What is CRM, Need, Evolution, Approaches, Features, Adv & Disadv, e-CRM and its details.

2. CRM is an integrated approach for
identifying, acquiring, and retaining
customers. By enabling organizations
to manage and coordinate customer
interactions across multiple channels,
departments, lines of business, and
geographies, CRM helps organizations
maximize the value of every customer
interaction and drive superior
corporate performance.

4. CRM Features
• Sales and marketing approach to building long-
term customer relationships
• CRM allows businesses to manage and
streamline sales, marketing, customer service,
call centre, and sales force functions.
• CRM systems support multiple forms of
customer interaction
• Increases integration of sales and customer
care.

5. Why CRM?
• It costs six times more to sell to new customer
than to sell to an existing one.
• A typical dissatisfied customer will tell 8-10
people
• By increasing the customer retention rate by 5%,
profits could increase by by 85%
• 70% of the complaining customers will remain
loyal if problem is solved
• 90% of companies do not have the sales and
service integration to support e-commerce

6. Evolution of CRM
Materials Requirements Planning
(MRP)
Manufacturing Resource Planning
(MRP II)
Enterprise Resource Planning
(ERP)
Supply Chain Management
(SCM)
Customer Relationship Management (CRM)

7. Traditional
approaches of
Doing Business

8. Traditional approach
• Intimate the Buyer through Fax, Courier and other
means
• On receipt of the documents the Buyer will start
processing the rest of the formalities
• If any change has to be done, then the Buyer will
have to Fax, send it through Mail to the Customers
• In turn, the Customer has to respond back to the
queries
• This is the normal time-taking, expensive and quite
cumbersome process for information exchange currently.

9. Disadvantages in the Traditional
Approach
• Increase in the Communication Costs
• Increase in overall operational cycle time
• More manpower required for customer support
• Cumbersome procedure with potential to create
bottlenecks

10. Advantage of Using CRM
• Easy access of order details to Buyers
• Slashing of order processing cycle times
• Cost reduction of customer support resources
• Decrease in communication costs
• Enhanced customer satisfaction owing to
improved quality of service

11. Customer Relationship Management
Value ( $ )
Duration of Customer Relationship
Targeting Acquisition Retention Expansion
• What is the best channel for • How can we improve • How many products does
• Who Do we target
• What segments are most each segment retention our average customer buy
• What is the acquisition cost • What is our average • How can we induce our
profitable
• What segments match our for a channel / segment customer relationship current base to buy more
• Do certain channels deliver length products
Value Proposition
• How can we hold customer • Who are the prime targets
• What is the best segmentation certain types of customers
• Cost effective acquisition for as long as possible for expansion
strategy for us / our industry
• What is the most cost • What is the cost of
effective method of expansion
retention
Customer Relationship Management can be simply defined as everything involved with
managing the customer relationship.

12. Who Provides CRM?

13. Every Company‟s Big Unknown ...
Customer Value
Full
Potential
Number of Relationships
Current
Current
Customer
Value
Current
Relationship Duration

14. Customer Relationship Management Process
Capture
Capture Customer
Customer Data
Data and Measure
and Measure
Results
Results
Capture Customer
The Customer
Data and Measure
Store Data, Mine
Results
Capture Customer
and Make
The CRM Data and Measure
Information
Results
Accessible
Dynamic
Take Action to
Capture Customer
Enrich the Customer
Data and Measure
Relationship
Results Build and Customer
Capture Manage
Data and Measure
Customer Value
Results

15. Implementing CRM must be approached from an
Integrated Perspective
Capture
Capture Customer
Customer Data
Data and Measure
and Measure Capturing gigabytes of customer
Results
Results data in disparate operational
systems that are next to impossible
to access may render the data
Taking action to improve the
useless.
Capture Customer
relationship without measuring
CRM
The Customer
Data and Measure
the results provides no evidence Store Data, Mine
Results
of success or failure and limits
without an Capture Customer
and Make
the opportunity for learning. Data and Measure
information
Integrated Results
Accessible
A data warehouse full of data
Approach without the tools to extract
knowledge is nothing more than
expensive inventory.
Sophisticated mining tools only
Take Action to
Capture Customer
produce results only as good as
Enrich the Customer
Data and Measure
the data they mine.
Relationship
Results Build and Customer
Capture Manage
Data and Measure
Customer Value
Results
Implementing new technologies
without the knowledge on how to enrich Developing insights on how to improve the value of
the relationship is likely to yield a return the customer relationship without having the
below the cost of the capital infrastructure to take action has no impact on the
expenditure. bottom line. In addition, there is no opportunity to test
the ‘theoretical’ analysis.
All areas must be implemented, to some degree, to effectively manage the customer
relationship. When pieces are implemented in isolation, the benefits are less than
overwhelming.

16. CRM Technologies on the Rise
“The overall use of technology for selling is
growing by more than 50% annually.”
– Gartner Group
“Sales Force Automation is the fastest growing
segment of the high-growth Client/server
$3,000 $2,744
(Dollars In Millions)
market, estimated to represent $3 billion in
revenues by 1997.”
$2,500
$1,960
– Market Intelligence Research Corp.
$2,000
$1,400
$1,500
$1,000
“Sales Force Automation will become a major
$1,000
driver behind enterprise-wide BPR
$500
(inexorably linked to development of the
customer-focused organization)”
$0
1996 1997 1998 1999
– META Group
CRM Revenue
“Customer Management is a major initiative at
Source: IDC 1996 nearly 80% of Fortune 500 companies and will
grow to a $4.8 billion market by 1999.”
– Aberdeen Group, Inc.

17. The CRM Market - No Clear Market
Leader
60% of the $2.0B CRM software license market is

controlled by 3 vendors
Siebel
Trilogy
Baan/Aurum
60% of the Top 3 share is controlled by Siebel

The consulting market for CRM is a large and growing

high margin / high revenue opportunity in contrast to the
shrinking ERP market

18. CRM Vendors
Vendor CRM Market Position
• Acknowledge leader
• Very integrator focused
TRILOGY • Leader in their niches
• Not integrator focused
• Excellent product
• Number 2, but struggling
• Product continually delayed
®
• Intimidation capacity lessening
• Bold announcements
• Claim high strategic priority

19. e-CRM
• The web is a perfect medium for managing clients. Why bother
spending hours educating the client on your products, USPs and
how to get to your office, when all of this can be placed on the web.
• A natural extension to this is online real-time CV monitoring. The
candidate checks your website to see where their CV is in the
recruitment pipeline; much like checking the whereabouts of a parcel
dispatched via UPS.
• The web can be used to create a virtual community around your
brand. This can also form the basis of another feedback loop. Let
client‟s let off steam in „virtual‟ public via an open forum.
Demonstrate your attention to customer care by handling the
complaint via the open forum, and thereby impress onlookers.

20. Be Aware !!
• Measurement is key, but chose the metrics
carefully
– o Sales per person as opposed to number of times
they say thank you
• Identify who are your low margin and high
hassle customers
– o Drop them, unless they are all like that
– o Focus on your most profitable customers
• Ensure the web site downloads quickly
– o Scrub the introductory Flash animation. You are not
in the animation business.

21. Is CRM Technology Driven ??
Enterprise leaders still consider CRM a technology. They
typically say, quot;We know what real CRM means; it's about
deploying a super-efficient software system and setting up
a call center.quot;
One example that truly stands out is Nutan Mumbai Tiffin
Box Suppliers' Charity Trust, which has offered robust
customer delivery for more than 100 years. Real CRM.
Real Customer Delight.

22. “Happy staff makes happy customersquot;

23. Thank You