Unit 1

What is CRM?
To recognize and treat each customer individually to
optimize customer experience by serving their
unspoken needs and make him buy the product
again & again.
Is the process of
acquiring,
retaining, and
growing profitable
customers.
CRM is … any application or initiative designed to help an
organization optimize interactions with customers,
suppliers via one or more touch points such as
a call center, salesperson, distributor, store, branch
office, Web, or email – for the purpose of acquiring,
retaining customers.
Customer relationship management
(CRM)

A broad term that covers concepts used by

companies to manage their relationships with
customers, including the capture, storage and
analysis of customer information.
 CRM is the corporate buzzword of the new
millenium. Customer Relationship Management is
vital to retain customers, upsell , cross -sell &
ultimately customise products & services to survive
and win the marketing warfare.
Defination by Gartner
Gartner has defined ‘CRM’ as a business strategy
designed to optimize profitability , revenue and
customer satisfaction.
Definition by PWC Consulting
CRM is a business strategy that aims to understand
appreciate , manage & personalise the needs of an
organizations current and potential customers.
Definition by Parvatiyar &
Sheth
CRM is a Competitive strategy & process of
acquiring , reacting & partnering with selective
customers to create superior value for the Company
and the Customer.
 CRM Process
Interactions

Customization of Marketing Mix

Learning about Customers
Knowledge Acquisition Product
Customer Differentiation Price
Place
Promotion

Interactions
Four Step Process

Identification

Differentiation

Interaction

Customization
 The CRM processes should fully support the basic
steps of customer life cycle . The basic steps are:
Attracting present and new customers
Acquiring new customers
Serving the customers
Finally, retaining the customers
Objectives of CRM
To simplify marketing and sales process
To make call centers more efficient
To provide better customer service
To discover new customers and increase customer
revenue
To cross sell products more effectively
 Benefits Of CRM
The following are the benefits of adopting CRM processes:

1.Collect customer related data

2.Create detailed profiles of individual customers
3.Increased customer satisfaction
4.Access to customer account history, order
information, and customer information at
all touch points.
5.Identify new selling opportunities

6.Increased market share and profit margin

7.Increased revenues

8.Provide better customer service

9.Help sales staff close deals faster
10. Increased customer satisfaction because they are
getting exactly what they want
11.Enhanced customer loyalty
12. Improved ability to meet customer requirements
13. Improved response time to customer requests for
information

14. Improved quality communication and networking

15. Reduced costs of buying and using product and

services

16.Better stand against global competition

Significance
Try to win new orders and make as many new
customers as possible. Keep a healthy prospects
database of prospective customers which could be
future customers.
 Adopt best-practices to ensure customer loyalty.
Customer brings revenues. Loss of customer is loss of
revenues. Try to give personalized attention to
customers.
Use the right marketing mix. Keep enhancing product
suite and offer complementary products that a
customer would like to purchase to increase the
“share”.