customer relations

1. Check for your self Is CRM “ Old wine in a new bottle” ? 3/19/2010 1 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

2. Marketers give different interpretations to basics in marketing in time to time Is it because marketers cannot find brand new theories to explain phenomena in market ? Or marketing Gurus are ‘ “Marketers” and they keep on harping on the same thing but giving a different label ? 3/19/2010 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka 2

3. Areas to be Covered Introduction Why has the role of marketing changed? What is CRM? Aims of CRM Advantages of CRM over traditional mass-media marketing Components of CRM 3/19/2010 3 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

4. Learning Objective Understand the importance of customers Understand the importance of creating relationship with customers Understand the benefits of CRM 3/19/2010 4 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

5. CRM has been mixed up with many topics By Pissu Pusa 3/19/2010 5 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

6. Some misconceptions about CRM CRM is a marketing database CRM is a marketing process CRM is an IT iussue CRM is about loyalty schemes CRM can be implemented by any company 3/19/2010 6 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

7. The purpose of business is to create and keep customers … to do that, you have to do those things that will make people want to do business with you. - PETER DRUCKER 3/19/2010 7 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

8. Therefore CRM is not a short term tactic but a strategy that should be sustained. Therefore CRM cannot be done in a vacuum They co-exist with other business and marketing strategies 3/19/2010 8 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

9. Technology has given consumers so much of information and power so that they could select and deselect businesses at their will On the other hand, technology has given businesses an opportunity to access, analyse and gain greater customer insight at a lower cost 3/19/2010 9 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

10. Introduction More than a century ago, traders practiced personalised and customised marketing Industrial revolution changed this Emphasis was on mass production Interactions with the customers was done by middlemen This created transaction oriented marketing 3/19/2010 10 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

11. Introduction Customers were ignored because traders assumed that their products/services were so good that customers will continuously buy simply on the basis of that The only thing that concerned any trader was his product 3/19/2010 11 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

12. Introduction Recently, customers are back in the forefront Market is again focusing on the needs and wants of customers The role of marketing has changed from concentrating on the product to customers 3/19/2010 12 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

13. Why has the role of marketing changed? Customers Customers have become increasingly bold & aggressive in their demands not only for superior quality but also for responsive service Customers want personalised & customised treatment There are many different segment of customers. Thus, it is difficult for organisations to standardise their products & services It has been proven that customer retention is more cost effective than customer acquisition 3/19/2010 13 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

14. Why has the role of marketing changed……? Globalisation With the formation of trade blocks and free trade zones, markets are now more open because there are no/less trade barriers amongst member states This has attracted a lot of foreign companies and products into local markets Thus, organisations that are customer-centricare able to create a more sustainable competitive advantage in order to remain competitive 3/19/2010 14 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

15. Why has the role of marketing changed……? Competition Today it is easy to start business Number of customers has not increased as drastically as the number of companies This has intensified competition Thus, to have an edge – organisations create a strong relationship with customers 3/19/2010 15 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

16. Why has the role of marketing changed……? Technology Internet, 3G and e-commerce have totally revolutionalised the business environment Due to these, it is cheaper and convenient for organisations to build a strong relationship with their customers Those organisations that best utilise this, will end up having an edge over the others 3/19/2010 16 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

17. Why has the role of marketing changed…….? Product life cycle Technological advances and consumer shifts in tastes have shortened the product of life cycle of many products New products – cost high CRM is one way to lengthen the product life cycle 3/19/2010 17 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

18. Why has the role of marketing changed…….? Total Quality Management (TQM) When companies embrace TQM- it became necessary to involve suppliers and customers in implementing the programme at all levels of the value chain 3/19/2010 18 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

19. Why has the role of marketing changed………? Economic situation Customers will end up being more cautious withwhat they buy and spend their money on Thus, customers cannot be taken for granted 3/19/2010 19 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

20. Political situation World political scenario – not very stable. This has made the business environment very vulnerable Due to this, customers are very careful in their spending Thus, to ensure that customers continuously buy from a particular organisation, that organisation must create a strong relationship with them Why has the role of marketing changed ……? 3/19/2010 20 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

21. What is CRM? CRM is a STRATEGY to IDENTIFY AND ATTRACT PROFITABLE CUSTOMERS, and RETAINING THEM BY CREATING EFFICIENT RELATIONSHIP marketing in order to guarantee profitable growth 3/19/2010 21 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

22. CRM It is not a new concept or idea It was practiced by the corner grocer many decades ago The only difference is now this has to be done in a large scale for tens of thousands of customers 3/19/2010 22 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

23. Aims of CRM Not to maximise the revenue from single transactions It is rather to build a lasting relationship with the customer It is a thorough understanding of the customer value creation process Through this relationship, customer satisfaction, loyalty and retention can be achieved which will inevitable enhance the performance of an organisation 3/19/2010 23 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

24. Customer Loyalty / Customer Retention Customer Relationship Management Orgnisation’s Performance Customer Satisfaction 3/19/2010 24 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

25. Advantages of CRM over traditional mass-media marketing Reduces advertising cost Allows organisations to compete for customers based on service, not prices Prevents overspending on low-value clients or under spending on high-value ones 3/19/2010 25 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

26. Components of CRM Built around the following components: - Focus on CUSTOMER RETENTION instead of on a single sale Emphasis on CUSTOMER VALUE instead of on product features LONG TIMESCALE rather than a short-term perspective High CUSTOMERSERVICE emphasis High CUSTOMER COMMITMENT High CUSTOMER CONTACT 3/19/2010 26 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

27. Conclusion The business environment is very competitive today Organisations are using price war, dependent on sales and some are even merging in order to survive CRM can be a more effective way to stay competitive 3/19/2010 27 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka

28. So you will see that the old wisdom “ Understanding the customer well” is presented in a different format together with modern tools of information technology as CRM. There is no new theory but CRM emphasizes the understanding of customer, the main stake holder in the modern day business. Good Luck 3/19/2010 28 Presentation done by Maxwell Ranasinghe to Students at the University of Kelaniya , Sri Lanka