CRM/RM

Prepared By: Gurpreet Singh

CRM/RM (Customer R/S Mgt.)

It is a widely implemented strategy for managing a companys interactions with customers, clients and sales prospects.

It involves using technology to organize, automate, and synchronize business processesprincipally sales

activities, but also those for marketing, customer service, and technical support.
Prepared By: Gurpreet Singh

CRM/RM (Customer R/S Mgt.)

The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.

Customer relationship management describes a companywide business strategy including customer-interface departments as well as other departments.
Prepared By: Gurpreet Singh

CRM/RM (Customer R/S Mgt.)

Measuring and valuing customer relationships is critical to implementing this strategy. In other words, RM/CRM is about putting the customer in the middle of business circle. CRM is a business strategy to acquire and manage the most valuable customer relationships. Customer-centric business philosophy.

Prepared By: Gurpreet Singh

Process
1. Establishing CRM goals 2. Educating other departments 3. Assembling customer information 4. Designing the data model 5. Vendor study 6. Selecting the CRM solution 7. Establishing authority & responsibility 8. Pilot projects 9. Communication with customers through direct mail/emails
Prepared By: Gurpreet Singh

Process
10. Customer surveys 11. Customer satisfaction program 12. Collection of customer information 13. Provision of customer information to employees 14. Usage of customer information in the business activities 15. Feedback 16. Analyse 17. Documenting a new process 18. Implementing final methodology
Prepared By: Gurpreet Singh

Benefits of CRM/RM
Quality and efficiency Decrease in overall costs Decision support Enterprise ability Customer Attention Increase/Enhancing profitability Improving customer satisfaction Operational Excellence
Prepared By: Gurpreet Singh

Types/Variations
Sales force automation Marketing Customer service and support Appointment Analytics Integrated/collaborative Small business Social media Non-profit and membership-based Horizontal Vs. Vertical
Prepared By: Gurpreet Singh

Dimensions
Commitment to customers:
E.g. Commitments in form of guarantees & warranties etc.

Customer focused service standards:

To match customer needs and expectations.

Training and empowerment:

Quality of training of customer contact personnel.

Effective complaint management:

To resolve complaints and increase customer loyalty & retention. To train customer contact personnel to deal with angry customers. Complaints provide a source of product & process improvement.
Prepared By: Gurpreet Singh

Some Facts
It typically costs 5-10 times as much to acquire a new customer as it does to retain an existing one. Some companies can boost profits by almost 100% by retaining just 5% more of their customers. Harvard Business Review (Reicheld & Sasser) A recent McKinsey study showed that the average new customer spends $24.50 at a given web site in the first 3 months as a shopper. The average repeat customer spends $52.50 every 3 months. Most companies lose 50% of their customers in 5 years (Harvard University)
Prepared By: Gurpreet Singh

Some Facts
On average only 15% of a sites customers consider themselves loyal to it. The loyalty rating among people who had experienced a problem was only 6%. Customers who had not experienced problems indicated a customer loyalty rating of 19%. The loyalty rating among customers who had experienced problems but were satisfied with the way they were handled: 21%. (Digital Idea) 70% of repeat purchases are made out of indifference to the seller, NOT loyalty. (eLoyalty) The web customer is only 1 click away from your competition.
Prepared By: Gurpreet Singh

More Information:
http://en.wikipedia.org/wiki/Customer_relationship_ma nagement http://en.wikipedia.org/wiki/Relationship_marketing

Prepared By: Gurpreet Singh

Customer Focus
It is not possible to increase/grow the business simply by employing the best team of engineers, quality assurance experts, procurement specialists and other unless & until company pay attention to what the Customer Wants, both internal/external to the company.

Prepared By: Gurpreet Singh

Customer Focus Process

Identifying the Customers Analyzing Customers Needs/Requirements Manufacturing Product as per customers needs

Prepared By: Gurpreet Singh

Customer Focus Process

Identifying the Customers: (2 types: External/Internal)
C: Costs are minimum U: Usage of product is safe/reliable S: Services are provided before, during & after the sale T: They are timely heard O: Opportunities for improvement exist M: Most courteous attention is given to them E: Empathetic view will be considered R: Requirements are met/exceeded
Prepared By: Gurpreet Singh

Customer Focus Process

Analyzing Customers Needs/Requirements:
Customer perceive good quality products not only in terms of value for money but on the basis of the following: Quality of delivered products including good packaging Meeting advertised level of performance Performance of the product Fitness for use: Safety, Reliability, etc. Before, during and after sales services (3 phases) Innovation in the product: Adding new features Intelligent/Knowledgeable salesman Meeting delivery schedule: Products must be delivered without delay
Prepared By: Gurpreet Singh

Customer Focus Process

Manufacturing Product as per customers needs:
It costs 7 to 10 times more to recruit a new customer than to retain an existing one. Customer spread their bad experience with the product/service much faster than their good experience. Customer satisfaction is derived from provision of good quality products/services that meets or exceeds their needs or experience. In short, expected quality must be taken care while designing the products and its features to convert into design quality which must be transformed into actual quality by manufacturing dept.
Prepared By: Gurpreet Singh

Customer Focus
Advantages:
Enhanced customer satisfaction Increased Revenue/Profitability Shortened Sales Cycle Reduced Selling Cycle Easy Expansion Ease in arranging Funds Improved Product Value Increased Market Share Customer Loyalty Competitive Advantage
Prepared By: Gurpreet Singh