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 Customer relationship management (CRM)
 Term applied to processes implemented by a company to
handle its contact with its customers
 CRM is a software-based approach to handling customer
relationships
 Store information on current and prospective customers

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 Control over buying process
 Information, comparison, selection, easy to find
 Best possible price
 Delivery (free), quality
 All payment options
 Secure
 Communication designed to suit needs
 Computerized, complex, caring

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 All forms of trading
 Direct
 Traditional
 Retail
 E-commerce
 Wholesale
 Combination

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 New convergence
 Telephony & telemarketing
 Internet
 Mobile, SMS
 Digital TV
 Cable & satellite

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 Control over buying process
 Information, comparison, selection, easy to find
 Best possible price
 Delivery (free), quality
 All payment options
 Secure
 Communication designed to suit needs
 Computerized, complex, caring

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 All forms of trading
 Direct
 Traditional
 Retail
 E-commerce
 Wholesale
 Combination

8. 8
 New convergence
 Telephony & telemarketing
 Internet
 Mobile, SMS
 Digital TV
 Cable & satellite

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 Customer relationship management (CRM)
 From the outside, customers interacting with a company
perceive the business as a single entity, despite often
interacting with a variety of employees in different roles
and departments
 CRM is a combination of policies, processes, and
strategies implemented by a company that unify its
customer interaction and provides a mechanism for
tracking customer information

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 Information in the system can be accessed and
entered by employees in different departments)
 Sales
 Marketing
 Customer service
 Training
 Professional development
 Performance management
 Human resource development

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 Details on any customer contacts can also be
stored in the system
 The rationale behind this approach is to improve services
provided directly to customers
 To use the information in the system for targeted
marketing and sales purposes

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 Many inter-related aspects
 Front office operation
 Back office operations
 Business relationships
 Analysis

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 Direct interaction with customers
 Face to face meetings
 Phone calls
 E-mail
 Online services etc

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 Operations that ultimately affect the activities of
the front office
 Billing
 Maintenance
 Planning
 Marketing
 Advertising
 Finance
 Manufacturing

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 Interaction with other companies and partners
 Suppliers/vendors
 Retail outlets/distributors
 Industry networks (lobbying groups, trade assn’)
 This external network supports front and back
office activities

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 Key CRM data can be analyzed in order to plan
 Target-marketing campaigns
 Conceive business strategies
 Judge the success of CRM activities (e.g., market
share, number and types of
customers, revenue, profitability)

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 CRM initiatives often fail
 Implementation was limited to software installation
 Inadequate motivations for employees to learn, provide
input, and take full advantage of the information systems

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 Three key phases
 1. Customer Acquisition
 2. Customer Retention
 3. Customer Extension
 Three contextual factors
 4. Marketing Orientation
 5. Value Creation
 6. Innovative IT.

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 Attracting our customer
 For the first purchase
 We have acquired our customer
 Growth
 Market orientation, innovative IT & value creation
 Aim is to increase the number of customers that
purchase from us for the FIRST TIME

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 Re-purchase
 Our customer returns and buys for a second time
 This is most likely to be the purchase of a similar product
or service, or the next level of product or service.
 Growth
 Market orientation, innovative IT & value creation
 Aim is to increase the number of customers that
purchase from us REGULARLY

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 Additional, supplementary purchases
 Our customers are regularly purchasing
 We introduce products and services to our loyal
customers different from original purchase
 Once purchased, our goal is to retain them as customers
for the extended products or services
 Growth
 Market orientation, innovative IT & value creation
 Aim is to increase the number of customers that
purchase ADDITIONAL products

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 Focused upon the three levels of needs of
customers
 Actual, tangible product
 Core product and its benefit
 Also the augmented product such as a warranty and
customer service

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Core
Benefit
Basic
Product
Expected
Product
Augmented
product
Potential
Product

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 Generation of shareholder value
 Based upon the satisfaction of customer needs (as with
marketing orientation)
 Delivery of a sustainable competitive advantage

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 Updated IT
 Efficient, speedy and focus upon customer needs
 Whilst IT and/or software are not the entire story for
CRM, it is vital to its success
 CRM software collects data on consumers and their
transactions
 Organizations will track individuals, and try to market
products and services to them based upon similar buyer
behavior seen in other individuals

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 1. Validation
 2. Discovery
 3. Action

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 1. Validation
 2. Discovery
 3. Action

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 Correct data
 Ensuring that the data you have on your customers is not
only correct
 Also, in a suitable state for targeting communications
programs

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 Use of data mining techniques
 To find relationships that you did not know existed
 Sometimes conventional analysis is impaired by your
own natural assumptions and prejudices
 Discovery techniques help to solve these issues by
starting from ground zero
 They simply search for relationships in the database
against a set of objectives

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 Right communication
 Your customers and prospects need to have the right
messages communicated to them
 Quality Inter-Action drives quality Trans-Action
 This is done with a Campaign Management tool that can
automatically select the right targets and the right
messages via the right channels
 The responses are then fed back into the Validation
process for evaluation and refinement

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 CRM is corporate strategy composed of
applications, technology and products that fulfill
three essential requirements
 1. Organization perspective
 2. Customer perspective
 3. Front office staff perspective

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 360° view of each customer
 For consistent and unified contact with that customer
whenever anyone anywhere in the enterprise deals with
that customer
 This knowledge increases the opportunities for sales and
the effectiveness of customer service

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 Customers to have a consistent view
 To enable your customers to have a consistent view of
your enterprise, regardless of the way the customer
contacts you
 This improves customer satisfaction and customer
retention
2. Customer perspective

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 Staff performance
 To enable front office staff to perform sales, service and
marketing tasks more efficiently as a team
 Increasing expertise and reducing costs

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 Important
 Business starts with the acquisition of customers
 However, any successful CRM initiative is highly
dependent on a solid understanding of customers

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 Understand
 Demographics, purchase patterns & channels
 Segmentation to identify logical unique groups
 Primary research to capture needs and attitudes
 Customer valuation to understand profitability
 Differentiate
 Based on the value customers are
expected to deliver

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 Develop
 Products, services, channels and media can be
customized based on the needs of quantitative customer
segments
 Customize
 Based on the potential value delivered by
customer segment

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 Interact
 Not just through marketing, sales and media
 Distribution, shipping, customer service & online
 Deliver
 Delivering value is a cornerstone
 Factors including
quality, convenience, speed,
ease of use, responsiveness
and service excellence

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 Acquire
 Learning about customers makes it easy to identify those
producing the greatest value
 Retain
 Maintain interaction;
 Deliver on value
 Customers change as they move through
differing life stages
 Modify the service

52.  Subconscious Expectations
 Pizza with specified toppings
 Take 10 minutes
 Come in a packed box
 Remain warm till you reach home
 Charges – standard and acceptable price
 Pizza will taste reasonably good
 You will come back is all the above are met

53.  If you go regularly
 Rapport with employees
 You forgive if they mess up with one or two
expectations
 Degree of confidence determines
tolerance
 If using first time, and even one expectation is
not met
 You will never go again

54. Exceeded expectations
 Deliver on all expectations
 Give you a garlic bread FREE !
You will tell everyone about it