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Fundamentals of Customer Relationship Management: Abstract

The document discusses fundamentals of customer relationship management (CRM). It defines CRM as a strategic approach that uses information, processes, technology, and people to manage customer relationships across an organization. CRM aims to increase customer loyalty and satisfaction by better understanding customer needs and improving interactions. The key components of a CRM system include collecting customer information, managing customer-centric processes, utilizing technology to enable CRM, and training employees on CRM strategies and tools. Effective use of CRM can benefit organizations through increased revenue, higher customer retention rates, and improved profit margins.

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mohanapriya
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32 views

Fundamentals of Customer Relationship Management: Abstract

The document discusses fundamentals of customer relationship management (CRM). It defines CRM as a strategic approach that uses information, processes, technology, and people to manage customer relationships across an organization. CRM aims to increase customer loyalty and satisfaction by better understanding customer needs and improving interactions. The key components of a CRM system include collecting customer information, managing customer-centric processes, utilizing technology to enable CRM, and training employees on CRM strategies and tools. Effective use of CRM can benefit organizations through increased revenue, higher customer retention rates, and improved profit margins.

Uploaded by

mohanapriya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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FUNDAMENTALS OF CUSTOMER RELATIONSHIP

MANAGEMENT
Author: Mohanapriya.S
Assistant professor
PSG college of arts and
science, Coimbatore.

ABSTRACT:
A customer is a human being. Only human beings can make decisions and
use products.any person who is acquiring or deciding to acquire the
product is a customer. The relationship starts as soon as both the parties
are aware of each other. When a customer begin using or even
considering of using the product is start of the relationship. Then its the
companies job to be sure that they know about each customer and to take
care of those relationships. So it is important for all companies to manage
a cordial relationship with its customers.
WHAT IS CRM?
People make buying decisions. Relationships can only be developed
between people. customer relationship management program must be
structured around this fact.CRM is about people. CRM is an approach to
organising companies interactions with customers that starts with a
customer-centred point of view. customer relationship management is a
discipline that covers all the elements needed to build successful
relationship with customers.CRM includes the following elements

The information needed to understand the customer better


The process management needed to deliver efficient and

appropriate experiences to customers


The software tools that allows us to use that knowledge

The training and change management elements so our people and


organizations understand and are capable of delivering experiences
that build stronger relationships and increase loyalty

CRM impacts the bottom line of the organisation by the way of profits.
It increases revenue by enabling your company to meet and exceed
customer expectations and by increasing loyalty.
DEFINITION:
CRM is the strategic use of information, processes, technology and people
to manage the customers relationship with your company across the
whole customer life cycle.
The key elements in the definition are,

CRM focuses on strategic impact rather than the operational impact.

the benefits of this are long term rather than immediate


CRM is a total discipline to understand it one must know the
components. they are people, technology, information, process and

interaction that build customer loyalty.


CRM includes all the functions that directly touch the customer
throughout his entire lifetime with the company

COMPONENTS OF CRM:
The CRM infrastructure is made up of four key components. They are,
1.Information:
Information is the raw material of CRM.The following information are
useful to CRM

Identification data: Name/Address/Phone data collected from

customers to complete a business transaction.


Marketing data:descriptors/ traits/preferences collected from

customers during a transaction.


List data: names/ addresses collected by a third party,which can be
bought or leased

Overlay data: customer profile collected by a third party,which can


be leased and appended to existing records

2. Process:
Customer-centered process are the product of CRM.some examples are

All current process that directly touch the customer


Touch points, or means by which we interact with customers such as

phone, e-mail,etc.
Identifying and eliminating process disconnecs and white spaces.
Intergrating and rationalising the process from business point of
view.

3. Technology:
Technology is the machinery that enables CRM to work. The examples of
technology are

Software products
Networking and intergrating applications and databases
Security features such as encryption tools and firewalls

4. People:
People are the power supply of CRM. The energy source must set to the
right voltage for the entire system to work. People are reset through
various change management tools and support mechanisms, such as,

Training and education


New tools
Measurements and rewards

IMPORTANCE OF CRM:
The importance of CRM are as follows:
1. Common growth for marketers and customers: CRM will help
customers to identify the right product that will suit them; also the
marketers will know about their target audience and will not waste
their time.

2. Customized marketing efforts: most of the B2B marketing today is


customized where the manufacturer will customise the offer,
logistics, communications, and financial terms of each major
account. CRM helps customise marketing to be more effective.
3. Lower cost of marketing: As products manufactured with the CRM
techniques the customers will accept it and they will also be
satisfied with the product. Also a good relationship will be
maintained with the customers and thus money will not be wasted
in advertising and promotions.
4. Strong customer loyalty: maintaining customer loyalty is a difficult
one in current scenario, where products are flooding the market with
new technologies always customers tend to change from one
product to another. So if with help of CRM good relationship is
developed with the customers than chances are less of customers
not being loyal. Thus CRM develops a strong customer loyalty and
also a good company image.
5. Improve customer satisfaction: companies now are trying to offer
total customer satisfaction. As with the use of CRM firstly the
customers will choose the right product offered and also if they face
any problem they will solve it quickly. Thus the level of customer
satisfaction can be raised with CRM.
6. Improved customer retention: With the help of CRM where customer
satisfaction is very high, they will prefer for same company products
and he may also suggest new customers to purchase the product.
Thus CRM helps in retaining customers.
ADVANTAGES OF CRM:
The advantages of CRM generally fall into three categories: cost savings, revenue
enhancement and strategic impact. Based on successful CRM implementations the following
advantages seem reasonable:
1. Increased margins: increased margins resulting from knowing customers better,
providing a value-sell and discounting prices.
2. Improved customer satisfaction ratings: This increase occurs since customers find the
company to be more responsive and better in touch with their specific needs.

3. Increased sales revenue: increased sales results from spending more time with
customers which results from spending less time chasing needed information.
4. Increased win rates: win rates improve since companies can withdraw from unlikely
or bad deals earlier on in the sales process.
CONCLUSION:
The advantages of customer relationship management are considered are abound. It allows
organisations not only to retain customers, but enables more effective creates intelligent
opportunities for cross selling and opens up the possibility of rapid introduction of new
brands and products.
To be able to deliver these benefits, organisations must be able to customise their product
offering, optimize price, intergrate products and services and deliver the service as promised
and demanded by the customer base. However, by maintaining an overall relationship with
the customer, companies are able to unlock the potential of their customer base. Keeping the
customer happy is obviously one way of ensuring that they stay with the organisation.

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