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CRM Note For Unit 01

CRM report

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9 views

CRM Note For Unit 01

CRM report

Uploaded by

Hacker Jii
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Dr.

Yashwant Kunhare Unit -01

Customer Relationship Management

Definition
It refers to the holistic approach that organizations can take to manage their
relationships with their customers, including policies related to contact with
customers, collecting, storing, analysing customer information, and the technology
needed to perform these tasks.
According to Philip Kotler and Gary Armstrong, ‘CRM is concerned with
managing detailed information about individual customers and all customer “touch
points” to maximize customer loyalty. It can also be defined as, ‘an alignment of
strategy, processes and technology to manage customers, and all customer-facing
departments and partners. In short, CRM is about effectively and profitably
managing customer relationships through the entire life cycle.

Objectives of CRM
1) To increase sales & revenue
2) To increase customer retention
3) To improve customer experience
4) To make customer services more effective
5) To enable more effective communication with customers
6) Increase business
7) To improve customer satisfaction
8) To build long-term relationships

Elements of CRM
1) Technology
2) Product
3) Marketing
4) Services
5) People
6) Measurement

CRM Need & Importance


1. Better Services to Customers
2. Customization of market offerings
3. Reduction in the customer defection rate
4. Increase and improvement in long-term relationships
5. Increase in customer equity
6. Competitive Advantage
7. Building and maintaining corporate image
8. Higher return on investment

Conceptual Framework of CRM


How Companies Manage Their Customers:-

1) Create a database of company activities


2) Analyse the database
3) Taking a good decision for customers
4) Suggestions / Feedback / Reviews / Recommendations
5) Take correct actions

The Value Pyramid


Elements:-
1) Quantified
2) Emotional
3) Life Changing
4) Social Impact

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5) Tools for improving customer satisfaction
6) Study of consumer behaviour

Customer Interaction Cycle


When the right things to be upgrade
1) Greetings
2) Understanding customer needs
3) Agreeing
4) Delivering
5) Closing

Customer Profiling and Total Experience


C.P. is the checklist or a document that contains key information about the ideal
customer.
1) Demographic
2) Geographic
3) Psychographic (social status, desires, lifestyles, choices, interests)
4) Behavioral

Customer Experience refers to how the customer feels after purchasing your brand
and product.

Tools for Improvement of Customer Experience


1) Keeping in touch with customer
2) Listening to customer needs
3) Personal relationship
4) Offering what customers really want
5) Providing attentive customer support
6) Responding quickly to customer request
7) Keeping up with the customer needs
8) Working on feedback / after sales services
9) Back support through ITC

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10) Proper communication

Goals of a CRM Strategy and Obstacles:-


To optimize the value of a customer for a company (both current and future)
1) Define your CRM vision and goals
2) Define your target customer with buyer decision
3) Study the market and decide your position
4) Define your customer journey
5) Plan how to provide a 360° customer experience
 Pre – sales
 Sales process
 CRM
 After sales services

6) Automate customer journey


7) To know your product and services
8) Implement a CRM software (ex : ERP)

Discussing People, Process & Technology


1) Task
2) People (customers & employees)
3) Structure (hierarchy)
4) Technology (use of latest technology)

People
1) Identify the skills, knowledge, experience and capabilities that you need.
2) Provide accurate training or skills and support to navigate changes
3) Build a culture that changes into happiness
4) Manage the time and energy of your people

Process
Process means by acting as the foundation that (develops) align with the
culture and quality of work or project. You need a process to guide the team
through the proper steps and protocols, when executing any type of task.
There are a few processes related questions:-
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1) How quickly do you need each task to be executed?
2) What is the minimum requirement by your task to be successful?
3) How should your team communicate? Is communication change across
differently?
4) How should work be divided across your team to ensure project
continuity?
5) How will you document your process, who will do, in what format will it
be, and where will you organize your process documentation?
6) What process mapping tool will you use to set up a new process?
7) How will you be on board and train your team on this new project?
8) How will you collect feedback on the process to improve them? How will
you provide continuous employee performance support according to
this new process?

Technology
1) Evaluation
2) Implementation
3) Adoption

CRM Myths:-

CRM MYTHS_

Myth 1: CRM is Just a Fancy Contact List

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Fact: CRM is far more than a glorified address book. It is a comprehensive
system designed to manage all aspects of a customer’s interaction with a
company, from initial contact to ongoing support. It allows businesses to
track sales opportunities, automate marketing campaigns, and provide
exceptional customer service, all in one platform.

Myth 2: CRM is only for large enterprises

Fact: CRM systems are beneficial for businesses of all sizes, including small
and medium-sized enterprises (SMEs). Its affordability and flexibility make
it accessible to startups looking to grow their customer base without
significant upfront investment.

Myth 3: CRM Implementation is too Complex and Time-Consuming

Fact: Modern CRM solutions offer user-friendly interfaces and cloud-based


deployment, simplifying implementation and reducing setup time.

Myth 4: CRM is too expensive

Fact: While some CRM systems can be costly, there are many affordable
options tailored to fit different budgets, including free versions with essential
features.

Myth 5: CRM is Only Useful for Sales Teams

Fact: CRM systems are valuable tools for various departments, including
marketing, customer service, and even HR.

Myth 6: CRM Systems Guarantee Immediate Results

Fact: While CRM systems provide valuable tools, success depends on how
well they are utilized and integrated into the company’s processes. Results
often take time.

Myth 7: CRM Will Replace Human Interaction

Fact: CRM enhances human interaction by providing customer insights and


automating routine tasks, allowing employees to focus on more meaningful
interactions. CRM system collects customer data and tracks interactions,
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giving support agents the information they need to provide personalized
service.

Myth 8: CRM is Only about Technology

While technology is a key component, CRM is also about strategy,


processes, and a customer-centric culture. Apple uses CRM not just as a tool
but as part of its customer-centric strategy. By integrating CRM data with its
overall customer service philosophy, Apple ensures a seamless experience
across its retail stores, online platforms, and support channels.

Myth 9: Data Entry is tedious and Time-Consuming

Fact: Modern CRM systems offer automation features that reduce the burden
of manual entry and freeing up time for more critical tasks.

Myth 10: CRM is unnecessary if you have Good Customer Relationships

Fact: Even with strong customer relationships, a CRM system helps maintain and
scale these relationships by providing detailed insights and ensuring consistent
communication.

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