplier profits More concern supplier must make
reasonable profit
Competitive Little other than current Growing competitive Customized offering
advantage buy advantage
 GLOBAL SALES MANAGEMENT: FORMING BUSINESS
RELATIONSHIPS IN OTHER CULTURES

Many Americans assumes that you simple walk into the

Potential Customer, introduce yourself, call the buyer by his
first name and after a while u make a sale.
However In many cultures around the world, it takes years to
form a relationship with a person one does not know
Example: In china personal relationship greatly influences the
buyer and builds trust.
In Japan, the process of forming a relationship requires a
significant amount of effort that involves proving to your
Japanese customers that you can be trusted to provide them
with the products or services they need to keep their
businesses running. And for this Japanese thinks that
Socializing is important like (going out at night for drinking
and talk) allows the Japanese to deeply understand the
character of the gaijin (foreigner)
where as Americans rejects going out with the customer for
late night sessions.
CUSTOMER LIFETIME VALUE (CLV)
STRATEGIES
Customer lifetime value: profitability of partnering with
a buyer for an extended period of time
3 criteria to compute CLV (future customer profitability)

1
Probability of future
purchases
2
Future marketing costs
3
Future contribution margins
COMPUTING CLV

5-15
PLANNING SALES STRATEGY BASED
ON CLV
Low % of Purchase Share
Frequent sales force visits
Monthly visits
High Lifetime Direct mail/telemarketing
Earning Value
Optimal contact: biweekly
High potential customer
value
Extended sales force visits
Yearly intervals
Low Lifetime Direct mail/telemarketing
Earning Value
Optimal contact: quarterly
Low value customer
High % of Purchase Share
Constant sales force
interaction
Weekly visits
Direct mail/telemarketing
Optimal contact: weekly
Highest customer value
Infrequent sales force visits
6-month intervals
Direct mail/telemarketing
Optimal contact: bimonthly
Low potential customer
value
THE STAGES OF B2B CUSTOMER
RELATIONSHIP MANAGEMENT

1
Up-sell / cross-sell to existing
customers
2
Manage customer relationships
to earn higher profits
3
Offer customized solutions to
most profitable buyers
INSPIRING YOUR TEAM MEMBERS
TO
BUILD BUSINESS RELATIONSHIPS
According to a recent Sales & Marketing
Management article:
B2B salespersons are becoming strategic advisors
Point of differentiation is ability to form successful
relationships
How can sales managers inspire their sales team to form
genuine relationships?
Sales managers must help salespersons make REAL
connections
Release the outcome
The end result does not define the salesperson

Best to focus on what is learned during the sales process

Emotions

Connect emotionally to the buyers reason to purchase

Important to express empathy

INSPIRING YOUR TEAM MEMBERS
(CONTINUED)
Accountability
Easy to identify a goal; harder to commit to achieving
Sales manager should set goals and communicate their progress

Discuss importance of accountability with team members

Likeable
Inspire team members to see themselves from buyers perspective
assess their behaviors
Get team members to think positively and congratulate themselves

for expanding their comfort zones

Firstand most important step in building relationships
must come from within!
MAXIMIZING THE BUYERS VALUE

Value
Benefits Functional Benefits + Emotional Benefits
Costs
= Monetary Costs + Time Costs + Energy Costs +
Psychic Costs
1 Increasing benefits
Increase value by 2 Decreasing
costs
3 Both
RISK AND ORGANIZATIONAL BUYER
How do you reduce the perception of risk? You need
to substantiate your claims and you need to get
buyers to believe you in 4 different areas:
They need to believe in you.

They need to believe that the product or service

will perform as described.
They need to believe your company is a good
company to associate with.
They need to believe that theyll actually achieve
the eventual results that you promise them.
SOLUTIONS
BUILD CUSTOMER AWARENESS
BE RESPONSIVE

B FIRST WITH BIG QUESTIONS

PROVIDE COMPELLING INFORMATION

RIGHT SIZE YOUR OFFER

AMPLE USE OF THIRD PARTY

RECOMMENDATIONS AND TESTIMONIALS
OFFER A SALES GUARNTEE

FOLLOW UP AFTER SALES

SALESPERSON BEHAVIOR
Be honest and sincere
Understanding customer needs and problems and
solving them
Making his commitments successful

Possess a long term perspective

Have a sense of responsibility

Well developed networks and contacts

Communication skills
THANK YOU