PADMASHREE DR. D.Y.

PATIL UNIVERSITY DEPARTMENT OF BUSINESS MANAGEMENT

Information Technology

GROUP 5

MEMBERS NAME
1. Nikhil Jain 35

A Project On

Customer Relationship Management



Term applied to processes implemented by a company to handle its contact with its customers It is process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. Set of methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. CRM is a software-based approach to handling softwarecustomer relationships

 Relevant data for customer profile is captured with the help of

software. software.

Necessary information is captured from prospective customers. customers. CRM system stores data in common customer database. database. The database integrates customer account information and
present it in desirable format to the company. company.

This database can be accessed on Internet, intranet and on

other network links. links. applications. applications.

The data is used for sales, marketing, services and other The contact management software contains various modules of
databases, displays, charts, workflow programs. programs.

 Sales process management follows a customized

sales methodology with specific sales policies and procedures

Sales activities include - Product information,

product configuration, sales prospectus, sales quote generation. generation.

CRM also provide the history of customer account

so that the accordingly. accordingly. sales call can be scheduled

 CRM helps the professionals in product marketing,

target marketing, relationship marketing and campaign management. management.

By analyzing customer and business value of direct marketing can be estimated. estimated. also helps in customer retention, behavior prediction, channel optimization, personalization. personalization. can be quickly

CRM

Customer

response and requests scheduled and hence sales contacts. contacts.

 CRM system provides service representatives with adequate

software tools and access to customer database. It also database. helps to create, assign and manage the service requests by customers. customers.

Call center software is designed to route customer calls to

respective attendants as per the skills and authority to handle special cases. cases.

Help desk software is developed to help customer service

representative to help customers who face problems with product or service to resolve it. it.

Web-based Self Service means help customer to access Webpersonalized information at company website. website.

 The primary objective of CRM is to enhance

and optimize customer retention and loyalty. loyalty. and profitable customers

CRM systems are also useful in determining

most loyal reward. reward.

and

CRM analytical software includes determining

tools and analytical marketing software whereas CRM databases consists of customer data ware house and CRM data marts. marts.

 Techniques used to form relationships

with new customers to achieve an online sale. sale.

For achieving this special CRM software

tools and databases are used. used.

The main purpose of this CRM function

is to make aware the customer about the superior product by a distinguished company. company.

 To keep customer satisfied and happy to

offering superior service from specialists. specialists.

The

profitability of the business is increased by CRM sales for a automation and direct marketing. marketing.

The customer experience the convenience

of one stop shopping at reasonable prices. prices.

 Customer

retention refers to the actions an organization takes to retain existing customers i.e. the techniques to maintain relationships with existing customer. customer.

The customer retention has two distinct goals. goals.

1. To retain customers (repeat customers). customers). 2. To keep (repeat visits). visits). customers of using the organizations channel

online

Stage six: Enhancing the customer experience Stage five: Marketing more effectively Stage four: Analyzing Customer behavior Stage three: Accessing information Stage two: Storing information Stage one: Collecting information

There are following types of CRM 1.OPERATIONAL CRM 2. SFA 3.Analytical CRM 4.COLLABORATIVE CRM 5.GEOGRAPHIC CRM

Operational CRM processes customer data for a variety of purposes: 'Managing Campaigns' Enterprise Marketing Automation Sales Force Automation Sales Management System

Sales Force Automation automates sales forceforce-related activities such as: as:
Activity Management: Scheduling sales calls or mailings Management: Tracking responses Generating reports Opportunity Management and Assessment Account Management and Target Account Selling

Analytical CRM analyzes customer data for a variety of purposes: purposes: Designing and executing targeted marketing campaigns Designing and executing campaigns, e.g. customer acquisition, cross-selling, up-selling crossupAnalyzing customer behavior in order to make decisions relating to products and services (e.g. pricing, product (e. development) Management information system (e.g. financial (e. forecasting and customer profitability analysis) Analytical CRM generally makes heavy use of data mining. mining.

Collaborative CRM covers aspects of a company's dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. Staff members from different marketing. departments can share information collected when interacting with customers. For example, feedback customers. received by customer support agents can provide other staff members with information on the services and features requested by customers. Collaborative CRM's customers. ultimate goal is to use information collected by all departments to improve the quality of services provided by the company. company.

Geographic CRM
Geographic CRM (GCRM) combines geographic information system and traditional CRM. CRM. Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer visits. visits.

Many inter-related aspects

   

Front office operation Back office operations Business relationships Analysis

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Direct interaction with customers

   

Face to face meetings Phone calls E-mail Online services etc

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Operations that ultimately affect the activities of the front office

      

Billing Maintenance Planning Marketing Advertising Finance Manufacturing

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Interaction with other companies and partners

  

Suppliers/vendors Retail outlets/distributors Industry networks (lobbying groups, trade assn )

This external network supports front and back office activities

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Key CRM data can be analyzed in order to plan

  

Target-marketing campaigns Conceive business strategies Judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability)

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1. Validation 2. Discovery 3. Action

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Correct data


Ensuring that the data you have on your customers is not only correct Also, in a suitable state for targeting communications programs

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Use of data mining techniques



To find relationships that you did not know existed . Sometimes conventional analysis is impaired by your own natural assumptions and prejudices. Discovery techniques help to solve these issues by starting from ground zero. They simply search for relationships in the database against a set of objectives.
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Right communication


Your customers and prospects need to have the right messages communicated to them . Quality Inter-Action drives quality Trans-Action. This is done with a Campaign Management tool that can automatically select the right targets and the right messages via the right channels. The responses are then fed back into the Validation process for evaluation and refinement.
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What is the status of CRM adoption in India?

Indian companies were slow in adopting CRM. One CRM. of the major reasons for this has been a lack of proper understanding of CRM as a concept and how it could benefit an organization. In the past, organization. CRM was identified with call centers. However, centers. this has changed in recent times with a better understanding of the various components of CRM and increased awareness levels of how it can drive efficiencies across the board. board.

IT & TELECOM SECTOR HOSPITALITY SECTOR FINANCE SECTOR RAILWAYS TRAVELS AGENCIES INSURANCE SECTOR BANKING SECTOR OTHERS

y Increased competition in the sector meant that

organizations had to think of more innovative ways to acquire and retain customers. This sector has seen customers. more investments in IT infrastructure which is an enabler for applications. applications.

y Though back-end systems are always important for back-

smooth functioning of systems, for the service sector it is also important to have a user-friendly interface. userinterface. Many companies in this sector have adopted CRM before investing in ERP. Verticals in the services sector ERP. include retail and commercial banks, brokerages, insurance, mutual funds, IT services, BPO, hospitality, travel, media and logistics. logistics.

CRM is the strategic use of information, process, technology, and people to manage customer s relationship with your company (marketing, sales, services and support ) across the whole customer life cycle. cycle. Although our definition of CRM is broad and complex but its goal is simple

To maximize the value of your company s customer asset.

Customer loyalty Company s revenue Company s profit

The customer life cycle is total time that a customer is engaged with your company from the customer s experience and viewpoint. viewpoint. There is high level of cycle that is consistent for customers, no matter the product or services and no matter how much how much the customer spend on each stage; stage;

1. Consider: Customer becomes aware of need and investigates alternative Consider:

solution. 2.Purchase: Customer evaluates and chooses the best alternatives and place 2.Purchase: an order. 3. Set up: Customer install the product and learn how to use it. up: 4. Use: Customer operates and maintain the product and finally makes the Use: decision to retire it or upgrade, which starts the cycle all over again.

A major shift in marketing thought: thought:

y From mass marketing to individualized marketing. marketing. y From focus on acquiring lots of new customers to retaining and building more business with fewer loyal high-value highcustomers. customers.

Goal: Goal: build long-term relationship, 1:1 long-

y A firms ability to build and maintain relationships with

y The key: Treat customers like friends key:

customers, suppliers, and partners may be more important than the firms land, property, and financial assets. assets.

Establishing, maintaining, enhancing, commercializing customer relationships through promise fulfillment . Building long-term profitable relationships with mutual longbenefit. benefit. Tool: Tool: promise fulfillment

=> customer satisfaction. satisfaction.

Domino s Pizza ads claim 30 minute delivery of pizza s. s.

` Subconscious Expectations.
Pizza with specified toppings Take 10 minutes Come in a packed box Remain warm till you reach home Charges standard and acceptable price Pizza will taste reasonably good

` You will come back is all the above are met

If you go regularly.
Rapport with employees You forgive if they mess up with one or two expectations

Degree of confidence determines tolerance.

If using first time, and even one expectation is not met You will never go again

Exceeded expectations

Deliver on all expectations Give you a garlic bread FREE !

You will tell everyone about it

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Important
Business

starts with the acquisition of customers. any successful CRM initiative is highly dependent on a solid understanding of customers
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However,

Understand.
   

Demographics, purchase patterns & channels Segmentation to identify logical unique groups Primary research to capture needs and attitudes Customer valuation to understand profitability

Differentiate


Based on the value customers are expected to deliver

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Develop


Products, services, channels and media can be customized based on the needs of quantitative customer segments

Customize


Based on the potential value delivered by customer segment

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Interact
 

Not just through marketing, sales and media Distribution, shipping, customer service & online

Deliver
 

Delivering value is a cornerstone Factors including quality, convenience, speed, ease of use, responsiveness and service excellence

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Acquire


Learning about customers makes it easy to identify those producing the greatest value

Retain
  

Maintain interaction; Deliver on value Customers change as they move through differing life stages Modify the service
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 E-CRM

provides to companies a means to conduct interactive, personalized and relevant communication with customers across both electronic and traditional channels. channels.

It utilizes a complete view of the customer to make decisions

about messaging, offers, and channel delivery. delivery. E - CRM v/s CRM: The Differences Being able to take care of your customer via the Internet, or, customers being able to take care of themselves online: online: That s the difference between CRM and e-CRM. CRM.

Companies need to take firm initiatives on the eCRM frontier to Optimize the value of interactive relationship. relationship. Enable the business to extend messaging to the Web and e-mail. mail. its personalized

CoCo-ordinate marketing activities across all customer channels. channels. Leverage customer information for more effective eMarketing and eBusiness. eBusiness. Focus business on improving customer relationship and earning a greater share of each customer s business through consistent measurement, assessment and actionable customer contact strategies. strategies.

Excellent customer service is about being aware of customer needs and reacting to them effectively. effectively. CRM helps you to understand, anticipate and respond to your customers' needs in a consistent way, right across organization. organization. CRM will help your business if you view it as a set of tools that let you do more for, and get more from, your customer. customer. Keeps all your customer information in one place. place. Know and understand your customers. customers. Know your best revenue opportunities. opportunities.

Using CRM, a business can :

Provide better customer service. Increase customer revenues. Discover new customers. Help sales staff close deals faster. Make call centers more efficient. Simplify marketing and sales processes

Problems of collecting and coordinating substantial data can lead to privacy problems. problems. Firms still need to be sensitive to customer wishes about unsolicited contacts. contacts. Customer privacy request needs to be a part of CRM. CRM. Privacy and data security One of the primary functions of CRM software is to collect information about customers. When gathering customers. data as part of a CRM solution, a company must consider the desire for customer privacy and data security, as well as the legislative and cultural norms. Some customers prefer assurances that their data norms. will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties. parties.

CONCLUSION

THANK YOU

Question