CUSTOMER RELATIONSHIP

MANAGEMENT
 Definition of CRM
CRM is concerned with the creation,
development and enhancement of
individualised customer relationships
with carefully targeted customers and
customer groups resulting in
maximizing their total customer life-
time value (2).
 Why is CRM important?
CRM initiates loyal customers to spend
more with the organization over time
Costs of relationship maintenance are
lower than acquiring new customer costs
Employee retention is more likely with a
stable customer base
Lifetime value of a customer can be very
high
Types of CRM
Four types of CRM

5
 What is E-CRM?

e CRM is the process of maximizing sales to the

existing customer, encouraging Continuous
relationships through the use of digital
communications technologies such as operational
databases, personalized web messages, Customer
Service, Email and Social Media Marketing.
 Differences between CRM and eCRM
CRM uses phone, fax and retail store for
contacting customers while eCRM uses wireless,
PDA technology, internet and email.

The design of CRM system is related to products

and functions while the design of eCRM system is
related to customer needs.

The maintenance of CRM is very expensive while

the maintenance of eCRM is less expensive and
requires less time.