Prepared : Priyanka Premin Toprani Class: III MBA

Class:MBA SEM III

SUBJECT: Customer
Relationship Management
 Prepared by Priyanka Premin Toprani
Class: MBA SEM III

Customer Relationship Management

Introduction
Meaning and Definition of CRM
History- Importance of CRM
Concept and Growth of Relationship Marketing-
Scope of Relationship Marketing-
Benefits and difficulties of CRM
 Prepared by Priyanka Premin Toprani
Class: MBA SEM III

Introduction
Customer Relationship Management (CRM) is a technology for managing all your
company's relationships and interactions with customers and potential customers. The
goal is simple: Improve business relationships to grow your business.

According to Starky, Woodcock (2000) Customer Relationship Management is defined

as a business attitude. ‘Customer Relationship Management (CRM) is an IT-enhanced
value process, which identifies, mature, combine and focuses the various capabilities
of the organisation to the customers opinion in order to deliver long term exceptional
customer value, at a profit, to well-known existing and future customer segments.’
 Prepared by Priyanka Premin Toprani
Class: MBA SEM III

Customer Relationship Management (CRM) is a strategy that companies use

to manage interactions with customers and potential customers. CRM helps
organisations streamline processes, build customer relationships, increase sales,
improve customer service, and increase profitability.

Customer relationship management (CRM) is the combination of practices,

strategies and technologies that companies use to manage and analyze customer
interactions and data throughout the customer life cycle.
The goal is to improve customer service relationships and assist in customer
retention and drive sales growth.
CRM systems compile customer data across different channels, or points of
contact, between the customer and the company, which could include the company's
website, telephone, live chat, direct mail, marketing materials and social networks.
CRM systems can also give customer-facing staff members detailed information on
customers' personal information, purchase history, buying preferences and concerns.
 Prepared by Priyanka Premin Toprani
Class: MBA SEM III

Importance of CRM

A CRM system consists of a historical view and analysis of all the acquired or to
be acquired customers. This helps in reduced searching and correlating customers
and to foresee customer needs effectively and increase business.
CRM contains each and every bit of details of a customer, hence it is very easy
for track a customer accordingly and can be used to determine which customer can
be profitable and which not.
In CRM system, customers are grouped according to different aspects according
to the type of business they do or according to physical location and are allocated to
different customer managers often called as account managers. This helps in
focusing and concentrating on each and every customer separately.
Better service to customers
Customization of market offerings
Increase and improvement in long-term relationships
Building and maintaining corporate image:
Higher return on investment:
 Prepared by Priyanka Premin Toprani
Class: III MBA

History of CRM in Marketing

•The. modern concept of customer service has its roots in the Craftsman Economy
of the 1800s, when individuals and small groups of Manufacturers competed to
produce arts and crafts to meet public Demand.
•Individual orders were booked for each customer and supplied according to
his/her taste and demands. The economies were small and so were the
transactions. The manufacturer was able to meet the customers on one to one basis
and talk to customer to understand the minute details.
•Customer care and service were highly personalized.
•In 20th Century the concept of Mass production came where the Customer care
vanished from the market
•This Mass production increased the competition in the market international
competition increased, and the dominance of western manufacturers was
challenged, first by Japan, then by Korea, China and other developing economies.
•New world emerged with these Eastern economies taking to tremendous growth
Producers responded by improving the quality of their products and services.
 Prepared by Priyanka Premin Toprani
Class: MBA SEM III

Relationship Marketing

Relationship Marketing is a strategy of Customer Relationship Management

(CRM) that emphasizes customer retention, satisfaction, and lifetime customer
value. Its purpose is to market to current customers versus new customer acquisition
through sales and advertising.

Definition: The Relationship Marketing refers to the activities undertaken by the

firm to establish and maintain the profitability and the long-term relationship with the
customers.

The portion of customer management forms the foundation of the relationship

marketing. Relationship marketing looks to utilize tools of traditional marketing in
creating long term value for customers. Relationship marketing theory proposes that
as company delivers value to customer, strength of its relationship with the customer
will improve and increasing the customer retention.

Relationship Marketing is a strategy of Customer Relationship Management

(CRM) that emphasizes customer retention, satisfaction, and lifetime customer
value. Its purpose is to market to current customers versus new customer acquisition
through sales and advertising.
 Prepared by Priyanka Premin Toprani
Class: MBA SEM III

Scope of Relationship

 Relationship marketing looks at creating an approach and strategy that will

generate customer retention. It makes a shift from traditional marketing which
had a single sales strategy. Relationship marketing treats sales as the beginning of
relationship with the customer.
Prepared by Priyanka Premin Toprani
Class: MBA SEM III
Prepared by Priyanka Premin Toprani
Class: MBA SEM III
Prepared by Priyanka Premin Toprani
Class: MBA SEM III
Prepared by Priyanka Premin Toprani
Class: MBA SEM III
 Prepared by Priyanka Premin Toprani
Class: MBA SEM III

Benefits of Customer Relationship Management

•It can enhance your customer experience
•You can open two-way communication for valuable customer feedback
•It becomes easier to generate more referrals to qualified leads
•You’ll better understand the needs of your customers
•It’ll help you to come up with new business (and product/service) ideas
•It makes your business stand out from competitors
•You’ll be able to foster loyalty
•You can ultimately boost your revenue via up selling and cross-selling

Disadvantages of Customer Relationship Management

• Implementation of CRM system requires huge cost to be spent by the business
•For proper functioning of CRM, trained and qualified staff is required. It takes a
huge cost and time for providing training to employees regarding CRM systems.
They need to learn and acquire information regarding CRM software for a proper
understanding of it. All this takes large efforts both in terms of money and time on
the part of the organization.
•Security Issues
•Eliminates Human Element
 Prepared by Priyanka Premin Toprani
Class: MBA SEM III

88% of online customers are less likely to return to a site after a

bad experience (Sweor)
52% of users said that a bad mobile experience made them less
likely to engage with a business (Impact)
More than half of customers will ditch their purchase if they
can’t answer their questions or solve problems quick enough
(Forrester)

Companies can compiled some simple things to improve CRM

•Simply the checkout process
•Offer more payment options
•Be transparent with prices and shipping costs
•Add customer reviews and testimonials
•Add trust signals, especially on payment pages
Prepared by Priyanka Premin Toprani
DATE: 29.11. 2021 Class: MBA SEM III

THANK YOU