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    Decoding CRM in 21st Century

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    zeeshan ali
    CRM in 21st Century

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    Decoding CRM in 21st Century

    Uploaded by

    zeeshan ali
    59 views32 pages
    CRM in 21st Century

    Original Title

    Decoding CRM in 21st century

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    CRM in 21st Century

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    59 views32 pages

    Decoding CRM in 21st Century

    Uploaded by

    zeeshan ali
    CRM in 21st Century

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 32

    Customer Relationship

    Management
    Chapter-1
    CRM: An Introduction
    Relationship Emphasis on all
    market domains and
    Marketing
    customer retention

    Transactional
    Emphasis on
    Marketing
    Customer acquisition

    Functionally based
    marketing
    Cross-functionality
    based marketing

    Transition to relationship marketing


    Retaining Customers
    • Say thank you to your customers
    • Get the feedback of your customers
    • Communicating consistently
    • Highlight the experience of a customer
    Concept of CRM
    • Market moved from sellers market to buyers market
    • Companies therefore started taking personal care of their
    consumers by understanding their requirements, designing better
    products at competitive rates, devising better channels and
    strategies to market their products
    • Retaining customers and building relationships therefore became
    important for companies
    • Technology therefore was used to record historical data in a
    warehouse and sophisticated software and data mining
    techniques are used to analyse the data and develop equation to
    forecast better sales and also develop the satisfaction level of
    customers.
    Explanation of CRM
    • In a general perspective customers are taken
    care by understanding their requirements
    developing a ‘customer focus’ built around
    people, processes and technology
    • Based on the industry perspective customers
    are taken care by understanding their
    requirements.
    Role of CRM
    • Helping the marketing department to identify and target the best
    and most viable customers by managing their marketing campaigns
    with specific objectives and generate better leads for their sales and
    marketing team
    • Helping the organisation to streamline the existing processes for
    improving sales and account management and sharing all
    information required by employees
    • Building personal relationships with customers while identifying the
    best prospects and providing with high quality service to maximize
    profits.
    • Providing required information to all its employees to complete
    their work with well designed processes, understanding the needs
    of consumers and building relations effectively with the
    stakeholders, company, customer and all its partners who are
    involved in the distribution chain.
    ZONE OF AFFECTION

    ZONE OF INDIFFERENCE
    ZONE OF DEFECTION

    THREE LEVELS OF CUSTOMERS


    Three levels of customers
    • Zone of defection- When the satisfaction and
    loyalty of the customers are at the lowest level
    • Zone of indifference- When the satisfaction and
    loyalty of the customers are on a medium level,
    and they are not very sure about themselves
    • Zone of affection- This is the third and highest
    level of satisfaction and loyalty of customers
    where the satisfaction level is utmost.
    Evolution of CRM
    • Pre Industrial Age
    - Importance of Relationship
    • Industrial Age
    - Development of Marketing
    - Buyer-behaviour Theory
    - Service Economy Age
    • Knowledge Economy Age
    - Transaction
    - Analyse
    - Engage
    Transact Analyze Engage

    Process Decision Support Conversations


    Automation
    Data Capture Predictive Trends Social Networking

    Increased Data Warehousing


    visibility Collaboration
    Management Analytical Cross Boundary
    Control Applications

    1990’s 2000’s 2015's

    Fig: 1.3 EVOLUTION OF CRM


    CRM as a business strategy
    Reasons for the rise of CRM
    • Changed focus in companies
    • Realization in companies about the importance of its consumers
    • Structuring of organization on a strategic basis from functions to
    processes
    • Recognizing the benefits of information and utilizing it proactively
    • Utilization of technology in managing and maximizing the
    information value
    - Data repository
    - Set of applications
    • Development of one-to-one marketing approaches
    • Balancing the value trade-off
    Operational CRM

    Analytical CRM

    Collaborative CRM

    Types of CRM
    Operational CRM
    Is the customer facing application concerned
    with the automation of business processes
    involving initial customer contact points.
    CUSTOMERS

    Call Center Web E-mail Fax Direct


    CUSTOMER access sales

    TOUCHPOINTS
    BUSINESS ACTIONS

    OPERATIONAL CRM
    Analytical CRM
    Here data is collected in the operational side of
    the business and is captured, stored,
    organized, examined and interpreted for
    better value analysis.
    It enables to target the right customers with
    suitable offers
    BUSINESS ACTIONS

    BUSINESS
    ANALYSIS INTELLIGENCE PROCESS
    IMPROVEMENT

    INTEGRATION OF DATABASE
    INFORMATION FEEDBACK OF
    CUSTOMERS

    ACCOUNTS SALES CALL


    BUSINESS BILLING PAYABLE/ CENTER
    SYSTEMS RECEIVABLES

    ANALYTICAL CRM
    CRM Models

    •Evans and Luskin (1994) Model for


    Effective Relationship Marketing
    •Brock and Barcklay (1999) Model of Selling
    Partner Relationship Effectiveness
    • Peppers and Rogers or IDIC MODEL
    Evans and Luskin (1994) Model for Effective
    Relationship Marketing

    Discusses three aspects


    • Relationship marketing inputs
    • Relation marketing outcomes
    • Assessment state to complete the CRM
    process
    Inputs of relationship marketing
    Understanding customer
    expectations
    Building service partnerships
    Empowering employees
    Total quality management

    Relationship
    marketing outcomes
    •Customer satisfaction
    •Customer loyalty
    •Quality products
    Assessment state •Increased profitability
    •Customer feedback
    •Integration
    •Independe

    Evans and Luskin (1994) Model


    (Adapted from Evans, J. R. &Laskin, R. L (1994). “Relationship Marketing can help a Firm Escape Commodity like Status”, “Industrial
    Marketing Management, 23,5 , p. 440–1).
    l
    Brock and Barcklay (1999) Model of Selling Partner
    Relationship Effectiveness

    It propounds
    • Independence of doing business
    • Relative influence of the companies
    • Selling partner effectiveness
    Independence

    Mutual trust Selling partner


    relationship
    Cooperation effectiveness

    Relative influence

    Brock and Barcklay (1999) Model (Adapted from Evans, J. R. &Laskin, R. L (1994). “Relationship
    Marketing can help a Firm Escape Commodity like Status”, “Industrial Marketing Management, 23,5 , p. 440–
    1).
    Peppers and Rogers or IDIC MODEL

    • Identify
    • Differentiate – based on needs and values
    • Interaction
    • Customize
    Information to the organisation in regards
    to their customers as well as their needs

    Identify Differentiate Differentiate Interact with Customize


    your customers the customers your products
    customers by value customers based on their and services
    based on needs and based on the
    their needs values needs of the
    customer

    Information to customers on your


    ability to cope up with their needs
    The ‘Value
    Sieve’

    IDIC MODEL
    (The IDIC model was first published in 1997 in The One to One Fieldbook, by Don Peppers and Martha Rogers, Ph.D. Identify-Differentiate-Interact-Customize
    © Peppers & Rogers Group).
    Principles of CRM
    • CRM is not about only purchasing software, but it is a
    strategy.
    • CRM must be conducive to the work environment,
    present as well as future
    • In CRM, quantitative goals have to be set and
    benchmarked
    • Total cost of CRM implementation must be studied
    carefullly
    • Selection of the right partner to find the right CRM
    solution
    Technological Components of CRM
    • CRM Engine –repository of customers
    • Front Office Solutions
    – applications which runs on top of customer data- SFA (Sales
    Force Automation), EMA (Enterprise Marketing Automation)
    - Creates analytics, reports and provide instant access to
    information
    • Enterprise Application Integrations (EAIs)for CRM
    - Provide messaging and data mapping services that allows
    system to communicate with each other
    • CRM in back office
    CRM Trends
    • Business Analytics
    • CRM goes mobile
    • Integrated approach towards CRM
    • CRM and the internet – Client Dynamics Software
    • Vertical CRM
    • Outsourcing CRM
    • Mid Market Trends
    - run licensed CRM applications like Sales Force, Microsoft etc
    - Apart from this the leaders are opting for partnerships than
    acquisitions such as SalesNet, Netsuite etc.
    Table 1.1: MAJOR SOFTWARE PLAYERS

    Large Business Enterprises Mid Market Enterprises Small Market Enterprises

    Oracle Microsoft Microsoft

    SAP SAP Onyx

    Salesforce.com Salesforce.com Netsuite

    Peoplesoft Peoplesoft

    Siebel

    Table 1.1: MAJOR SOFTWARE PLAYERS


    Market in Large Enterprises
    • Oracle – e-business suite – web based centralized computing model connected
    with non-mobile users.
    - Oracle Marketing
    - Oracle Sales
    - Oracle Support
    - Oracle Partner Relationship Management
    - Oracle Advanced Scheduler
    - Oracle Interaction Center
    • SAP ERP
    • Salesforce.com
    • PeopleSoft
    - CRM Analytics
    - CRM portal pack
    - Marketing solution
    - Sales solution
    - Service solution
    Midmarket
    • Peoplesoft
    • Salesforce.com
    • Siebel
    • Microsoft
    • SAP
    Small Business Market
    • Microsoft
    • Onyx
    • NetSuite
    Defining CRM
    • CRM as a tool
    • CRM-A step in the right direction
    • CRM – A Consumer study
    Need of CRM
    • Because of its characteristics and advantages as it
    enhances their productivity
    • Consumers feel attached to the company and have full
    faith and loyalty in the brand
    • Helps the company to extend its market reach and brand
    value
    • Their records are organized well, and they are able to data
    mine records based on their requirements in a short term
    • use business analytics as well as business intelligence to
    forecast their future endeavours in the market

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