Customer Relationship
Management
What is
CRM
Define
CRM!
Purpose
CRM
To understand, anticipate and Retentions of customers in addition Customer focussed –Customer
manage current potential to the acquisition of new customers delight
customers (maximizing total customer life-
time value)
Objectives
To create value for the customer
Creating value company over the longer
term
Organisation to gain competitive
advantage
Increase in customer service
Why is
CRM
Important
?
Traditional
VS CRM
Types of CRM
1. OPERATIONAL CRM: The automation or support of
customer processes involving sales or service
representatives.
2. COLLABORATIVE CRM: Direct communication with
customers not involving sales or service
representatives (‘self service’).
3. ANALYTICAL CRM: The analysis of customer data for
a broad range of purposes.
4. SALES INTELLIGENCE CRM: It is intended as a more
direct sales tool.
OPERATIONAL CRM
• Provides support to front office business processes.
• Benefits: Customers can interact with different people in
a company anytime.
• Ex: Sales Force Automation: Designed to automate sales
force-related activities
COLLABORATIVE CRM
• Provides a point of interaction between customers and
suppliers.
• Aims to get various departments into the business.
• It stresses on two-way communication instead of one-way
communication.
• Ex: technologies like electronic communication.
ANALYTICAL CRM
• Also known as back office or strategic
CRM.
• Involves understanding the customer
activities that take place in front office
• Involves analysis and evaluation of data in
data storehouse.
SALES INTELLIGENCE CRM
• Features include the delivery of "alerts" to
sales people based on analysis of such
factors as:
• Sales performance
• Customer trends
• Customer margins
CRM Strategies
Gain the greatest
number of new
Customer “Best” customers as
Acquisition early in their
“lifespan” as
possible
Retain and expand
your business and
Customer Retention
relationships with
your customers
Offer programs to
ensure that your
Customer Loyalty customers happily
buy what you offer
only from you
Steps
– Sales Stage
– Envisioning Stage
Implementati – Planning and Design Stage
on of CRM – Configuration and Development
Stage
– Deployment Stage
– Support Stage
TOOLS
• Sales Force
• HootSuite
• HubSpot
• UserPilot
Elements of CRM
• Customer Relationship Management (CRM)
encompasses various elements aimed at managing
and improving interactions with customers
throughout their lifecycle. Here are the key
elements:
1.Customer Data Management
1. Data Collection: Gathering information about
customers, such as personal details, purchase
history, preferences, and feedback.
2. Data Storage: Storing customer data in a
structured format, often in a centralized
database or CRM system.
3. Data Analysis: Analyzing customer data to
gain insights into customer behavior,
preferences, and trends.
Customer Segmentation
1. Demographic Segmentation: Categorizing customers
based on demographic factors like age, gender, income, and
education.
2. Behavioral Segmentation: Grouping customers based on
their behavior, such as purchase patterns, product usage, and
engagement levels.
3. Psychographic Segmentation: Segmenting customers
based on their lifestyle, values, and personality traits.
Customer Interaction Management
4. Multi-Channel Communication: Managing interactions
across various channels, including email, phone, social media,
live chat, and in-person.
5. Personalization: Customizing communication and marketing
efforts based on individual customer preferences and
behavior.
6. Customer Service: Providing timely and effective support to
address customer inquiries, complaints, and issues.
Sales Management
1. Lead Management: Capturing and managing potential customer leads,
tracking their progress through the sales funnel.
2. Opportunity Management: Identifying and managing sales opportunities,
forecasting sales, and tracking performance.
3. Sales Automation: Automating repetitive sales tasks, such as follow-up
emails and appointment scheduling.
Marketing Automation
4. Campaign Management: Planning, executing, and monitoring marketing
campaigns across various channels.
5. Email Marketing: Creating and sending personalized email campaigns to
targeted customer segments.
6. Social Media Marketing: Engaging with customers on social media
platforms and managing social media campaigns.
Customer Loyalty and Retention
1. Loyalty Programs: Implementing programs that reward customers for repeat
purchases and engagement.
2. Customer Feedback: Collecting and analyzing customer feedback to improve
products, services, and customer experience.
3. Retention Strategies: Developing strategies to retain existing customers,
reduce churn, and increase customer lifetime value.
Analytics and Reporting
4. Performance Metrics: Tracking key performance indicators (KPIs) such as
customer acquisition cost, customer lifetime value, and churn rate.
5. Customer Insights: Gaining insights into customer behavior, preferences,
and trends through data analysis.
6. Reporting: Creating reports and dashboards to monitor CRM performance and
make data-driven decisions.
Integration and Technology
1. CRM Software: Using CRM software to manage customer data, interactions, and
processes.
2. Integration: Integrating CRM systems with other business systems, such as ERP,
marketing automation, and e-commerce platforms.
3. Mobile CRM: Providing mobile access to CRM systems for sales and support teams on
the go.
Customer Experience Management
4. Journey Mapping: Mapping the customer journey to identify touchpoints and
opportunities for improvement.
5. Customer Satisfaction: Measuring and improving customer satisfaction through
surveys, feedback, and service enhancements.
6. Experience Design: Designing and implementing strategies to enhance the overall
customer experience.
• Effective CRM involves a holistic approach that integrates these elements to build strong,
lasting relationships with customers and drive business growth
