CRM – I

SYLLABUS
• Customer Relationship Management (CRM)
Introduction – Scope – Evolution and
Transformation of Customers, Components of
CRM. Goals of CRM , Touch Point Analysis –
Significance of Customer Privacy

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 MEANING
• Customer relationship management (CRM) refers to the
principles, practices, and guidelines that an organization
follows when interacting with its customers.
• From the organization's point of view, this entire
relationship encompasses direct interactions with
customers, such as sales and service-related
processes, forecasting, and the analysis of customer
trends and behaviors. Ultimately, CRM serves to enhance
the customer's overall experience.

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CONT
• CRM is often used to refer to technology
companies and systems that help manage
external interactions with customers.
• Major areas of growth in CRM technology include
software, cloud computing, and artificial
intelligence.
• CRM is a shift from traditional marketing as it
focuses on retention of customers in addition to
acquisition of customers.

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 FEATURES – CRM
• Customer needs (Quality, time, form, taste, variety)
• Customer response (Rating, review and feedback)
• Customer satisfaction (factors indicating satisfaction)
• Customer loyalty (Repeat purchase)
• Customer retention (Status)
• Customer complaints (Time, quality, relevance)
• Customer service

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CONT
• Customers Needs- An organization can never assume what
actually a customer needs. Hence it is extremely important to
interview a customer about all the likes and dislikes so that the
actual needs can be ascertained and prioritized. Without
modulating the actual needs it is arduous to serve the customer
effectively and maintain a long-term deal.
• Customers Response- Customer response is the reaction by the
organization to the queries and activities of the customer. Dealing
with these queries intelligently is very important as small
misunderstandings could convey unalike perceptions.

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CONT
• Customer Satisfaction- Customer satisfaction is the measure of
how the needs and responses are collaborated and delivered to
excel customer expectation. In today’s competitive business
marketplace, customer satisfaction is an important performance
exponent and basic differentiator of business strategies. Hence,
the more is customer satisfaction; more is the business and the
bonding with customer.
• Customer Loyalty- Customer loyalty is the tendency of the
customer to remain in business with a particular supplier and
buy the products regularly. This is usually seen when a customer
is very much satisfied by the supplier and re-visits the
organization for business deals, or when he is tended towards re-
buying a particular product or brand over times by that supplier.

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CONT
• Customer Retention- Customer retention is a strategic process
to keep or retain the existing customers and not letting them to
diverge or defect to other suppliers or organization for business.
Usually a loyal customer is tended towards sticking to a particular
brand or product as far as his basic needs continue to be properly
fulfilled.
• Customer Complaints- Normally raising a complaint indicates
the act of dissatisfaction of the customer. Handling these
complaints to ultimate satisfaction of the customer is substantial
for any organization and hence it is essential for them to have
predefined set of process in CRM to deal with these complaints
and efficiently resolve it in no time.

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CONT
• Customer Service- In an organization Customer Service is the
process of delivering information and services regarding all the
products and brands. Customer satisfaction depends on quality of
service provided to him by the supplier. The organization has not
only to elaborate and clarify the details of the services to be
provided to the customer but also to abide with the conditions as
well. If the quality and trend of service go beyond customer’s
expectation, the organization is supposed to have a good business
with customers.

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 BENEFITS OF CRM
• Streamline your sales process (Mamaearth)
• Manage your leads more efficiently
• Prioritize who you call (Existing, active, passive, new)
• Make your customer interactions more personalized
(Zomato)
• Save more time by automating routine tasks (Chatbots)
• Get detailed analytics on your sales process (Source, cost,
revenue)

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CONT
• Streamline your sales process - A CRM helps you to make sure
that there are no leaks in your sales funnel. All the leads that
come into your system from any kind of lead source are
accounted for.
• Manage your leads more efficiently - Most CRMs come with a
lead management tool as well, which helps you to keep a check on
your lead volume no matter how much it may be. As said before,
instead of struggling to remember where and how your leads are
coming in, a CRM gives you the option to easily manage and
control these leads.

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CONT
• Prioritize who you call - A CRM helps you prioritize your leads
so that this does not happen. This could be through setting them
a lead score or by grouping them in a list or by tracking their
activities. This way you can group your leads into buckets and
interact with them accordingly.
• Make your customer interactions more personalized - Most
CRMs come with a sales tracking or lead tracking feature. This
will help you to know which pages on your website are being
visited and how much time is being spent on it. If you sell
products online, then you can find out which category is being
visited the most. You can also track what conversations they have
with your team.

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CONT
• Save more time by automating routine tasks - CRM systems of
today come with features that allow you to set rules and tasks
and other features to help you to automate these routine tasks
and concentrate on what you do best.
• Make your teams more transparent - One of the major points
of dispute would be the assignment of leads. By automating the
entire process, your team would be rest assured that the process
has been impartial. This is important in keeping up their morale.

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CONT
• Get detailed analytics on your sales process -
If you are unable to account for your actions,
what is the point of all your efforts? An Excel
sheet gives you access to only limited data and
insights. But, a CRM comes with powerful
analytics features to get deep insights into the
effects of your sales activities.

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 CRM IMPLEMENTATION PROCESS
• Step 1: Identify why you need a CRM and what you expect
from it
• Step 2: Find a suitable CRM vendor for your organization
• Step 3: Develop a budget
• Step 4: Identify which departments and staff will handle
the process and train them accordingly
• Step 5: Draw a blueprint on how you need to progress with
the CRM
• Step 6: Ensure equal participation from business and IT

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CONT
• Identify why you need a CRM and what you expect from it: The first
and foremost step is to understand why your enterprise needs a CRM
system. Start off by identifying the areas you need to improve and the
problems that require attention. You need to have a vision that syncs
with the definitive goals of your business. Once you decide on the goals
of your CRM implementation, share them with everyone in the team to
ensure all are on the same page and moving along the same lines to
achieve goals.
• Find a suitable CRM vendor for your organization: You will get many
options in terms of vendors offering CRM. But you need to explore a bit
to find the right CRM system for your business as it will largely affect
the implementation. The strength of the vendor’s product is to be
judged along with the vendor’s experience in the respective market.

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 CONT
• Develop a budget: You need to develop a realistic budget that you can use for
the expenses related to the implementation process. It’s very important that you
remain very clear about your resources with your CRM partner so that they can
plan according to your investment. Balance your budget so that you do not
compromise on the implementation.
• Identify which departments and staff will handle the process and train
them accordingly: It is one of the most important steps which organizations
often ignore, leading to serious user-adoption issues. To make sure that you are
following the best practices in the process, select two key members and make
them a part of the project team. Take their feedback about the implementation
process as well. Make them a part of the demo and feedback sessions and take
actions on what they have to say. Now, you also need to take care of the training
of the end-users of your CRM.

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CONT
• Draw a blueprint on how you need to progress with the CRM: You
need to have a step-by-step road map on how you want to move with
the CRM implementation. You can’t implement it and expect it to give
you a 360 degree view of your customers immediately. The process is
gradual and but you will see the results eventually.
• Ensure equal participation from business and IT: Like Enterprise
Resource Planning, a successful CRM system is never just an IT
program. So, if you just run it as such, it’s going to fall flat. A successful
CRM system demands equal participation from the business as well.
You can create a Center of Excellence (COE) to maintain this teamwork.

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 SCOPE OF CRM
1. CRM for sales management
•Salesforce and pipeline management
•Lead, contact and prospect management
2. CRM for marketing
•Multi-channel marketing campaign management
•Database management
•Social media engagement

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CONT
3. CRM for customer service
•Customer service and contact management
•Knowledge sharing and document management
•Computer Telephony Integration (CTI)
•Social listening integration
4. xRM
•Products, pricing and catalogue management
•Project and contract management for professional services
•Human resource management

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CONT
5. CRM for business intelligence - A CRM dashboard provides
managers with an "at a glance" snapshot of company performance
and the various functions in one place. Because of the reach of
CRM, it can illustrate business intelligence in the areas of individual
and team performance against KPIs, customer engagement and
retention, support levels, audience profiling, sales pipeline,
profitability, customer trends and product analysis.

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 CRM DATA
1. Identity Data
• Name: Title, First Name, Last Name, etc.
• Personal: Date of Birth, Region, Gender, etc.
• Address: Shipping Address, Billable Address, etc.
• Telephone: Home No., Work No., Cell Phone No.
• Social Network: Facebook, LinkedIn, Twitter
Address, etc.
• Account: User IDs, Payment Preferences, etc.

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CONT
2. Quantitative Data Examples
•Online/Offline Transactions
•Inbound/Outbound Communication
•Online Activity
•Social Network
•Customer Service

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CONT
3. Descriptive Data
•Family: Marital Status, Relationships, Number of
Children, etc.
•Lifestyle: Property Type, Car, Pet Ownership,
Hobbies, Collections, Interests, etc.
•Education: High School, College, Advance
Education, etc.
•Career: Job Title, Job Description, Income,
Professional Background, etc.

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CONT
Method
•Tailored sign-up forms
•Discount vouchers for first purchases
•Providing pre-order opportunities
•Tailored E-Commerce checkout process
•Warranty cards
•Loyalty/rewards programs

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CONT
4. Qualitative Data
•Attitudinal: Perceived Value, Rating, Feedback,
Repurchase Likelihood, etc.
•Motivational: Reason for Purchase, Customer
Needs, etc.
•Opinion: Likes/Dislikes, Preferences, etc.

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SOURCE OF MARKETING DATA

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 EVOLUTION AND TRANSFORMATION
OF CUSTOMERS
• Customer service is all about the advice and guidance you provide
to satisfy your customers. This often happens after they’ve made a
purchase, and it might include things like troubleshooting,
questions about your product, or returns.
• Through this exchange, you’ll boost your customer success, which is
how much value your customers get from your product or service.
• Customer experience captures the entire journey a customer goes
through when they interact with your brand. This typically starts
when they first learn about you, then purchase something from you,
then use it and review it. Measuring customer experience includes
considering how they feel about your brand during their entire
journey.

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 IMPACT OF DIGITAL TRANSFORMATION
ON CUSTOMER SERVICE
• The biggest impact on customer service, and what’s lead to the
“age of the customer” we mentioned above has been the advent of
digital technology. It’s created a world where a customer can
always access a brand, and created an expectation that a
customer should always have that access.
• For B2B sales, social selling has replaced cold calls. As customers
are often already engaged with a brand on social media, you can
use that as a communication channel. You can build a relationship
with them on social media, educate them about your brand, and
share relevant content.

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CONT
• For marketing teams, spending on offline marketing activity is
less of a priority. Customers prefer targeted messages built via
a data-driven marketing strategy and delivered when and where
is most convenient for them.
• For customer service teams, phones and fax machines have been
replaced by social media, customer review sites and forums. This
is where your customer community is interacting and growing.
For customer service, it’s about being proactive with your
communications, not reactive.

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CONT
• Omnichannel approaches - Having an Omni channel approach
means delivering a seamless experience for your customers
across a variety of channels. It also includes a consideration for
the kinds of devices being used, different behaviours, and
changing preferences.
• Personalisation - Customers want to feel seen by the brands
they choose to interact with and spend their money on. To
achieve this, customer data needs to be a top priority, and it
needs to inform all communications. This data can help you find
them where they are, meet their needs with tailored
recommendations, and anticipate their future needs. If a
customer feels that your brand knows and understands them in
this way, they’ll value your products and services more.

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CONT
• Self-service - As people become more digitally-savvy, they’re
often willing and able to use smart services like virtual assistants
and chatbots. It can be a faster way to get answers to simple
questions, and can minimize the amount of effort required from
your customer service team. Making sure you have a fully-
functional and accessible self-service option on your channels is a
must.
• Tools and tech - Back to team efficiency, when your customer
service associates are working efficiently, they’re able to better
serve your customers. If you can provide them with the right
programmes and tech to help them achieve that, you’ll have more
satisfied customers. Find where their challenges lie, and look for
the kinds of tools you can give them to overcome those
challenges.

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 TRANSFORMATION OF CUSTOMERS
• Customer transformation is a multifaceted endeavor that
involves reinventing client relationships through advanced
insights and the latest tech. It is a holistic process that spans
the entire value chain from product design and development to
marketing and sales.
• Customer Transformation is a customer-centric process focused
on transforming a company’s products, services, and
experiences to meet the continuously changing expectations
of digital consumers.
Examples for transformation of customer experience -
https://www.forbes.com/sites/blakemorgan/2019/10/21/20-fresh-
examples-of-customer-experience-innovation/?sh=6bfe1ebc7c41

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Cont
• Customer transformation tailors a business
processes and leverages data to better
understand consumers and deliver better
experiences. The focus areas of transformations
are :
• Delivering value to new and existing customers
• Adapting to changing consumer expectations
• Using these processes to attract new customers

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 CUSTOMER PRIVACY
• Consumer privacy, also known as customer
privacy, involves the handling and protection of
the sensitive personal information provided by
customers in the course of everyday transactions.
The internet has evolved into a medium of
commerce, making consumer data privacy a
growing concern.

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 CONSUMER PRIVACY ISSUES
Personal information, when misused or inadequately protected, can
result in identity theft, financial fraud and other problems that
collectively cost people, businesses and governments millions of
rupees per year.
•Common consumer privacy features offered by corporations and
government agencies include:
•"do not call" lists;
•verification of transactions by email or telephone;
•Non repudiation technologies for email;
•passwords and other authorization measures;

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CONT
• Encryption and decryption of electronically
transmitted data;
• opt-out provisions in user agreements for bank
accounts, utilities, credit cards and similar
services;
• digital signatures ; and
• biometric identification technology.

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 BENEFITS OF CUSTOMER PRIVACY
• Brand reputation – companies that ensure privacy to customer data can
provide better experience to the customer. Which may result in positive
experience with the brand.
• Customer satisfaction – a satisfied customer is an asset to the brand
ensuring customer privacy helps customer to have their personal space and
can result in repeat purchase and long term association with the brand.
• Positive word of mouth – customers are likely to recommend a brand to
other prospective customer in case of better customer experience
management related to privacy.
• Revenue – companies with the ability to ensure customer privacy are likely
to be a preferred brand which can help in customer acquisition and profit.
• Customer privacy is important as it will help an individual to voice out their
opinion without being judged on a public platform.

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COMPONENTS OF CRM

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 CRM GOALS
• Improve the buyer’s journey
• Improve operational efficiency
• Increase customer retention
• Lower your customer acquisition cost
• Generate more sales

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 CUSTOMER TOUCH POINT
• A customer touch point is any direct or indirect
contact a customer has with a brand. Customer
touch points can occur within and outside of a
brand’s control and may happen before, during
or after the purchase of a brand’s product or
service.

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 TYPES OF CUSTOMER TOUCH
POINTS
• Company Created Touchpoints: These are the planned
marketing messages created and controlled by the
company. Promotional tools, packaging, and company
assets like websites fall under this type of customer
touchpoints.
• Intrinsic Touchpoints: These touchpoints are intrinsic
to the offering. They are experienced when the customer
buys the offering and when the consumer consumes the
offering. A brand might or might not have full control
over these touchpoints.

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CONT
• Unexpected Touchpoints: These are unexpected
references or information that are not cannot be
directly controlled by the brand. Word of mouth
marketing, viral marketing, and word of mouse
communication are some examples of unexpected
touchpoints.
• Customer-Initiated Touchpoints: These touchpoints
come into existence when the customers contact the
club themselves. Some examples include telephonic
conversation with the customer care representative, a
walk-in to the service station, etc.

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 BUYER STAGE CUSTOMER TOUCH POINTS
• Pre-purchase: All the interactions of the brand with the
customer before the sale is actually made. For example,
advertisements, word of mouth, reviews, influencer promoted
content, etc.
• Purchase: The interactions of the brand with the customer
during the sale. Examples include the brand website, packaging,
the physical store, customer service team, etc.
• Post-purchase: All the interactions of the brand with the
customer after the sale has happened. Examples are emails,
customer service team, loyalty program communications, etc.

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 BENEFITS OF CUSTOMER TOUCH
POINTS
• Develop Better Business Strategies: A sound knowledge
of every customer interaction with the brand helps the
brand develop better business strategies which add
meaning to every interaction.
• Increase the ROI of marketing: When touchpoints are
known, wastage of resources is reduced, which results in
better ROI.
• Develop A Favorable Brand Image: Mapping and tapping
customer touchpoints effectively result in a favorable
brand perception which gives rise to a favorable brand
image.

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 MAPPING & TAPPING OF CUSTOMER
TOUCH POINTS
• Need/Want Recognition
• Information Search
• Evaluation Of Alternatives
• Purchase
• Post Purchase

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CUSTOMER TOUCH POINTS EXAMPLES
Awareness
•Advertisements (TV, radio, newspaper, social
media, search engine, etc.)
•Word of mouth
•Viral marketing
•Referral
•SEO
•Content Marketing

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CONT
Interest
•Company website
•Customer reviews
•Customer testimonials
•Informative blogs and websites related to brand
•Influencer recommendations

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CONT
Desire
•Discount pages
•Salespersons
•Customer service representatives
Purchase
•Packaging
•Company’s outlet
•Payment gateways

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CONT
Post-Purchase
•After sale communication messages
•Community groups
•Customer service representatives

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 REFERENCE LINK
• https://www.leadsquared.com/benefits-of-crm/
• https://www.biztechcs.com/blog/crm-implementation-process-typical-steps/
• https://www.choosemycrm.co.uk/what-is-crm/scope-of-crm
• https://123projectlab.com/dfd-for-customer-relationship-management-system/
• https://exponea.com/blog/customer-data-management/
• https://www.insightly.com/blog/crm-objectives/
• https://www.gedys-intraware.com/crm-definition/

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