Presentation On

Customer Relationship Management

Group E-2:

Amit kumar E-06

Laxmikant Gupta E-14

Ratan Mal Lodha E-30

Vidisha Gaur E-58

ASIA PACIFIC INSTITUTE OF MANAGEMENT STUDIES

managing all customer relation development and maintenance of mutually

beneficial Long-term relationships with strategically significant customers

Customer relationship management (CRM) is a set of strategies, processes, and associated technology enablers designed to improve the interactions and engagement of customers

Trust

The willingness to rely on the ability, integrity, and motivation of one company to serve the needs of the other company as agreed

upon implicitly and explicitly.

Value

The ability of a selling organisation to satisfy the needs of the customer at a comparatively lower cost or higher benefit than

that offered by competitors and measured in monetary, temporal, functional and psychological terms.

Loyal customers are the source of most Relatively small percentage of customers may generate most of the

profits Grows the customer base

It costs six times more to sell to new customer than to sell to an existing one.

By increasing the customer retention rate by 5%, profits could increase by by 85%

1. The Pre-relationship Stage

2. The Early Stage 

3. The Development Stage

4. The Long-term Stage 

5. The Final Stage

A Relationship Life Cycle Model

High cooperationLow competition

Low cooperationHigh competition

Time

Pre-relationship

stage

Developmentstage

Maturitystage

Declinestage

Direct functions (are the basic requirements of a company that are necessary to survive in the competitive marketplace)• Profit; • Volume; and • Safeguard

Indirect functions (are the actions necessary to convince the customer to participate in various marketing activities).• Innovation: • Market; • Scout: and • Access.

Mass marketing (1 to many interaction)  Target marketing (1 to target group interaction) Customer relationship marketing (1 to 1

interaction)

  • Principle 1: By knowing more about the customer value and

anticipating relationship needs. • Principle 2: Consolidate and make available all customer

interaction information from all channels/touchpoints • Principle 3: Develop a customer centric infrastructure. • Principle 4: Assign dedicated people, process and technology

resources to achieve profitable results

Direct Online (Internet) Call Center (via Phone/FAX/Email etc)

Communication Channel

/ CRM ModuleDirect Internet Call Center

Marketing Online Marketing Web Marketing Tele Marketing

Sales Web Shop Tele Sales

Service Online ServiceCustomer Self Service Portal

Tele Service

• Internet can be used for a more better experience• Customers can get more and more information

online• Increased customer service (e.g. ordering)• Turnaround for customer problems• More customer suggestions• Customers can be fairly, easily online• BUT, it’s another channel and to manage

3 previous applications: Sales Force Automation Customer Service Database Marketing (from direct marketing)

Call Centre Sales Force Automation e-Business

• CRM is a new business philosophy based on trust and value;

• The core function of CRM is the value creation process;

• Customer relationships develop over time

• The role of global salespeople is relationship building

• The basic premise of CRM is to offer superior value to customers