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    Chapter 10 - CRM

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    evanaann
    This document discusses the history and key concepts of customer relationship management (CRM). It traces the evolution of CRM from early buying and selling approaches to modern eCRM strategies. The document defines CRM as a business strategy that optimizes profitability and customer satisfaction through customer-centric processes and segmenting customers. It also outlines several underlying theories of CRM, potential benefits and costs, and steps to improve a company's CRM approach.

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    Chapter 10 - CRM

    Uploaded by

    evanaann
    116 views11 pages
    This document discusses the history and key concepts of customer relationship management (CRM). It traces the evolution of CRM from early buying and selling approaches to modern eCRM strategies. The document defines CRM as a business strategy that optimizes profitability and customer satisfaction through customer-centric processes and segmenting customers. It also outlines several underlying theories of CRM, potential benefits and costs, and steps to improve a company's CRM approach.

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    Customer relationship Management Marketing power point slides

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    This document discusses the history and key concepts of customer relationship management (CRM). It traces the evolution of CRM from early buying and selling approaches to modern eCRM strategies. The document defines CRM as a business strategy that optimizes profitability and customer satisfaction through customer-centric processes and segmenting customers. It also outlines several underlying theories of CRM, potential benefits and costs, and steps to improve a company's CRM approach.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    116 views11 pages

    Chapter 10 - CRM

    Uploaded by

    evanaann
    This document discusses the history and key concepts of customer relationship management (CRM). It traces the evolution of CRM from early buying and selling approaches to modern eCRM strategies. The document defines CRM as a business strategy that optimizes profitability and customer satisfaction through customer-centric processes and segmenting customers. It also outlines several underlying theories of CRM, potential benefits and costs, and steps to improve a company's CRM approach.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Chapter 10

    Customer
    relationship
    management

    The Nature of Distribution


    Channels
    B&S

    RM

    CIMS

    CRM

    e-CRM

    Time
    line
    Late
    80s

    Early
    90s

    Mid 90s

    2002 Future

    B&S Buying & Selling


    RM Relationship Marketing
    CIMS Customer Information Management Systems
    CRM Customer Relationship Management
    e-CRM- A subset of CRM that focuses on enabling customer
    interactions via e-channels (The web, email and wireless)

    Definition:

    is a business strategy with outcomes


    that optimise profitability, revenue and
    customer satisfaction
    by organizing around customer segments,
    fostering customer-satisfying behaviors and
    implementing customer-centric processes.

    is a strategy
    used to learn more about customers' needs
    and behaviors
    in order to develop stronger relationships w
    them.

    Underpinning Theory:

    Customers have many points of contact with an


    organisation
    Retaining customers is far most cost effective
    than recruiting new ones
    Some customers are more profitable than others

    The 80/20 rule


    For most firms, 80% of profit comes from 20% of custom

    Use of Technology

    Potential Benefits Of CRM:


    Identifying needs & increased sales
    through better timing due to anticipating
    needs based on historic trends
    cross-selling/ up-selling of other products
    by highlighting and suggesting alternatives
    or enhancements
    identifying which of your customers are
    profitable and which are not
    Customer Retention

    Benefits Of CRM For Customers:


    Continuity
    A contact point
    Personalisation

    Potential Costs Of CRM:


    Costs of IT infrastructure
    Insufficient resources maintenance
    Complex System Employee Training
    Poor communication can prevent buy-in

    Three phases of CRM:


    Acquiring New Relationships
    You acquire new customers by promoting your
    companys product and service leadership.
    Enhancing Existing Relationships
    You enhance the relationship by encouraging
    excellence in cross-selling and up-selling,
    thereby deepening and broadening the
    relationship.
    Retaining Customer Relationships
    Retention focuses on service adaptability
    delivering not what the market wants but what
    customers want.

    Steps to improve CRM:


    1.

    Build a database

    2.

    Analyse, define types, profitability

    3.

    Customer selection

    4.

    Activities to delight selected customers


    - discourage others

    5.

    Analyse again to see how were doing

    What should be in the database:


    Demographics
    How do you get people to provide this?
    History of contacts
    Transaction history or summary
    Response to marketing communications
    How did you hear about us (this offer?)

    Behavioral Patterns:
    Customer lifetime value
    On-line analytical processing (OLAP)
    Behavioral patterns
    Consumption channel
    Benefit segments
    Degree of loyalty

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