Customer Relationship Management Ppt n424y

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Customer relationship management (CRM) 

Term applied to processes implemented by a company to handle its with its customers

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CRM is a software-based approach to handling customer relationships

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Store information on current and prospective customers

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Control over buying process 

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Best possible price 

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Delivery (free), quality

All payment options 

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Information, comparison, selection, easy to find

Secure

Communication designed to suit needs 

Computerized, complex, caring

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All forms of trading 

Direct

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Traditional

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Retail

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E-commerce

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Wholesale

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Combination

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New convergence 

Telephony & telemarketing

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Internet

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Mobile, SMS

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Digital TV

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Cable & satellite

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Control over buying process 

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Best possible price 

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Delivery (free), quality

All payment options 

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Information, comparison, selection, easy to find

Secure

Communication designed to suit needs 

Computerized, complex, caring

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All forms of trading 

Direct

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Traditional

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Retail

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E-commerce

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Wholesale

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Combination

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New convergence 

Telephony & telemarketing

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Internet

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Mobile, SMS

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Digital TV

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Cable & satellite

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Customer relationship management (CRM) 

From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a variety of employees in different roles and departments

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CRM is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provides a mechanism for tracking customer information 8

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Information in the system can be accessed and entered by employees in different departments) 

Sales

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Marketing

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Customer service

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Training

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Professional development

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Performance management

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Human resource development 9

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Details on any customer s can also be stored in the system 

The rationale behind this approach is to improve services provided directly to customers

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To use the information in the system for targeted marketing and sales purposes

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Many inter-related aspects 

Front office operation

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Back office operations

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Business relationships

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Analysis

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Direct interaction with customers

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Face to face meetings

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Phone calls

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E-mail

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Online services etc

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Operations that ultimately affect the activities of the front office 

Billing

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Maintenance

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Planning

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Marketing

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Advertising

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Finance

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Manufacturing 13

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Interaction with other companies and partners 

Suppliers/vendors

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Retail outlets/distributors

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Industry networks (lobbying groups, trade assn’)

This external network s front and back office activities

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Key CRM data can be analyzed in order to plan 

Target-marketing campaigns

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Conceive business strategies

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Judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability)

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CRM initiatives often fail 

Implementation was limited to software installation

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Inadequate motivations for employees to learn, provide input, and take full advantage of the information systems

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Three key phases 

1. Customer Acquisition

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2. Customer Retention

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3. Customer Extension

Three contextual factors 

4. Marketing Orientation

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5. Value Creation

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6. Innovative IT.

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Attracting our customer 

For the first purchase

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We have acquired our customer

Growth 

Market orientation, innovative IT & value creation

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Aim is to increase the number of customers that purchase from us for the FIRST TIME

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Re-purchase 

Our customer returns and buys for a second time

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This is most likely to be the purchase of a similar product or service, or the next level of product or service.

Growth 

Market orientation, innovative IT & value creation

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Aim is to increase the number of customers that purchase from us REGULARLY 22

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Additional, supplementary purchases 

Our customers are regularly purchasing

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We introduce products and services to our loyal customers different from original purchase

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Once purchased, our goal is to retain them as customers for the extended products or services

Growth 

Market orientation, innovative IT & value creation

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Aim is to increase the number of customers that purchase ADDITIONAL products 23

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Focused upon the three levels of needs of customers 

Actual, tangible product

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Core product and its benefit

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Also the augmented product such as a warranty and customer service

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Core Benefit Basic Product Expected Product Augmented product Potential Product 26

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Generation of shareholder value 

Based upon the satisfaction of customer needs (as with marketing orientation)

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Delivery of a sustainable competitive advantage

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Updated IT 

Efficient, speedy and focus upon customer needs

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Whilst IT and/or software are not the entire story for CRM, it is vital to its success

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CRM software collects data on consumers and their transactions

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Organizations will track individuals, and try to market products and services to them based upon similar buyer behavior seen in other individuals

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1. Validation

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2. Discovery

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3. Action

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1. Validation

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2. Discovery

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3. Action

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Correct data 

Ensuring that the data you have on your customers is not only correct

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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

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Sometimes conventional analysis is impaired by your own natural assumptions and prejudices

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Discovery techniques help to solve these issues by starting from ground zero

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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

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Quality Inter-Action drives quality Trans-Action

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This is done with a Campaign Management tool that can automatically select the right targets and the right messages via the right channels

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The responses are then fed back into the Validation process for evaluation and refinement

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CRM is corporate strategy composed of applications, technology and products that fulfill three essential requirements 

1. Organization perspective

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2. Customer perspective

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3. Front office staff perspective

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360° view of each customer 

For consistent and unified with that customer whenever anyone anywhere in the enterprise deals with that customer

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This knowledge increases the opportunities for sales and the effectiveness of customer service

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2. Customer perspective ■

Customers to have a consistent view 

To enable your customers to have a consistent view of your enterprise, regardless of the way the customer s you

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This improves customer satisfaction and customer retention

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Staff performance 

To enable front office staff to perform sales, service and marketing tasks more efficiently as a team

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Increasing expertise and reducing costs

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Important 

Business starts with the acquisition of customers

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However, any successful CRM initiative is highly dependent on a solid understanding of customers

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Understand 

Demographics, purchase patterns & channels

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Segmentation to identify logical unique groups

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Primary research to capture needs and attitudes

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Customer valuation to understand profitability

Differentiate 

Based on the value customers are expected to deliver

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Develop 

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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

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Distribution, shipping, customer service & online

Deliver 

Delivering value is a cornerstone

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Factors including quality, convenience, speed, ease of use, responsiveness and service excellence 48

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Acquire 

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

Retain 

Maintain interaction;

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Deliver on value

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Customers change as they through differing life stages

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Modify the service 49

move

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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

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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