The document discusses customer relationship management and provides several models for understanding CRM. It outlines the IDIC model, Quality Competitiveness Index model, CRM Value Chain model, Payne's Five Forces model, Dasai conceptual model, Forrester model, and Maturity model for assessing CRM capabilities. It also provides a case study of a company, APEX Digital Imaging, that implemented Zoho CRM to better manage sales leads and saw improved lead generation and streamlined processes.
3.
Every business desires repeat business from
its customers.
This is the ultimate objective of every
organisation; lifetime business gives the
management ability to plan for the future.
The only unique feature every organisation
that is performing well is being able to grow
and maintain the newly acquired customers.
This is in order for the organisation to have a
long-term perspective.
4.
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.
Salespeople must: Understand customer needs and
problems; Meet their commitments; Provide superior
after sales support; Make sure that the customer is
always told the truth (must be honest); and Have a
passionate interest in establishing and retaining a
long- term relationship.
5.
CRM‟s goal is to increase the opportunity by
improving the process to communicate
Right Customer: Manage customer relationships
throughout their life cycle Realize customer potential
by increasing “Share of Wallet”
Right Offer: Efficiently introduce customer and
prospects to your company and its products and
services Customize you‟re offering for each customer
Right Channel: Coordinate communications across
every customer touch point Ability to communicate to
customer‟s channel preference Capture and analyze
channel information for continuous learning
Right Time: Efficiently communicate to customers
based on time relevance Ability to communicate with
real or near-real time or traditional marketing
6.
1. Pre-relationship Stage
Event that triggers a buyer to seek a new business partner. The Early
Stage Experience is accumulated between the buyer and seller
although a great degree of uncertainty and distance exists.
2. Development Stage
Increased levels of transactions lead to a higher degree of
commitment and the distance is reduced to a social exchange.
3. Long-term Stage
Characterised by the companies‟ mutual importance to each other.
4. The Final Stage
The interaction between the companies becomes institutionalized.
The primary objective of customer relationship management is to
enhance and optimize customer retention and loyalty.CRM systems
are also useful in determining most loyal and profitable customers
and reward
7.
Understand Your Target Audience
Find Out Who Your Current Customers
Are;demographics,pycograhics,ethnographic,
buying habits
Defining the Market for Your Product
Generating Sales Leads; cold calling,
networking,campions of your product,affiliate
marketing,advertising
8.
Sell More to Existing Customers;
bundle products
try the``up sell‟‟
offer inside information
customer rewards
free samples
9.
1. THE IDIC Model
2. The Quality Competitiveness Index Model (QCI)
3. The Customer Relationship Management CRM
Value Chain Model
4. The Payne‟s Five Forces Model
5. The Dasai et al /Conceptual Model
6. The Forrester Model
7. The Maturity Model
11.
Identifying who the companies‟ customers are and building a deep
understanding of them.
Differentiating their customers in order to identify which amongst them have
most value now and which offer most for the future. Besides, the
differentiation can allow the companies to devise and implement customer
specific strategies designed to satisfy individually different customer need.
The clients represent different levels of value to the company and they their
needs are radically not the same from the enterprise. The customer
differentiation task will involve an enterprise in categorizing its customers by
both their value to the firm and by what needs they have.
Interacting with them in order to ensure that companies understand
customer expectations and their relationships with other suppliers or brands.
Thus, companies must improve the effectiveness of their interactions with
clients. Each successive interaction with a customer should take place in the
context of all previous interactions with that customer. A conversation with a
customer should pick up where the last one left off. Effective customer
interactions provide better insight into customer‟s needs.
Customizing the offer and communications to ensure that the expectations
of customers are met. Indeed, the company should adapt some aspect of its
behavior toward a customer, based on that individual‟s needs and value. To
involve a customer in a relationship, a company needs to adapt its behavior
to satisfy the customer‟s expressed needs. This might entail “masscustomization a product or tailoring some aspect of its service” (Peppers,
Rogers and Dorf, 1999).
13.
QCI are independent specialists who assist blue
chip companies in managing customers. They are
both strategic theorist and foremost practitioners
(Hewson et al, 2002). The QCI model shown.
The above is described as a customer
management model, omitting thereby the word
“relationship”. At the centre of the model, they
highlight a range of activities needed by
companies to perform in perspective to acquire
and retain customers. This model also features
people performing processes and utilizing
technology to assist in those activities.
14. 3. The Customer Relationship Management CRM Value Chain Model
15.
The CRM value chain is a model which
businesses can follow when developing their
CRM strategies. This model had been
developed by a range of SMEs such as IT,
software, telecoms, financial services, retail,
media, manufacturing, and construction. This
model is built from strong theoretical
principles and the practical requirements of
business
The main purpose of this model is, according
to Buttle (2004), to ensure that the company
builds long-term mutually-beneficial
relationships with its strategicallysignificant customers. Thus, some customers
are merely expensive to acquire and service.
Buttle has identified four types of strategically
significant customer (SSC) such as the;
16.
1. high life-time value customer that is a key SSC and the present
day of all margins that might be earned in a relationship. He stated
that tempting as it may be to believe, not all high volume
customers have high LTV. If they demand JIT, customized delivery,
or are in other ways costly to serve, their value may be significantly
reduced. We know of one company that applied activity-based
costing disciplines in order to trace process costs to its customer
base as consequence the company re-engineered its
manufacturing and logistics processes, and salespeople negotiated
price increases
2.The second group of SSC are “benchmarks” that are customers
that other ones copy. For instance, a manufacturer of vending
machine equipment is prepared to do business with any company
because “they can tell other customers that they are supplying to
the world‟s biggest vending operation” (Buttle, 2000).
3.The third group of SSCs are customers „inspirations‟. They are
the ones that find new applications, “come up with new product
ideas, find ways of improving quality or reducing cost. The may be
the most demanding of customers, or frequent complainers, and
though their own LTV potential low, they offer other significant
sources of value”.
4.The fourth one deal with what Buttle (2004) calls “cost magnets”
relating to those that absorb a disproportionately high volume of
fixed cost, thus enabling other, smaller customers to become
profitable
17.
John Stevenson (2007), asserts that the CVC includes four stages:
a. Grouping customers in order to determine which of customers are most profitable.
The result the companies should seek is their target customer base. They should rate
and segment their clients into groups that are most desirable to do business with they
meet their criteria for what a desirable customer is. This is called, according to
Stevenson (2007) the Customer Portfolio Analysis.
b. The customer intimacy. Having found the segments the firms want to pursue, they
need to get to know the ones in that segment very well and better than their competition
knows them. Briefly, they want to appear that they know them intimately by, for
example, in knowing their birthday, the number of children they have and their
respective birthday.
c. Value Proposition Definition. Thus having understood as much as they can about the
customers they have chosen to serve, companies are then in a position to create a
specific and tailored value proposition for them.
Buttle (2000) previously raised five steps to profitable relationships that are, customer
portfolio analysis (CPA), customer intimacy, network development, value proposition
development and managing the relationship. The CPA analyses, according to Buttle
(2000), the customer base to identify customers to target with different value
propositions. The customer intimacy involves the business in getting how to know the
selected customers as segments or individuals and building a customer data-base which
is accessible to all those whose decisions or activities impact upon customer attitude
and behavior. Buttle involves the network development as the third step wherein a
strong network of relationships is to be built with employees, suppliers, partners and
investors who understand the requirements of the chosen customers.
d. Developing, with the network‟s compliance, propositions which make value jointly to
the customer and the company. At this stage so far, the network has to work together to
create and deliver the chosen value(s) to selected customers, Great value is “ found more
effective and more efficient solutions of customers problems” (Buttle, 2000).
e. Manage the customer relationship. These activities or stages need to be managed.
Companies need to manage each customer through their lifecycle. To enable the
management of the customer lifecycle and the stages within of portfolio analysis,
intimacy, and value proposition development, automated data systems are necessary.
19.
Model developed by Adrian Payne‟ The model
identifies five core processes in Customer
Relationship Management CRM such as the
strategy development process, the value creation
process, the multichannel integration process,
the performance assessment process and the
information management process. They can be
grouped into strategic CRM, operational
Customer Relationship Management CRM and
analytical CRM.
20.
Payne (2006) also introduced a strategic framework/model for Customer
Relationship Management CRM consisting of five generic processes such
as Strategic Development, Value Creation, Multichannel Integration,
Information Management, and Performance Assessment.
The Strategy Development process is concerned with integrating the
business strategy from the organization angle and the customer strategy
as to how firm interact and choose their customers.
The Value Creation process with the main purpose of identifying the
value the firm can create for the customer and the value the
organization can also benefit from.
The Multichannel integration consists of all the virtual and physical
channels with which the firm plans to interact with. But the main thing
here is that, regardless of the channel contact, the aim is to create an
experience that is uniform and also common.
The Information Management process consists of many different of data
repository IT systems, back and front office applications and analytical
tools. It is thus necessary to access the visibility of the system so the
need for performance assessment process set in and it is concerned at
the strategic monitoring can be used to determine customer satisfaction
and standards,
22.
The conceptual framework was developed by Dasai el al
(2007) in which consideration is driven towards
competitive CRM performance from both internal and
external perspectives. The dynamic capability for CRM is
the key source for competitive CRM performance
considering the rapidly changing nature of the business
environment today which erodes the values of existing
competencies.
The framework comprises resources re-configurability,
social networking capability and market orientation as the
drivers of dynamic capability for CRM. While the IT
variables which are the CRM technology and knowledge
management are the moderators linking the relationship
between dynamic capability for CRM and competitive CRM
performance. As such, the direct impact of IT competence
variables should be tried and seen on competitive CRM
performance.
24.
The Forrester CRM model is grouped into four
types such as: Strategy; Process, Technology; and
People. The model produced results in the
findings on over hundreds of companies using
CRM as strategically, thorough analysis of over
number of vendors‟ solutions providers and also
with discussion with about numerous
consultants. For firms willing to kick-start their
CRM programs or for those that are finding it
tough to get best out of their CRM programs
after it has been launched. Also, the performance
scorecard highlights the criteria used by
companies to measure the overall performance
using CRM
26.
Gartner‟s CRM Maturity Model is a tool in which the
group used in rating enterprises in terms of their
capabilities in effectively using CRM.
To determine the category in which an enterprise is
placed on the model, they are first evaluated in terms
of Overall CRM vision and strategy, consistent
valued-customer experience, organizational
collaboration, processes, information, technology,
metrics. All these elements were what composed of
the Garner‟s performance measurement scorecard
which was discoursed earlier on but the difference is
that, haven scored your performance based on this
elements, the maturity model will then enable the
firm to know where they are at the present and where
they want to be over a period of time, what the
requirement they will need to achieve that status. It is
a very useful tool as each enterprise, that aims to
satisfying their customer and also to maintain a lead
in its industry, should make use of maybe at every set
intervals.
27.
Founded in Tampa, Florida in 2003, APEX Digital
Imaging, Inc. is a total solutions provider for one
of the fastest-growing new media called digital
signage. The company provides strategic
consulting, project management, content
development and installation and maintenance
services for organizations in corporate
communications, healthcare, transportation,
higher education and retail.
28.
In 2008, APEX Digital Imaging (ADI) was suffering
from sales pipeline management issues. The
company was not effectively managing sales
leads from trade shows, referrals, website leads,
and phone calls.
ADI concluded that it needed a portal where all
information on customer touch-points could
reside and simple workflow automation could be
used to minimize manual efforts. So the company
turned to Microsoft's CRM Dynamics.
After several months of less than stellar results
and growing frustration, the company realized
that sales team, interns and the President of the
company found MS Dynamics to be cumbersome
and time-consuming and it was leading to
employee productivity and the system not being
used.
29.
Through a professional association webinar
presentation offered by Skill of Success, ADI
learned about Zoho CRM. However, ADI was
preparing to launch a series of marketing
campaigns and sales initiatives to coincide with its
recent website upgrade.
This meant that if it was to consider Zoho CRM,
Skill of Success would have to migrate, customize,
and configure the entire system in a matter of days
not weeks or months; this in order for ADI to stay
on track with its scheduled marketing activities. A
traditional implementation approach would simply
be too costly and time consuming.
30.
Working with Skill of Success, a Zoho alliance partner, the
company migrated all of its historical records, configured
and customized the system and provided training to two
of the key staff members in less than five business days.
The Zoho implementation did not disrupt the scheduled
marketing campaigns. And within two weeks, ADI was
capturing website leads and routing them through the
Zoho CRM sales funnel.
Using custom views, standard reports and Zoho's
graphical sales funnel display allowed ADI to quickly
analyze marketing and sales performance with minimal
administrative effort.
Sales lead generation has accelerated at ADI and Zoho
CRM web forms linked to webinar registrations and 30 day
digital signage trials has streamlined processes.
Cost savings of over $1,750 in software licensing fees.
32.
The prospect has a need or want for a product or service. The
prospect is only aware of those companies that do a good job of
communicating their ability to satisfy the need or want.
Barriers to this awareness for an organization include;
poor market positioning
poor brand awareness
low brand recognition
Ineffective media selection
Strategic Technology Considerations Touch Points
Internet Advertising
Social Networking Websites
Email Marketing
Viral Video
Company Website
CRM System
Leads Management
Campaign Management
33.
A prospect passively or actively seeks knowledge about a
company, product or service. The passive seeker will absorb
information pushed through various media, while the active
prospect will seek knowledge using key criteria and ideal
attributes.
Barriers to knowledge acquisition include;
Insufficient information exist to do evaluation
Information presented is not clear or complete
Access to information is difficult.
Strategic Technology Consideration Touch Points
Email Newsletter
Product Landing Page
Case Study Documents for download
Website Product Landing Page
Webinars
CRM System
Literature Fulfillment
Knowledge Base
Website Integration (Web Import)
34.
Prospects weigh their knowledge of available solutions against
their hierarchy of needs. These needs can be broad, such as
practical needs of cost or value, timing, and specific expertise;
personal, such as status or relationship; and emotional, such as
overcoming fear of failure.
Barriers to consideration include;
Difficulty to access information
Difficulty to evaluate the relevance of a given solution to their
problem
Poor sales process experience.
Strategic Technology Consideration Touch Points
Hosted Chat
Product Comparison Reports
Product Demo or try outs
Inbound Call Center and Interactive Voice Response System
CRM System
Literature Fulfillment
Knowledge Base
Website Integration (Web Import)
Opportunity Management
35.
The prospect makes a selection based on how well the
organization meets their hierarchy of needs and as well as how
good was the interaction and experience during the informationgathering stages. At this point the prospect becomes a customer
and if his or her expectations were exceeded the customer moves
to the satisfaction stage.
Barriers to selection include;
Indecisiveness
Unattractive pricing structure
Economy
Internal factures such as budgets and shifting priorities.
Strategic Technology Consideration touch Points
E-commerce
Social networking
Telemarketing Call Center
Blogs
CRM System
Sales Force Automation
Contact Management and Tracking
Opportunity Management
36.
The relationship intensifies as the customer discovers whether
performance meets expectations. Performance itself does not
dictate satisfaction; rather, it is performance against expectations
that determines satisfaction.
Barriers to satisfaction include;
Unrealistic expectations
Customer was misinformed during the sales process
Poor product/service performance
Poor customer service
Inconsistent customer experience.
Strategic Technology Consideration Touch Points
Surveys
Customer support Forums
Customer Support Chat
Customer Support Call Centre
Email and SMS Text message Alerts
Out bound Call Alerts
CRM System
Customer Support and Case Management
Contact Management and Tracking
37.
As the customer experience consistent product quality
and/or service delivery he/she develops a strong
affinity for the organization‟s offering. Overtime, a
feeling of loyalty is developed to the point where a
temporary fall in quality is easily forgiven and the
relationship persists.
Barriers to loyalty include;
Inconsistent customer experience
Brand and expected experience do not match
Decline product or service performance
Negative product changes.
Strategic Technology Consideration Touch Points
Online discounts
Loyalty Program Cards and Membership
CRM System
Loyalty Program Management
38.
Many customers will never move beyond loyalty.
However, those who do become advocates will provide
significant benefit to your business, ranging from price
premiums and lower service costs to greater usage.
Advocates will actively recommend your product or
service to friends and colleagues, moving prospects
through early stages of the lifecycle on your behalf
(Word of Mouth Marketing).
Strategic Technology Consideration Touch Points
Surveys
Peer Forums
CRM System
Referral Management and Reward
Contact Management and Tracking
39.
Customer Retention is the maintenance of the patronage of
people who have purchased a company‟s goods or services
once and the gaining of repeat purchases. Customer
retention occurs when a customer is loyal to a company,
brand, or to a specific product or service, expressing longterm commitment and refusing to purchase from
competitors. a strategy whose objective is to keep a
company‟s customers and to retain their revenue
contribution. Primarily it aims to prevent customers from
going to the competitor.
STAYS - Customer being active and user of your product
and service- This is mainly relevant to the products and
services, having an existing contract. This includes banking,
telecommunication and maintenance contracts. ‡
STAYS ENGAGED - Customer who maintain OR increase the
level of relationship. A customer could still be retained,
while he reduces his average, OR cancels two out of the
three lines he has got.
40.
Stay loyal longer
Talk favourably about the organization
Pay less attention to the competition
Are less price sensitive
Offer service ideas to the organization
Cost less to serve than new customers
41. Produce
consistently highquality work. .
Delight and inspire your
customers.
Build the corporate brand.
Connect and engage with
clients.
42.
It is an aspect of consumer behaviour.
Organizations are focusing on this area due to
the growing Concerns for building long-term
relationships with customers.
Customer loyalty has been identified to be a
competitive, growth and survival tool for many
companies, especially in the highly globalized,
industrialized and competitive markets.
According to Oliver (1999)
43.
1. Bond with the customer early
2. All customers are not created equal
3. Convey your company's value proposition in
everything you do.
4. Do more than make your point.
5. Know why customers leave
6. Measure everything
7. Make loyalty-building a team effort.
8. Meet customers' expectations.
44.
9. Go beyond rewards programs.
10. Turn complaints into opportunities as quickly
as possible
11. Build opportunities for repeat business
12. Survey customers, and pay attention to the
responses
13. Create a system for collecting, analyzing and
acting upon all customer feedback
14. Tie customer loyalty to expected business
outcomes.
15. Use analytics to predict future loyalty
16. Manage your customer “life cycle.”
45.
Customer Satisfaction It is customers‟ perception of the degree to
which the customers‟ expectations have been fulfilled. Customer
satisfaction is how well our products, service, support and
engagement are able to meet the customer expectations.
Products - Products including physical products and services.
Service - Customer service after sale. This includes responding to
customer queries and issues.
Support - Repair, maintenance and upkeep of your products post
sales. ‡
Engagements - Engaging with customer, apart from the above
mentioned contexts (product, service and support). This includes
offering new products, schemes, up-sell, cross-sell, process
reengineering and enhancement. are able to meet the customer
Expectations - Customer satisfaction is your delivery compared
with the expectations. The way a customer interprets your
delivery also defines customer satisfaction. Customer satisfaction
is driven by ´how well you manage your delivery and ´how well
you manage customer expectations. ´Satisfied customer could be
open to the next better opportunity ´Loyal customer. Returns
despite offers by the competition
46.
A 5-percent increase in loyalty can increase profits
by 25%-85%.
A very satisfied customer is nearly six times more
likely to be loyal and to repurchase and/or
recommend your product than is a customer who
is just satisfied.
Only 4 percent of dissatisfied customers will
complain.
The average customer with a problem eventually
tells nine other people.
Satisfied customers tell five other people about
their good treatment.
47.
Limited budget to implement CRM
Relationships with customers can break down due
to lack of commitment.
Engaging CRM system as a complete solution
Unavailability of skilled personnel or technical
expertise
48.
Excellent customer service is about being aware of
customer needs and reacting to them effectively.
Understand anticipate and respond to your customers;
needs in a consistent way, right across organization.
A set of tools that let you do more for, and get more
from, your customer. Keeps all your customer
information in one place.
Know and understand your customers.
Know your best revenue opportunities.
Spot the best sales campaigns.
Provide better customer service
Increase customer revenues
Discover new customers
Help sales staff close deals faster
Make call centers more efficient
Simplify marketing and sales processes